Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1897-12-17
THE STALLION SWINDLE.
A Celebrated Case Settled by the
Supreme Court.

Signers Of Notes who Refused TO Pay
Them Rrc Upheld. as Fraud was APP
parent---Iimerick, Me, Bank Had
Many Thousands in similar Notes.
The story printed below is from the Randolph
Herald Of last week The Percherou stallion
swindle was worked not only in several Vermont
towns, bat in Westii-id. Palmer Southwck. Con
way and other places ~ Massachusetts,. Perch
eron stations We're sold to syndicHtes 10y the same
men who operated at Randolph The selling
prices ranged from $500 to $500 Some Of the
stations were sold at auction after year or two
for less than The charges for keeping the animals
The real value of these horses probably did moi
exceed $50 each Ia most cases these were suit.
In regard to notes. as al Randolph The Phoenix
exposed the swindle when an attemp, was made
to establish a syndicate in Brattleboro. Mr. Rey
nods did not lack for local newspaper support
and the article in The Phoenix was pronounced by
a contemporary to b., vicious and baseless" and
aimed at defeating perfectly legitimate enter
prise, etc, etc But Brattleboro peopc had beer
warned in time and the syndicate promoter.
folded their tents like the Arabs. and silently
stole aWav."'
In the summer and fall of 1894 the agents
of II. Z. Reynolds were in Randolph and
vicinity, with horse that they called a
coach stallion, and proposed to form a
sock company composed of 80 good and
responsible men that should pay OF agree to
pay 500 each for its purchase. Some very
good horsemen at first talked quite favora-
bly, of the horse and the project, but most
of that class never took any stock. Rey-
nOlds's agents after awhile would take the
horse and 90 out among the farmers, and
by employing several methods, induced
some 10 sign what they called a stock book
After these agents had worked about two
months they went away and another set OF
agents came and soon announced that they
had secured 30 good and responsible mer
who had signed the stock book, They
went around and presented three notes OF
$1,000 each and payable to II. Z Reynt Ids
or order in one, two and three years from
date, respectively, and succeeded in 1duc
ing some 20 that had signed the stock book
TO sign the notes.
These signers were each promised that
there should be 80 good and responsible
siguers TO the notes: that there should be
a meeting OF the siguers OF the notes: the
notes should be present and 10 al that time
there should not be 80 sigucrs To the notes
that We're financially responsible. the notes
should bee null and void and bee given up.
a meeting OF few Of the siguers was held
but the notes were not then signed boy &c
and the meeting was adjourned for two
weeks, when the notes should be completed
or given up. Before the adjourned meet
ing Reynolds agents had left the town
and state with the notes signed by 20 per
sons, and not all OF them responsible, in
stead of 30 responsible ones as agreed. The
horse was never delivered to the signers
and after being kept awhile in Randolph
and Bethel, one OF Reynolds agents came
and took the horse out of the state
About year from the date OF the notes
the Limerick national bank Of Maine sent
the first note to the Randolph national bank
for collection or protest. The signers re-
fused to pay and the Limerick bank soon
brought suit on the note that was due,
which suit was entered at the December
term, 1895, in Orange county court and was
tried at the December term, 1896, by jury.
The bank claimed that they bought the
notes of Reynolds before they were due, for
value, and that they were the bOna-fid
holders of the notes.
The defendants claimed that the notes
were obtained by fraud that they were not
perfected notes or ever delivered as notes
without consideration; and also that the
circumstances attending the purchase OF
the notes were such as would lead care
full and prudent man to suspect that there
was something wrong about the notes and
that should have put the bank upon en-
quiry.
1t appeared that the bank did enquire OF
the Randolph national bank, and that
President Dubois answered the enquiry, but
the Limerick bank took the notes without
waiting for the answer. The jury, after a
trial OF eight OF nine days, brought in a
verdict for the defendants.
The bank carried the case to the supreme
court on the law points raised, and the full
/ bench heard the case in October and rem.
dered their decision last Thursday and sus.
tanned the verdict of the jury.
The bank was represented by Mr.. Hig-
gins of Limerick, Darling ~ Darling and
W. A. Lord. The attorneys for the de-
PENDANTS were Boyden, Denison and Har-
vey.
II should be said that there have been
several cases of this kind in the state, but
this is the only one that has been tried
through to the end, and while the result is
surprise TO many, yet it gives general sat
lsfaction. The case was very thoroughly
tried on both sides, and the law Of Yer
mont is settled as to such transactions.
Banks are clothed with no more protection
in taking such paper than individuals.
appeared in this case that the Limerick
bank was situated in town in Maine, ten
miles from any railroad, in very small
community, with but little local business,
capital OF $4,000, and half of that in
vested in Reynolds's notes, similar to these
notes. 1t must have seemed to the Jury
that the Limerick national bank was a re-
ceptacle for Reynolds to pour in his fraud
ulent notes. Many express the opinion
that the signers of these notes were foolish
in ever signing, and the signers know it
and realize it now, but really is it true that
these are the only men that have been lied
TO and defrauded? There is no doubt but
the signers of the notes have been punished
sufficiently, and it is hoped the whole com
munity has learned lesson that ii will not
soon forget.