The Providence news. (Providence [R.I.]) 1891-1906, 1900-05-07
MIR. FARNHAM SUED FOR
ALLEGED TRUST FUND,

The case OF Henry s. Stone. pro ami.
Ms Joseph Il. c. Farnham and the Me-
chanics' Savings Bank, was heard by
Chief Justice Matteson and Justices
Stiness and Tllinghast. on bill. answer
and proofs. Mr.. Stone, the complain
ant, is a resident of Minnesota and is
tnsane. The bill seeks to establish a
trust in regard to a certain fund stand
ing in the name OF Farnham in the
bank. asks for an accounting by Farm
ham, termination of the alleged trust
and transfer to the complainant OF
the sum found due on the accounting
The bill alleges that Farnham was
the financial agent and confidential ad-
wiser of Stone, and that on April H.
1881, Farnham executed a declaration
of trust of a deposit OF $3,17l.19, which
was on that day transferred from
Stones name to Farnhams in the re-
spondents bank. That subsequently,
Farnham RENTED from time To time,
for and upon the orders OF Stone, por-
tions of the deposit and the interest
thereon, and rendered accounts thereof
to Stone. That Stone was adjudged in
sane by a probate court in Minnesota
In 1897, and is now insane. and that in
1897, Arthur @. Otis. who brings suit
in stones behalf, was appointed his
guardian IN Minnesota and also in
Rhode Island. On July IL. 1897. Mr.. Otis
notified the bank that the money on
deposit was not the property of Farm
ham but the property OF Stone, and de-
mand was made on Farnham for the
money placed in his care by Stone, less
lawful credits. bat Farnham paid no
attention TO the demand. Complainant
claims the money was originally agreed
20 be paid over on demand.
Farnham, in his answer. claims Stone
eubsequentto April IA. 1891. made a gift
TO him OF the deposit The complainant
denies this and also urges for the con-
duct of the parties IN the case that the
fund has always been treated as
Stones. If Stone did attempt to make
such a gift the effort must fail because
Stone was mentally incapable OF maxi
ing a gift, and such "A z II Farnham
could not accept. because OF the coma
dental relations between them. Undue
influence on the part OF Farnham Is
also alleged.
The questions raised by the COM
plainant are: That no absolute trans
fer OF the money was ever made TO
Farnham: the money was transferred
20 Farnham in trust and was so ac-
cepted by him. That Stone was inca
pacitated from making such gift if
made, by reason of his insanity. and
Farnham had knowledge Of his mental
condition at the time OF the making of
euch pretended gift, and no pretention
is made that anf cons deratlon was
ever given for the same. That Farm
ham was incapacitated from receiving
a Gift Of the property by virtue OF his
occupying "A trust relative TO stone with
reference TO the particular property
involved. That the gift was procured.
II at all. bv the exercise OF undue in
fiuence by Fsrnham over Stone. while
occupying such position OF confidence
and trust.
The defendant saws that the reason
for the Gift was tho dislike of stone
for Il ncnhew canned Smell. who nad
enseavored 20 have him confined as an
insane perron Mr.. Farnham claimed
nc Is not bound 60 account for his trust.
even IL it stili continues a trust only
70 stone himself There was testimony
before the master IN tho case TO the
effect that In supplementary proceed-
inrs stone had testified he haD made
an absoiute gift cf NE fund - Warm
har, and The latter owed him Stone.
nothing. Store was widely read and
could recite selections from leadlnr ar-
thors.
wliliam H. Greene r. counsel FOR tho
complainant and Edwards 4 Angell
ard Albert Gerald, counsel for defend
ant
some interesting lertsrs from Stone