The New York herald., 1879-10-08
SIXTY THOUSAND DOLLARS SHORT.

ALLEGED DEFALcATroN DY THE BooKKEEPER OF
BROADWAY HoUsE-TEMPoRARY sUsPEN-
SION OF THE FIRM.
The suspension of Isaac Smiths Son Co.. the
oldest umbrella manufacturing house in this coun.
try. was reported yesterday the trade. Mr.. Smith
Saturday notified the Ninth National Bank. where
the firm kept their account that their bookkeeper
had defrauded them. and he feared the amount
would reach 100000. The firm would therefore. he
said. have to stop payment on their notes until
they how matters could be arranged; !;
and he requested tho bank officials to refer
any parties presenting their notes at the
bank to tho firm. Tho report that the
bookkeepcr was defaulter was current in the
trade two weeks ago. and the amount was placed at
$780, 900; but the firm gavo assurance to inquirers
then that it was mere trife, and would not seri-
ousiy affect their affairs. The name of the book
keeper is Robert W. Steele. He had been connected
with the firm for many years, and was held in such
high estimation by its members as to be admitted as
Junior partner January l. 1872 He continued as
such for three years. when nc withdrew but re-
mained with the house the chief bookkoeper. his
character being considered above reproach. A few
weeks ago lie disappeared. and upon examining his
books many. crooked transactions. it is said were
discovered. His alleged defacation had extended
over long period and further examination swelied
tho amount said to abstracted but it is not believed
that it will exceed S60, 900.
The bookkeeper left his wife and daughter in
ignorance OF his whereabouts. and it is stated that
Mrs. Steele has turned over all her money to the
firm to help to lqudate tho amount alleged to have
been taken by her husband. Mr.. Smith recently
said that he did not know where Mr.. Steele had
gone. but he might turn up at any moment He
had always considered him Z" high toned gentle
man.. and the firm did not intend to prosecute him.
He felt very sorry for the man and his family who
very respectable 1t was currently reported that
some of the checks had been raised by Mr..
Steele from small amounts to large sums: but
that no irregularities had been found in any
of the checks presented there: Mr.. Hill
the bank was not creditor the firms line of dis
count having run out. Mr.. james 4. Smith de-
chned to say anything whatever about either the
suspension OF the firm or the alleged defalcation;
but in other quarters it was rumored that the la
blitics of the firm amount TO about $4,000. and
that an effort being made to obtain compro-
mise at fifty cents tho dollar. large portion of
the liabilities is in notes, and it is said that
siderable amount is due III Manchester, England,
where the firm had a branch. Among the creditors
in this city William II. De Forest Co., L. NJ.
Benjamin & Co., ana Fleitman Il Co. creditor said
money but il Mr.. Smith said that all lie could pay
fifty cents. he would gladly accept it. 1t was
generally understood that the creditors were favor
ably inclined.
AN OLD ESTABLISHED HOUSE.
The house established by James Thomas
Smith in 1902 in Pearl street. and upon his death the
style OF the firm changed to Smith, Beadlo &
Smith. the wife of the founder her brother and
being the partners. subsequently Isaac Smith sue
ceeded to the business which was removed to War
street, where 1t located for five years, and
then he removed to No. lo5 broadway. the
present location. Upon the death of Isaac
Smith, In 1858, the firm assumed the title of
Isaac Smiths Son Co., which it has since retained.
the present partners being James L. Smith Dening
b. Smith and Isaac $. Strong They have always en-
joyed excellent credit. the last quotation of their
paper being twelve per cent; but they never it is
said. had large capital and their business has been
mainly retail one. which they advertised cxten-
sively They sold largely through four stores which
they Interested in, under the style of l.. X.
Smith X Co., James L. Smith being the "Co., but
September 10 notice OF dissolution of the latter
firm was published.