The Republican journal., 1869-10-07
THE GRFAT CONNECTICUT DEFALcATi0N

From the Hartford, Conn.,, Courant, Sept 2sl
The Financial irregularities of Clark Holt,
of Rockville, have already been referred to
in several papers, but as yet no complete and
Trustworthy account has been given to the
public In order to show the precise situa-
lion OF affairs. it will be necessary to notice
somewhat the business career of Mr.. Holt,
who first came in a public way before the
people of Tolland county as Secretary of the
Holland County Mutual Fire Insurance Com
pany. He was the first Secretary of the Com
pany, and served in that capacity with so
much acceptability for a few years, that he
was, ten or twelve years ago, elected Presi-
dent and Treasurer. Soon after he engaged
in the manufacture of thread in Rockville be-
ginning in small way, and gradually work
ed up large and apparently profitable bust
ness. Meantime, he retained his position as
the responsible officer of the Fire Insurance
Company. He was not man who boosted
in any manner of his success in life, and his
quiet unassuming way of managing his at
fairs. perhaps, was one reason why people
generally gave him the credit of doing a pros
porous business AT all events he had the
unbounded confidence of all classes. No man
IN Tolland County has stood higher. If a
Door woman had funds to care for she natu-
rally applied To Clark Holt to have him serve
is her banker. Nothing whatever appeared
in any of his transactions to warrant the
Ighttst breath of suspicion that he was not
fully worthy of this GREAT confidence, until Il
very recent date when the rapid extension of
his business operations led some of his most
intimate acquaintance to fear that he might
not long be able to keep his credit yet bare
" u whisper of this was heard These men
say now that they expected trouble was COM
ing, though said nothing about it, thus con-
Tossing to serious doubts rs to their suspicious
being well founded.
ASSETS OF THE INSURANCE COMPANY.
The annual meeting of the Fire Insurance
Company was held in June last, and little
mistluSt began to come TO the surface among
the directors at the time concerning the wis
dom of longer continuing Mr. Holt in office
One director, at least, held out to the last, and
finally cast his vote against re-electing him.
When the auditors came to examine the ac-
counts of the treasurer-which they had al
ways done with the caution of prudent men
the securities Of the company, which were
kept in a small tin trunk were not opened in
The business office, but in another room
These securities amounted to between
seventy five and eighty thousand dollars, and
some %i0oH0 were in government bonds,
which were exhibited, counted, and found
correct Not the slightest evidence of any
hing being wrong was discovered.
ABOUT THE BONDS.
1t has since transpired that these bonds
We're borrowed for the occasion by Mr.. Holt
to cover mp his delalcation. He came to
Hartford Just prior to the annual meeting of
the Company, and while here endeavored TO
secure the loan of bonds from different par
ties, going in one instance to a well known
dry goods merchant, and in another to the
cashier of a bank, but in both eases the ac-
commodation was refused. He succeeded,
however, elsewhere i'll getting the amount re-
quired To make up the securities for the time
being. II is known that he had in his pos
session, as trusts, large amount of money
placed in his hands by various parties, and a
portion of this fund, as will hereafter appear.
was in United States bonds, which he could
use as a ''blind' in his fraud upon the audi
tors. Possibly only q few thousand more
would be necessary to cover the whole
amount needed in that transaction.
BUSINESS IN NEW YORK.
Mr.. Holt established a business firm in
New ork' under the name of G.. Holt & Co.,
his brother being the silent partner and the
general manager. During the illness of the
latter the business became considerably mix
ed, and suspension followed, which prccipi-
tated the developments here ut home 1t is
aid that Mr. Holt turned oyer the $50, 900 in
bonds to the firm and took notes therefor, 50
that in case the deep game he was playing
should become exposed, and he should APP
pear IN the light of a criminal, he could pro-
dnce these notes, alleging a fair business
transaction under the plea, that as the custo-
dian of the funds OF the Insurance Company
he had right to reinvest its securities in such
4 manner as he saw fit.
EXTENT OF HIS OPERATIONS
|
Of his operations believe that his liabilities
exceed 4 quarter Of a million of dollars, and
may 90 as high As four hundred thousand
dollars In taking Sudden departure, it is
not supposed that he has gone pcnnless, as
nothing appears to show where he could have
disposed OF all the money in his hands His
property is all heavily mortgaged, and all of
ii put together would not divide ten per cent
among the general creditors,
CASES OF HARDSHIP
The worst feature about his transactions
i tie heavy loss which fall upon a large class
of people in moderate circumstances In
many respects his operations have been SINH
ltr 10 those which preceded the failure of
Curtis l.. North, in Merdcn, many years
ago-a failure which brought ruin to hun
dreds and caused a profound sensation
throughout the State lnnumerable instances.
UTMOST, llli8Hl ne tlltN 10 SNOW The lnnIlman-
ity Of the man, if it shall finally turn out that
he had not sense Of honor enough to provide
for those who were entirely dependent upon
his honesty. One case is reported of a family
OF maiden ladies who had $1,000 in govern
ment bonds, and about $1,000 in other securi-
1leS-all that they possessed except q little
homrstead-whch We're placed in his keep
INC. young man who had accumulated
about $500, let Mr. Holt have it because he
believed, as nearly everybody did, that he
WAS As good, if not better, than the bank.
Since the deialcation came to light nothing
can be found of these trust funds. The alb
sconder has evidently made clean sweep of
everything, though he may offer some redress
hereafter. AS the matter now stands, how
ever, the hardship entailcd is of the severcst
character, and is widespread throughout
the limits of Tolland county, affecting old
and young, widows and shop girls. The
business community also suffers largely, as
one individual alone is on his paper TO an
amount exceeding fifty thousand dollars!
DISTINCTION WITHOUT A DIFFERENCE.
The Legislature of Connecticut, in its wis
dom, has declared that if man shall appro-
PIRATE the funds of bank or an insurance
company he shall suffer for his offence by
term Of Imprisonment in the State Prison.
d. 4