Putnam patriot., 1911-01-27
Arnold Bankruptcy Hearing.
Trustee Seeking to Locate Assets.


city court room, this city, Tuesday
morning in the matter of Ernest NJ.
Arnold's bankrupt estate. The hearing
is to determine the legality of the So
called Andem mortgage and also of
payments of money and other trans
actions shortly previous TO Arnold's
going into bankruptcy. Attorneys
Torrey of Putnam and Harvey of Will
limantic represent the trustee.
Mr.. Andem was the first witness.
He was questioned but few minutes
by Attorney Harvey. Practically
nothing not already brought out al the
previous hearing developed. Witness
told of going to Searls' h Russell's
office the evening of June LIST where
they met Attorney Russell and the
mortgage was talked over. Deed was
drawn later by Russell. Witness had
no personal knowledge of the drawing
of the deed nor of the selection of the
property the mortgage covered. Rus
=
Arnold in the transaction. Deed was
drawn the 3rd but dated the LIST be-
cause this was when certain checks
came due and was when the agreement
was made. Had inquired of Russell as
to Arnold's financial standing about
two years ago. He told him he con-
cfA In OF
May and Russell told him he had had
no occasion to change his opinion.
After he secured the mortgage was
never asked for any more money.
Couldn't say that he would have let
Arnold have more If he had asked il,
for soon after there began to be talk.
Swore he had never heard talk of Ar
nold's financial straits before mortgage
was given.
Attorney F. f. Russell was the next
witness and was questioned for sever al
hours relative to his business and pro-
fessional transactions with ARNOLD
from 1905 down to the time he went
into bankruptcy. Had had many per-
sonal dealings with Arnold and was
we'll posted as to his financial condi-
ton. Had once talked with Andem
about Arnold and said in his opinion
his financial condition was good. In
May, 1910, was asked again aud told
Mr.. Andem that he believed Mr.. Ar
mold was sound and reliable and a
good man to let have money. He first
had reason to change his opinion on
the afternoon of June IL, 1910. Mort
gage was given in May. Only a short
time elapsed before he changed his
opinion. Had no other talk with An
dem on subject. He went into details
of meeting at office when agreement
for mortgage was made. Met Arnold
on street that morning. Arnold told
him he was going up to see Mr.. An
dem and do something that would
make good friend of him so he could
call on him for money when he need
ed it. He had never advised Andem
to secure himself. There was consider
able questioning relative to dating the
deed the first when in fact it was
drawn the third. Witness said that
this was done because agreement was
made the first. This was often done
in his office. 1t was simply his own
doing. Arnold was anxious to get
deed done that night. Andem seemed
Indifferent. Nothing was said about
Arnold being pressed by creditors.
When Andem left it was understood
that he would call up from Concord,
n. H., where he was going, to learn
that deed had been executed. He did
so.
In the afternoon witness told of
meeting Andem and Arnold in Ar.
nold's office July 6 when matter was
cleared up by Andem turning over
note and checks he held for which
mortgage was given. Later Arnold
came to his office. This was the first
time he knew he was embarrassed
Advised meeting of creditors. Meet
ing held and an agreement for an ex-
tension was made. Witness said Ar
mold owed him $2O,0 900, $4,000 secured
and 81, 900 unsecured. OF the unsecur-
ed about half or a third represented
actual cash. First transaction was
when he sold Arnold his old home,
July, 1905. Received one thousand
cash, mortgage back for two thousand
and note for one thousand. He then
gave detailed account of other mort
cages he had taken and unsecured
loans he had made. In May, 1910,
had notes amounting To about $3.50
coming due. Asked for it and Arnold
told him if he would leave it three or
four weeks he would get some good
profits from what 1t was invested in.
lie did leave it. Witness was closely
questioned relative TO $1,000 mort
gage he was given on the 18th of May.
He told of Arnold calling him over on
the evening of the seventeenth when
he asked him not to let anything he
might say to him shake his confidence.
He then told witness he was short of
ready cash and wanted to borrow
5000. Offered short time mortgage
with big bonus. Witness said he did
not want that but would take regular
mortgage as permanent investment
and took one for 5000 at per cent.
Witness had heard rumors OF big