Daily globe., 1879-06-21

the United States CIRCUIT court, yesterday,
about three o'clock. This condition of mind |
was aroused by calling for trial the case of
VIM. L. ANDERSON vs.. THE FIRST NATIONAL BANK |
of this city, or more properly speaking the de-
fendant can be named in the person of Horace
Thompson, the president of the corp. ration.
1t will be remembered that the GLOBE on the |
30th of last November exclusively published
the complaint. 1t recites in substance that |
Horace Thompson by false representations in
duced plaintiff to enter into q copartnership |
with R. o. Strong, the latter being represented |
by Thompson to be solid financially, etc. In
advance of this plaintiff had deposited $4,000
with the defendant Subsequently the part
nership was formed, but at this very time
Strong was insolvent and was indebted $4,000
to defendant. The complaint further alleges |
that the funds of Anderson, or such as he put
into the firm of Strong &c Anderson, were used
to pay off the Indebtedness of r. O. Strong q
Co. to tho First National bank, without
knowledge or consent of plaintiff, and
that the inducement held out
by Thompson to plaintiff to form a partner
ship With Strong was to procure the lqulda- |
tion of Strongs indebtedness to the bank:
The trial by jury came up at o'clock, rs
stated, on the above issue.
Mr.. s. L. Pierce appeared for the plaintiff
and made statement Of the case to the court
and jury.
Messrs Flandrau l. Clark had the Defendants
interests in hand.
W. L. ANDERSON 8 TESTIMONY.
W. L. Anderson was sworn as witness in
his own behalf, and testsfed that he came to
St. Paul first about the 1st of December, 1870,
a to tai stranger, having no experience in the
carpet business. About fortnight after his
arrival he called at the First National Bank,
deposited two or three hundred dollars and
made the acquaintance of Mr.. Horace Thomp-
son. After looking around town he made up
his mind he would like to 60 into
business and then H., there was, was slooSo 90
deposited in Mr.. Thompson's bank. He told
Mr. Thompson that he had little money and
wanted to get into good, reliable house, and
asked Mr.. Thompson if he knew Of any such,
Mr. Thompson telling him he would look
around and let him know. The first house
that was mentioned was that of G. D. Strong
Witness concluded he would not go in with Mr..
@. D. Strong, and then Mr.. Thompson recon-
mentled r. o. Strong as thoroughly honest,
reliable business man and perfect
and saw Mr.. Strong. Strong was very
plausible and explained everything nicely, and
witness subsequently became his partner, un-
der the assurances of Mr.. Thompson to the
effect above stated. An inventory of the stock
of Strong Co. was represented to witness an
$20900, and he paid in $10, QUO for half, and
allowed Strong to draw on him for few
dollars more, so as to make them equal partners
in the capital stock. There were to be no ex-
listing debts against tho firm at that time; they
commenced with clean sheet. Mr.. Strong's
brother, j. Strong, acted as book
man employed by witness. a cousin
of Mr.. Strong, by the name of Baker. who
kept the books until May, 1873.
Witness then stated that the profits realized
from the sales Of the first year as appeared by
the books, amounted to nearly the sum of
thath ha n dra ONt
time the partnership was formed to the time
of its dissolution. In March, or about that
time, he did not know that the firm of Strong
& Anderson owed the First National bank a
learned that on the 9th day of February the firm
were indebted to the bank $25, 900. Witness could
never understand how SO much money could
be used in the business; $4,000 or $4,000
ought to have been sufficient to carry the busi-
ness. He thought the line of credit at the
bank was too large, and in March, 1872, he
lifted what he considered to be the straight
$7?i5 $$7,45o. STRONG Anderson Inc amount OF
In August, 1872, the firm had discounts at
the bank of $17, ,444.36, which. with the dis
counts taken up in March, would make over
$25,OOO. At the end of 1879, after having
done business of over 1000, there was
found to be no Pre- Prots @ left Then plaintiff i be-
something wrong. He found the books
$8,976.48. He learned that Strong had nc
property at the time the partnership was
formed, aside from his stock, a mortgaged res
idence and some poor accounts, and 1t was wit
ness belief that he had been insolvent ever
since.
Witness stated his first suspicion was aroused
by the fact of bank collector from the FRS
National coming and taking Strong aside. he
Witness wasn't allowed to take part in the con
ference After this witness went to Mr.
Thompson and wanted to know just how
Strong & Richardson. and Strong stood will
the bank. Thompson hesitated for while, anC
then said Strong owed few small debts, bu
was reducing them and said, sits all right
all right This reassured Witness and he de
parted, his fears being allayed. This was about
the beginning of 1873.
Witness related a subsequent conversation
which he had with Mr.. Thompson as late a
last August. Thompson and he met, and in
quiry was made by Thompson as to his stand
ing with his father-in-law, etc. In the cours
Of his talk witness had said he never coult
understand why he had been kept in deb
when with Strong, though doing big bust
ness. ..
Thompson remarked, "Why you know Stron
owed mo $1S, 500, which had to be paid whe,
you went into partnership"
"Great God," exclaimed the witness, 81
that so."
At this Mr.. Thompson asked him if he hadn'
known this before. Witness said "No, you are
the first to tell me,'' and continued by ex
claiming that he had been robbed, and re
minded Thompson that he, Thompson. had rs
sured him Strong was all right, safe, sound an
honest.
Witness confessed to becoming much excite
at the time, and that Thompson told him
keep cool, and that he should not go on th
streets and talk about his losses, but keep thel
to himself, like man. During this intervie,
MIR. Thompson spoke of statement, whic
statement witness asked for next day. NJ
Thompson tried to turn him off with, 20
was given statement, which gave an exhib
of Strong's indebtedness as follows:
r. o. Strong & Co. (Strong & Richardson's il
debtedness) to bank when the firm was change
to Strong & Anderson, Sl5,500.
Strong & Anderson paper afterwards, Ric
ardson released, S12 900.
Strong & Anderson dissolved and w. L. A
derson with paper amounting (Strong release
to $12,700.
This was submitted, and admitted as col
taken from original by witness.
This was the first notice he, witness, had
Strong & Richardson's Indebtedness.
BY Court-Witness had never given consel
to the payment of any of Strong & Co.'s
debtedness; didn't know they were in del
And he had never ratified such transac tion.
Witness continued that after return fro
the East last fall, he demanded sig
at his account with the bank. He
examined the books and made discoveries.
asample, witness alleged he had advanc
$4,000 to Strong before the partnership "
formed, for the purchaee of stock, and he b
found 81, 600 had been used to pay the debt
the bank. Other transactions of this xii
were discovered, as occurring while in busin
with Strong, the firm money devoted to
payment of K. o. Strong & Co.'s debt. In 4
connection Anders N stated he had request
Vanderhoof the book-keeper to make him