The New York herald., 1872-09-14
STARTLING DEFALCATIOH.
Tho Junior Partner Of Broad Street Brokerage
and Banking Firm Abscends with S76.O00-
Supposed to Have Gone to South America.

few moments before the Stock Exchange was
closed yesterday afternoon q startling event
reached the ears OF the few members who had not
yet gone home. This was the fact that delalcation
OF nearly one hundred thousand dollars had oc-
Cured in the banking and brokerage house of Mr..
William r. Clerke, whose ONCE Ia at 25 Broad
street-a locality long familiar to men Of business.
THE SENIOR PARTNER.
Mr. Clerke Is one OF the Old school members OF
the Stock Exchange-one OF the solid ana wealthy
class-and representing the aristocracy Of the
social circles Of New York. He was one
Of the most respected presidents Of the
Board and brought to 1t great deal
Of additional dignity and honor Several
years ago re organized q stock-brokerage and
banking firm under the name Of Clerke h Butler.
The junior partner, Mr. Richard r. Butler, had been
clerk in his employ since the year 1852, before
which period he had borne good reputation for
ordinary rectitudc and ability. Mr.. Cerke took
great interest In Mr.. Butler, found him to be just
fitted for the place for which he needed reliable
man, and showed his pleasure in his services by
increasing from time to time his salary, and by
showing him some personal regard. In return Mr..
Butler prOflered the slncerest friendship for his
chief He was admitted into his family circle, in
vited to his family dinners, to his church. and, in
fact, from the position Of threadbare applicant
for employment he had gained large salary and
very easy and pleasant duties
THE NEW PARTNER.
In 1885, for private reasons Of convenience, Mr..
Clerke desired to couple another name with his
own in the business, and took Butler into partner
ship. He, however, had no capital invested or
which he could invest in the firm, and in the in
dentures OF partnership he was given no dscre-
tiOnary privileges In the affairs OF the house, He
was to take charge OF the inside routine OF the
office on Broad street, and to have full of the
securities and books of account. For these duties
Mr.. Butler was specially capable, but had, 1t is
said, little ability for those which would require
more judgment and experience.
THE OPPORTUNITY PRESENTS ITSELF.
Mr. Cerke was In the habit % Of leaving the office
In the Summer months, and never had suspicious
OF any lack of integrity in the latter until short
me since , On ,s last Monday mr. SerSs was at
Summer in the charming seclsiOn Of his fine villa.
He received telegram from q friend In New York
sequence OF the information II conveyed started
Immediately on his return. When he arrived here
and went to his ONCE he found to his surprise that
Mr.. Butler was absent. Inquiries made among the
other clerks disclosed the fact that he had been
gone for o day Or two; had been seen
rom rom the button houses on Wall street. and had
been known previously to have sold large amount
t % tnt M erKe aeay
the books, where Mt first nothing unusual was dis
covered. He then examined the safe and made
discovery. In the inner safe had been locked all
the securities held by the house.
MISSING SECURITIES.
From these there were missing 300 shares OF New
York Central stock 500 shares OF Lake Shore and
sixty-six shares OF Erie preferred the 'face vauen
OF which was $4,000. The market value, however,
would not be over $76,000
This immense loss staggered Mr. Cerke at first
and he could scarcely believe his senses. The
books were Immediately overhauled and
THE MANNER OF THE DEED
was found out, and checks In currency had been
drawn out against the loan OF the securities, and
these had then been converted into gold. The
gold purchased was rumOfed to have been OF o
southern foreign stamp, and last evening, on the
street, il said, with how much authenticity is
not known, that Mr. Butler had taken lis departure
on one OF the South american steamers which
sailed from this port few days ago. This is very
probable, since no extraditiOn treaties exist be-
tween the United States and the South American
countries.
Mr.. Clerkes house is Of such long standing and OF
such fair fame that he will probably not be en-
barrassed by this misfortune.
The missing clerk, Mr.. Richard r. Butler, is
young man oil about thirty five years OF age, quite
good looking and always dressed very stylishly.
even whispered that he squandcred money or was
addicted to dissipation.
In the brokers' Offices, last night, hardly any one
knew Of the defalcatOn and that 1t has not sooner
reached the public shows how bitterly wounded is
Mr.. Clerke at the ingratitude OF the man whom lie
lifted from poverty and treated AZ friend