Putnam patriot., 1911-01-27


ii was due, said she must have asked
for il. Also note of Gertrude Hall,
S262.17, paid six months before due, a.
I so in July. Couldn't explain il, and
later thought ii was mistake, that ii
/ had not been paid, but was one OF the
claims proved before the referee. The
l matter of transfer of real estate in
/ n. IL. to Rev. Il. ID. Sargent was start
ed into, but was left for the future so
1t could be looked up by witness.
Asked If any Others had been paid at
ter june LIST, said he could not tell and
was told TO look II up by the next day.
AT the meeting of creditors there was
an agreement to renew notes. Some
did. Warren Spencer had notes
amounting to Sill 800. Gave him new
note for SIC, 900 as Spencer said witness
had done we'll by him and he would
call il even money. II amounted 10
gift from Spencer of 81, 800. When
note of Sll 800 was shown witness,
Spencer being payee, he said he could
I
given Spencer the new note he had not
delivered over his old one. He was
positive that Spencer had been given a
$1,000 note, but did not know wheth-
er it was made by himself or his clerk.
Asked about others he had paid mon.
ey between the Sd of June and the pres
ent time said he could not remember.
Said he often paid out money that no
one but himself knew about. Thought
perhaps his cancelled checks would
| show and he would get them for attor-
ney.
Attorney j. +. Carpenter was the
first witness Wednesday morning.
His testimony related to the notes of
the Watermaus that he had for eollec-
ton. Nothing was said by Waterman
relative to Arnold's financial condition
| except that he said that mortgages
were being put on and he did not
think that was right, and If that was
going to be done his .notes ought to be
paid. Told of the meeting with Ar
mold and his counsel in his office the
evening of June Sd when Russell guar
anteed the payment of $500 and notes
were given for balance. When asked
| If he had knowledge of Arnold's tinan-
cial condition when notes were put in
his hands for collection, witness said
| that that was hard question TO an
swer. He knew that Arnold was en-
gagged in IA hazardous business, knew
that his real estate transactions were
risky, and that he had not met some
| of his obligations. Had himself made
many collections for clients. When
asked why he considered the real es-
tate transactions risky he spoke of the
| instance of two houses built on Grove
street at cost of $4,000. Five per
cent of that amount would be $500.
| Arnold rented the houses Tor 5000 and
had taxes, water rate, sidewalks, etc.,
| to pay for, and witness did not consid~
| er IL good business. Did not know he
| was in falling circumstances though
| never had faith in him. Knew OF An
dem mortgage as 1t was common street
talk. AS prosecuting attorney COM
plants had been made to him where
! Arnold had received money to buy GER
| tain stocks with and given receipts
| therefor, and where he had received
stock to sell and return the proceeds to
owner, which he had not done. Ar
mold had been given an opportunity TO
straighten it up. Was positive no
complaints were made before the first
of June last. Had knowledge Of
checks or notes being protested.
| Il. w. Seward was the next witness
and explained the transaction of the
| life insurance policies. On one OF the
| policies Arnold sent check for premi-
um to agent at Hartford. Later called
! him up and asked him TO hold up
check as he was short of funds. Called
! him up second time and asked him TO
/ hold it another ten days. Agent asked
witness advice and was advised to put
| check in bank. Cheek came TO Put
nam bank and there were no funds
| here To meet it. Cheek was recalled.
Money was raised TO pay premium
which was necessary TO get loan up
on 1t. Loan was taken. agent got what
he had paid, and balance was sent TO
Arnold, who did not want IL To come
! through the bank. Same transaction
| on the other policy. Arnold told wit
ness if he would raise the money TO
pay premium necessary TO get loan on
policy would give him a receipt for
a years rent at $500 in return. lie
was also TO have balance due on conn.,
mission. The $500 applied on rent was
for services not for back payment.
| This deal was consummated.
Judge Russell was asked few ques-
tions and made one or two changes in
| his testimony relative TO dates. Said
that complaints about Arnold 10 pros
ecuting attorney occurred in July.
w. f. Rafferty, testified after the
noon recess relative TO taking Arnold's
automobile in settlement Of claim of
S2372. 39. He sold 1t to FL. IL. Dayen-
port for $3.50. Had heard rumors re-
garding Arnold's condition for some
time, and knew nothing different or
more definite when the deal was made.
Judge Russell also explained the steps