Norwich bulletin., 1911-03-11
c. S. ANpEM
Resumes Testimony in Suit Brought by
 Trustee George E. HoIbrook.

At 11-35 C. S. Andem, defendant in George F. HoIbroolx, trustee, vs. Clinton s. Andem. took the stand and MT. Har vey continued his examination.
 MT. Andem said that upon his return from the New Hampshire trip in the second week of June, after the $22,300 mortgage was recorded, in company with Attorney F. F. Russell he called at MT. Arnold's office one evening to give the consideration for the mort gage and to receive the mortgage note. :. Among the checks, notes and receipts which made up the 22.3O0 were two notes for s5,000 each which MT. Arnold immediately tore up. MT. An dem did not know why. MT. Andem then suggested that the notes ought to be preserved until the matter was fully settled and thereupon Arnold re- turned them all to him with the excep- ton of those which had been torn up. MT. Andenf never had any question as to the safety of his investments with Arnold and never made any investiga- ton of Arnold's business other than to listen to public opinion, the recom- mendations of Judge Russell and an occasional inspection of the land rec ords of Putnam.
 In Charge of 1900 Operatives.
 Upon cross examination by Mir. Searls, MT. Andem said that as agent of the Grosvenordale company, having charge of two large mills, employing 1900 operatives and turning out 80,000 yards of cloth per day. he was kapt so busy that he had no time to make any closer investigation of Arnold's busi- ness than he had made.
 John E. Carpenters Testimony.
 Attorney John F. Carpenter then took the stand. Questioned by Attorney Harvey, he stated that he is now en- ;,, oP 1o If nam. In years past he has been cashier and now is and for some time has been vice president of the First National bank of Putnam. He said that he had acted as attorney for c. Fred Waterman in endeavoring to se- cure payment of a note held by Water man against Arnold and had succeeded in getting a part payment of the note.
 He knew MT. Andem and remember ed that while he and MT. Andem were riding~in a train between year and half and two years ago, among other things, the conversation turned upon Arnold and his methods of doing busi- ness. MT. Carpenter expressed it as his opinion at that time that it was only matter of time when the bubble would burst and Arnold's business go to pieces. MT. Andem replied that there were some things which he himself did not understand about Arnold's meth ods. MT. Carpenter at that time knew of and was surprised at the part that MT. Andem had dealings with Arnold.
 Arnold Kept Banks Busy.
 As vice president of the First Ma tional bank of Putnam MT. Carpenter is kept in close touch with the affairs of that institution and he stated about the month of May, 1910, Arnold kept that and surrounding banks pretty busy.
 MT. Harvey asked MT. Carpenter if, in his capacity of prosecuting attorney in the city court of Putnam, he had ever, previous to June 3d. 1910, had complaint made to him concerning Ar mold in which it was claimed that Ar hold had not turned over certain mon eys of which he was bailee. Mir. Car penter answered that no such com plaints had been made before June 3d. 1910. MT. Searls objected to Mir IIar- vey's question if there had been any after that date, and the court ruled the question out.
 Clerk Floremus Clark Testifies.
 Floremus Clark then took the stand His statements were as follows: He is now the clerk of the trustee, George F. HoIbrook. For the past three years he has been MT. Arnold's clerk. His duties were to keep account of the sales made at the greenhouse, the rents and the repairs on the real estate.
  properties included in the Andem mortgage to have in court when the case is next taken up.
 Frank F. Russell on the Stand.
 Attorney Frank F. Russell was then called Mir Russell has known MT. Arnold since the first day he came to Putnam, which he thinks was about ten years ago. He is a partner in the firm of Searls & Russell, which firm Mir Arnold retained in 1906. Aside from any law business transacted be- tween them, MT. Russell had great many dealings with MT. Arnold during the past ten years, the first of which was in 1905, when MT. Russell sold Arnold Q house, taking a mortgage thereon of $1,000. Since then he has taken many mortgages and has had participating and special accounts. His last transaction with Arnold was on Jan 1st, 1910, when he lent him $100O in cash. At the time of the failure Arnold owed him $20.000; $13,- 900 was covered by mortgages and $7,00O was unprotected.
 At this point (5.15 p. 1n.) court ad- journed until Tuesday morning, March 14th. at 10.30, when the jury will be in attendance and criminal matters will be taken up. This case will be re- sumed at the first opportunity.
 Did Not Receive Part Payment
 It was reported Thursday that Thom- as Rawley had received a part pay ment on what MT. Arnold owed him.