The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-24
NORE KELLY CASES
IN TWO MORE MINNEAPOLIS
SUITS
INVOLVING FORMER FIRM
Lower Court I'm Both Cases Was Re-
versed the AppeaI-i RuI-
Ing That in Carrying Out the
Provisions of the VIII the Widow
Has the Preference Ove- Other
Beneficiaries.


For over year the supreme court
has devoted considerable of it's time
passing on some of the realty entan-
clements brought about by the failure
OF the firm of A. F. and A. L. Kelly,
| investment agents of Minneapolis AL
ready twenty cases of this nature have
reached the supreme court. The ques-
lions at issue have always been be-
tween the mortgages and mortgage
of property investments made by the
kellys. The firms modus operandi
was to place Eastern capital on West
ern property, and, after several years,
they would cancel the mortgage, but
fail to remit the principal paid on the
instrument. They would however.
continue to pay the interest to the
investor with great alacrity, in fact
the firm became quite noted for it's
prompt interest payments. Eastern
investors thought that any one who
RENTED interest as promptly as the
Kellys must be gilt edge. After sew
eral years operation some large insti-
buttons in the East, who were inter-
ested in investments placed by the
Kellys, became aware that all was not
right, and an investigation and GRIM
inal proceedings followed.
Two additional cases were decided
by the supreme court yesterday where
the mortgage and mortgagor applied
to the courts to determine which of
them should bear the loss occasioned
by the failure of the Kellys. The syl-
labi are as follows, both of them re-
versals of the lower court:
Harriet l.. Budd appellant VS.. Toilet E.
Broen and Sri e. Broen. respondents.
Syllabus. If a mortgagor pays his mort
gage debt to supposed agent of the mort
-tr1,N no rrNd1 tinr hx tha QOpn
of the note and mortgage he assumes the risk
of establishing in case of the denial Of such
agency the authority of the agent to receive
such payment for the mortgage.
2. The evidence in this case does not sus-
tain the finding that the plaintiffs loan agents
had authority to receive for her payment of
possession. Hare VS.. Bailey. rs N. W.. 213,
and General Convention Torkelson, rs N.
W.. 215, distinguished. Order reversed.
-Canty, ].
swanke ct al, defendants; NJ c. Heating
and Ellen Heating, respondents.
Syllabus considered and held that
it doesn't sustain the finding of the trial court
to the effect that the plaintiffs agents had
actual authority to receive payment for her
at the time have in their possession. Order
reversed. Start, C. ].
A man by the provisions of his will leaves
a ieSNpCy vi @1oo W d lfleHu. Inc pFOceeuS UI
the estate do not net an amount sufficient to
pay this legacy in addition to the widow
share. The court in a case involving this
point yesterday decided that the widows
share could not be made liable for this
amount. The syllabus is follows:
Mariet Halvarsdotter Bengtsson ct al, appel
lants. VS.. Mary Johnson, respondent.
Syllabus-A testator who left no issue
father or mother, gave by his will $500 to H.,
to be paid by his WIFE, but If not paid with
in five years H. was to have one-half of his
real estate; if H. was dead the $500 was to
be paid to the testators nearest relative. H
was dead. The residue of his estate he gave
hcient to pay. the legacy, and it has never
been paid The probate court by it's decree
of distribution assigned the residue of the
estate to the widow without condition or
| reservation. Held, that the construction plac-
ed on the will by the probate court by it's
ested in the estate, and that neither the
widow nor the real estate so assigned to her
is liable for the payment of the legacy. Judg-
ment affirmed. Start c. j.
Following is the syllabus in another case
filed:
H; Lytle respondent, VS.. Chicago Grea.
ants; Charles Clifford appellant
Syllabus. Held. that the Judgment and
roll in former action between the paroles
hereto were competent evidence In this case
to establish an estoppel by verdict against
the appellant as to the execution and validity
of the assignment under which the plaintiff
claims
2 Evidence held sufficient to sustain the
finding of the trial court to the effect that
the assignment under which the appellant
claims was made to secure loan which has
been paid. Order affirmed Start, c. ].