The Portland daily press., 1893-12-12
SETTLED BY A COMPROMISE.
The Chapman-Emery Case Adjusted and
the Hearing Before Judge Peabody
Suddenly Stopped.

Cndpudu banking company Undt Tram
n. Emery may be declared an insolvent
debtor was continued before Judge
Peabody yest erday. The forenoon was
occupied in reading the correspondence
between Mr.. Emery and Mr.. Cullen z.
Chapman, which consisted mainly on
the part of Mr.. Chapman, in advising
Mr.. Emery of the state of the market,
that they had bought or sold so many
shares of stock in accordance with his
order and in one case they say they have
bought one hundred shares of Atchison
at such price and ask if they shall
place forty or fifty shares to Mr. Emery's
credit. In several cases they say they did
not buy or sell as Mr.. Emery requested
as the market was not favorable. The
letters from Mr.. Emery consisted mainly
of orders to buy or sell certain stocks.
In some cases after giving his order he
winds up by telling Mr.. Chapman to
use his Judgment in the matter. In one
letter he says President Cleveland's
inaugural may send stocks down, and
if SO, orders the banking company to
buy In another he says: "Should New
York and New England rise above 70,
wire our Taintor & Hoyt to sell. The
Boston Globe says New England is look
ing heavenward, but corner rumor
may send it to 30"
In one letter Mr.. Emery calls the aJten-
tion of the firm to the fact that he now
holds SO much stock on the bull side of
the uarketn
July 10, 1888, Mr.. Chapman wrote Mr..
Emery that Taintor & Holt, the New
York brokers, had called on them to take
up all the low priced stocks, and enclosed
blank notes for $1,000 for Mr.. Emery to
sign. Mr.. Emery replied on the goth in
substance as follows: 1t is hard
blow to me- 1t would be useless for me
to promise to pay more than | have as
you hold the little property | was years
in accommodating. To sign these notes
would simply mean the street to me,
with my other liabilities. hope there
will be way come that you can hold
on to the fragments of my toll until a
turn comes that will lessen my loss. For
year and half I have made it point
to get long dates from dealers that /
might keep my balance as large as posi-
bic in yt II hands to help on your ac-
count. Your great misfortune in not
complying with my req uest last August
and again in October to sell and get on
the short side of Atchison, together
with other mistakes, places me in the
sad situation l am today. [ dread to
have my name before the public dread
to be without credit. | am victim of
misfortune beyond my control. I still
hope you will be in position not to
utterly discard me-"
In a
notice of the falling due of note for
$4,000, Mr.. Emery writes the Chapman
Banking company: In regard to the
note which I endorsed for your accommo-
dalton, falling due November IA, kindly
take care of the same as per agreement.
/ trust the crisis is now past with you,
and you will not require any more help
from me-"
November Is, 1898, he wrote the Chap
man Banking company that he is adj
vised by his. counsel that the notes were |
without consideration and were void
under the statutes, that he shall refuse
to do anything and if they try to put
him into insolvency he will show up
the transactions of the company with
him.
When the hour for the court to begin
in the afternoon arrived, few of the
parties interested or the counsel had
appeared. Judge Symonds was the first
Mr.. Charles S. Cook, his associate counsel,
and by Messrs. Cullen c., Charles J. and
Robert Chapman. Messrs. Seiders and
Chase with Mr.. Emery, their client,
arrived about the soma time.
But although all the parties were on
the ground. the hearing did not go on.
1t soon became very evident that a COM
promise was going on. Which party was
the first to suggest the compromise is
not easy to state, since each leaves it to
be inferred that the other made the adj
vances.
The negotiations at one time were ap-
parently broken off, and the attorneys
were preparing to go on. But at this
point Mr.. Chas. J. Chapman seemed to in
tervene; and presently, after negotiations
of about two hours. settlement was
announced.
All the parties to the settlement seemed
much pleased. Mr.. Cullen G. Chapman
and Mr.. Emery shook hands amicably,
and afterwards both Mr.. Emery and Mr..
Charles j. Chapman expressed to the
PRESS their satisfaction with the result.
That result was not made public at
the time; but the PRESS is in position
to state the terms of the settlement. The
whole claim of the Chapman Banking
company against Mr.. Emery was about
$23, 900. Of this a certain amount was
secured by bonds of the face value of
the Chapman Banking company. The
real value of these bonds was something
over $1,000. This left the unsecured claim
which the Messrs. Chapman were press
ing against Mr.. Emery about SIS, 400.
The compromise arranged yester day
specifies that the Messrs. Chapman shall
retain the bonds, and that in addition
Mr.. Emery shall pay to them $4,000 in
lieu of the $15, 400, which the Messrs.
Chapman have claimed.
The Messrs. Chapman state that the
$540O which they let Mr.. Emery out of
they must themselves pay to Taintor &
Holt. Mr.. Cullen G. Chapman is said to
have been considerably ruffied at the
publicity given the writ brought by Mr..
Emery. This writ, in the formal and
conventional language always used, re-
lated that Mr.. Chapman had come into
possession of the bonds DO finding. Mr..
Chapman's friends state that he felt
that many people who are unacquainted
with the curious forms of writs, would
believe that he had fraudulently
possessed himself of them. This state of
feeling on his part made the settlement
more difficult than it otherwise would
have been.
The settlement having been made all