The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-11-24

the Chapman Banking Company of this
City and a Wealthy Gorham Business
Mana Transaction in Stocks that
Absorbs a Handsome Property.
Suits brought by Breed & Pierce of
Boston, on two promissory notes fol
$4,000 each, signed by Frank III. Emery OF
Gorham, Me-, have brought to attention
a very interesting series of transactions
in stocks. The suit on these notes
is only one of several. The Chapman
Banking company of this city and sc.
signed by Emery, have filed petition
in the Insolvency court to put him into
insolvency.
Mr.. Emery has been for many years a
dry and fancy goods dealer in Gorham
village. He is now about 81 years old,
and until the present affair came up was
considered in his town wealthy man.
He has been very successful in business,
and has enjoyed the esteem of his towns
men. It is understood that all his credi-
tors, with whom he has dealt in Gorham,
have announced that they are willing to
extend to him all the courtesies of trade
to any amount he may ask.
Mr.. Emery has met these suits by
bringing suit against the Chapman
Banking company to recover various
bonds amounting to $4,000, on the
ground that they were turned over as
collateral security ON an illegal contract
and that they were converted by the
Chapman Banking company without
giving notice to Mr.. Emery, as provided
by statute. The writ, in this cross suit,
makes the following allegations.
Said Emery was on the 22d day OF
Novem Der, 1858, lawfully possessed of
certain goods and chattels to the value
of $40, 600, and being SO possessed thereof
the said Frank H Emery, afterwards on
the 22d day of November, 1893, at Cor
ham, casually lost the said goods, and
chattels out of his possession, and the
same afterwards came into the possession
of Cullen G. Chapman, Charles j. Chap
man and Robert Chapman by finding
the same. Yet the said Chapman's well
KIN OWN g the said goods and chattels to
be the property of Frank H Emery and
of right to belong and pertain to him
but contriving and fraudulently intending
craftily and subtilly to deceive and de-
fraud the said Frank H. Emery in this
behalf, have not as yet delivered the said
goods and chattels or any part thereof to
said Emery, though often requested to
do SO and had wholly refused to do so and
afterwards, on the 22nd day of Novem-
Der, converted and disposed of the said
goods and chattels to their own use."
Symonds, Snow & Cook are attorneys
for the Chapman Banking company and
Seiders & Chase for Emery.
The standing of the parties interested
makes this matter of great interest The
Chapman Banking company is one of the
best known institutions in the city. 1t
occupies fine offices in the handsome Ok
ford block, and its members have long
been well known in business circles in
this city.
Both sides make statements OF
the matter at issue. On the side of Mr..
Emery the following statement is made:
I'm the early part of 1891, Cullen G.
Chapman sent man to Mr.. Emery asking
the latter to call on him at the bank
Mr.. Emery was not then acquainted with
Mr.. Chapman. The man who made the
call was mutual friend. After several
messages, Mr.. Emery went to the Chap
L l., l, I nF. n ~
Chapman. The latter succeeded in in
teresting Mr.. Emery in stock deals on
margins Mr.. Emery thereupon made
deal s with the Chapman Banking COM
pany direct;ss and these deals went on
from time to time, varying in amounts
aggregating from $1,000 up to SO, 900 OF
SIS, 900 face value of the stocks. Mr.,
Emery of course merely covered margins
on these amounts. During these periods
he put up in the hands of the Chapman
Banking company bonds to the amount
of $1,000. These were put up as collateral
security to cover his agreement to make
good to the company any losses caused
by depreciation in values of stocks
carried by them for him. The common
term for this is putting up margins.
These bonds were of various kinds, all
good but $4,000 of Northwestern. Guaran-
tee Loan company, which has since
failed. These bonds were sold to him by
Mr.. Chapman. Later on, the losses from
depreciation in stock carried for Mr..
Emery were such that the company called
on him to make up the deficiency, and
he gave his notes for $4,000. This was
last May. Still later the Chapman Bank
ing company called on Mr.. Emery to give
them his notes for $4,000 more. He re-
fused at that time to give any further
notes on account of the stock transac-
tions; but on the assurance, as Mr..
Emery claims, on the part of Chapman
Banking company, that he should not be
held for these notes, and that the COM
pany would take care of them he signed
them.
"These last notes Mr.. Emery says he fully
understood, and now claims, were given
simply as accommodation notes to the
company.
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