The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-05-23
CLARKE AS FINANCIHR.
Put $4,000 In the Washing
ton Catering Co. and
Drew Out S3o.ooo.
cONTRADIcTS HIS OWN STORY:
He Received 5000 a Week As
Treasurer and Worked Bat
One Hour a Day.

An examination brought on by the Re-
ceiver OF the Washington Catering Conn
pany for the purpose Of establishing the
truth of the allegations and charges
which were made in bill to have set
aside bill of sale made and chattel
mortgage. the latter executed by Edward
It. Mitchell to Charles S. Clark, Jr., the
financial mogul of the Washington
Catering Company, was begun this NOR D.
ing in the First District court room.
The proceedings thus far have devei-
oped some queer methods of fnanclering
1t is alleged that Clarke had drawn all
the money and made the company insol-
vent: that he had transferred all of his
stock to Nit cheiI SO that he could geG
out, make Nit chell President and
Treasurer of the concern, and leave his
concern in M itchelps hands with no
money to pay debts amounting to $4,000,
with only about $1,000 in assets.
MIXED PROCEEDINGS.
At the time the transfer was made,
Clarke took a chatteI mortgage executed
by Mitchell to Clarke. purporting to
secure the payment of an alleged loan Of
So, 500. which Clarke claimed he had ad-
vanced to Mitchell. The method BY which
he advanced this money was to draw his
personal check for So. 500 to the order of
E. T. Mitchell, and delivered the cneck to
Mitchell and then delivered to Mitchell
a bill of sale executed BY the Washing
ton Catering Company TO Mitchell
for the plant. In payment OF that
chech to Clark which Clarke had given
him, and then executed mortgage pur-
porting TO secure to Clarke the payment
of the alleged loan of $2.500. Clarke, to
screen himself, had the company
| incorporated SO that he wouldn't be
personally liable. He gave away
Clarke, so as to secure the persons In the
corporation. Goth James G. Clarke and
William Heller testified at this morn-
| ing's examination that they had held
| five shares of stock, for which they did
| not pay cent.
Charles S. Clarke, Jr., acknowled that
| he WIS at one time treasurer OF the con-
cern, and testified that he was the one
| who put money into the concern. But
| the BOOKS show that he was the only one
who drew out any money, except SoO0,
| which was paid to William Heller for ex-
penses while, as manager, he was build
| ing up the trade route.
GAVE $4,000; DREW $4,000
| Clark further testified that he put
| 1000 into the concern altogether, but
| the check books show that he drew out at
| least $4,000 in checks ranging from
| 30, SUU TO SCUU. Lie ul1uut6 OUOhS SAuW
| that all monies received on sale OF the
| company's property should be turned
| over to Mrs NJ E. Clarke for monies
| loaned by her TO the company from time
| to time.
| The rec eiver is in possession of a letter
| from Mrs. Clarke in which she says: Il
never loaned the company cent"
| Clarke, on the stand this morning
| corroberated this statement, Civ
| ing as an excuse for the
contradiction between the minutes
and Mrs. Clarkes letter that a mistake
| had been made in the minutes. Ths
money he swore had been loaned to him
personally. and be had loaned it to the
company.
REMUNERATTvE SALARY.
| The minutes also showed the the
| directors of the company had resolved 10
pay him 5000 week for salary as
| Treasurer.
Clarke denied that he had ever
| received cent for salary as
| Treasurer. but took only SO much
| out in stock. He admitted that he only
| devoted about an hour a DAY to the bust-
| ness. He was asked IL he did not think
| $50 an hour remunerative employment.
| Heller's salary as manager was also
| fixed at 5000 week. He took his out In
stock, too, but during the earlT career of
TO building up the route.
Arthur j. OBrien while on the stand
/ was obliged to admit that, as President OF
| the company. he had signed the first four
| certificates issued Dy the company. IC
| was not until he was made President that
| he received the five shares. which were
l presented to i'm