Norwich bulletin., 1913-09-23

the witness. At the very outset of the trial Attorney Wells commenced to lay in books of the institution as eX- hibits bearing on the matter under consideration and before all of these were regularly presented and entered and the system of bookkeeping ex- plained by MT. Young the time to recess at 1 p. m had arrived.
 Half Cord of Books.
 The corporators' and directors books were among the first entered, these showing who the various off, cers of the bank have been for many years back, and including the names of all directors since 1893. After these books the general ledgers of the bank, the cash books and the day books were entered Mir. Young explaining in detail the system of keeping the records of the bank and of making entries from one book to the other up 10 the ledger. Altogether there was almost half a cord of books. but MT. Wells made use of most of them in producing data as the trial pro- gressed.
 At the request of Attorney Wells MT. Young explained as to the manner in which accounts were divided-i0to checking. tax, expense. insurance, banks, bank stocks. bonds. surplus, premium, etc, this explanation occu- pying a considerable length of time.
 Nexatious Delay.
 This was a long drawn out and tedious process and Judge Henney, Hartford, one of the counsel for the bank, chafed somewhat under what he considered a delay to the proceed ings, but Attorney Wells insisted that the method by which he was proceed ing was necessary to produce the evil denCe that he wished to lay before the court. It was not until after the afternoon session was well underway however, that Judge Henney inquired of Attorney Wells, after the latter had been asking about some loans that the bank had made as told else where: Are you trying to show that the bank lost some little money on a few unfortunate deals some time in the dim past?"
 Attorney Wells replied: We are trying to show that the bank has car ried fOreclOsed real estate as mort gage loans, a s shown in the reports of the institution to the bank cOmmis- sioners and that the reports rendered are untrue to that extent"
 Present Condition the Question.
 Judge Henney continued: The ques- tion here seems to be on the solvency of this bank at the present time. This digging up of old and improbable transactions can do no more than show that the bank has had some poor investments and lost some money as all banks do. What we want to do is to show the present condition of the bank and demonstrate that it has been earning dividends since and all of the time it has been closed"
 The little talk over the slow man ner in which the trial was proceed NT611 from following out his same line of Investigating. however, and he con- tinued to work with his books and his witness.
 Disbursement as to Values.
 The most interesting developments of the days hearing were the facts that there is a disagreement as to the value of some of the assets of the bank. real estate in New Haven, for the commissioners and the counsel for the bank and the manner in which some of the loans by the bank have been made to relatives of the directors of the institution, this latter matter being one that was inquired into at length by Attorney Wells during the afternoon session.
 Expert Sets Valuations.
 During the morning session Attor
 
 Treasurer Young from the witness stand that Charles J. Anderson. real estate man of New Haven might tes- tify as to the value of pieces Of es- tate in that city owned by the bank and recently foreclosed for the insti tution There are four parcels of this property, one on Chapel street, one on Forest street, one on the corner of Chapel and Wallace streets and one on Clark street. MT. Anderson was the appraiser for the bank commits sioners. He testified that in his Opin- ion the Chapel street property was worth $17 a front foot $2,856; the For est street property worth S7 a front foot $4,200; the Clark street property worth $4,O87; the property at the corner of Chapel and Wallace streets $9 800.
 Treasurer Young had previously tes- tified that the bank valued these pieces of property as follows: Chapel street property $3,300; Forest street prop erty, $7,50O; Chapel and Wallace street property S12500: Clark street prop erty, $500 a total value of $26, 360, all the forecIOsed real estate the bank has, Treasurer Young stated, and held at a book value of $49,014.51 by the institution. Attorney Wells called at tention to the fact that the book value was $22,654.51 in excess of the fore closure value.
 Judge Harry F. Back, counsel for the bank with Judge Henney and State Attorney Charles E. Searls, took the witness, MT. Anderson, after At torney Wells had concluded his ques- tioning as to the value of the New Haven property. Suppose you were told that S7.000 has been offered the bank for the Forest street property that you appraise at $4,200. would that not change your opinion as to its value?" asked Judge Back. 'It would not" replied the witness. Would 1t cause you to change your judgment of the value of the Chapel and Wallace street property. which you appraise at $9,8o0, to know that the bank has an opportunity to sell It for St4.660?" Judge Back asked the witness Mir. Anderson said 1t would net change his judgment, Asked q similar question as to another one of the pieces of property in question Mir. Anderson replied in a similar way and added that the price which 1t was suggested it had been sold for, S2,0o0 in excess of his valuation, might have been secured by reason of the fact