The Saint Paul globe., 1900-04-22
CHESTER WAS SLIPPERY
COURT RECORDS SHOW A SCAIY
TRANSACTION IN WHICH
JUDGMENT LODGED
MORTGAGES NOT BONA F1DE
Given by a Principal, Whose Agent
Smith Was, to Chester's Part
ner'S Sister Without Her
knowledge.

Ihose Who are unfamiliar with the
business career and methods of the Re
publican nominee for mayor can find in
teresting reading in the proceedings Of
the courts of the state, and such, too,
as will lead them to think, no doubt
whether such man should be intrusted
with the highest office in the gift of the
people of the city.
In the Minnesota reports, volume 49,
page 4O4, is to be found the record of the
supreme court of this state in the suit
of the John Martin Lumber Company
against William E. Howard and this
case involves a dubious transaction in
realty in which Chester r. Smith was
involved.
William E. Howard owned two city
lots in st. Paul, and Aug 10, 1890, en-
ployed Chester r. Smith and Oscar E.
Taylor to sell them The supreme courts
record of the case says:
"On the same day Howard and his
wife, without consideration, made a
mortgage Of one of the lots to Taylors
sister, Winnie L. Taylor, nonresident,
for 81, ,425 and interest, due on or before
Nov l. 1890. She knew nothing of the
mortgage, paid no consideration for it.
and had in fact no interest in it. but it
was delivered to her brother and he put
it on record and then retained it in his
possession with Howards assent Smith
d Taylor were real estate agents. but
had no written authority from Howard
to sell the lots or make contract Of
sale or sign Howards name. They, on
the same day, gave one Fred Nicholson
a written contract of sale of this lot
signing Howard's name to it ''by Smith
q Taylor, agents. Nicholson paid
down nothing, and had no pecuniary re-
sponsibility, but by the contract he as
sumed to pay the mortgage and 81 for
the lot. And he orally agreed to build
on the lot. The lot was worth no more
than the amount of the mortgage Mich
olson then commenced to build buying
materials of plaintiff and others and en-
ploying mechanics on credit He failed
to pay the bills, and in December, 1890,
abandoned the property and Howard took
possession of it for non-payment of the
mortgage.
The other lot was involved In a similar
transaction, with the exception that a.
barn was to be built thereupon
When the John Martin Lumber com,
pany began suit to recover for lumber
| furnished. Howard and wife, Smith &, Tay-
| lorand Miss Winnie Taylor were all made
| defendants They all defended, claimina
! the mortgages to be bona-fide incuu
brances and that HoWard's title to tha
lots was not affected by the liens for
! labor or other material. The case was
| tried May Is, 1891, and the court fnurd
That the mortgages to Winnie L. Taylor
were made for the purpose OF obtainina
priority over anticipated liens for labor
| and material, and were held by How
ards agent for his benefit, and to Sc
cure to him the purchase price OF the
| lots, and that he and his agents, Smith
! & Taylor, knew the facts above stated as
| they transpired"
| The court ordered the property sold to
| satisfy the lien, and the supreme court,
! Justice Collins writing the opinion, at,
| firmed the order OF the lower court. In
| the opinion, Justice Collins wrote:
"As Smith & Taylor had not been
| authorized In writing by their principal
| to sign any contract for the sale of real
| property, the pretended agreements exc
/ cuted by them were invalid and non-en-
| forceabe under the statute OF frauds And
| We think that an examination CT these
| peculiarly worded instruments by any
! person in possession OF the surroundings
! of the transaction, would impress him
| with the full belief that they were de,
/ signedly of this invalid and nou-enforce
! able character. TO speak more plainly,
! that they were part of the plan to
| make the pretended mortgages prior and
! superior to airy liens which might there
I after be filed by mechanics or material
| men against the premises. There could
have been but one object in the execu-
| tion and putting on record of these al.
| legged mortgages, given to secure a ffc-
! titious debt. in which the real owner of