Putnam patriot., 1911-01-27

!
May Srd was called TO Attorney Car
penter's Office. Arnold there and be-
ing pressed for claim of 81, 200. Ar
mold said he could handle il if he
could get it spread over few weeks.
Carpenter said he would be satisfied
for the time If he was given 81 800 and
Arnold appealed TO witness. Witness
said he would loan 81 900 and endorse
note for 5000 and permit balance due
him TO go on another mortgage. This
was done. First knew Arnold s finan-
cial straits June 24th or 25th. Did not
know of any stocks, bonds or anything
Arnold transferred after June LIST.
Witness always thought Arnold worth
large sum above his liabilities. The
transaction in Carpenters office did
not lead him TO believe that Arnold
was In financial straits, as he thought
he was merely temporarily in need of
ready cash. Arnold had told him of
expecting money from the west which
had been delayed.
+. NJ. Arnold was the next witness.
Had many dealings with Andem be.
fore mortgage was put on. Began In
1905 by buying stocks for him. Then
he put money in participating accounts
down To the time of the mortgage.
Also let him have money ON special ae-
count notes. Never had talk with An
dem about Indebtedness. Witness
was shown checks given to Andem
| due in May and June and asked if at
the time he was able TO pay.
Said he had money where he could
get IL, Pressed as To where this was,
| TO name one person who would let him
have it, said he would have TO look in
| book. Then said that IL was probably
made on memos and did not know
whether they were in existence. Did
not keep record of money on call with
customers. Pressed to tell one person
| he had money on call with, he said A.
| Il. Fish of Keene. Also some in Nor
names. Admitted this would be trans
| ferring debt from one to another. Ask
ed If there was any solid basis, said
| there was real estate, also stocks and
in safe. Pressed regarding same did
not fix any definite amount. Said that
he thought "a bond of 1859 had been
| sold in Chicago since the first of June.
| Couldn't tell what else was in safe
without looking it up. Bought and
| sold stocks. Some in market but most
what could be found here and there.
| Was dealing in 1909. Bought by bro
kers and put up 10 10 80 per cent. mar
gins. Been dealing more or less since
| 1905 Had made more money in the
market than had lost. Must have
made money. Borrowed more money
for real estate than for stock. First
real estate he bought was old Metho-
dist church property. Put in $1,000 in
cash. Greatest part of real estate was
not bought within two years, as he
| bought Wheaton houses on Bradley
street three years ago. Shown book
and identified it as one used in his Of
flee. Dates In book under 1905 showed
transactions in Amalgamated copper,
Brooklyn Rapid Transit, Louisville &
Nashville, Steel common, Erie, Wool
en-, and others. Pointed out ion page
80 transaction. First loss $177 80. Next
transaction, loss Sl12.50. Then came
profit of Sl6.25. Then three more loss
es of $59.3S, $50 and $45. This was all
that was pointed out, but 1t was hint
ed that the whole book was full of sim
liar transactions, page after page.
Asked if the transactions did not for
the most part show loss, he said he
bought and sold for some one else at
their orders, so he was not to blame.
He was asked if he ever reported loss
on special account note, and said yes.
Asked TO name one said he weuld have
To look at his books. When there were
profits the amount was written on cor
ner of note. When no profits, none
were put on except the interest. sSaid
he could find lots that didn't show a
profit over the per cent. Asked If he
considered himself solid June LIST, he
said he did. Asked TO point out what
he had to show for all the money he
had borrowed, he pointed to his real
estate and stocks he had in safe. He
did not consider notes that were not
due as Indebtedness. Asked how he
came TO give mortgage TO Andem, he
said that Andem had money, and wit
| ness wanted place where he could go
and get five or ten thousand II he wan
ted it. Said that about June LIST he
was to have extensive deals and would
want 10 get considerable money from
him, bur would give security. He had
let witness have money and had been
paid large profits. There was no way
to tell how much he had paid Andem.
! When he proposed mortgage TO An
dem ne did not seem TO take any inter-
est in it. Told of going to Carpenters
office in response To q letter regarding
the 1920 claim of the WATERWAYS.
Had been asked for it before. The
notes were not for equal amounts.
They were overdue. Went TO keene
June 2. Had seen the WATERWAYS be-
fore that and before he had meeting
with 'Andem for purpose OF giving
mortgage. Not over week before.