The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-03-28
KEMPSTER MUST PAY.
The Court Severely Scores His
Business Methods.
COMMON HONESTY IGNORED.


In Judge Osborn's court yesterday D. 7. Nc
Connaughey recovered $500, with interest, from
Thomas l. kenlster, . man whose curious
financial transactions have brought him into
disrepute
In August Kempster wanted to borrow 81 800
from McCOnnsughey as agent of the Solicitors
Loan and Trust Company, Of Philadelphia, with
which to buy farm over at Port Gamble from q
MI. ana Mrs. Thomas Watson. Kempster agreed
70 let AcConnaughey have q first mortgage on
the place In order to secure the loan. Since the
company would not let Kempster have any
money until he had title to the property, Nc
Connaughey advanced from his own pocket 5000
with which Kempster was TO get the deed out of
escrow. After getting this money Kempster
Drought back to McConnaughey contract in
which there was an agreement that the Watsons,
not McConnaughey, should have the FIRST mort
gage McConnaughcy refused to give the rest OF
the money and the Watsons refused to turn
over the property or the deed to it
McConnaughey tried in vain to get his $500
back and finally brought suit, which came for
trial on Thursday afternoon. Yesterday morn
Ing the trial continued with Kempster on the
stand. In his testimony he said that OF the $500
he had received from D. r. McConnaughey he
paid 500 to Mr.. and Mrs Watson aud 500 to the
Drews, agents for the Watsons.
The second contract, made after the first one
had been lost, was placed in evidence. The
hrst contract was between Kempstef and the
Watsons, Of whom Kempster was going to buy
the land. In it was an agreement that Kempster
should secure the Watsons by mortgage. This
contract was supposed to have been lost after
McConnaughey gave Kempster $500 to make the
nrst payment The second contract substituted
for 1t gave the Watsons first mortgage, but
Ksmpster later erased the word First" This
second contract and the erasure Kempstcr
acknowledged.
N. H. Latimer, manager OF Dexter Horton 4
Co.'S bank, testified that the Watsons left the
deed In escrow at the bank, to be delivered to
Kempster when he gave them first mortgage.
When the case came to argument, John E.
Humphrics, counsel for Kempster, asked per-
mission to state first the ground on which they
would hold that McConnaughey WIS not en-
titled to recover. The point was technical one,
that before McCOnnaughey could recover, the
notes OF Kempster and other papers must be re-
turned, and the contract rescinded. But the
Solicitors Loan and Trust Company for which
McConnaughey was acting, had really made the
contract, and the company, not McConnaughey,
must rescind it, or have it rescinded in court
of equity.
]. w. Langley and H. b. Slauson, counsel Tor
McConnaughey, argued that the contract had
never been completed and so could not be re-
scinded. Furthermore, the company did not
lose the money, but the $6O0 was an advance out
OF McConnaughey's private funds.
Judge Richard Osborn, in summing up the
case, overruled the point OF Kempster's attorney
and held that the money came from McConnaug-
heys private funds The note held by the Solic-
itors' Trust Company was worthless, because
Kempster had q perfect defense, should the
company ever try to enforce its collection. Com
mon honesty would have dictated that Kempster
repay the $500 to McConnaughey, and accord
fngly the judge found damages for McConnaug-
hey, including the 5000 and interest from August.