New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-04-10
TWO HEAVY DEFALCATIONS.
USING HIS PARTNERS MONEY.

|
| FAILURE OF WILIsTON, KNIGHT ~ CO-DEFALCA-
| TON OF THE JUNIOR PARTNER.
| Much surprise was caused yesterday by the an
nouncement of the suspension of the old and we'll
known firm of Williston, Knight g. Co.. wholesale
dealers in buttons at Nos. IA ard 76 Worth.st one
of the largest houses in that trade in the country
The present members Of the frm Horatio G.. Knight
and Frank 2. Tenney, made general assignment
without preferences to John NJ. Wardwell.
The secret of the suspension was made known
| i'll the following circular issued to the
creditors: "We make An assignment for the
benefit of our creditors to John NJ. Ward
well, of this city, gentleman formerly connected
with us in business. The firms embarrassment Is
wholly due to the specuatons and financial irregu-
| larities of II. Willston Knight, late member OF
our firm, who also treasurer Of the winston &
Knight Company, corporation represented by us
and having It's principal place of business in Massa-
chusetts His unauthorized use of the firm name
for his private benefit has involved rs in probable
actual loss of S75, ,000 and we anticipate additional
losses upon claims partially secured to the extent OF
| 800, 900 or $50 900. The business OF our firm and
that of the corporations represent are so inter
woven that it will require several days to prepare
reliable statements of the assctsand liabilities. we
will DO what can for the protection of creditors
and We hopcwith their cooperation to place our
business again upon q firm bass. The nature OF
the business is such that prolonged suspension
would result in great loss
Ilorato G.. Knight, the senior partner, said that
the business had been wrecked by his son, H. Willis
ton Knight after being established fifty years The
suspension wholly due TO the losses through his
SOD. The latter had speculative tendencies and he
had tried hard TO check him. The irregularities
date back about year, but it was only recently
i Al ~. ri,t hat
something was the matter. and he asked his son to
! help him IN an investigation. The latter had de-
clined and had left the city suddenly aboutthrec OF
four weeks ago, and had sailed for Europe.
His son. however. had admitted that he had been
interested in Wall Street spcculatons and had lost,
but would not give any particulars either the
amount, or time, or the of the brokers. The
son had made firm paper for his own use, and had
sold II through Wall Street houses. lie had done 1t
adroity that It did not appear on the books, ana
! the other members Of the firm did not know any
| thing about IT. An examination OF the BOOKS lad
| been made and, as far as learned, the amount Ol
the losses was SO, 600, although they would prob
| ably be from $50 900 20 10000 more. Mr.. Knight
did not think that they would exceed these figures,
! but they might as the firm could not tell what
| would result from his irregularities.
The liabilities were direct anl contingent Mr.
Knight sad and he had not yet been able to cassi-
fy th-m; some in rrn notes and Others III ac-
| cepianccs The outside paper issued by his son
| was all IN toe banks. Mr. knight added that his
| son wa. treasurer Of the WlIiston kni9tt Com
many. manufacturers of covered buttons, OF East
| Hampton. Mass: the firm and company wero
r,acttcoy Ident cal His son. the father said, drew
thc ma pcr of the WIllston 4 Knight Company, ac-
| crpfed lt on the finn OF Nillision, Knight ~ 20,
| nud then pOcketcd the proceeds. Mr. Knight FUR
/ a.. hat
firm hut went out oi II. lie was aSaiu aumlltcu
| in June 1851. amt again went out Whch the hllh
dissolved about six or scycn weeks ago. Mr.
KNIGHT could not give the amount OF the
| assets as tho inventory was not completed
aud their value would depend lar2clY on the tenn
per of the creditors. lie could not give all the
liabilities either the firm liabilities were large as
they bad been dong IA large ana Increasing busl-
ness they would AT least, he said, reach $4,000,
incinding tL. Indebtedness made by his son. lie
nu,d thIt the suspension would affect the WIston
& Knight Ompauy and $50 the NH RIVER ivory
Button Works ol Leeds, Mass oul ho" SeI'ousH
he could not tell.
YouNG KNiGHr's HABITS VERY BAD.
Frank f. Icnncy, OF the firm, said that he would
mt the matter stronger than his partner and say
that young Knights conduct amounted to an en-
bczzlemcnt. 1t is said that thero IS a woman IN
the case and that Knight left the
cty with an English actress. He
has n wife however. and thrco children, who are
living with her mother in West rwrnty-htth-sl.
Nr f.nury stated that Mr.. kuIght had neglected
is s wife and had virtually been separated her
for some time. " lie lIycd very last NE Mr.
Irnnrv added land within the last year lie over
drew his account TO the amount OF $4,000.
Ibs fact and other irregularities led us To
demand his resignation from the hrm. Then came
the revelations regarding Mr. kiughts improper
us., of the firms name aud funds
Young Knight IN tnIty-clght years oid, tail ana ~
a blond ne wore mustache and was some
what bald. lie Is the elder OF two brothers, the
Younger, Charles n DciIg pHysICIah III hcs'
Dr. knight saId last evening that his brother told
him auoul a month ago, Just before his disappear
aucc that he was going to Europe Nothing had
neen heard of HIM since then by the family. Ills
brothcr he also stated, left his wife some time ago
but had provided lOr her aud his children.
Young knight made the following statement To
Brmlstrcct's commercial agency, gwen III the re-
ports dated January ., 1883: we have 1900, 600
invested a. "A firm, and my father H. g. Knight. ~
worth from 800. 900 to 10000 outside, making
our firms respunsI sIbilIty from $500, 900 20 100000
Our nabties are less than our accounts receivable,
aud consist mainly ot accc dances gwen 10 Tie COM
panics We represent. Our machinery account
ia taken at $4,000. and could not lie
replaced for $4,000. Tho Ioal estate,
COMPRISING two facoIieS st9 e-honse aud three or
tour dwellings ~ nvcntOrled ut T0S, 600 and Is
unencumberrd We pay cash FOR our materials
The nrm was founded by Samuel Nilliston over
fifty years ago. lie was regarded as one oI me
oldest ana wealthiest button manufacturers IN tho
country llorat.o G. Knight was associated with
hIm Tor many years and Mr. Chapman was a partner
up TO June l. 1881. Mr. WilIlston died some tune
ago but he firm name was kept up
Mr. Ienncy took Mr.. Chapmans place. lie had
been a salesman in the employ oi tho hrm Tor hVe
or six years. Young Kpight retired from the hrm
on February 10. The senior partner, HoratG -;
Company, and was also interested III tho NM kiVer
Ivory Bntton Company and the East Hampton Ruo-
Der Thread Company.
ROBBING THEIR FATHERS ESTATE.
WASHINGTON AND HENRY II. TOBIAS EMBEZZLERs TO
np H.