The New York herald., 1867-03-22
BRoOKL YN COURTS.
su2REME COu7T-cIaCuIT.
Action Against an Ex-City Chamberlain oi
New York-s35,00O raniuges Claimed
Interesting Testimony, &c.

| Action Against Ex-City Chamberlain o
New York-S35,000 Damages Claimed
| Interesting Testimony, &c.
Before Judge Gilbert. :
/ Orando Allen vs Andre,o v Stout.--This action wa
! brought by plaintiff, who is a resident Of Buffalo, :
the Of s3e 900, out of which be claims &c
have been defaaed by false representations made b.
def, ndant April 1854 Mr. Stout is President
the Shoo and Leather Bank OF New York. and was for
merly City chamberlain. /, appears that at the tim
| specified above sir. Allen negotiated with Messrs
| Clapp \ Habbel FOR tho sac of large quantit,
| was Sic50oo. Ho was to receive s00,00l
| in cash, and take the remaining $4,000 in stock 0
bonds of the Star Arms Company Not Knowing any
thing concerning the real OF the stocks, plaintiff
as he claims, would not take them until lie made som
i-qures in regard 10 the company He was direct t
the defendant this sui who was, claimed, stock
holder ana manager OF The company, aud who assured
HIM that the company was solvent and It's bonds we're a
good Cnied states hve-.weniies Upon these repre-
sentaops the piantn alleges he rec lived the stocA oI
bonds, purptipg 70 be valued at $50 600 but forwards
company inaovenL Ar Alien, therefore, sues 10
| recover t1at amount including interest.
The Tho GcfeH Is 4 gen era denial that su ch
representations were made.
Tne came On for trial yesterday. Mr. G i Jenss
opened ne case Tor plaintiff, aud called Mr Alien % the
stand tho arst witness. Ills testimony substan
TALLY as folio.s-l nego lated with AessEs Hubbc l.
Ciapp to the Of he thousand ceres OF land Penn
syivauia for Consideration or SI25 U00 and executed
contract Tor that purpose about Tie art OF JGae, lo6l
the contract offered IN evidcncoit was deposited
with Mr.. Stout tho nank after its e1ecl,on at tn
sngg ssion Aessr Hlboeii g. c!app; Subsequently,
abstract Of tile ard cnad mad, oat the dc
executed by myself and wife; When the time came FOR
the payment of L.s ineiaincnt they roAdy,
paid portion Of the purchase mou,y
aud offered these bonds, about which consulted AIR.
S,out Witness, alter stating that lie had examined the
buildings OF the Company at loakerS, wicn they
Claimed belonged to thcm continued as foloHs:I think
it was in the carly part q July when weDt 10 see de-
fendant at the Suoo and Leather Bank, had in.er
with him. Mr. Hubboi, Mr.. Stout ard M Ses
the only persons present. asked Mr. Stout about
the Snr Arms bonds remafkin that hai been referred
To him for iniorwaton concetmps tho nnanah condi-
ton Of thai company and that had been informed he
STOCK holdcr and that their bonds good
government ye,wenie les; he tod me that the conpsny
owed f0alng debt tnau the 500 900 OF bonds
which they had issu d. aad part 81 .hcg were oareG 20
and that they abuncantly able 10 them
went away and notified MIR. Hubbeli tell Ar Iiapp
that satisfied froln dr Soals representations tina.
the bonds were good and that would take them
soqGenty took them With that understanding; hold
em still but never have recovered cent OF payment
fr than.
On his crossexamination by Judge! Pierrepont the
pantT stated that no was sxtyfoar years OF age, aud
TO Buffalo w.len he was sixteen; was mcrchant
from my boyhood until 1882; then into the bank
ing business aud remained IN that until 1885, when Mr.
Ralhbun iaicd closed up my business aud did not do
anything part uiar Tor three or iour years.
,eied into the banns business IN 1882 and n 1871 the
bank OF which was president failed, nothing whatever
being pad; the years admin strator of
my mothers estate, until set emcnt made
fash on, I ticn commenced farming at Buffalo,
ana in 1852 when the Buffalo and Pi.isaurg Railroad
Company organ zcd, became president OF IL The
road, however, was never In!sncd We collected What
money could for stock ard commenced constructing
tue road put Il never was nnished; none Of the
coec cd ever repaid; after tnat MAS IN tho Legs
atGru, Mayor Of Buiao Tor several years. and in ISIS
1879 engaged with tuo 0gIen Company, negotiating
for the Indian Reservation; aid not Know OF any
nisaipiclilono OF moneys in that company, there
Indictment against me IN ByIaso in 1872; have no
recollection of having Ar stout before lsi
OF juno, 1864 u at the Shoe and isa,her Ealk.
Defen,anss council tnen read guaranty written by
Mr. ~ co. painn, ard sisned by Air. Giapp, ~ whicn
tho later garautsed to Mr.. Allen from loss IL
accepting thc bonds.
Witness continned--After saw Nr Stout made the
guaranty; The lsnd to aesss Hnbbcl and Clapp
oi 1000 acres 3.Ooo oi wnic had purcas
| fr SIS acre; ihe other 200 acres owrcd Tor
long time presioay the iard was IN Ackean count
fcnnsy yyania suppose Mr.. habbe desired 10 Ia
the bonds; ho did not know anything about them lie
Las advise m his down 20 the present tlino
Mr. Stout was repre- enied 70 me 10 be na wealth,
6c, anu mad confidence IN hin; did not do not
nov know that ne never held stock in the star Arms
Company; tins s tie iirst Tune that air. hubbe has
been my counsel
on hrs drcct examination Mr.. Allen explained tho
u his naicsme nt in BGfiio In 1872 ON tue rer
Resolutions OF the cashier oi tho Bank or aaaip. ol
witch rreSiucni, after Tie dcaa Of Dsothe..
i-aw his predecessor nc reported tae circulation og
TIE bank mucu smaller tnan ii really vas The 1t
OF the Bank Coiuuissi rcrs both himself and cashier
we're lnGcscd, b.t tae mature OF tue suDse
q ea,ly made known, Ho.e rr sqat entered and no
tial took place. lie afterwards elected Mayor OF
la0, meinDcr OF tho Legislature, &c In relercn 70
aly misappcaTon of funIs The Ogden Company, sir.
Auen stated thai no moncys ey passed throsgh his
hands what wefc used FOR dciryins hs expenses
or. Horace j. Moody, OF NonkcrS n0xt liued,
and Ustiued that NJ. stout manager o5 the star
Arms Company, in 1861 amt 1865; the pany tailed in
lsOJ, witness met with Dc endant neeiry OF the
creditors and sto khoIers tie company wnlcn was
held receive general sta enc o. the OF the
company and % take steps IN order tnnt the company
a-ht not break ~; the amount u Indebtedness was
prsend 10 Oc between 100000 and $7000O0 exclusive
~ tAo SuOo00 IN bends aud iud geAts aeainst the
iany amounn 20 over 200 coo; alter the eiure &c the
old con pafy new company under tbs name OF the
!. tar krAT % vonpany,' wss formed arvut tho let u
January. lo55 aO1ut Sy0J 00J put preferred
stock; i represented te great bak OF to debt of tne
ODD company, exclusive ta Jadgiaents tho property
~ the ora company sold hherg sale the Stock
% tns new conipany Is worthless
CruSs-exnsnina0n-l bad $50 900 in cash IN the
pauy before tae bonds ~efe ss1ed took about $40 900
vrth ~ ttc BONDS 20 neaoliata aud of these ned
$4,000 worth received Them GOOD bonds, bnt have
me- recovered ing Tor them; took the bonds
tho repeEen that tie earnings OF the COMPANY
we're per day, AMI tuat the issue o the $500 900
worth ol c0ud be paid OH and the company clf
coas
cyrus Cleoland being called 10 stand testified that
lie rad lent tho star Arms Company between $50, 900
and $4,000 and obtained Judgment against them for
sl5,000.
Mr Holt OF the Arm Of Collins Co, testified that
when tie company failed tDey owed his nm Sa5 900 10
gold or ABOUT $SOUg0 10 currency At the of tho
I'D r oi the notes. the nrn TO preferred stock for
tbc notes, bat realized anything on u