The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1869-09-29
FIRST EDITION
THE WICKED WORLD.
The Clark Holt Defalcation in Connec-
ticut-Liabilities Over a Quarter
of a Million-Widows and
Orphans the Sufferers.
From the Hartford Courant, Sent. qs.


Rockville have already been referred TO in seve-
raj papers, but MS yet no complete and trust
worthy account has been given to the public.
In order to show the precise situation of affairs,
1t 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 Tolland County Mutual Fire
Insurance Company. He was the first Secretary
of the company, and served in that capacity
with so much acceptability for 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 worked
up q large and apparently profitable busi-
ness. Meantime he retained his position
as the responsible officer of the fire insurance
company. He was not man who boasted
in any manner of his success in life, and his
quiet, unassuming way of managing his affairs,
perhaps, was one reason why people generally
gave him the credit of doing prosperous busi-
ness. At all events, he had the unbounded con-
idence of all classes. No man in Tolland
county has stood higher. If poor woman had
funds to be cared for she naturally applied to
Clark Holt to have him serve as her banker
Nothing whatever appeared in any of his trans
actions to warrant the slightest breath of sus-
picion that he was not fully worthy of this great
confidence, until 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 credits
yet barely whisper of this was heard. These
men now say that they suspected trouble was
Tossing to serious doubts as to their suspicious
being well founded
Assets of the Insurance Company.
The annual meeting of the fire insurance COM
pany was held in June last, and a little mistrust
began to come to the surface among the direc-
tors at that time concerning the wisdom of
longer continuing Mr.. Holt in Office. One di-
rector, at least held out to the last, and finally
cast his vote against re-electing him. When
the auditors came to examine the accounts of
the treasurer-which they had always done with
the caution of prudent men-the securities of
the company, which were kept in q small tin
trunk, were not opened in the business Office
but in another room. These securities amounted
to between $4,000 and $S00O0 and some
600 were i'll Government bonds, which were
exhibited, counted, and found correct. Not the
slightest evidence of anything being wrong was
discovered.
About the Bonds.
It has since transpired that these bonds were
borrowed for the occasion by Mr.. Holt to cover
up his defalcation. 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 parties, going, in one in
stance, to well-known dry goods merchant,
and in another to the cashier of a bank, but in
both cases the accommodation was refused. He
succeeded however, elsewhere in getting the
amount required to make up the securities for
the time being. 1t is known that he had in his
possession, as trusts, large amount of money
placed in his hands by various parties, and
portion of this fund.- as will hereafter appear,
was in United States bonds which he could use
as q blind" in his fraud upon the credi-
tors. Possibly only few thousand more
would be necessary to cover the whole amount
needed in that transaction.
Business in New York.
Mr. Holt established business firm in New
York, under the name of G. Holt q Co., his
brother being the silent partner and the general
manager. During the illness of the latter the
business became considerably mixed and sus-
pension followed, which precipitated the de-
home.
Holt turned over the $4,000 in bonds to the
firm and took notes therefor, SO that in case the
deep game he was playing should become ex-
posed and he should appear in the light of q
criminal, he could produce these notes, alleging
a fair business transaction under the plea that,
as the custodian of the funds of the Insurance
company, he had right to reinvest its securities
in such manner as he saw fit.
Extent of his Operations.
Those who have examined into the extent of
his operations believe that his liabilities exceed
a quarter Of a million of dollars, and may go as
high as S400 600. In taking sudden departure
it is not supposed that he has gone penniless, 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 it
put together would not divide ten per cent.
among the general creditors.
Gases of Hardship.
The worst feature about his transactions is the
heavy loss which falls upon large class of peo-
pie in moderate circumstances. In many re-
which preceded the failure OF Curtis H. North,
in Meriden. many years ago-a failure which
brought ruin to hundreds, aud caused profound
sensation throughout the State. Innumerable
instances almost, might be cited TO show the
inhumanity of the man IL it shall finally turn
out that he had not sense of honor enough
to provide for those who were entirely de-
pendent upon his honesty. One case is
renorted of q family of maiden ladies,
who had $4,000 in Government bonds, and
about $1,000 in other securities-al that they
possessed, except a little homestead-whlch
were placed in his keeping. young man VINO
had accumulated about $2500 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 defalcation came to light nothing car
be found of these trust funds. The abscondeI
has evidently made n clean sweep OF everything
though he may offer some redress hereafter. As
the matter now stands, however, the hardship
entailed is of the severest character, and is wide
spread throughout the limits Of Tolland county
affecting old and young, widows and shop girls
The business community also suffers largely, AZ
one individual alone is on his paper to al
amount exceeding $5OOOO
Distinction without Difference.
The Legislature of Connecticut, in its wisdom
has declared that If man shall appropriate tn
funds of q bank or a insurance company h
shall suffer for his offense by term of imprison
ment in the State Prison. But If he accepts as
sacred trust the hard earnings of the poor an
absconds, he is only guilty of breachtof trust
and the law cannot touch him Mr.. Holts wors
offense is his robbing of the poor, who can hav
no satisfaction; corporations robbed may-unles
disposed to compound felony, as is too often tn
case-employ detectives and bring the crimina
TO Justice. So far Mr.. Holt has pursued hi
travels unmolested, and If he returns will do 5
voluntarily
Security of the Company.
4 al a.. H. e..