The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-10-16
GONE BY The BOARD.
Haar & Co., Wall Street Brokers,
Fail for 100000.
ALLEGED DISHONEST PRACTICES
Contradictory Statements Regarding the
Causes of the Failure.


stock brokers, at No As Wall street. shortly alter
the opening OF business the following note was sent
TO the Stock Board and read from The rosrum:-
Ger is, 1873
regret that in consequences Of series OF losses
and misfortunes have become unable 20 meet our en-
gagements. Tours. respectfully. HAAR q CO.
All sorts OF rumors prevailed on the street relative
10 this failure According to some OF them Jay Gond
had given order on Saturday to Haar Co. 10 buy
00O gold for his account and this firm had not
only bought this amount but had also invested In
$1,000, 900 worth their own account. 1t was
claimed that they bought this goc at 1o1s long, aud
that when fell to 1oo' 1t left Thorn long 81 100000,
gold They reported 10 be heavy buyers in stocks,
and II rumored that they had been borrowing
Union Pacific STOCK from their customers and selling
Il for their own benefit
BoUGHT IN UNDER THE RULE
The most reliable statements place the failure at
from $3.50 S20O,O00 Sixty-three hundred
shares were bought In the rule Tor Haar Co.,
In the Stock Exchange, as follows:-Western Union,
1000; Northwestern, preferred, 400; Northwestern,
common, 1900; Morris and Essex, 30l; Lake Shore,
100; Rock Island, 100, and Michigan Central,
ZOO Nineteen hundred shares sold out
for them under the rule foIows:-Union
Pacific, 100; Western Union, 100; New Jersey Gen.
trail, 100; Delaware and LacKawanna, 900, and Ohio
and Mississippi, 700. Tue total number Of shares
sold and bought In for Haar & Co. s, 200. The
Of gold sold for tuclr account ST. 290, 0OO
and the price brought 1OOA. This GOLD them
IT the rate OF 1919, and the amount purchased by
the firm that figure Saturday nearly
100000.
Two letters were written 10 the Board -one from
William Heath Il Co., asking that 300 shares Of
Northwestern common, be bought In under the rule,
the other from Even Tuttle that 800 shares Of
Northwestern common, and 500 shares OF Western
Union be bought In. Besides these great number
Of other letters received from brokers asking
that the same be done Tor them, and ascribing the
TO three things-"delault, failure ana burst
Ing"
Although no other failures took place there wore
great many private settlements the creditors O.
l. Co. 81 900; William Heath C,., $500; Ewcn 4
IL was reported that E. n. Hartman Co. had re-
ce,vs I'd worthless cheek from Haar \ Co. Tor
Of the Hrst mentioned firm. The
stated that HAIR Co. mad overdrawn their account
Mr.. N osss Taylor, the president, dcnled. He said
that the accounts OF Haar 20. had not as yet been
nsy mp Sa nx s
thousand dollars. but the bank held ample securities
10 covcr the amount
PARTICULARS rnK FAILURE
The particulars OF the failure, as lar as could be
ascertainsd, are as foows:-On Monday Haar l. Co.
gave orders 10 large number OF small brokers 10
buy stocks for them, The aggregate amount being
$4,000 shares. These brokers, they say,
thinking that Haar 4 Co. were doing bust.
ness tor Bsldcu Co., Jay Goud's brokers.
bought the STOCK, putting up small margins. Yes
terday morning. wnen Inc failure announced,
there was great rush OF tneso parties to Beaen Il
Co u Office 10 turn over their stocEs out that Arm,
to the great astonisnment OF the broxers in ormed
them that they mad nothing to do with Aaar Il Co.'s
transactions refused 70 receive The stocks Tho
exotic ment was so intense that Beidcn l. Co. resolved
to letter to the Stock Exchange expa ming
connection with Haar Il Co. IL was addressed to
President Ives. aud WAS read TO the members OF
TIM Annrh In Ralns " IN tDuutn naOp
informed Of rumor existing that Haar Co.
assert that their failure was on account OF
In toto, and state that, on the contrary, they
have derauded Us out OF u large amount ny q pre-
4 Co. havo also disposed OF large amount OF So
curities belonging TO US which were In their hands.
ana which We cannot now recover rney have also
overdrawn thar bank account to a large amount"
THE CHARGE DENIED.
This statement OF Bellen Co mado great
ton In the Stock exchange, and many brokers
started tor Haar Co. Is Office TO learn what they had
20 say about the matter AT No 40 Wall street II was
found that the three members OF the nrm we're alb
sent, but an cmpl0ye denied the statements OF Bel
den Co., and claimed that Haar l. Co bad received
an order from them 10 purchase stocks on nonday
and that Beiden Co had ropudiated the order and
thereby caused the faare. IL also stated this
Office that Haar Il Co. had made an assignment TO f.
Meyer, who had acted As gold clerk tor them.
MR. BKLDENs STATEMENT.
In an interview with the IN Der OF tho Erm
oil Belacn Co. the fact novice that Haar
Co. had transacted a great deal OF business Tor
them but IL was denied That any orders bad been
gwen up 10 last week. Mr. BeIaen stated that no al
ways considered Haar Co. solid firm, but ADMITTED
that ne knew nothing o. Their personal history
week, made false rePresen tations, and, on the
strength Of these, borrowed some securities
early or Monday morning.. On sunday he tBeldenL
on invitation, met Haar at ex-senator Cross house,
formed that all securities mad been ost that
the BANK account OF the 1rm bad been overdrawn TO
be unable 10 return on Monday according TO promise
the securities, which amounted TO upward OF
Aaar Was no. telnng the truth when he made this
statement and believed that he sold these securities
ON Monday Tor his nrm's benefit.
AN onDER or ARREST.
The scene In the neghUornood of Beldon 4 Co.'s
office, a low doors below Wall street on broadway,
was very exciting from quarter TO two J. NJ TO
thres r. ~ il seemed TO be one OF the busiest days
that they ever experienced. there being dead rush
ior deiivcry stocks. IL became oruited about
NJ one r. NJ. that a deputy sheriff ir Bclden
Co.'s Office IN consultation with Jay Gould.
but all access 10 TINS gentleman denied
AZ twenty minutes past three p. N. Deputy Sheriff
McGonig c emerged IRON tne Office. The writer asked
him whether any order had been issued for arrest
OF Haar n Co., and answered the negative, say
ing he was not concerned IN the case at all Mr. Bedn
subsequently, denied McGon'gie's statement, and
that order OF arrest had bcen issued against
HAIR Co.. and that u Was expected that some OF them
would be captured before dark.
JonS II. nAAR ARRESTED
About Eve T. N. Mr.. Jonn II. Hsar, the head OF the
firm, was arrested by Deputy sheriff McGonigIo on
an order OF arrest granteo w Judge Barrett Tho
order based upon afldavits made by William
Bedcn, Washington Il Connor, Charles ID. Belden and
Horny Jr., charging the ueIendautS JOhn IL.
Haar, Charles b. Klennemundt and Juuus Hepgstler
win having converted to their own use ccrtsin stock
pf the Union Pacific Railroad Company, which had
been entrusted TO their care by toe plaintiffs.
TIK AFFDAvfrs
The nflidavits recite that the defendants within tho
pnst Twelve mont his obtained IRON the plaintiffs g. 600
shares oil The capital stock OF the Unlsn Pacinc Ra
road Company, of the value Of $3.50, 900: that the
stock Obtained for the express purpose agreed
to by defendants, OF investing ~ IN loans TO par
tres desiring TO borrow II, AMI that any benefit
nccrulng from these Investments wis TO 90 To tho
plaintiffs The defendants, IL Is then alleged 10
the complaint, instead OF investing the stock for
The bcnent OF the plaintiffs converted tue proceeds
10 their own use Ii 10 iurthei stated that the de-
PENDANTS confessed the PLAINTIFF that they had con-
verified tho stock their own individual use and con-
quently we're unable TO return IL as they had agreed
10 Tue compliant next AYERS that AZ the time the
e330 0OU worth Of stock was entrusted TO the defend
ants tho latter deposited as security Tor the amount
The sum OF $3.50, 900, leaving balance oil $4,000
which, u Is ca,mcu, was never paid 70 the psintins