New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-02-28
MIR. CROWELES DEFALOATION.


A GREAT SURPRISE TO HIS CREDITORS.
ALL THE MONEY BELIEVED TO HAVE BEEN SPENT
UPON THE EMPIRE MINE.
The revelations made yesterday in regard. to
Gilbert l.. CrowelPs downfall came with the force
of a great SURPRISE not only to the community IN
general, but even to some members OF Mr.. CrowelPs
own family. The sympathy felt for HIM by those who
suffered most the utter helplessness of the unse-
cured creditors, ard fact that the assignment
was filed in Hudson County, N. j.. instead Of
New-York are the causes why the story of the en-
bzzlement escaped notice for two weeks. The
creditors had warning of the impending
disaster until the assignment was made, and
then they had notice through Joseph Parker,
ir the assignee and son-in-law OF Mr..
Crowell. Since then Mr.. Crowell has been
seen only by members of his family,
some of whom as has already been mentioned,
first learned of the hopeless magnitude OF his nan-
cial failure and the dep of his moral disgrace in
the newspapers of yesterday morning. The arrival
of protested paper from Salt Lake City not quite
three weeks ago brought about the confession of the
crime. Mr.. Crowell has never been man OF vigor-
Gus health and the load of anxiety and fear had al
ready prostrated him when the end came. At
the suggestion Of his son-in law, to whom he first
told his straits he informed his wife that he was
ruined, and then began to prepare Tor the assiyn-
ment. No creditors were consulted and aiter hr
Crowell had visited his office in Wall-st. few
times he succumbed again TO the nervous strain
upon him, and the papers had to be carried
to his house for signature. The assignment
was filed Oh February IL. Edward s. Allaire,
n brotherin-law, being associated with Mr..
Parker the son-in-law and then the latter carried
the tidings Of their loss TO the Misses Talman.
Though greatly shocked, they bore themselves
phiosophicaly, and ii Is on this fact, rather than
on any assurance given, that the confidence that
thore will be no crimual prosecution Is based.
1t has been learned that Mr.. Crowel began to mis-
apply the property Of the Talman heirs about two
years ago. He kept it up until there was absolute
" not single security left IN his possession that
he could negotiate with safety The last transfer
Of railway securities belonging TO the heirs which
he sold was Made on February l3 one day after .ne
OF forgery" said friend of the laties who is IA
miIar with their financial affairs; there
was some bank stock ,vthoD, ieis N 9oroarv 5ne
Ali the rest Is gone" Mr.. Crowell was not a
trustee of the estate but the broker and agent OF
the heirs The trstamentary trustee Is George u.
De Witt. As such broker and agent he received
salary from each of the heirs proportonate to the
Interests intrusted to him. The aggregate sum was
more than 5000 year. isbnd sum IN a"p,s ply
simple mode OF life that prevailed in his house at
Arlington The position was almost gratulty, for
the bulk of the funds in his care consisted OF Gov
eTnment and frst-class railway bonds. He con-
tinued making his reports and returns, and 1t Is
more than probable that for some time past be took
securities ought regularly TO have yielded:
In the comments called forth by yesterday pub
icatons there was considerable toue OF skept'cism
having been put INTO ths Empire Mine. Among
mining brokers. especially 9 few who
had followed the hst95Fy as 9r fIse,v ne I1 M
mnitted They said that Mr. Croweu had really
unoounded faith in the enterprise, and it seems
tage of this tact TO saddle upon him the nulk OF all
the stock. This was done by Mr.. Van Praag, VINO
organized the company ana ,,and snhs.ed money! Mr
IN 1t. The 100000 In the schedule of nom-
lnal assets put opposite the name of this, man IL
said to represent direct money loans aud advanced
stock held by Van Praag. There were three or tour
assessments of 81 so share within the hrst TWO
years Of the Empire Mines existence, and the dram
on Mr. Crowell continued until ne had exhausted
all the money which he could borrow from his
friends and all the money which ne
was supposed to have invested safely
iSs iSs REPORTS s 'sy say that soe99 "A had
pended in VAN effort 10 take out of the mine
what vas not there Nearly an OF tn,s t came tn
carry IL Is not impossible that IN ts case the usual
accompaniment Of speculation in Wall street may
be spared. e :. A.. ro,or..
as one of the directors of the Empire Mine,
Jyas seen last night at the st. Cloud Hotel
by a TRIBUNE reporter He said that he had paid
no attention to the concern for long time, and de
cined TO talk about It's history or the details OF
Praog's connection with Ii. He Is now with
Charles Minzesheimer & Co. in their office at No.
ThOmasst. 80.
Mr. Parker, the assignee, will start this morning
for Utah 10 examine the mlne and report upon the
value of the machinery After his return there will be
a meeting OF the creditors, aud an enort VIII ee
made 10 compromise the claims; but on what basis
ia NOT known' Mr.. Parker said that his wife, the
daughter of Mr.. Crowell, did not know OF her her
fathers selfwrought ruin until yesterday; he
lis brother, who Is of the losers by the failure
spent Monday with him.