New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-08


| attaches 10 the company or 10 the Stockholders
or directors. meeting of the directors was called
today at which Mr. Allen was removed from the
presidency, and George Greene was elected tempo
rary president Thereupon the directors resolved TO
| take immediate measures not only 10 protect the
company but also to secure the offenders and every
e9dGay9r was made to furnish the iace 70 Ond suId
| be aScertained."
WHERE THE STOLEN FUNDS WENT.
The history of the iron works, at No. 140 East
Forty -frst-st, run by Allen and his partner,
Ferdinand Hoefee, under the title Of Allen Il Co.,
is one long series of reverses In the neighbor-
hood of the works it has been generally under
stood that the credit of the firm was in bad con-
| dtiOn When Tribune reporter called at the
office of the firm yesterday afternoon he WAS IN
| formed that Mr. Hoefele was away at New-liaven
on business and would not be back until to-day
! The bOokkeeper and others employed in the works
seemed much disturbed at the news Of Allen
arrest, but refused all information as TO the
affairs of the firm.
1t was learned, however, that the business was
started about five years ago by Allen Il Hoetele
under its present title: Allen found the clpltll,
which at that time amounted to about Sl,oOO,
and Hoefele undertook the active management OF
| the concern. They rented q room from George
Schumacher, wagon and cart builder OF NOS
/ "a and 1876 East Forty -frst-st, two doors from
their present place At that time they employed
two workmen The business did not thrive, ana
in about nine months time the firm was heavily
in debt, and owed Schumacher about $500 Tor
rent At this time Schumacher heard that Allen
and Hoefee had rented the building at No. 140
East Forty -frst-st and Immediately entered suit
against them. Hoefele entered counter sllt
against Schumacher for goods supplied to him by
them, and finally the affair was compromised by
the payment to Schumacher of $500.
Allen 81 Co.'s business then appeared TO take
turn for the better, and improved so that they
were soon able to give employment to about twenty
men, Their prosperity did not last long. Hoeiele
patented and brought out several inventions OF
his own, none of which paid cent of profit, and
on all of which the firm lost heavily. one OF
these Inventions known as the Metropolitan
Fire Escape" was found TO be so complicated ana
unwOrkable that il was rejected by the Building
Department,
SENDING MONEY TO FIND MONEY.
A long and bitter war between the inventor
and the Board resulted, and finally Hoefele with
drew in defeat. Then, among various minor
articles, he brought out fire truck. which, on
being tested, proved to be a disastrous fai lure.
On this article alone the loss is estimated at
$4,000. From that time the business has been
in more or less ruinOus condition and existed
on the money supplied from time to time by
to Europe, the supplies temporarily ceased. Bills
came pouring in upon Hoefele, VINO
found himself unable to meet the demands. and in
despair issued checks, which on presentation were
promptly returned by the banks with which Allen
* Co. had dealings.
On inquiry at Hoefele's house last evening it
was learned that Hoefele had only few minutes
previously returned from New-Haven; that two
men, one of whom said to be the cashier of the
Fifth Avenue Bank had called and had brer
conversation with Hoefele, after which the three
had gone out together.
He was afterward seen at his house about l
o'clock by a Tribune reporter. He said that ne
had only half an hour previously returned from
NcW-IIaVen and was aStOunded by the news or
Aliens arrest and confession. This was In dlrect
contradiction TO the information received at the
house from Mrs. Hlofele, about four hours pre-
viously that Hofele had returned home early
i'm the evening and had shortly before o'clock
gone out with two men,.
Hofcle at first said that he went into partner
ship with Allen about ten years ago, and after
ward reduced the number Of years TO SIX. lie
then gave an account of the iron business, but
denied that the firm had ever been
in any difficulty During the time he and Alien
had been in business he had patented twelve
inventions Referring TO the sale by HIM or
the forged certificates he said that he had made
over to Allen thirteen patents, which included
those on the fire-escape and the fire truck, ana
In return had received what he supposed to be
400 genuine certificates of the estimated value or
$4,000. Being, anxious TO get the money ne
and disposed of them, but could not remember
what price the bank offered for them or what
sum he received
The terms of the partnership were that in re,
turn for Aliens outlay Of capital you sh0ul
undertake the mana cement of the business. and
that all profits on your inventions should go into
the common fund.- were they nOt% asked the re-
pOTltT
IS" Yes" he said
4" But you say that you sold these patents 20
Allen as "A separate transaction and as an outside
SPECULATION
Hofele hesitated, and then said: Il don't
think ! am on trial, and therefore L cannot
answer that"
Going on, he said that he had just come from
the Fifth Avenue Bank, where he had given a
satisfactory explanation OF the whole affair 70
the cashier. He was, and always had
been, an honest man, and would be able to
clear his good name.
Afterward Hofee. who had already said that
he had been in partnership with Allen several
years said that the articles of partnership were
signed only two years ago. and that this accounted
for his sale of the patents to Allen. He also
asserted that all his patents had been successful,
but afterward admitted that the fire truck the
freeScaDcS and other inventions had not been
altogether profitable" IIofele has been connected
with the Bowery Theatre for "A number of years.
He said last night that Aliens wife had before her
marriage been an actress. and appeared in second
walking lady's parts at the Old Bowerv and Union
Square theatres under the name of Ethel Allen