Watauga Democrat. [volume] (Boone, Watauga County, N.C.) 1888-current, 1928-07-19
SEEK RETURN
OF CITY FUNDS
Action Started in Superior Court to
Recover $4,000 Appropriated by
Claude E. Miller Alleged Broker;
Defendant Under Bond

A suit has been started in the
superior court of Watauga county
by the town of Boone in an effort to
recover $4,000, which Claude E.
Miller of High Point, an alleged
broker, appropriated to his own use,
after having promised the city coun-
ell to negotiate loan for the city in
that amount. A bond in the amount
Of $4,000 was made, following the
arrest of Miller & few weeks ago.
However, since that time, he has had
an operation for appendicitis and
the preliminary hearing will be held
following his recovery.
When the board of aldermen was
anxious to secure loan with which
to construct the city hall, Miller
preferred his services. negotiable
note was issued to him for $4,000,
Miller to receive a commission of
5000 for his services. After having
received two worthless checks on the
note, the city alleges that the pro-
ceeds have been converted to the
personal use of the defendant. The
full text of the complaint, drawn by
Trivett and Conner, and which is now
a matte" of record at the courthouse,
follows, giving full details of the
transaction:
The Complaint
Following is the text of the COM
plaint as filed with the clerk of the
court:
The plaintiff, complaining of
the defendant for a cause of action
alleges and says:
q. That the plaintiff is a mu-
nicipal corporation created and ex-
isting under the laws of the state of
North Carolina in Watauga county,
North Carolina, and that the defend
ant is resident of Guilford county,
North Carolina.
"2. That on or about the 3rd
day of April, 1928, the defendant
came to the authorized officials of
said town representing himself to be
broker and located in the city of
High Point, n. c., and offered to
negotiate a loan for the town of
Boone in the sum of S10,00O.0O;
that the plaintiff was desirous of
borrowing shis amount and relying
upon the presentations and prom
lses of the defendant entered into an
agreement to borrow through the
defendant the sum of S1O,OOO.OO,
and relying upon the representations
and agreements of the defendant,
executed good and sufficient ne
gotiable note in the sum of $4,000
payable to the bearer and delivered
same to the defendant with the un-
derstanding that the defendant was
to secure the loan for the town and
to turn over the money obtained on
said note to the town of Boone, the
defendant acting in fiduciary ca
pacity as the agent of the said town
of Boone.
"3. That sometime after this
transaction the plaintiff notified the
defendant that it had not received
the money on said note as the de-
fendant had agreed to furnish same,
and instructed the defendant to i'm
ly remit to the plaintiff the
amount obtained on said note, but
that the defendant made promise aft
er promise to the plaintiff that he
various parties who would handle
said note and that he would remit
the amount obtained on said note on
certain dates, and finally, on or
about the 18th day of April, 1928,
the defendant did mail to the plain
tiff check in the sum of S9SO.OO
payable to the town of Boone, said
check being drawn on the CONNER
cial National Bank of High Point,
n. c., and again, about April 23rd,
1928, the defendant did mail to the
plaintiff a check on the Commercial
National Bank of High Point, in the
sum of SS,S20.00, but that both
checks were refused payment by the
bank on which they We're drawn and
have been returned to the plaintiff,
and that the defendant has failed
and refused to make said checks
good or to remit to the plaintiff aft
e. due notice the amount of the
proceeds of said note.
"4. That the plaintiff is inform
ed and believes and alleges that
the defendant has wrongfully, un-
lawfully and wilfully taken the pro-
ceeds from said note which rightful-
ly belong to the plaintiff and has
unlawfully, wilfully and
feloniously converted same to his
own personal use, and that the said
defendant now unlawfully, wilfully,
wrongfully refuses to turn over to
the town of Boone the money secur-
ed on said note.
IS. The defendant has failed and
refused to carry out and fulfill his
part of the contract made with the
plaintiff and has preached said con-
tract by not delivering to the plain
tiff the funds secured on said note
and by withholding said funds and
them to his own use, and