New-York tribune., 1891-10-15
FLIGHT LED TO DISCOVERY.
A TRUSTED EMPLOYE OF KENNETH. HOP
KINS q co. A DEFAULTER.
THAT IS WHY THOMAS H. STOUT SUDDENLY
SAILED FOR EUROPE MONTH AGo-rHE
FULL AMOUNT INVOLVED NOT KNOWN.

SAILED FOR EUROPE MONTH AOO-IhE
FULL AMOUNT INVOLVED NOT KNOWN.
The sin which was confessed by Thomas h.
Stout, trusted employe of the Stock ENchange
firm Of Kenneth, Hopkins & Co., at No 90 Broad
way when he sailed for Europe about the middle
Of September, came TO light yesterday The man mas
been proved TO he defaulter and no idea OF the
extent of his populations from his employers could
he ootained Yesterday The circumstances are such
as to suggest the possibility of other manlpula-
ton of accounts than that discovered. At pres
ent it is estimated that his thefts are about
0,OO0
Stout belongs to one Of the Oldest families OF
New-Brunswck, y. ]. His father John W., dled
about fifteen years ago, leaving an estate valued
at about $500, 900, divided almost equally among
the sons and daughters Thomas H. Stout en-
tered the service of Kenneth, Hopkins & Co.
six years ago. He asked for a vacation after
three years Of uninterrupted devotion to his duties,
and it was gladly accorded him. lie sailed on
the steamer Germanic from this port on Septem-
bcr Is, and as the pilot left the vessel, Stout
handed him a note TO Mr.. Hopkins, saying that
the firm would soon hear of his wrongdoing, but
begging that publicity should he prevented for
the sake of his family These facts were pub
lished ten days later but at that time Mr..
Hopkins insisted strenuously that there was
nothing wrong in the mans accounts, and 1t
was stated that he was only the statistcian and
lcttcr-wrter for the firm, and therefore, could not
have any opportunity TO defraud the house.
Thomas J. Briggs, the head of the F. f. James
Company, manufacturers Of paper hangngs AZ
Tcnth-avc and Thirty-seventh-st, has discovered
that Mr. Stout must have occupied a confidential
relation with Kenneth, Hopkins IL Co. According
TO the statements Of Dill Chandler & Seymour,
at No 81 Nassaust., counsel for NT. Briggs, that
man started an account with Kcnnett Hopkins &
Co. in August. 1889. The account was invest
ment rather than speculative, and the stocks
favored by Mr.. Briggs were Chesapeake and ONO,
Baltimore Gas, American Cable and Oregon Short
Line Mr.. Briggs bothered his brokers little,
visiting them once in the last two years to get
check for 81 800 which he wanted to Use in
real estate transaction. Three weeks ago Mr.
Briggs sent an order to his brokers to sell some
Chesapeake and Ohio stock, and informed
that he had none to his credit. statement Of
his account showed that he had only 100000 70
his credit, whereas Mr.. Briggs Ggured out that
at tie current prices of his securities he should
be creditor to the extent of 100000 confer
ence between Mr. Briggs and his brokers has
resulted in an adjustment of differences which re-
duces the amount owed to him. but there are somr
items which are TO be submitted to the decision of
a referee.
1t appears, according to Mr.. Briggs's lawyers,
that the $40 900 difference between his claims
and what was to his credit the books Of Ken
nett Hopkins d Co., was absorbed by Stout
The latter is said TO have sent out false state
ments 10 Mr.. Briggs, and to have suppressed the
firms regular monthly statement of accounts to
its customers. Stout appears to have taken Mr..
Briggs's checks when sent to be deposited to his
md al Of tbp che IS which
| cent to Slr Briggs Stout took Mr.. Briggss checks
to the order Of Kenneth, Hopkins & Co., indorsed
| them and had them cashed deposited elsewhere
| to his account He followed the same simple
process with the checks sent by the firm to Mr..
| Briggs Stout is also said t. have msapproprated
stocks that should have been held for Mr.. Briggs.
The relations Of Stout to his employers must have
| been confidential to have permitted this free
manipulation Of a customers account, and the
| instant fear was expressed in Wall Street that
possibly Stout might have tampercd with the
accounts of other customers.
George B. Hopkins, the head of the firm here,
was at his office late, but he declined to make any
statement beyond what was given out by his
! counsel Mr.. Dixon, of Miller, Pcckham %
| Dixon, lawyers in the Union Trust Com
pany Building. Mr.. DiXon's statement was to
| the effect that there had been a dispute over Mr.
}flggSS account. IndI SOlIc Ol ult Ilt!S H' '''li
! zone over and assented to by both interests, and
| that Others were to be decided by referee. Mr..
Dixon declared that the differences were small
| but lie would make estimate, although ne
| repudiatcd the idea that they amounted TO
$4,000 -
| So far as traced the checks diverted by Stout
| to his own us appear by the stamps upon them TO
| have gone through the Holland Trust Company.
| They aggregate between $4,000 and S2OOOo.
| At the Office of the Holland Trust Company IT
| WAS stated by George W Van Siecllcn. the secre-
| tary that Stout never had a debtor account OF
| over 81 900 and he therefore could not have
used ANYTHING like $4,000 Of the stolen checks
! through die Trust Company. The discovery OF
| Stout's peculatiOns will lead TO thorough IN
| ycstigation of the cOmpanyS books.
| The checks drawn by Mr.. Briggs were upon
the Farmers Loan and Trust Company, and
| Kcnnctt. Hopkins & Co draw their checks upon
| the Manhattan Company Bank. At tn two IN
stitutions Yesterday nothing could hc learned
as 10 St0uts transactions The llabiity OF the
| banks on any forced Inducements IS generally con
! coded by lawyers. The missing stocks belonging
10 Mr.. Briggs must be replaced by the brokerage
| firm il is claimed. n
Thomas II. Stout was n graduate OF huteers
! College He has three sons one Of whom Jam.s'
recently entered Princeton Seminary t. study Tor
| tbe ministry There are two brothers OF ihe
| missing man. Jacob and Lee. They say they do
not know where their brother is