In his answer Mr. Dooly denied that he was indebted to the plaintiff or that the plaintiff had any right to maintain this action against him. He also stated that he did execute a note to H. J. Black promising to pay $1,000 (Mex.), dated ax alleged, but that said mote was executed to the said H. J. Black without any words of negotiability and could not be assigned or transferred by H. J. Black, being made payable to him personally and not to his order or to bearer, and that the note was given in part payment for certain supposed property known as the Shanghai Watch Club and in consideration of representations made by H. J. Black to him in connexion the purchase of the same, but which representations were misleading, false and fraudulent; and the defendant Dooly was about to commence ings in the United States Court for (hina to have the said note cancelled for w: consideration and because of having been obtained by " fraudulent representation. Defendant further said that the note was presented, but payment was refused because the note was not negotiable and the plaintiff had been informed by the defendant before or at the time that she accepted the note that it was not lable and therefore she took it at her own risk and peril.
In his answer Mr. H. J. Black stated that the promissory note was assigned, transferred and delivered by him without consideration to (. A. Engelbrecht and not to plaintiff; that at the ti of the assignment, transfer und delivery of the note by Black to Engelbrecht, the latter agreed with and represented—to this defendant that he would not sell or assign the promissory note. Mr. Black further stated that. he had not consented or agreed to any sale or assignment of the note by Engelbrecht to the plaintiff or to any other person. Defendant farther alleged that the plaintiff was not the boni-fide holder of the note for a valuable consideration, but received the same with notice of the foregoing facts and a+ collateral to secure the payment of an antecedent debt of said C. A. Engelbrecht and without paying any valuable considera tion therefor.
After the reading of the pleadings by the Clerk of the Court, evidence was called.
Plantiff said that she was formerly the sole proprietor of Kalee. Mr. Engelbrecht first went to stay at Kalee in September 1903 or early in 1904 and remained there at least until the time of Kalee being handed over to a imited company. Mr. Engelbrecht owed witness about $900 and in November or December 1907 he tendered her promissory note for $1,000. Mr. celbrecht then owed witness $905 and interest. He suid the note wax good and that Mr. Dooly could be trusted. Witness said that she would see Mr. Dooly before accepting the note. Witness went the same day to see Mr. Dooly, but he was not in his office. Witness met Mr. Dooly in the street, told him and showed him the note, He said, Y be sure that it will be or words to that effect.
ness's daughter was with her at the me. Before the note became due witness met Mr. Dooly in the hall of Kalee and she again spoke to him the note. Witness asked if the difficulties about the Watch Club, of which she had read, would affect the payment of her note, id it would not. A few days before the note was due Mr. Dooly wrote to her and said that it would not be paid. The promissory note was presented but not paid. Witness received a letter from Mr. Black in which he stated that the note was accepted by him in a basines transaction and that rs. Clarke as holder of the note should endeavour to collect payment from the maker of the note first, failing which sha would have redress from him.
Tt was admitted by the defence that Miss Clarke would corroborate her mother's testimony, so she was not called.
Heundertmark, manager of Kalee, said that he overheard an interview between Mrs. Clarke and Mr Dooly in the hall of Kalee in January. Mrs. Clarke asked if the note would be paid when it be came due and Mr. Dooly replied "Yes." Witness had called on both defendants, bnt could not get payment of the note. Mr. Black once said Fitness If Mr. Dooly does not pay, will This was the evidence for the plaintiff.
Dooly stated that Mrs. Clarke met him in the street and asked if it He said it was and he expected to pay it, bathe did not say he would pay it to her. Witness under-stond that Mrs, Clarke had: already accepted the note. When witness met Mrs. (large at Kalee he told her that difficulties were brewing, but he hoped to make arrangements whereby the note would be pai Cross-examined—When witness first saw Mrs. large he intended to pay the note, Witness had not taken any steps to cancel it.
H. J. Black recognized the note produced. ess endorsed the note when he handed it to Mr. Eagelbrech of because he would accept liability but to transfer right to the note.
Mr. Engelbrecht anid that he had some debts at Kalee and must pay. Witness hal promised Mr. Dooly that the note would not be hypothecated. Wit ness understood when he took the note from Mr. Dooly that it would be paid, but witness did not care ty have any one collect it except himself. Engelbrecht understood that the note was not to be given away, but that Mr. Dooly was to be allowed to pay the note, Witness did not receive any consideration from Engelbrecht for the note. Witness was voluntarily assisting Engelbrecht.
Text read from the printed page and cleaned; old type leaves the occasional error.