The New York herald., 1867-03-23
BaooxlYn SUPREME cOuRT-clacuIT.

Tho Allen.StOut Case-Scc0nd Days Proceed.
ings-TestImonS for the Defence.
Before Judge Gilbert
Orlando Allen us AndreH Y. Soek Tho trial Of this
case In which the plaintiff resident and ex-Mayor OF
BuGalo, sues ex-City Chamberlain Stout Of New York.
TO the Of s55 000 together with interest
from July 2s 1894 (which makes the damages claimed
amount TO S42 2s0) was resumed yesterday morning.
will be remembered that the time in question the
plaintiff negotiated with two parties named Hubbeli and
Ciapp for the aale or i've thousand Of land in
Pennsylvania which he owned and Tor which he asked
sl25,o0o Messrs Hubbcl and Clapp offered IN part
payment ss5 900 worth OF the bonds Of the Star Arms
Company, which he received after, claimed, he bad
been assured by defendant who according 70 plaintiffs
testimony represented to him . stockh0der and
manager Of tho company that they good as
United States ve-tweniy bonds and that the company
tna. hc bonds were utterly yauesss and sSat ndeed
the Star Arms Company was insoivent He therefore
instituted this action 70 recover for his loss caused by
The greater and important part Of the testimony
for the plaintiff published in the HERALD OF YES
day In the forenoon the case was opened for the de-
The rst witness called 70 the stand for the defence
was Mr. John E. Williams President Of the Metropolitan
Bank, testified that he had written 70 Mr. Cyrus
Cleveland that the bonds Of the Star Arms Company
were, in his opinion, valid; he (wtnessI had been
whether he vas one or not 4 the time Of wrng that
letter. his impression that he was not stockhodor
at that me in 1863 and 1854 be loaned on the stock Of
that company and on their bonds sums amounting 10
nearly $50 o00 CALL which he had not yet received
he had confidence In the company until u failed.
Cross -examncd-He bought stock from Mr. Clapp, the
Treasurer Of the company and sold him again; his
confidence In the company was founded what he had
sSsn ~ soc ED.V .nynS ds boT Ss
ness or circumstances OF the star Arms Company but he
had heard Of their borrowing money AZ the Shoe and
the amount OF their indebtedness he believed their
debts were materials and their assets for
Dsv,d W. Kendee for plaintiff: was clerk OF the Pali
sade bank Yonkers IN 1854; before that bro
kcr Wall streets borrowed money very often for the
star Arms company, the amounts being from S. 600
e25 900 generally; the money was borrowed on the
checks Of the company; commebced doing this in the
summer Of 1864; gave all the money Mr. Clapp, the
Leather bank the checks the shoe and Leather
bank Supposed the money was raised 10 keep up the
bank account OF the company.
Cross examned-I borrowed this money at the sug-
eestion Of Nj. Clapp
New York Life Insurance company; was stockholdsr
Ia the Star Arms company in 1854; about the 28th OF
July 1884 sold some stock this company in the habit
company loaned the starArms company 900
the bonds OF the latter the subject first referred
70 the finance committee Of my company who reported
in favor OF the loan took from Mr. Capp their bonds
for security or the loan.
Cross examned-That loan is no, yet paid; boueh,
my 900 worth OF stock when the capital Of the
Star Arms Company increased did not buy the
stock from Mr. clapp; subscribed at his request; IL
was IN loO}, STOCK 70 niu AMI got
about 81 10 for it-part In money, part IN notes.
Edward Clapp, for the defence, sworn-I am the
Capp spoken Of in connection with this matter; was
president Of the bank At Yonker until October, 1884,
when II faled was treasurer OF the Star Arms Com
pany and financial agent Of the Western Transportation
Company; the Arms Company In 1854 were doing
very large business; the orders Of government were
large and we were making money; advised the ssocA
holders TO double their capital, and told them =
would pay, the company delivering 10 the govern.
ment 500 carbines and $500 pistols per month tne
total outlay OF the company was over million OF dol.
lars; IL would be folly to attempt TO start an arms
company and make gun short Of $500.000 capital
trhe machinery for making the parts Of gun were
shown by witness The entire assets OF the company
over 81 600 600; was called the finest factory
in the world we employed six hundred and fty men,
who were paid onco per month, the payroll amounting
70 &35o0o We were not paid by the government every
four Ave months; the government paid only IN GER
ncates receipts which took from four to six months
to raise money TO pay hande; July. 1904 the CON-
pany was making from 81, 900 10 81, 200 per day
bought stock as 81 TO- opinion was that i was the best
Investment could make: the 2Sth OF July bought
so sharefo Mr. Beers and paid 81 TO- the credit OF
the company continued until the middle Of August,
What nrst touched It's credit was my own credit,
which became embarrassed and my own inability
to carry these loans became embarrassed N
my own private matters, NJ, Hupbell requested M.