The Providence news. (Providence [R.I.]) 1891-1906, 1899-02-20
Tried 10 Secure a Loan Of $1,000 For The
Purchase ola Drug Store.
WAS TOLD THE LOAN WOULD Be MADE
I Was 0elgsd, However, Until After The Store
Was Sold 10 0ihsr Parties Money Paid CON-
pany Not Returned Other Testimony.


repeal OF the charter OF the American
Investors Company Of this city and
New York, was Presumed in the Senate
chamber, at the State House this
morning before the judiciary commit
tee of the Senate Hon. Edward l..
Freeman, of Central Falls, chairman Of
the committee. presiding.
Arthur w. Davis, Esq, Of counsel for
the petitioners, opened the proceedings
by introducing a number of letters and
some newspaper clippings. which he
claimed had a direct bearing on the
case. DR.. c. r. earle, of Providence.
was then called to the stand and he
read a statement OF his relations with
the American Investors Company. He
wished to borrow $500, but was in
formed, he claimed that. the company
would not loan less than $1,000 After
some talk with the company's agents.
he asked for a loan OF $1,000 on drug
store he wished TO purchase. He paid
s12 when he made his application, and
a few days later he was Informed that
the loan would be made. and he paid at
once S4320 more to Agent Ford and re-
ceived a receipt for the amount.
on December IL, 1898, he received
word from New York that the loan
could not be made and that his note
had been returned TO the Providence
office To be returned to him. At the
Providence office he was Informed that
the matter could still be fixed up, IL he
kept quiet. On January 10 following he
received telegram saying loan would
be granted. The days passed and on
h., rs-I.o
TO buy was sold by its owner TO other
parties, and on the following morning
he received letter from the company
saving that his loan was ready.
Witness claimed that the company'a
agent suggested that he buy another
drug store instead, as the company
would be ready any time TO settle the
business. Things thus went on until
January 81, the company having failed
to comply with the request 10 make the
loan. when the witness notified the
company's agent here that he with
drew from all further negotiations and
demanded that the 5000 that he had
advanced be returned to him. This was
refused and TO this day he had not re-
ceived a cent from the company.
There was some ross-eXamination
on the part OF Robert w. Burbank. Esq.
counsel for the company but nothing
new was brought out, the witness ad-
herring 10 his previous statements.
Richard j. Reeves testified that he
was at the time in question the mana
ger of drug store, owned by his moth
er. which was located at the corner of
Union and Washington streets. He
then related his negotiations with DIR.
Carle in regard to the sale OF the drug
store TO him. and also stated that Mr.
Raymond an agent of the company
had informed him, that DR.. Carle' 5
loan would be all right. Mr.. Raymond
said DIR. Carle would surely have the
money and then the witness took a
bond from DR.. earle in order to secure
the sale Of the drug store, the bond be-
ing for $500.
Mr.. Reeves was cross-eXamined. but
nothing further was brought out, and
Mr. Davis then called as the next wit
ness Mr. Andrew j. Barbour, who read
a statement OF his relations with the
company. He stated that he had met
Mr.. Perkins, n witness at the former
hearing, who had introduced him To q
Mr. Cotton. Witness wanted 10 borrow
5000. but after some conversation with
Mr.. Cotton, he was Informed that by
the payment of 5000 he could put iT
an application for $1,000. which he
could receive in a few days. He paid
$55. 20, and received receipt.
The rest or ms testimony was very
similar to that OF Dr. earle, and ac.
cording TO the witness there were re-
peated delays. The application was
made on July is. and on August 1G g
check of 500 was sent on for him. Ou
of this check $29 were taken for fees
etc. and MIR. Barbour claims that up e
this time he has paid out for expenses
Sl7g. which included SS2 on an applica'
ton for 81, 800 on another piece of prop
erty Finally witness recovered the IS.
and he stated that~as result OF his
transactions with the company he hao
received $3.50 i'm cash, and was charged
with one mortgage of $1,000 and {
penal bond OF $1,000.
The committee at 12:45 o'clock tool
a recess for lunch. and Chairman Free
man announced that the hearing woulC
be resumed at 2 y. m. when furtheI
testimony for the petitioners would b,
heard.