New Britain herald., 1929-10-17

the money had been paid to Clark, Hall X Peck, real estate execution ists, under contract to receive pay ments on notes which had in turn paid this money to the Second Ma tional bank succeeding trustee in ParkcrSmith mortgage trusts
 By the time Perry could call for his money at the bank, the Parker Smith firm had gone into state re- ceivership.
 Defense Attorney Sladc tried to bring out, in questioning the witness, that the only reason he had not re- ceived his money was that he and his wife were considering rcinvest- ing it. MT. Hoyt brought out, how ever, that the suggestion of reinvest- ment had been made by Paul Smith on the day he told Perry the money l had been paid.
 MT. Slade said that under the cir cumstances q trust no longer existed, since it was paid, but that a dcbtor- creditor relationship had been created between the company and Perry. This exempted the company. Slade contcndcd, from prosecution under the trusteeship law. Mir Hoyt denied the truth of both points.
 Bank Official Tcstifics
 Thomas F. Prescott, officer of the Home Bank & Trust Company, West Haven, identified records Of bank accounts as segregated accounts of the company, and the three officers as individuals Into these accounts States Attorney Hoyt maintained. went the moneys received for pay ment of notes which were not paid to holders.
 Prescott also said that the com pany had segregated accounts in his bank in the names of various mort gagers, among were kOlinsky and Mrs, Mathilda Griffiths of Hamden. When the Kolinsky mortgage was paid off, according to Prescott, the account in his name held $9,214. Against this the two Smiths made out five checks totaling $6,S00. One of these checks was for $2, 1000 which went 10 Judge Nathan A. Schatz of Hartford, attorney for the company in the reccivership action before Superior Court Judge Arthur r. Els.
 Judge Schatz also received a s. 900 check from another accomt, but he caShcd neither and returned them to the Union & New Haven Trust company receiver, which in turn made out q $5,00O treasury check which went into the Kolinsky ac- count, leaving but q small balance mot made good" according 10 the witness
 Missions Head Tcstiflcs
 Mrs. Griffiths had taken out q &C., 500 mortgage which the company financed with 13 notes for $500 each. Mrs. Mary G. Greenwood of West Hartford, treasurer Of the l Womcn's Universalist Missionary society Of Connecticut testified one of these notes, held by the society was not paid, though the Grifriths mortgage had been.
 MT. Ho\L offer q a ledger card showing several other Griffiths notes had not been paid. Mrs. Greenwood said that before she had an oppor- tunity to claim payment, the com panN had gone into receivcrship.
 Mir. Hoyt said that the fact of WithdraWals by the officers of money from mortgagcrs' accounts proved. In his opinion, that money that should have been used to pay off notes had been used by the three men for various other purposes. One check against the kolipsky ac- count was for $2,000 and was made out to the company itself
 Defense counsel held that the of flcers acted as q company and not as individuals, and again made the point Of the distinction of trustee ship as being in tho company's name and not in the names of the indi- yiduals.