New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-09
pOBBED HIS PARTNERS.
,,,,v CLARKE WITHDREW PARTNER
cup FUNDS WITHOUT AUTHORITY.


o, ryrEcTs To REsUMD UNDER A NEW
,,r-yo STATEMENT OF ASSETS
,vD LIABILITIES-sTOCK EX-
CHANGE CONTRACTS MET
,rs, ofelal statement made by the attorneys Tor
4.r,ee of the stock Exchange firm OF Hunter,
t0- C. Jacob. which announced its suspension
Cam. ,'.,nos,lav. implicated Herman Clarke one Of
Oh r,sners. in more wrongdoing than was ind-
tne - ,bo story published in The Tribune. Not
cave" 80 the house pulled down by the sale of
o"'' ..nri,icces'' in the name of the firm by Mr..
80 without authority. but its embarrassment
70 heen increased by the unauthorized withdrawal
80 o,rtnership bank funds by Mr. Clarke. who has
Va bean heard from since he left New-fork last
no. II was impossible to obtain any esti-
GU ~ assets and liabilities from the firm yester-
sav but al contracts on the Stock Exchange nave
-, me- and the firm expects 20 resume under q
y, name !n a short time. Notice of the dissoiu-
-, NJ the partnership was sent TO the Stock Ex-
S,os As soon as the affairs OF the firm are ad-
- IL IS proposed 70 start new hrm, 20 be
s,,vrl as f. X. Hunter & co. The firm VIII be
o,,,sfd OF Frank II. Hunter and Leonard Jacob,
~ ,so NJ, members OF the present firm, and John
= rr,est Nh Ernos. is now connected with Capp
= =, an outside" brokerage concern. He was
s.5 Ia Moatlere Clarke q Co., the concern which
Mr. Clarke organized few years ago. before he
e,,r,s1 The partnership of Hunter. Clarke Jacob.
or5 nreylous 10 that time he with Henry Ciews
g Co.. Mr. Ernest in al these connections has paid
s,ecial attention 20 the management of the cotton
branch Of business.
Jobu Hunter, IT,. OF the law firm of Hunter x
pa;tle who IS the assignee Of the suspended firm,
san Yesterday that he could give no estimate Of
che assets or liabilities. 1t was impossible to say
bow many Obligations were outstanding on the
"nryl,eses" issued by Clarke. Mr. Hunter would
of fund 1ish
clarke had Improperly withdrawn from the Bank of
che state of New-York. where the firm kept its
sccolnt and the officers Of the bank declined TO
cav how much money they had paid out on checks
presented by Clarke and for which no accounting
had been made 10y him on the books of the firm.
The official statement given out yesterday by Hun
,sr 4 Battle Of Temple Court, attorneys for the
assignee, IS follows:
The firm of Hunter. Clarke & Jacob. OF No. 81
rxchauge Place composed of F. X. Hunter. Her
man Clarke and Leonard Jacob, jr.. suspended
navn1eit on the Stock Exchange yesterday after
noon. This action on the part OF the hrm was
necessl,ated 10y the discovery that Herman Clarke
had been selling stock privileges in Wall street
without. the knowledge of the other members OF the
firm. The firm paid out a large amount OF none! on
Tuesday meet these privileges and as other
prrlegeS continued to be presented Yesterday me
frn, after advising with their counsel, conciuded
,hat il was proper that they should suspend pay
ments and make assignment in order 10 pro-
ect their assets for the benefit OF their creditors
The exact amount Of the Liabilities of the firm can
not at present be ascertained. as the amount OF
the privileges sold by MIR. Clarke. in the name Of
The firm. is not yet known. John Hunter, jr, OF
Hunter & Battle. Temple Court. has been made the
assignee Of the firm, and is now engaged IN an
examination of its affairs in order 10 ascertain the
exact condition.
The action OF Mr. Clarke in selling privileges In
the name OF the firm entirely Unauthorized by
the firm and unknown to it's other members. The
proceeds OF the sale Of the privileges were re-
iainad by Mr. Clarke personally and the firm re-
celved no benefit whatever from them, nor DO these
transactions appear on the books of the firm
Mr. Clarke has also drawn large sums OF money
from the partnership bank account of the firm with
out the knowledge OF the other members, and APP
piled the money 10 his personal use. This money
was drawn by checks signed by Mr.. Clarke in the
name Of the firm These checks not the
regular business checks of the yI. but were blank
checks flied in by Mr.. Clarke. They DO not appear
on the books of the firm. and were only discovered
upon balancing its bank account
Mr.. CLARKE left the city Sunday, and the firm
has received no communication from him.
far can be ascertained, the assets Il the firm