Norwich bulletin., 1911-03-10

Superior court opened Thursday morning at ten o'clock. Attorney Tor rey concluded his examination of MT. case of George F. Holbrook, trustee, vs. Clinton $. Andem. MT. Torrey placed in evidence as an exhibit in the case the mortgage given by Arnold to MT. Andem, covering IT tracts of land in Putnam, with the accompanying note for s23,000.
 Mir Sears, for the defence then cross examined MT. Arnold.
 A Napoleon of Finance.
 In answer to Mir. SearTs questions as to his various occupations up to the time he was declared a bankrupt in October. 1910, MT. Arnold stated that he was 54 years old and from the time he left school until he was twenty years of age he taught school. He then entered the employ of the Grosyenordale company, intending to learn the business. He started in the machine shop and worked in various other rooms until about 1895, when he entered the office of the company as payroll clerk. He had bought and sold stocks and bonds for himself ard family from the time he was 22 years old and in 1902 he left the employ of the Grosvenordale company and took desk room in a corner of the Thomp- son bank room, in Putnam. Between the years of 1902 and 1910 he grad ually acquired all of the Thompson bank building. which is a three story block, and had offices in Keene, N. H., Whitinsville, Mass, and Danielson.
 How His Money Was Made.
 He first purchased real estate in Putnam in 1904. when he purchased the Methodist church property on Elm street. Since that time he acquired various other properties in Putnam and other places, with the purpose, as he said, of having a dollar in real es- tate for every one he invested from money taken on participating ao- counts.
 He paid E. M Wheaton s42,eeo for houses erected on a tract of land fac ing Grove street and erected green houses on Farrows street at a cost, exclusive of the land, of $3,500.
 Policies Aggregate $2so,ooo.
 As business grew more prosperous, he gradually took on life insurance, until he carried policies aggregating a quarter of a million dollars, payable to his estate, as he said, to protect his creditors in the event of his death.
 Why the Mortgage Was Given.
 MT. Searls then question Arnold in regard to the circumstances surround ing the giving of the mortgage. MT. Arnold said that MT. Andem had nev- CT asked for any security, but that he (Arnold) thought that Andem ought to be secured as to the large amount already invested before being called upon for any more He mentioned the matter to Mrs. Andem in March, 1910, but Andem only smiled, as much as to say that he thought matters were all right as they were. However as Arnold was returning from Webster, Mass, on June 1, 1910, he stopped at the office of the Grosvenordale com pany and saw MT. Andem in regard to the matter again. At this time, MT. Andem was willing to take a mortgage and, as both he and Mir. Ar mold were to be away during the fol- lowing few days, he agreed to come to Putnam at once in MT. Arnold's automobile to have the matter at tended to. Arriving in Putnam, as with MT. Arnold at his home and in the evening went to the office of At torney Frank F. Russell, MT. Arnolds attorney There the various deeds of MT. Arnold's property were exam ined and MT. Russell was directed to put a savings bank valuation on each piece of property; that Is. MT. Andem vas to take q mortgage on each piece of property at one-half of a conserv- alive valuation above any encum- brances already attached.
 Seventeen Tracts Selected.
 Seventeen tracts were selected which at a savings bank value aggregated 300, and it was left with MT. Rus- sell to draw the mortgage deed on the morrow. AS they came down the stairs from the office. MT. Arnold re- marked that matters were now ar ranged as he wished and that he would now feel justified in calling up- on MT. Andem for money whenever he needed it.
 What He Told Andem. MT. Searls questioned Arnold as to any statements made by him at any time which would lead Mir. Andem to believe that Arnold's business was prosperous and would negative any idea on MT. Andem's part that Arnold was in a failing condition and he drew out that Arnold had told MT. Andem on the first of January, 1910, and perhaps on the first of June, 1910, that he hoped within two years to is- sue a statement to his customers showing $2 assets to each $1 of lia- bility He also stated that he held a contract which controlled the ticker service from the stock for Putnam. He said that he told MT. Andem that his house rents netted him IA per cent. on his investment and that as & mat ter of fact they had always netted more. He never told Andem that he was pressed for money and denied 1910, but that customers called upon Ii