The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-06-10


Judge Bum yesterday filed decision
In the second trial of the action insti-
tuted by the Fort Dearborn National
Bank Of Chicago, against the receivers
of the Bank Of Minnesota, deciding the
case in favor Of the defendants.
The decision gives the receivers judg-
ment in the amount Of difference found
between the Indebtedness of the two
banks, amounting to $435.36, but is in
effect judgment for a $4,000 note, the
ownership Of which was in litigation.
The suit grew out Of the failure Of
the Bank Of Minnesota, which for some
years during it's solvency acted as
Of the Fort Dearborn bank, making COL
lections and conducting other business
in this section for the Chicago bank.
When the agreement between the two
banks was entered into the Bank of
Minnesota deposited $4,000 as a surety
with the Fort Dearborn bank. When
the Bank of Minnesota suspended there
was owing to the Fort Dearborn bank
29,11616, arrearages on collections.
Shortly before the suspension Of the
Bank of Minnesota the Fort Dearborn
bank forwarded to its agent checks and
drafts for collection, amounting to $5,-
SGS.59, which went into the hands of
were collected.
In 1898 the Gladstone Land company
gave the Bank Of Minnesota note for
$4,000, Endorsed by several officers Of
the Bank of Minnesota, who were also
officers of the land company. Event
ually this note was sent to the Fort
Dearborn bank, discounted and credit
ell with the original $4,000 surety de-
post to the Bank of Minnesota, total
ing with accrued interest, at the time
Of the Rank Of Minnesota suspension,
$35, 260.11.
At the time this note was credited
William Dawson Jr., cashier of the
Bank of Minnesota, entered into an
agreement with the Fort Dearborn
bank that the rote was to be simply all
addition to the original deposit and was
net to be drawn against, the Fort Dtar-
born bank reserving the right to at
any time charge the note to the Bank
Of Minnesota.
The note and the above agreement
were renewed in 1895. When the Bank
Of Minnesota suspended the books of
both banks showed an unconditional
credit in favor Of the Bank of Mime
sofa amounting TO $35, 360.11 The books
also showed that the Bank of Minne-
sofa owed the Fort Dearborn bank $29,-
116.16, an Indebtedness arising from un-
paid collections and the last consign-
ment of notes and drafts collected by
the Bank of Minnesota rec ivers.
The day the Bank Of Minnesota sus-
pended the Fort Dearborn bank charg-
ed the $25, 200 note to the account of the
local bank under the terms of the
agreement with William Dawson Jr.,
and sued the receivers to recover the
SIS. S0S.59 collections made by them.
|, The court holds that the agreement
abe tween the Fort Dearborn hank and
William Dawson Jr. was not legal, that
ethe $4,000 note was rot note of the
Bank Of Minneso a, and that Mr.. Daw-
son had no authority to make the
agreement entered into relative to this
note.
In figures the court found that the
Fort Dearborn bank owed the Bank.
. Of Minnesota 35,360.17, While the Bank
! of Minnesota was indebted to the Fort
Dearborn bank in the sums of $29, ISIS
and S., S0Sa59. - =
{ The case was tried twice. The first
trial resulted in a decision for the plain
tiff, but before the supreme court the
. decision was reversed and new trial
ordered.