The morning call., 1893-08-17
IT'S SPITE.
Behrend Joost Arrested
and Bailed Out.
He Is Charged With Obtaining Money
o. Under False Pretenses From
Client.

Behrend Joost, the capitalist and presi-
dent of the San Mateo Electric Railway
Company. was arrested yesterday aftsr-
noon on a .warrant charging him with OBJ
| taining money under false prstenses, but
was Immediately admitted to bail in $1,000
bonds
The complaining witness is Sigmond
Augstein. He states that in December,
1890, he bought house and lot ON Rtvolf
avenue, near Stanyan street, from Mfr.
Joost for $3.50, paying him $500 down and
giving him Two notes, one for $500, due
enc year after date, and the other for
S2250. due four years after date. and
mortgage. The interest was to be at the
rate of per cent.
On June %. 1892, Mr.. Joost sold the
mortgage and notes to the California Safe
Deposit and Trust Company and, it is
charged, Concealed from Augstein the fact
Of this sale and continued to- receive from
him interest on these notes. The $500
note was Iiaid up and surrendered and
forms no part of the dispute.
Augstein paid up his Obligations to Oc-
tober Is. 1892, and on May IL, 1888, paid,
Mr.. JoOst $3.50 on account of the larger
note, which met the interest UP TO that
date and reduced the principal by about
$500.
The false pretenses lie in the fact that
Mr.. JOost assigned the note and mortgage
in June. 1892, to the bank, and. this $3.50
not being Endorsed on the note, the bank.
can compel Angstein TO pay the full
amount to them. because the hauk took
the note presuming it was worth Its face
value.
On July % Augstein received a notice
from the bank TO settle the interest and
then discovered that there was no indorse-;
mpnt on the note and Mr.. JOost had not
accounted TO the bank for any moneys he
had received from AugsIein since the as
Segment. Augstein sent letter to Mr.
Joost asking him to DO what was right aud
received reply on August 8 that he had
Instructed the bank to foreclose. as ADg-
stein had not paid the principal aud in
terPst.
On August Z Augstein received a state
ment from the bank which showed an in
.debtedness of S23S7 % made up as. fol-
lows:
December 49, 1890 amount of note :. 50 $50 90
August 5. 1888 paid on account y Mr.
Joost...-....,.......s. $50 90
Interest from Decen6er 49, siS 20
Total. .-sz.7S7 IS
,: .Augstein then served Mr.. Joost- w tn a
notice to hand over to the bank or return
to him all the moneys. he. had received
since the assignment, but this was refused
hence the charge Of. obtaining money,
under false pretepses.
On MIR. Joosts behalf 1t is claimed that
the proceedings have been in stitute0 from
spite. 1t is admitted that the house was
sold and that $3.50 was paid in. May last,
but before that date the mortgage and note
had been given TO the bank along with
other notes and mortgages as collateral
security for a loan OF money.
As the note was notin his possession
when the $3.50 was paid he gave Aug>tein n
receipt on which was also written that
there was still an indebtedness of $3.50
He claims that he paid; the bank the pro
rata amount applicable to the S225O note of
the $3.50. but Augstein. raised a row be-.
cause he did not pay in the total amount
instead of the pro rata share. Then MIR.
Joost sent him notice to pay up the prip
cipal and interest and in answer he has
him arrested.