The Red Cloud chief., 1905-04-21
CITY AGAIN WINS.
Suit Against Moon Estate and John 8.
YelScr ct al. Again Decided In
Favor Of the City.

Last Friday in the district court
Judge Adams again sustained the
@city's contentious i'm its suit against
the Michigan Trust Company and
John o. Yeiser ct al. to recover the
proceeds of the sale of the bonds is
sued to raise money to build the
electric light plant.
The history of the case shows ore of
The hardest fought legal battles in the
history of Nebraska. In 1893 the city
of Red Cloud issued bonds for the
purpose of installing an electric light
plant. The proceeds of the sale were
deposited with the Farmers a. Mer-
s.hants bank, which oon afterward
failed. At the time of the failure of
abe bank there was on deposit to the
credit of the city S6,0S7.
When the bank failed the creditors
agreed To allow the stockholders one
year in which to make a settlement of
claims against the bank. The stock
helders were to deposit deeds and
orher securities to ecu the payment
of the claims. G. Wiener was the Gus
aOaian of the securities deposited.
John w. Moon was one of the heav-
iest stockholders in the bank, and to
secure his portion of the liabilities he
gave a trust deed to that part of the
Moon block now occupied by Hadell's
dry goods store. When J. W. Moon
died the Michigan Trust Co., trustees
Dr Damerell of this city, and the
property named in the trust deed was
included in the sale. II is said that
eSr. Damerell's interest in the building
ss secured by a mortgage to the trust
company which is not to be paid until
fbe title is cleared Judge Adams de-
rision sets aside this sale and orders
the building to be sold to satisfy the
claim of the city, which is the only
claimant against the bank who has
not been paid.
The officials of the bank also gave a
trust deed to the bank building to Sc.
cure the depositOrs. John o. Yeiser
et al. claim to have purchased the
bank building under a sale held to
satisfy a judgment held by Thomas
Ryan Judge Adams decision was
that the sale was invalid, evidence
having been introduced to show that
che judgment had been paid with
money borrowed from the State Bank
of Red Cloud on securities deposited
with that bank by the cashier of the
Farmers 4 Merchants bank, and that
Judgment was paid before the alleged
sale of the bank building to Ieiser e.
al, Judge Adams decree orders tina
the bank building also be sold to sat
isfy the claim of the city of Red Cloud
The city's claim, in principal an,
interest, now amounts to about $500,
aud there is no doubt i'm the minds O
the attorneys that the city will som
day get its money The city secure
judgment in the district court some
thing over two years ago, and the cas-
was carried to the supreme court b
the defendants, where the judgmel
was reversed on a technicality and til
case sent back to the district court fl
retrial.
1t is probable the case will again
taken to the supreme court, thong
the attorneys for the defendants Ca
have but little hope of securing a +
versal, as Bernard McNeny and j.
Mercer, the attorneys for the cit
have been very careful to see that u
fechnicalities we're allowed to creep
at this trial, and it is probable the eli
will get the money due from the d,
innct bank before the year closes.