New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-09
CONFESSlNG HIS FRAUDS.
ALIENS PARTNER ARRESTED AS AN AC.
COMPLICE.
hoi ELE sToUTLY DECLARES HIS INNOCENCE
WHERE ARE THE MISSING sUAREsl-
ATTEMPTING TO ESCAPE THE
CHARGE OF FORGERY.

rerdinand W. llofcle. who was the business
"'Soclate OF Eben s. Allen, the president of the
UT oiy-Second Street and Grand Street Ferry Rail
,O"u company, was arrested yesterday afternoon
| 'S Detectlye-Sergcant Rogers on the charge OF
oclng an accomplice of Aliens in the hypotheca-
uon Oh certificates Of stock of that company. Tie
"'nieu that he was guilty Of any crime, but he
WIS arrested, nevertheless, even after Allen. in
court and the officials of the Fifth Avenue Bank
nau eAonerated him from all blame
Aiieh was taken to the Tombs Court early yes
'eruay morning by the detective. He did not
seem TO realize his position in the least and talked
ana chattcd Pleasantly with the officers of the
! company, his brother, Elmer A. Allen. and his
| lawyer, John L. Eustis of No. 1856 Broadway
VII. hlsts advised him to make a complete con.
! Ie'>lon George Green, who was elected tenn
/ poraFy president of the company on Wednesday
OmrIes Emmons, secretary, and II. j. Jacobs
! treasurer, were also there. They had called upon
Allen at Police Headquarters early in the morning
/ 10 get from him, if possible, information that
/ "ouio lead to the finding of all the fraudulent
cefulcates Of stock that have been issued. lie
gave them little assistance however, and out OF
the 700 shares hypothecated he could account for
only 430
While waiting for the clerk to make ont the
papers IN the Mr. Eusts talked earnestly with
Allen, and he finally said that he would make a
confession An opportunity for him TO do this
was given when he was called TO answer TO the
charge Of fraudulently issuing the stocks of the
railroad company. In making his plea he said
HIS FORMAL Confession.
an guilty Of the charge. 1 admit issuing the
neNod certificates Of the capital the FOry.second
street and Grand Street Ferry Railroad Company
officer OF said company said certificates being numbered
Ss and being false and fraudulent and further admit
having received and appropriated my a portion
Of the proceeds OF said fraudulent stock. 1 this
admission by the advice Of my counsel ]. f. Eusts and
/ because the admission Is true.
Mr.. Eustis waived examination for his client
and asked for his release on bail None of the
officers of the banks that lent Allen money on
the certificates present, therefore Justice
Hogan did not know at first at what amount
10 fix the bail. But after doing some figuring
on his own account he named 81 90, COO IL was
not Forthcoming, and the former president of the
railroad was taken down stairs and locked up for
a further hearing on the charge of forgery. Allen
denied that he was guilty Of forgery The certi6-
Gates which he sold were signed by Charles Curtis,
when he president, and the father OF
Acting President Green, when he was president.
Allen then filled the double office of secretary and
treasurer and il was easy for him TO get the
signatures Of the presidents His lawyer, Mr..
Eustis, said
Transfers Of stock are being made constantly, and it
Is probable that there were number Of certificates
signed ahead for Use in transfer to be made
hen the president was not on hand. II that is the
Csc and II the president Of the company really signed
tose certificates Alien only DO held for forgery in
the third degree. 1t will be difficult and almost impos
sibe prove forgery, both Of the presidents are
dead. l saw this morning Of tho certificates sup
t.aoI laar uuad Iv Mr. Cupffs of
the company say II does not look like his writing.
But men write differently at different times. II Allen
gets oil with forgery in the third degree he will be
lucky lie has confessed the crime and that ends IT,
do not think that the railroad company viii attempt
to prove a forgery. The point will arise to which
IS responsible for the certificates Of stock which Allen
got his money the banks or the railroad
company That Is point that the
courts will probably have to settle have not
looked the matter up. but told this morning by
LAWYER that there was decision some time which
hed the company responsible when the president,
officer of the company sgned certificate Of stock
am sorry for Aliens brother lie Will have to stand about
So 600 on certificates which he negotiated at the Fulton
Rank for his brother think that Allen must have been
crazy 10 act a. he did lie 10 know nothing OF
what Hofec did with all that money asked him this
morning II he ever went oeIe's books and he told
mo that he had not. for Hoicle was an honest man.
WHERE DID THE MONEY COZ
There are many who believe that all this money
did not 90 into business enterprises. Aliens
brother told an acquaintance yesterday that his
brother lived in an eXtravagant way and had an
eytravagant wife. She, it is said was an actress
when she married him. r. j. Jacobs, the treas
urcr. and Charles EmmonS, the secretary OF the
roiIroad companv. were hard at work all day yes
terdav trying TO trace the missing 2Gl shares OF
fraudulcntly issued stock. They said that they
had not gotten far enough into the books then to
he able to say anything about the mat
ter Inst so soon however, as they found
ont what had been done with the missing
certificates they would let it be known Re
rarding the liability of the company for the
amounts realized by Allen, they said that they
couM not answer that question until they had
taken the advice of counsel, which they had not
go. done Acting President Green said that 1t
was a shrcwd defence for Alien 10 9HGr, 10 tS SS
that the signatures OF MS ldihcI III" -iA'
were genuine ddod
We believe that they were forged ne i addeuii
II may be difficult to prove IT, Dut aa4lIion"i la
fraudulent issues may turn up that VIII neiP 10
Nr Green docs not think that the company IS
liable TO tine banks for the amount oil ule cel'iH
Gates To n reporter Allen said al the court
II Is not true that / guilty Of forgery I"o Sis
,,,ros are genuine and the certificates were A6n'N III
llapk by President Green and also PIesldeh' 'u'u'.
Nv crime was In nlng up the blanks ana 'ne'eO5 7 7
an yerls.ue IN stock did it because was oe'pia'
,,iya, wild bv my business necessities. was cohhcc'o'
ga I'M ofee in the manufacture Of hreescapes and various
lind. ~ iron work. Certain contracts turned ou' ui
fortunately and pressed for money 70 cary va
tbe buslue.s then filled out some OF the bahA veI''"
o+.s ~ stock I'm IIofele's name and my own anu Oh
these collateral loans got from the banks IL y o
had that the discovery made at this time Io Oui
enterprises would have repaid the money hoieie u NV
proy that the stock fraudulent tod MN '"'0 ~
,ock was my own and was only put in his name Ior
necotiaton because It would be more convenient ior He
CONFIDENCE IN HOFELE
The officers OF tire Fifth Avenue Bank expressed
fnl confidence in Hofele, and they Issued une
following statement:
Mr. T. w IIofele claims b BE- entirely innocent III .c
natter ani thus far reason q doubt IT, Ni'
,ro T. a den.tor I'm our bank applied ior loan on
stock u the railroad company We sent the cerIheac u