Putnam patriot., 1911-01-20
Arnold Bankruptcy Hearing

There WAS hearing Dtiofe teeiette
Bowen al WnHmantic, Wednesday, on
The f.. N. Arnold bankrupt estate. Inc
hearing was relative to the mortgage OF
So. .3oag.Uo held by &. >. Andem oil
North Grosvenordale, 10 determine II
the mortgage Is valid as against the
creditors or whether it was given BY
Mf. Arnold with the intent 70 make
Mr.. Andem a preferred creditor.
During the course Of the examina-
ton Mr.. Andem 'expiaiped all the
Transactions with Mr.. Arnold 10 the
minutest detail during a period cover
ing six years. claiming that the amount
Of the mortgage, Y, 100, represented
practically all that he was worth, haV-
ing been invested with Mr.. Arnold Tor
the entiretsix years and the mortgage
was rendered him June by Mr.. Arnold
at Mr.. Arnold's suggestion, to secure
claims and notes that he, MI Andem,
held against the estate. Part OF the
amount represented checks due at that
time, but which by the terms OF the
mortgage, that was one for sixty days,
were included in it. He felt for some
time the necessity Of protecting the
interests Of his family, but have never
mentioned anything Of the same to Mr..
Arnold. and the mortgage was given
wholly at Mr.. Arnold's suggestion. lie
claimed that he had never heard a
word OF any difficulties in which Nj.
Arnold had been inyOled and even
when the mortgage was given him did
not know that he was In bad financial
straits, having always had the most
trustworthy confidence in Mr.. Arnold,
~ was the case with practically every
one else in Putnam and vicinity, ana
he could not believe that Mi. Arnold
was insolYent.
Mr.. Andem said that lac knew that
even at the present time Mr.. Arnold
was making money for some OF his
former creditors, in slightly different
way, and paying handsome profits, and
he could not see Why, If he was doing
ii now, he could not have done 50 be-
fore lie personally was OF the opinion
that he was, although he could not
prove It. lie was positive that Mr..
Arnold had made money. Mr.. Andem,
during tile course of the examination
several times intimated that Mf.Afno1d
had money, but said that lac could not
prove it. He said that he also had an
unsecured claim against MI Arnold
for s342.S9.
Attorney Charles f.. Searls of Put
nam appeared for Mr. Andem and
Attorney c. l.. Torrey of Putnam for
the creditors Deputy Sheriff George
f. Holbrook of Putnam, the trustee OF
the estate was present at the hearing.
The appraisers, James II. Tateml
William s. Johnson and j. Richard
Carpenter, of Putnam, flied their APP
praisal Wednesday afternoon. The
appraisal was made without regard to
eneumbrances and Is in substance as
follows. Contents Of barn, tool room,
basement, henhouse, bank building,
first floor, basement second and third
floors, 81 ,25l %; greenhouses, $3l2.b4i
real estate, embracing "a parcels, s94,-
so; bonds and stocks were inventoried
at nothing practically. Personal pro.
perty-Notes G. 5. Elliott of Whitman
tic, 500, and one of Wallace III. Stearns,
SO, several snotes of unknown value;
cash ON hand, 1913 SO; two patents on
liquid fuel ,oil burners, So; bills due,
S36.04; probably good; quite number
due of unknown value; life and fire
insurance equity unknown.
Original assets, according TO sehed-
uIe, S473 ,2s6.59, of which 1888, 900 rep
resented policies of insurance, both life
and fire. There are 10 mortgages from
S254.14 up To $4,000 each, approx
mating Sl04, 3s313. The schedule of
the value of the real estate is tl34 800;
liabilities, 1872 ,2677S inclusive of
mortgages, more than half of which
have yet TO be proved.
There will be a further hearing in
the near future.