The morning call., 1893-12-06
..BENSLEY'S PLANS.
! Old III Court by Old
Letters.
STORY OF A CONSPIRACY.
= =:
1t Leaked Out After Death of
the Principals.
LEGAL FIGHT FOR OLD DEBTS.
An Estate of Over half a Million
Dollars Was Concealed From
Its Creditors.
LEGAL FIGHT FOR OLD DEBTS.


Astounding fraud and give justice to peo-
ple who were the victims.
Ehe story is an old one-very old-but
true land it seemed fate revealed all its
SECRETS. The leading characters in the
.rpfof:d died and after all their planning for
:: riches n OF soul was left 10 take charge of
.tne1r personal effects and property. Then.
= OF course. Public Administrator appeared
-upoH the scene.
- There were boxes full of telltale books
and letters. which. when read. revealed
what attorneys say was plot to defraud
!. pe2ple by wholesale processes. The case
With. Its schemes was almost forgotten
Wnen these documents cast a new light
upon it.. Ever since lawyers have been en-
gagged imam attempt to overthrow the queer
work done by the plotters. and at last an
: argument was begun yesterday before
, Judge Morrow.
he estate of John Bensley and his wife
1s.rinvOlved in the suit Bensey owned
real estate in San Francisco, Southern
California, Iowa and Wisconsin, and held
stock in various corporations. He was
estimated to be worth 100000, but in 1877
: he"went into bankruptcy, and when his
= creditors demanded a settlement they
were dumfounded to find that his valu-
able estate had melted away until nothing
Bensfey was generally supposed to possess
could be reached. Between two dsys,
Decem ber 81. 1876, and January /, 1877,
Bensley left San Francisco. His wife re-
manned behind. She was in good circum-
stances apparently. always having money
at her command. Beyond this all was
mystery regarding Bensley SO far as his
creditors were concerned.
:: Mrs. .Bensley held power of attorney
1er ner husband IN the bankruptcy pro-
.ceedlngs. and during their separation let
ters. passed between them almost daily
upon business topics. Long afterward
bensley died away from home.
His widow subsequently, blossomed forth
as "a wealthy woman. an6 figured promi-
nentiy here and IN Texas. she died at Ell
Pas0s and the Public Administrator took
hfr;prGperty, among which were 450 let
~.ters-ti at had been written by her husband
and herself.
= These letters told what had been jeal-
GUS secret for years. and upon them was
based a new action at law against the heirs
and DwneTS of Bensiey's estate.
The estate passed under the control of
Public Administrator james c. Pennie.
=, Ctedttors hearing that fortune had
been left by Bensley, brought proceedings
against tue Publle-Adm inisrator or the
recovery ef{trr1r money with interest.
CIalms SSere assigned to John Lloyd. All
al9nS SbJ9ctons were interposed by the
-55-s4PSSst against admitting the letters into
.1v4fence, as they were confidential COM
munlcations between man and wife.
Tile case was heard before Sonthard
Huffman. special examiner for the United
States District Court. 1t lis entitled:
John lloyd as assignee of J mes LIN
for III, H<Bensley and l.. b. Benchley.
cOpartners unffsr the firm name of Lin
fnrth. Kellogg & Co.. bankrupts, VS.. James
{. Pennie, administrator of the estate of
john BeDsley. deceased, and James c.
ad nf nj
Marian L. j. NJ. BensIey. deceased, ct al"
William NJ. Pierson of Pierson &
Mitchell appeared for the complainant
and David FTiedenrich of Napthay,
'FrIedenrich d Alderman for the respond
ents.
. The typewriter copy of testimony
taken before Commissioner Hoffman
formed volume of 146 pages of foo lscap
closely printed. 1t is more than two years
since the case was heard, and Yesterday it
came up for argument in the United States
District Court. MIR. Pierson made the
0pening statement, beginning at 10 O'clock
and con tinuiDg Ali day long. quoting dates
and facts and reading damaging letters
without interruption for hours. Every
little detail having any bearing whatever
on the case was carefully noted and made
good use of, and collectively from clauses
Of sentences, from paragraphs and indeed
from whole letters penDed by Bensley and
wife was made up a chain of evidence
which, to say the least, is astonishing.
The letters-several hundred of them
were written from 1875 to 1878. and they
tell; a strange story. Attorney Pierson
wove them into a chain which he claimed
was proof that all important transactions
in connection with Benslev and the rest
were fraudulent
When the case was heard before Com
missioner Hoffman. James LinfOrth Of the
bankrupt firm OF Linf0rth. Kellogg & Co.,
who failed in 1877, testified that the firm
had been embarrassed for a year previ-
ously, but managed to pull along with
hope of succeeding eventually. Bensley
was a partner. Debts were renewed and
money borrowed.
...1Was John Bensley aware of the con-
-Gition Of the firm at the time that you speak
ef?2 was asked.
Yes. sir; he was as well informed as
was" was the reply. ut was matter of
daily conference between Mrs. Bensiey,
Mr. Bensley and myself. We began TO be
seriously embarrassed in 1875. Bensley
was IN San Francisco most of the time
He left on or about New Years day, 1877.
when we were adjudged bankrupts."
Mr.. Friedenricb, on behalf of James C.
Pennie, at the examination, moved to SUD-
press d III the letters introduced in evidence
from John Bensley to his wife, and also
her letters TO her husband. 1t was claimed
tlat:these communications being between
husband and wife were confidential, and.
GDATeIOFe, lnauHliS5IdDlb III tfNlucUcP. l. his
morfon was denied by Judge Morrow.
The claimants attorney held that Mrs.
Btnsey became attorney In fact for her
hHs5and and that the letters were merely
GO Communications between her as such and
= heT principal. a similar view was taken
Dy. the court. 50 the condemnDg documents
We're admitted.
-. ~ a review OF Bensley's career so far AS
II H. IA5ated to the bankruptcy was given by
MT flerson. He said that Bensley fled
Irontthe , ate like thief in the night;
sthat Ire assumed false names, gave resi-
2 uences at cilies where he did not live. aud
meahWhlle kept up a daily correspondence
win MS VIE, whom he haG left in San
cisco 70 hight out his battles. Although
hidden ~ New jersey. he addressed letters
from Washington. New YORK, Philadel-
phla and. other places, and gave directions
call him.
All OF Bensley's property had been
annl5da. aransderreq Tor various apparent money
considerations before he became a bang
rupt. Inc new owners were: Arnold
Heyman. orrin Curry, Mr. Hetrick and
paid taxes through them and fna1Iy ,ooL |