New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-10
DUPLICATE SECURITIES.
ALLEN EXPECTED TO- CONFESS EVERY
THING.
TWO BOGUS CERTIFICATES OF THE SAME NUN.
BER-HoFELE DOES NOT TELL
STRAIGHT STORY

STRAIGHT STORY.
Ferdinand W. Hofcle. the business partner of Eben
s. Allen, who president of the Fortysecond street
and Grand Street Ferry Railroad Company, IS charged
with having realized over $4,000 issues OF
fraudulent stock Of the company and is now awaiting
trial for forgery arraIgncd I'm the Tombs Police
Court yesterday morning before Justice Hogan
charged with completely IN the crime. Hof'le had
been arrested Thursday by Inspector ByrnoS' VINO
was Of the opinion that tie circumstances as FAR as
developed warranted the belief that Hoele was aware
of the legality of the hypothetical securities and
therefore equally culpable with Allen. Detective
Titus told Justice Hogan that Inspector Byrles oe-
sired have Hofele remanded untll today. and the
Justice issued order to that effect. Hofele was
then taken back 10 Police Headquarters and locked up
Frellng H. smith, counsel Of the railroad company,
who had gone away to the AdrOndacks on vaca-
ton, returned to the city late Thursday night and
once held conference the officers Of the com
pany, at which Elmer A. Allen the guilty OticiaFs
brother, was present. Mr. Allen told Mr.. Smith that
he5was anxious 10 have his brother make full state
ment of his fraudulent operations at and offered
tonse his efforts to secure this. Accordingly he went
10 tho Tombs yesterday TO his brother, but later
ln4the day Informed Mr. Smith that his brother was
not feeling well, and that a statement could not be
ready until to-day.
MIR. Smith told Tribune reporter yesterday that
no fraudulent certificates had come TO light in ad-
diuon TO the 659 already accounted for. although II
was possible that there others held by people
out of the city The that at least Of the
fraudulent certificates had been duplicated by Allen
would indicate possibility that a system Of duplicate
hypothecatiOn had been carried TO extent that
might prove alarming. At any rate Mr.. Smith hoped
that all holders of stock who had not collected their
dividends within thirty days would do at once, In
order that the nature of their certificates might be
promptly established. Mr. Smith preferred not to
discuss the liability of the company fof the sums
loaned the bOyus stock NJ prrCpnt time
ALLEN BREAKING DOWN.
Allen spenta restless night his ceH in the Tombs.
At breakfast time the visitors wifo visited him in
his cell, remaining with him for hour She re-
turned for another brief visit in the afternoon.
There is doubt that Allen has broken down COM
pletely, and will give the officials Of tho company
fun LIST Of the fraudulent certificates. It is thought
probable, however, that he will adhere to his state
ment that the fraudulent certificates had been signed
IN blank by Presidents Green and Curtis, bring
his orime within tho scope Of forgery in the third
degree, andrthus avoid liability receive sentence
for longer term than five years Yesterday was evil
IDENTIFY ono Of great mental trouble for Allen and he de-
clined any of his visitors except his wife, counsel
and brother.
J. Z. Eustis. Aliens counsel said yesterday that
Elmer A. Allen received thrtytwO shares OF stock from
his brother last spring. President Allen, he said,
owed his brother Elmer $4,000 borrowed money
Emec needed the money and asked his brother for it,
Eben said practically: q can't give you the cash.
bnt let you have some stock on which you can
raise $6OOOP Accordingly. he gave Elmer thirty
two shar on which he secured $4,000 from the Fifth
Avenue National Bank When the disclosures fol-
lowed Aliens arrest Elmer went 10 his brother and
asked If the shares he received were
fraudulent. "They the same as the rest" was
the reply.
This accounts for tho full number Of 700 shares
which Allen confessed to having fraudulenty issued,
or rather for 7O1 shares, counts the duplicate
hypothecation Of share, but Nh smith, the COM
pany's counsel, had evidently not been informed Of
the transfer Of these tirtytwo shares when he SAID
that only 6GS shares had been accounted for. The
blow is a severe one TO Elmer A. Allen, who not
only Is likely lose the So 600 owed 10 him by his
brother, but may have to make restitution Of Ike
amount to the bank in the railroad company
is held TO be Liable for the fraudulent issue Of
stock
ADVISED TO CONFESS EVERYTHING.
Mr. Eustts said further that he did not care to be
identified with criminal and would probably
withdraw as Aliens counsel. He was convinced, he
said that Allen was endeavoring 10 shield some one
of greater prominence than Holele, and would not
be- surprised further unpleasant developments in
volving others beside Allen and Hofcle He had adj
yised Allen 10 make tho best terms he could and
confess everything.
George IL. Prentiss &c Co., brokers' No 81 William
ST. who purchased certificates for 439 shares OF the
fraudulent stock have placed their interests in the
case in the hands Of ex-AttOrncy-Gcneral Leslie ".
Russell who however, is at present out OF town.
The question Of the liability Of the company is
interesting all of those concerned in the affair just
now. 1t has been urged that the issue depends
upon the provisions Of the bylaws Of the corporation
regulating the issue Of its stock, and whether by
them Mr.. Allen, president, was in control OF the
stock books with authority 70 issue certificates IN
tho trial of Schuyler who treasurer, director and
Of fhe NieXCY oYk
Hartford Railroad Company for issuing bogus stock,
81 was held that the certificates were issued by me
proper officer and apparently in accordance with the
provfsions of the bylaws Of the company holder OF
fraudulent certificate issued could recover nom
the company. In the light Of this decision it seems
that In case of a confession by Allen that he had
actually forged the names Of Presidents Green and
Curtis 10 the fraudulent certificates all such shares
would be absolutely worthless and the company not
liable. This may account for the vehemence OF tho
officials OF the company in their prosecution OF Allen
who by being forced into such confession might
the Interpretation Of the law in the precedent case
holds good in this save the companys treasury over
$4,000.
HoTTLE AT POLICE HEADQUA RTERS.
J1ofe,o could not be seen at Police Headquarters
Yesterday Immediately leaving tho Tombs he
caused a telegram 10 be sent TO J. Langlon Ward.
of the firm of Stor1s, Wagstaf d Ward, lawyers, at
the Equitable Building, begging him TO come to his
assistance Mr.. Waid went Immediately TO Police
Headquarters and remained for a long TINE In con-
s,lltation with his client Afterward Mr. Ward went
10 the Fifth Avenue and other BANKS WheIc Hoi,ie
Lad placed the certificates, and late In the afternoon
returned 10 Police Headquarters ana lad another
lofy talk with HOfele.
WHAT THE INSPECTOR SAYS
To Tribune reporter Inspector Byrncs said;
aUofes story Is proved by the bare facts OK The case
IN be altogether false. lie has first said that
che money was his own, received in payment
for thirteen patents; then he says that the money
raised by him on the stock was invested In the non
business whereas articles Of partnership provided
tbat Allen should find all the money NOW, accOIa
INC 10 what YOU tell me- his friends Ctclale lat
be himself ordered the sale OF the stock IN Oidei 10
Get back money he had loaned 10 Allen ~ TINS