The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-05-07
HOLDS CONTRACT
VOID FOR USURY
District Court Is Reversed and
a New Trial Is Orr
dered.

The supreme court Of Minnesota has
reversed the district court of Sher-
burne county and ordered new trial
in the case of Catherine Hagen and
William Hagen against Henry A.
Barnes and William Auslander. In
giving its opinion the court, by Chief
Justice Start, sustains the contention
that the allegation Of the complaint
that the defendants were guilty of
usurious conduct is sustained by the
evidence.
In a real estate deal in 1899 the Ha-
gems applied to defendants for a loan
of $500 to be secured on an eighty
acre tract Of land to be purchased.
The defendants refused to make the
loan, but in effect agreed to buy the
land for $500 and resell it to the plain
tiffs for $625. Two mortgages were
given by the plaintiffs, one for the
$500 and drawing per cent interest,
and the second for $172 to cover the
additional expenses. The lower court
treated the transaction as a purchase
and sale of land and not as loan.
The supreme court holds that this po-
sition is not justified by the evidence,
and treating the transaction as a loan
and using the highest legal rate of In
terest finds usury has been practiced
by the defendants. The case is sent
back for new trial Following is the
syllabus in the case:
Action to cancel two mortgages as usu-
rious Held: That the finding and decis-
ion Of the trial court that the transaction
was purchase and sale of land and not
usurious are not sustained by the evil
dence. Order reversed and new trial
granted. Start, G. j.
Must Keep the Lid On.
The appeal of the Manhattan Light,
Heat and Power company and of the
Jones & Adams company from a YER
dict of $1,000 found in Judge Hascal
r. BrilPs court in favor of Samuel
c. Ray, is disallowed by the court in
a decision filed yesterday by Judge
Lovely in the supreme court The
plaintiff was injured by a fall into a
coal hole in front of the Manhattan
building, Fifth and Robert, and the de-
PENDANT companies, owners of the
building and employers of coal wag-
on driver who had left the lid off the
aperture, were both held liable in the
Ramsey county district court. In af-
firming the decision the court says on
the joint liability Of the defendants:
That while the employee Of the COM
pany delivering the coal was under no
direct contract relations with the defend
ant owning the building and was not the
servant of the latter, or under it's imme-
date supervision or control, yet such own
er by reason of the public character of the
use of the sidewalk the privilege of main
tanning the opening therein and the bene-
fits accruing to it by reason of such use
was bound to exercise reasonable care in
guarding or protecting an opening caused
by removing coverings therefrom to pre-
vent injury to persons lawfully using the
walk and for its failure to do so was an
sWerable for it's want Of ordinary care in
that respect.
Other cases decided yesterday by the
supreme court were:
Roy L. Braucht. by Katie d. BTaucht, his
guardian ad Item, appellant, VS.. The
Graves May Company, respondents.
Order reversed. Start, G. J.
Sherburn Land Company, appellant, VS..
T. E. Bells, respondent.
Order affirmed. Start, c. J.
The Martin County National Bank OF
FairnQnt. appellant, VS.. William Bird
as administrator Of the estate of D. w
Sculthards deceased, respondent.
Order reversed. Lovely, ].