Norwich bulletin., 1911-03-09
ARNOLD TRUSTEE
Brings Suit Against c. s. Andsm |.
 Have Mortgage Declared Void.

F. Ho1brook, trustee, va Clinton s. Andem, brought by George F. Hol- brook, as trustee for the creditors
 of Ernest M. Arnold. bankrupt This suit is brought to have declared void a mortgage for $22, 800 given by E. M. Arnold to Clinton g.. Andem on June 1, 1910. to secure notes held by Andem against Arnold, on the ground that the mortgage was given at . time when MT. Andem knew or had cause to believe that Arnold was in . bank rupt condition. Holbrook. trustee, s. Torrey of Putnam and Samuel B. Harvey of WlHfmantic. Searls 6 Rus- sell acted for MT. Andem.
 Arnold Examined for Five Hours. The first witness called by MT. Tor rey was Ernest MT. Arnold. Mir. Tor rey examined him for hve hours. Mfr. Arnold testified that from 1se2 to, June Is, 1910, he was . dealer in stocks and bonds and other invest ments. with ofi1ces at 16 Union street, Putnam, Conn. For seven or eight years previous to 1902 ho acted as pay roll clerk in the office of the GrOsven- orda1e company, at North Grosvenor-
 dale, of which company the defendant, c. s. Andem, is agent.
 Three Methods of Doing Business. i Questioned by Attorney Torrey Mir. | AIuo1Q 6t6AcQ kndI a6 udQ three rex ular methods of doing business: First, he bought and sold stocks and bonds on commfssion as an ordinary broker; second. he took money from his cua- toners, giving his unsecured note at
 per cent therefor, on what he called participating account. further agree ing to divide with them any profit
 made on the investment of their mon- ey over and above the per cent
 guaranteed. Third, he had special ac- counts, which were the same az the participating accounts. excepting that
 on special accounts each customers
 money was invested separately, while on the participating accounts the ! money received from number of cus- toners was invested in a lump sum and they shared equally in tho net
 profits. and. according to MT. Arnold's Throughout the day MT. Torrey kept up searching examination of MT. Ar mold, going into tho various details I of Arnold's business with other peo- pie as well as with MT. Andem. l First Dealings in 1906. Mfr. ArnoId's first dealings with Mr. Andem took place in 1906 whom he bought and sold stocks and bonds for Mir. Andem on commission. A little
 later MT Andem opened participat- ing account for small sum. The notes on this account were renewed at intervals of six months until 1908 Fwhen MT. Andem opened . special ac- count At one time MT. Arnold ap- parently paid interest at the rate o1
 sections between MT. Andem and Nr Arnold increased in number and size until the time the mortgage at which time Arnold was indebted to MT. An dem in a sum somewhat in excess o1 s22,3oo.
 Would Swear to Nothing. I Mr. Arnold was unable to say
 whether or not this indebtedness wal for cash and securities or partly prof its. During the entire day Arnold very seldom answered questions in 2 ! direct negative or affirmative. He would swear to nothing and in most matters he was uncertain or did not
 know.
 Average of 12 Per Cent. Annually. Questioned as to what interest and profits he usually paid on money left averaged about IF per cent per an- mum. He denied that he paid one man in Putnam $100 per month for one year on an investment of $500, as profit: but said that there was an understanding between himself and the investor as to what the money was paid for.
 Know Andsm Had Plenty of Money
 MT. Torrey asked why it was he gave Mr. Andem . mortgage for pro- ! lection when he had at that time oth- CT creditors to whom he owed large amounts and whose claims were unf secured MT. Arnold answered thai he knew that Mir. Andem had plenty
 of money and that If he protected him as to money already advanced he could with better grace call upon him
 for more
 Adjourned to This Morning.
 At 4.45 p. m. when court adjourned MT. Torrey had not completed his ex- animation. Adjournment was takex to this lThursday) morning at ter o'clock when this case will be con- tinued.
 Lively Interest in Meet.
 Local sport followers az well ai members of the Putnam high Dehoo
 and the alumni are much intereste< In the approaching first annual indeOl athletic meet of the Putnam ht31
 schooI, to he held in Hammond hall Satnrdy sxeniQg. Narch 11 Thts !