New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-08-09
2 any interest, but 1 was satisfied

that they not bring any but satisfied
with the security.
placed $4,000 In the Fifth Rank $50 900 In
the American Exchange Bank and $50 900 the First Ma
tiona Bank Of Williamsburg. / received the first install
In 1888 received patches Of 229 shares. one
batch OF $50 shares and batch of 90 shares at different
times, making 66s shares in all. Mr. Allen was seldom
in the store In often this neghborhood as
carried the business have but regret, and that
Is that tho discovery not made sooner short tlme
made some mistake in signing the checks using
II W. Hofele," where should have used "Aen q Co..
and the banks Mr.. Aliens Office ask in regard
to Mr.. Allen stated then that II should sell the
way stock In possession would net at least S9OOOO
That statement have In writing That assured them
Mr.. Allen know nothing Of the sale OF this stock which
1 made o few weeks ago. Why should I ask him In
regard to selling my own propertyi When sent the
three banks I'm which had deposited the stock orders 10
sell t the last Monday In July, waited one week
before going inquire into the progress Of the sale In
the meantime Hemau Blaut, Of No. 30 Nassau-st'
the brokers for the First National Bank OF williamsburg
endeavored sell Stock and when arranging for ius
transfer discovered fraud who ordered that
sale.
OTHERS NOT so CONFIDENT.
Some of those who have handled the certificates
of stock believe, however, that Mr. Hotele was
an accOmplice of Allen, and knew that the stock
was fraudulently issued. Henry l.. Grant,
broker, of No. 145 Broadway, said:
Early in october, 1897, S. L. Simpson. a banker and
broker OF No 60 Broadway, to my Office as the
representative IIofele and proposed that Issue
loan to oee on the security of o9 Of this stock
The certificate had originally been deposited at the
Columbia Bank by Hoele security for loan and had
passed from tho Columbia through the Fifth Avenue the
Bowery and the American Exchange banks The shares
OF the estimated value OF $50 900. took the GER
tncae from the bank and It advanced s32 000 Tho
certificate numbered 976 is still at my bankers whose
1 decline to give. know positively that my
shares are not Identical with those which Hellman
yf., 4 tho rcfffI hp ponr
10 me.
George IT, Prentiss showed the reporter the
three certificates taken by him. They were Nos
1902 for 60 shares; 99S, for 80 shares and 976,
for 229 shares, and SAID:
1t is certain that Hemans certificate No. 976 and
Grants certificate for number distinct.
It not possible that they be the same, because
Mr. Grant still has possession Of his stock. Where it
am not liberty say. Allen has simply duplicated
Of his Frauds With the help Of his partner he has
and put the same number to each certificate.
When 1 had paid for the stock sent It to the COM
pany transfer They must have known on sight that
the certificates were worthless Yet, instead OF imme
dlaely informing me on the point they a
TO that the absent for day or
two and that his the transfer would be made
Then when It suited their convenience, they were good
enough to tell me the certificates forgeries
Had they afforded the necessary information Oh the
same day that the stock sent to them could have
stopped my checks and thus avered possible loss OF
600. As 1t is L do know what the outcome Of
this will be- but presume the loss Will not fall on
my shoulders.
H0FELE BEGINS AT THE BEGINNING.
When Hofele was taken into Inspector Byrnes's
private office he was nervous and detected, and
was not inclined to talk about his relations with
Allen After spending few hours in cell in
the subterranean passages at Headquarters, how
ever he became more hopeful. and expressed his
willingness to tell all he knew about his affairs
Tie said:
became acquainted with Allen in 1879. 1 then
tho lessee OF the Old Bowcry Theatre and Allen
see me for purpose Of putting his wife on the stage
Her name Ethel Alen and made inquiry about her
and dng that she had had experience the stage
gave her a part She was poor actress but per-
suaded by keep her the boards until the season
closed after the Old BOwery changed hands and
became the 1halia Theatre In 1880 got possession OF
the Olympic Theatre Broadway and Mrs Allen played
there Allen and were close friends afterwari and
gagged in several minor business speculaons together
which were not profitable.
in the meantime had become an inventor ana had Sc
cured patent for various inventions Allen
agreed TO put up money 10 carry on the business ana
was to put the patents against the money. Allen in
stead Of paying money the treasury OF the company
paid me for with stock Of the railroad company The
800 OOO which raised this stock turned over to Allen
& Co. Co be used in extending the business.
Inspector Byrnes asked HOfele to explain how
il WAS that ne put 100000 in the BUSINESS money
which was really the proceeds OF the sale OF MS
thirteen patents to Allen, while Allen, VINO was
to furnish the money, according to the agree
ment, did not do So and yet Allen had thirty-nlne
shares in the profits TO one for HOfee. Holele
replied that il did seem strange, and that he was
unable to explain it,
lie added that he did not know that dividends
were paid upon the stock. lie had not received
any.
AN EXPLANATION WANTED HERE
The Inspector called IIofele's attention to the
fact that upon four different occasions he had
gone to brokers' Office in Wall-st. and had PAID
to him the regular declared dividend upon 2@9
shares of stock which had been given as collateral
for a loan Hofele had nothing to say to this.
Despite the large losses which have attended
fIofeles business career. according to his own
account it became known last evening that he
recently bought the house No. 306East Forty first
ST.. where he lives, and that he was TO pay $4,000
on it yesterday. He has $4,000 on deposit in the
Fifth Avenue Bank. and this has been attached
by his creditors. IIofcle will be taken to court
this morning.