The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-08-06
HALE NOTE CASES.
Law Court Considers the fozerOft
Middle.
COL. PEAKS CLEARS UP AN INTER-
ESTING POINT.
There was No Secrecy or Mystery About
the Mayo Notes.

There was No Secrecy or Mystery About
the Mayo Notes.
Before the Law court yesterday was
argued the first of the famous Hale note
cases. The case was Hartwell Loyejoy VS.
Inhabitants of Foxcroft.
This is an action upon note for $500,
dated February Is, 1888, for money loaned
the town of Foxcroft, as the plaintiff
claims, when Elias J. Hale was town
treasurer. Hale, it will be remembered
afterwards committed suicide when it
was found that he was defaulter to a
large amount. The plaintiff in the case
is deaf mute over IS years of age and
the note represents the larger part OF his
worldly goods.
The plaintiff claims that the loan was
originally made to the town in Septem-
Der, 1878, the note in suit being IN re-
newal, and that the treasurer books
show that the original loan was used by
Hale for the use and benefit of the in
habitants of the town. 1t is true that the
AAOpN
was paid, but the plaintiff claims that the
new note was given by Hale SO that he
might use the original note as voucher
for the entry of payment of the note. The
unfortunate physical conditions of the
plaintiff rendered it difficult to get at the
exact reasons for the renewal of the note
in 1885,
The defense is placed upon two grounds:
First that Elias j. Hale, as treasurer, had
no authority to borrow money without
the express authority or permission of the
town in it's corporate capacity, and that
any negotiable paper issued by him as
such treasurer is subject to all equitable
defenses. Second, that the note is barred
by the statute of limitations, unless the
payment and endorsement of interest on
the note by Bale is binding upon the
town and is a renewal of the note at the
date of the endorsement of interest That
Hale had no right to make payment of
interest on the note without authority
from the town, and thereby extend the
time in which an action could be brought
upon it. The defendants further claim
that there is no evidence in the case
shoe'ing that any money was ever raised
and assessed to pay interest.
The plaintiff claims that when the first
note was taken up in 1883 he was paid $50
interest in cash, that from 1857 to 1876
the town passed a vote in substantially
the same language each year to authorize
the treasurer to obtain money by loan or
otherwise, to pay the debts of the town,
to take up securities against the town and
to issue new ones instead thereof, or to
modify the same, and to obtain the money
on the best time it can be procured. !"
This vote it is claimed was full au-
thority for the borrowing of this money
and together with the entries on the
books showing the n oney as used for
town purposes, renders the town liable
to pay for the same.
There were several other cases upon
Hale notes against the town argued, each
varying little in circumstances of the
loan and in the entries on the books. 1t
seems from these cases that it was a COM
mon practice for Hale after he had given
a note on demand, to take it up with a
new one upon one excuse and another,
write upon the original note this note
paid this day. make the payee sign it,
and then use is as a voucher for money
he had stolen. that year.
For many years Hale was the Poolr Bah
of Foxcroft. He was chairman of the
selectmen town clerk and treasurer A g
treasurer he made his report to the town
and as chairman of selectmen approved it,
the other selectmen having such conf
dence in him that they signed it without
any examination.
Sometime about 1885 the law was passed
prohibiting the chairman of selectmen
from serving as treasurer, and then Mr..
Hale dropped out of the selectman's berth,
but no man could afterwards be elected
to that office unless he was satisfactory to
Mr. Hale.
Of course in all these cases the endeavor
is to show that the loan was authorized
by the town or afterwards ratified by the
town, and that the inhabitants had the
benefit of it.
F. E. Guernsey, J. B. Peaks for plain
tiffs.
Henry Hudson, W. e. Parsons, for the,
town,