The Providence news. (Providence [R.I.]) 1891-1906, 1898-04-29
TO PROVE ITS CLAIM.
Court Decides Mount Hope Land Co
Has the Right.
Decision Handed Down In Case Against
L. A. Tillinghast Co.

The following rescript has been handed
down by the Appellate Court In the matter Of
application Of the Mount Hope Land Com
pany for leave to prove Its claim agninst the
insolvent l.. A. Tillinghast Company: "The
court is OF opinion that the Mount Hope Land
Company Is entitled to prove It's claim in full.
''There is no question that an agreement
was made whereby the Dewolf Inn property
In Bristol was conveyed to the Tillinghass
Company for she sum Of se00D0 over mort
gsge Of $4,000 on the property. The question
which determines the liability of the Tillina-
hast Company Is whether the contract was
with L. A. Tillinghast individually or with
the company. Two contracts are produced; F;
one mem orandum dated February IL, 1897,
with said Tillinghast, and another dated
February Ii. 1897. with the l.. A. Tillinghast
Company. The Mount hope Land Company
admits the making or the first agreement, but
finding that the shares of stock agreed to be
given as collateral security could not be given
because they were only held by l. A. Tilling-
hast as collateral, II claims that the second
agreement was made the next day to take tine
place OF the first one; and this agreement Is
signed by The l.. A. Tillinghast Company
L. A. Tillinghast, president. Upon this
agreement the Mount Hope Land CONF any
claims debt due from the L. A. Tillinghast
Company, and the assignee contests it upon
the ground that the trade was consummated
under the first agreement, and that the
second was not signed until January. 1895,
nearly q year after the transaction and q
month or more after the proceedings in in
solvency were begun. We think that the
preponderance OF evidence is with the Mount
Hope Land Company, Notwithstanding some
discrepancies IN dates which do not effect the
result. The agreement executed in duplicate
In presented ty both parties bearing the date
February 18 1897. Both the treasurer Of the
Mount Hope Land Company, who signed 1t,
and its president, who witnes sei 1t, testify
that IL was executed on that day, before the
decd was delivered and that the stock was
not turned over as collateral, until few
days after because OF their confidence In the
solvency Of the company. The deed was ex-
ecuted on that day and recorded at 5 80 D. m.
On the ether side is simply the statement Of
l.. A. Tillinghast that the agreement was not
signed until january. 1893. Not only does
this seem Improbable, but no reason appears
why he should have become personally re-
sponsible In SO large n sum for property
decided to the corporation.
"It Is claimed that the company gave no
authority 30 sign the second contract. A
meeting Of the directors held February 10.
1897, authorized him to sell note, with the
collateral. and to take in exchange the De-
Wolf Inn. rs PER memorandum agreement be-
tween l.. a. Tillinghast and the Mount Hope
Land Company. Assuming that this referred
to the frst agreement stilI IT implies that the
purchase was made in behalf Of the company
and il the second agreement was executed
without special authority 1t was ratified by
the acceptance of the deed and the action Of
the directors, November i2 1897, authorizing
the president to sell the Dewolf Inn to the
Dewolf Inn Company for $4,000 in bonds. As
the property was clearly recognized as be-
longing to the company. IL is most reasonable
to conclude that the debt was theirs also.
The evidence also shows that it Is an absolute
and not a contingent debt
"The claim OF the Mount Hone Land Com
pany is therefore allowed, the amount to be
determined upon further hearing"