Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1894-11-05
SUPREME JUDICIAL COURT.
October Term, Hon. W. P. Mhiiehouse, Pre-.
siding.
W. 8. CHoArE, Clerk.
E. E. NORTON, Sheriff.
+. A. SMALL, Stenographer,

~~~-A~t
AUGUSTA, Saturday, Nov. 3.
Z. +. W. Dillaway ct. ais. vs.. George A
Alden. S. s. Brown for plaintiffs, E. F
Webb for defendant. This is an action Of
assumpsit on a promissory note fol-
Sl2,5S6.42, dated July 8, 1898, on 81,
months. The plaintiffs are stock broker:
doing business in Boston under the firm
name OF Dillawsy, Starr & Co. The defence
Is that the note was without consideration
and null and void because it was given in
connection with game or wager, viz the
dealing in margins on stocks, contrary both
10 the statute of Massachusetts and the
common law. The note was given a,
Warerville, although all the transaction.
leading up to it took place il Boston.
From the history of the case, as appeared
by the evidence, Alden had been doing bus
mess with Francis B. Dana & Co of Bos-
ton, previous to April, 1898, dealiug in mar
gins, as he claims, but actually buying and
selling the stock itself as the plaintiffs
claim. In this firm was one VIM. A.
Brown, with whom Alden did the most of
his business. Brown left the firm of Dan
& Co.. and in April, 1893, entered the firm
OF plaintiffs as a partner, and very soon,
through an order from Alden, effected a
transfer of Alden's account from Dana &
20. to the plaintiff, the plaintiffs, as they
say, receiving certain certificates of stock
which had been bought for Alden, together
with $4,000 of Maine Central bonds depos-
tied by Alden as collateral, and to Dana G.
Co. they paid $4,000.
Stocks which had been going down con-
tinued to depreciate, and on July 3, 1898,
plaintiffs went to Waterville and secured
the note in suit to cover the amount they
had paid out to Dana & Co. Subsequently,
to raise money to take care of the account,
they received note for $25OO which they
discounted and endorsed $240O on the
large note. The market growing worse
and Alden refusing to renew the note, the
plaintiffs sold the securities in their posses
zion belonging to him, under the statute of
Massachusetts, authorizing the sale of
pledges, from which they realized $7964.72,
which they place to defendants credit in
addition to the S2400 already endorsed.
The plaintiffs deny that there was any
form of gambling about the transaction. but
say if there was they were not knowing to
it and are innocent holders of the note, as
their only connection with the matter was
to take up the account from Dana & Co.
The defendant says the circumstances
attending the buying of $4,000 of sugar
stock at one time and its sale the next day
is enough to stamp the whole business as
that of the bucket shop, and that the fact
that Brown went from membership in
this firm to a membership in the plaintiffs
firm is sufficient to bring home to them &C
tual knowledge of the infirmity of the note.
OF the numerous transactions by Dana &
Co. Alden claims that he authorized but two
on his account, and introduced documentary
evidence to show that he had repeatedly
given that firm orders to close out his deal
which they disregarded.
The plaintiffs say that Dana & Co. had
discretionary authority from Alden to buy
and sell 100 shares of any stock whenever
they thought they could make profit.
BY agreement of the parties the case was
not sent to the jury, but will be reported to
the law court for consideration, the court to
render such judgment as the law and evil
dence require.
At noon the court took up the bill of in
terpleader in the case of the late Albert G..
Carr of Winthrop. Carr had a certificate
for $4,000 in the Supreme Commandery of
the United Order of the Golden Cross of
the World, originally payable to hi, wife,
who deceased in 1886. He deceased with
out designating any other beneficiary.
His admi istrator claimed the $1,000
as part of the estate, while
the heirs, the three children, clsimed that
their mother having deceased, it went to
them under the statutes of the State and
did not form any part of their fathers es-
tate for the ben. fit of creditors. The
administrator claims that in any event the
premiums paid by the deceased during the
last three years under the statute should go
to the estate. This bill is brought to have
the rights of the parties determined by the
court.
After hearing the court decreed that
the heirs were entitled to the money includ-
ing the premiums for the last three years,
and the funds were accordingly paid IN to
the clerk of courts and by him distributed
to the heirs. A. r. Savage appeared for
the Benefit Association and F. J. c. Little
for the administrator.