Dakota State Bank v. Winona Wagon Co.

Taylor, C.

Action on a promissory note. Liability on the note was admitted and the sole question presented is whether the evidence tendered by defendant was competent and sufficient to establish an agreement to extend the time of payment.

In the early spring of 1921, defendant, a manufacturer of wagons, owed $365,000, including a note of $2,000 to plaintiff, and was insolvent. It had a large amount of material on hand from which but little could be realized unless manufactured into saleable products. It made an arrangement with its creditors by which it was to continue to operate its plant…