The Bridgeport evening farmer., 1911-12-01
CoNNH-TICUTS MOST FAMOUS
 .ifr-RICH-QUICK SCHEm .

1Er-RICH-QUICK SCHEME
 Inventor and financial genius { Ernest M. Arnold, of Putnam.
 Bait-Six to one hundred and
 forty per cent on unsecured loans.
 SeQuel-Bankruptcy.
 Labilities-s7S2,2 2S7.7S, mostly un-
 secured .Ns Y '5 VI" t}, Assets+Practically nothing
 Dupes1Seven hundred persons,
 mostly from the middle and work ing classes, inc.uding many widows
 and orphans.
 Pending court action-Hearing on
 Dec Il, 1911, on Arnold's petition
 to be discharged from bankrutcy.
 Special from United Press.)
 Putnam, Dec. This is the story of Ernest M Arnold and his system by which be failed for over $700.000. Also, 1t is q story of the lure of gold which led 700 otherwise clever people to en- trust their hard earned savings to the --wizard of finance on his unsecured notes. | A week from next Monday, Arnold will appear in Willimantic, before United States Referee in Bankruptcy Andrew J. Bowen, inssupport of his petition to be discharged from bank ruptcys At least. 50 of his creditors will oppose him, alleging that Arnold did not keep sufficient books and rec ords to show. his true financial condi ton and that he transferred property to certain creditors when he knew himseh to be iasolvent. The notes Issued by Arnold against outstanding loans were non-negotiable promissory notes which, according to the law of Connecticut, the statute of Limitations does not run against for IT years.
 If the creditors are successful in preventing his discharge, they will have the opportunity to seize any pro perty Arnold may acquire within that period in satisfaction of any judg- ment they may hold against him. For, while the suave little financier Is here in Putnam amidst the wreck of his system he is doing business at .sists Of a conf1den tial clerk, who has stuck to him through all, his troubles. The present business, 1t is said,j is carried on in the clerks name. AL ready the word is going around that Arnold is making his profits for his last year that the news of his failure brouEht down on his head the curses of the town inhabitants.
 Arnold, himself, has never admitted that he failed. If only his creditors had left him alone. he would have He would have done this with his "system" about which he is very secre- tive but which he claims is sure profit getter.
 The story Of the Arnold. bubble was detafed at length at xtheS time of its bursting. but since thens Arnold has spent hour after hour on the witness stand and it is therefore possible to- day tp tell the true story for the first time.
 A BORN ON FARM.
 ErfieStt IT. Arnold was born on a farm Tn his late teens he had Taught school in the little red brick schoolhouse in Mechanicsville, Conn. He gave upst teaching to enter the em- p.oy of the Grosvenordale Cotton Com- pany as bookkeeper. He studied the stock market and for 30 years has worked on a system to make money in stock jobbing. A system that could not EaaL When he had evolved this system he resigned his position as peration. With visions of u ntold wealth before him. he bid the townspeople goodbye.
 Unheralded and unknown, Arnold came to Putnam, 10 years ago with only 5his system. No one paid partic- nlar attention to the daepersz gray haired and partially bad man with vinsorne smile and ministerial dress He opened a modest office on Union street as agent for a Hartford invest ment house. The concern he repre- scented soon went to the wall but Ar mold protected his customers by taking their losses himself. He had the flu ture in mind.
 Directly after this failure Arnold went into business for himself in the same modest quarters. Six per cent Guaranteed investments were offered the public. The years dragged bu, soon the house of Arnold began to at. tract attention in a quiet way as 2 success. The people wondered what manner of businessman had come among them. They dropped in to set and once under the influence of the bankers magic personality, they in. vested their savings with him
 He never failed to make profits, il was rumored. He often paid T., 10 anC even more per cent, More people flock ed to the Union street house. Arnold hired clerk, then two, three, four until the modest quarters blossomed in 10 a palacial banking house, with book Keepers, typewriters, c,erks, a janitol and sconfidential assistant.
 There were tickers and telephones