Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-02-19
CROOKED CLARKg.
Mysterious Transactions In the Winding
Up Of the Wholesale Paper House Of
Clarke, Friend, Fox s. CO.. Chicago.


CHICAGO, Feb. 1S.-Wiliam G. Clarke, for
merly at the head of the wholesale paper
house OF Clarke, Friend, Fox & Co., has fed
from Chicago, and is know to be in New
York. 1t appears that he not long since
bought out the other interests of the firm
with promissory notes, and speedily trans
ferred the stock 10 rival dealers for $l75 900,
of which $4,000 was in cash or good COM
mercial paper. Complaints by creditors of
the original house caused an investigation by
Friend u Fox, which showed that $l5O,00O of
the firms paper was still afoat. OF this
amount $4,000 was promptly paid and
the liabilities will be honestly met. Then
Clarke retired from business, and some five
weeks ago took an abrupt departure for New
York, where he is now employed by the firm
of Colburn, Day & Field, No. II View street.
1t seems Clarke five years ago had been given
charge OF the Chicago branch of the house with,
working capital of 100000. When he de-
termlned to wind things up he represented to
his partners that good deal of the firms
paper was afoat among the Chicago banks,
but he proposed to return to the Friend & Fox
Papermill company it's 100000 working
capital IN the Chicago firm, with an additional
bonus of $50, 600, provided the company would
stand by him in the event of cramp. This
was agreed to, and soon after the dissolution
OF the partnership was announced.
Later accounts show Clarke misrepresented
the facts to the Cincinnati partners, for in
stead of only few thousand dollars of the
firms notes being held by the Chicago banks,
the firm was responsible to bankers. paper
manufacturers and others TO the amount of
nearly 100000. This was not known
till Wednesday last, when a meeting
was held here. Friend & Fox have signifed
their intention to meet all claims. Some of
the pressing claims amounting to $40. 600
were Immediately settled. Among claims
presented were Campbell & Smith, New York,
$50 600; the Rochester, N. Y. Paper Co., $1O,-
quo; the Hampshire book paper company,
South Hadley Falls, Mass, $4,000; Whitney
Paper Co., Holyoke, Mass, $1,000; Patton
Mills, Neenah, Wis, "a 1000; Batavia, Ills,
Paper Co., 1000.
Among the local banks it is said the vic
timized are the Commercial National Bank,
His. the Fifth National and three Others.
There are also large number Of paper mills
in various parts of the country whose claims
range from $500 to $1,000.
The history of Clarke's transaction,
according to the Chicago Times, is that
about December LIST Mr.. Clarke
who y few days previously had returned from
conference at Cincinnati with the resident
members there of his firm, opened negotia-
lions with the J. W. Butler Paper company,
of Chicago, for disposal of the stock of
Clarke, Friend, Fox & Co. He represented
that he had purchased the interests of the jun
ior members of the firm. The Butler com pany
closed the negotiations by taking the stock and
good viii OF the firm at a consideration of
SITE, 900, of which $ll2, 900 was paid over to
Clarke in cash and notes.
PROBABLY SKIPPED.
New YORK, Feb 1s.-Wm. Clarke, former
ly of the firm of Clarke, Friend, Fox & Co.,
talked freely early in the day concerning his
late transactions in Chicago, claiming every
thing was all right and saying he courted the
fullest inquiry. Some parties here who are said
to have been hurt by Ciarke's action say ev-
erythng is regular as far as they are concern
ed. In the evening all attempts to find Clarke
were futile. All the information that could
be obtained was that he had left town and
would return Monday.