Putnam patriot., 1911-02-03
Arnold Bankruptcy Hearing.
Trustee Seeking to Locate Assets.

Trustee Seeking to Locate Assets.
The hearing in the Arnold bankrupt.
cy case in which the trustee is trying
TO locate assets belonging to the estate,
was continued before Referee Bowen In
the city court room, this city, Friday
morning.
man. He said he began business with
Arnold over year ago. He loaned
money on short time notes and receiy-
ed cash back from time to time.
Money was solicited by Arnold who
gave his notes at 6 per cent. and prom
ised specific profits besides, perhaps of
two or three hundred dollars. Had
notes come due latter part of March or
April and when he demanded pay
ment was put OIL from time to time
with various excuses. a total of 81
200 had accumulated to himself and
brother. Got tired of going to Arnold
and put the matter in Attorney Car
penters hands. Arnold had mention
ed giving mortgage but 1t was never
| consumated. Said he merely took a
chance when he invested. Had heard
of other transactions of Arnold and
when he came to him for money and
offered to do so and SO he accepted the
proposition. Carpenter told him of
arrangement to have Russell guaran-
tee payment of 81 500 and he approved
it. Had not heard of Audem mort
gage at this time. Short time'notes
were given in addition TO the cash pay
ment. Notes had not been paid. Car
penter had since collected S267 80 and
was holding it to witness account.
Didn't recall talking over Arnold's
condition with Carpenter before he de-
livered notes for collection. Talked it
over with brother and friends. Spoke
TO cashier of bank but got no special
information. Was not told that bank
had considerable Arnold paper. Major
part of the "a 200 was witness money.
81 800 was divided between himself and
brother in proportion to their claims.
Warren Spencer of North Grosvenor-
dale was called. He said he had
known Arnold As years. Started in
vesting with him four or five years ago
by putting in two or three thousand
dollars. Took notes at six percent
and Arnold said, that If the invest
ments did we'll he would make witness
presents. He would be surprised If an
| investment of So, 700 showed eighteen
hundred TO two thousand dollars
profits per quarter. Witness atten-
| ton was called TO Cancelled check on
which he had received $40. Said this
was on note due in June when he first
| found out Arnold was in strained cir
cumstances. Another check for $3.50
was shown. This he said represented
interest and profits on a two weeks
note. Other checks were shown and
explained. Heard of Andem mort
gage last week in June. Arnold told
him he was doing so well he could al
meeting of creditors he held ne.e of
$l1 200 and another of 81 300. When
he came to renew them Arnold asked
him to help him out. Witness said he
would cut the amount down to $11 300.
Asked If the original claim from which
the $11 300 had accumulated was not
$500. Witness thought 1t was more
than that. Didn't remember face of
old note but was sure 1t was more than
Sc, 100, Arnold was the one who fig.
ured it up.
Joseph Barrow took the stand and
said he was Arnold's chauffeur in
l90910. He did not know when Raj
ferty took possession of machine. Wit
ness last took auto to joys garage in
June This was at ArnoId's orders.
He told witness he thought of taking
the car to Hartford for repairs. lie
Rafferty,. Arnold told him later on,
after witness had heard of sale from
| other sources, that he got good price
/ for it from Rafferty, and let it go,
Witness had claim of 81 ,040 against
the estate. Let Arnold have 81 ,00O
| cash in 1909 at his solicitation. Asked
how Arnold came to ask him for /;
said he heard ! had the money--attor.
ney said, and thought you algood sub
ject, witness said yes. Mentioned Civ.
ing witness presents on his investment
The auto was not out of repair when il
was taken to Hartford. Arnold had
spoken of getting new mat for it
| Charles l.. Blackmar, Wauregan
had claim for 81, 900. Arnold gave hin
check in May dated ahead which hs
was TO hold out until June. Was pu
| in Putnam bank and is there now
Rev. f. ID. Sargent was questioned
at length regarding the transaction Ii
which he acquired the Brookline, n
| H., property. Said transactions will
| Arnold began four or five years ago
Loaned money from time TO time OF
| 6 percent notes in what was called par
ticipating account. Arnold told hin
| he would make investments profitable
| Couldn't state how much he had loan
] ed. Last loan was one Of $500 in fal