Norwich bulletin., 1911-01-26
PUTT NAM
E. M. Arnold Hearing continued-Va- rious Witnesses Throw Light or Financial Methods-Postmaste Lot ters' Cottage Looted,

iUSktO06>-TCSlHd E0C- ters' Cottage Looted. At the adjourned hearing Wednes- day morning before Referee in Bank ruptcy Andrew J. Bowen, on the estate of Ernest M. Arnold, in the city court room, c. Fred Waterman of this city, who was to be the first witness, failed 10 put in an appearance. It was un- derstood that MT. Waterman was to be examined concerning the payment of certain sums of money on notes held by him against Ernest M. Arnold. after the 1st of June, 1910, and within four l months of the institution of the bank duptcy proceedings, with a. view of ascertalning whether or not such pay ments were preferences and whether 1t was within the power of the trustees to recover the money.
 John F. Carpenter Testifies. John F. Carpenter was the first wit ness. He testified that he is an attor- ney at law in Putnam and had known MT. Arnold, c. Fred Waterman and Percy Waterman for several years. He was acting as attorney for the Water mans in June 1910, when he procured from MT. Arnold a partial payment of certain notes held by the Watermans. He prefaced his testimony with the ex- planation that while he was attorney for the watermans, yet they had ab- solved him from his obligation as at torney and that he was at liberty to state the whole facts just as they took place.
 He went into details as to the time and manner of payment and said in substance that he succeeded in getting S1,S67.5o cash on notes that amounted to abouth $3,Soo, as near as he could rember, and that $500 of that sum was advanced by Attorney Frank F 1 RIISSeE OlJf of hfS nNPEaf ha anteeing the payment of that sum if Waterman would not press Arnold for ! the remainder Of the amount due, but would take short time notes for such balance.
 Corrohorated by Frank E. Russell. MT Russell was called to the witness ! stand and went over flis part in the Waterman deal, corroborating all that l MT. Carepnter said as to dates, amounts I and other details.
 | A Tenants Experience. ! Frederick w. Seward was called to testify concerning the lease of one of l Arnold's houses which he had obtain l ed on June 7th, 1910. He said that he | moved into the house, one of two the estimated cost of building which was | $16,00o, on April 1st, he being the first 1 tenant to occupy the house: the rental was s25 per month or $500 per year. l He paid his rent to MT. Arnold for the 1 months of April and May. About the l list of June he had made arrangements | with some roomers and bought large !, amount of furniture, and he told MT. l Arnold that he must have a lease for a reasonable length of time, and MT.
 Arnold had responded with the three | years lease.
 How the Rent Was Paid.
 l He further said that he had a re- ceipt from MT. Arnold for the first years rental. and that it came about 1 something in this way: MT. Seward is 1 an insurance agent, both life and fire, and he had succeeded in getting Mir Arnold to take two large policies of life insurance, one straight life and one endowment; that there was loan value on these pOlitices after three an- l nual payments had been made, and that he had succeeded in getting this loan value for MT. Arnold by having him make his third payment in an ir- i regular way-t4lat is, by taking the premiums out of the loan, and thus
 securing to MT. Arnold about $500 net,
 out of about s6,5o0 or $6,ooo loan val ue In return for his services Mir. Arn- 1 old agreed to give him & receipt for a years rental of the house. MT. Sew ard also has an unsecured account of
 upwards of sz,oo0 with Mir. Arnold
 Took Auto for Plumbing Bill.
 William F. Rafferty was the first witness called in the afternoon ses- sion. and was asked concerning the l transaction by which he took MT. Arn l.
 old's automobile on or about June 10th amounting to $2.372.39. He said that
 s1,600 of this sum was represented by
 a note which he discounted at the
 First National bank of Putnam, and
 that he renewed it twice. each timo
 MT. Arnold giving a three months
 note, but that on May 31st 1910, Raf-
 ferty received a notification from the cashier of the bank to the effect that
 the note must be taken up, or at least
 reduced by half.
 old and told him the circumstances
 and again on June 10th. when he was
 referred by MT Arnold to lMr. Russell
 MT. Russell called Arnold into the con-
 ference and they drew a bill of sale to
 Rafferty of the automobile, a model s
 Pope Hartford, for which Arnold had
 paid $500 year before, and Rafferty
 gave iii return q bond, binding him.
 self to return the automobile to Aff1old if the latter paid him his bill of 32,- 372.39 within specified time.
 Released Rafferty from Bond.
 Toward the end of June Arnold got
 mixed deeper in his financial entan .
 element and told Rafferty that ht
 could not hope to pay his bill, and re-
 leased him from the bond, leaving the
 bill of sale complete as on it's face
 Rafferty insisted that he had no req
 son to think that Arnold was in a siraky condition financially in June than at other time during the last four ! or five years. though he had heard va
 rious rumors as to his condition. AS
 soon as Rafferty had obtained the au- tomobile he sent it to Hartford for re- pairs, which were shown to be putting in a mat on the floor for Arnold's convenience.
 Mr. Russell corroborated Rafferty's story in the details as to payments ana
 dates and explained the drawing o the bond.
 Arnoid's Real Estate.
 Mir. Arnold was asked concerning hi.
 real estate, which he had owned dur.
 ing the time he had done business ir
 Putnam. He said that outside of hi. ] Putnam real estate he had owned : house and lot in Rrookline, N. H.,worti l about S1,000. which he sold to Rev. F
 D. Sargent last June; five house lot: in Grosvenordale, in the town O Thompson. whicl, he still owns; som, property in New London, which he solt
 early last spring to John A. Dady O
 Putnam; two story house in Ncrtl