The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-05-27
COURT SUSTAINS
EGAN MORTGAGES
Local Merchant Given Right to
ForeclOse on Ernst and Ex.
change Buildings.


In decision handed down by Judge
Brill yesterday the validity of the $14,-
900 second mortgage held by William
H. Egan on the Ernst building, Fifth
and Wabasha streets, was established,
and the announcement is now author
itatively made that Mr.. Egan will re-
deem the building and operate it as his
absolute property. To secure undis-
puted possession to the block, Mr..
Egan will have to settle with the Penn
Mutual Insurance company, which
concern holds first mortgage on the
building for $4,000.
This will place the property in Mr..
Egan,s hands at a total cost of $124,-
900, which is considered a good invest
ment, since the property is now paying
good interest on an investment of
100000.
The suit decided yesterday by Judge
Brill and which is a victory for Mr..
ESan, was commenced in the district
court on Tuesday, being the first of
series of suits growing out of the de-
falcationS- of Casper Ernst, the former
st. Paul broker and banker, who is
now serving a ten-year sentence at
Saltwater for his participation in
NAOOnAOo 11ndl1Cictl u6d1S, ny ulGdIlS Oh
which he is said to have defrauded
people out of between 100000 and
100000.
Right to Foreclose.
Judge BrilFs decision, giving Mr..
Egan the right to foreclose on the
Ernst building, also carries with it the
right to foreclose on the Exchange
building, less valuable property 10
Gated on -Wabasha street, and formerly
owned by Ernst.
When Casper Ernst first proposed to
buy the Germania bank building. now
known as the Ernst building, he per-
suaded Mr.. Egan to indorse his notes
at the Second National bank to the
extent of $4,000, <of which amount
$4,000 was paid in June, 1903. Before
the remaining $4,000 was paid Ernst
became insolVent, and Mr. Egan had to
make the $4,000 good at the bank, for
winch he held mortgages on the Ernst
and Exchange buildings.
The question raised at the trial of
the case was whether Egan's mort
gage was preference Judge Brill
hoIdlhg that~it. was not and that Mr.
Egan was entitled to foreclose. At
the time Mr. Egan indorsed the Ernst
notes there was nothing to Indicate
that the latter was not solvent, and the
court holds that Mr.. Egan took the
and not for an old debt.
Judge Brill holds that the Egan
mortgage should take second place, fol-
lowing the mortgage held by the Penn
M9tHal for $4,000, covering both
Following the disposition Of the
Egan case, Judge Brill took IN the
nearing OF another Ernst case, that of
~ L. ware, as trustee in bankruptcy
OF Casper Ernst, against Rev. Father
meyer, of Bayonne, N. j.. to set aside
the latters mortgage of 1922, 600 on the
building as preference. Trustee
ware also seeks to set aside Father
Meyers mortgage for $4,000 on the
harrington avenue homestead of David
Burke, the father-in-Iaw of Ernst.
Rev. Father -Bloomer, another priest.
also has suit to foreclose a mortgage
on the harrington avenue property the
amount involved being $4,000.
Ernst's Methods Disclosed.
The suit against Father Never was
finished yesterday and taken under
Amusement by Judge Brill, and yester-
day afternoon the Boomer case was
taken up. The evidence in these suits
disclosed some of the methods en-
ployed by Ernst in securing money
from different persons on the same
property. Forgery and dunIicated
slgnments of the same property. were
brought to light, making the cases very
badly mixed.
Among the amusing incidents of the
trials was the reading of a number of
letters, written by Ernst to Father
Meyer, the letters having been written
at the time when Ernst was pressing
him for more money. The former
flnancier showed himself a past master
in the art of letter writing, many of
the epistles telling of investments he
had in mind that would yield aston
ishing returns.
During his correspondence with Fa-
Their Meyer, the priest noticed a dis
crepancy in statements made by Ernst
in his letters. and called the bankers
attention to the matter, but Mr.. Ernst,
in his next letter, passed the matter
off as mere joke and told Father
Meyer he would take him to the Wal
dorf for dinner the next time they met
in New York:
The Bloomer case will be continued
before Judge RriI1 f0dar