New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-03

MONTAGUE. CLARKE AND FULTON.
Three members Of the former firm Of La Mon
tagne, Clarke & Co.. stock brokers. have now
been arrested on the charge of larceny made by
Florence NJ. David, of Montreal a customer Of
the firm. Mr.. La Montague was taken into
custody and released on bal on Tuesday. as pub
lished yesterday. It also learned that Elisha
VI. Fulton. jr.. had been arrested Tuesday even
ing, his father becoming his bondsman In $4,000.
Yesterday Herman Clarke surrendered himself
In the Tombs. and also admitted to bail in
$4,000 His father signed his bail bond.
In the affidavit upon which the warrants were
issued Mr. David declares that the firm was in
solvent in June. 1892. when h. NJ. Fulton. ST.
became a special partner. David says he paid
the firm $4,000 with which to buy 1.120 shares
Of stock Of the Canadian Pacific road and some
July and September wheat. If the wheat should
fail to advance in price before the date Of de-
livery it was to be sold ana wheat of later de-
livery to be bought in its place.
MR. DAvID's HOLDINGS
After telling how La Montague. Clarke & Co.
lost heavily by the Cordage COmpanys failure,
Mr. David goes on 70 tell of his departure for
Europe in May. 1895. and Of the receipt OF the
positive assurance from the four active members
Of the firm that they then actually had in their
possession on his account l.120 shares Of Cana
dian Pacific common stock at the agreed pur-
chase price Of H. and 10000 bushels of July long
wheat and also 40 600 bushels Of september long
wheat. against which railroad stock ana wheat
they held at that time as margin $39pop At thlt
time he was dosr0us Of closing out hts account
but. he says, all the active members Of the firm
urged the complainant not to do So. ana said that
If he would pay the further sum of $4,000. wi;h
In 2
shares Of the Canadian Pacific. the firm would
hold the railroad stock collateral security at
fits market price and would continue to carry the
wheat. The railroad stock under no circum-
stances was 70 be sold or the wheat except TO- me
purpose Of carrying II forward for later deilv-
cries. t. this the complainant assen.ed. only
agreeing that l2O shares Of the railroad stock
should bc sold and the proceeds credited - MS
account The complainant asserts that the hrm
WAS actually insolvcnt al that time ana that 'he
rourcsontations to him then were fraudulent ana
mad. with the Intention 10 cheat him. clarke
h.. SAYS has substantially admitted thls. Inc
defendants sold all his long wheat ana also ms
Canadian Pacific Railroad stock and appr lpriat
the proceeds 10 their own use. ne says tnc coln-
palnant says that be- mas Obtained h;s In'ui 'i,".
lion from Charles :. Me'calf. oookkceper lor
La Montague, Clarke x c..
OTHER CHARGES.
The complainant says that the defendants sold
HIS railroad stock 10 make good some OF their
losscs and also disposed of securities belonging
10 customers named Cockburn and Overton' ana
that thoy also misapproptiated securities Na'u. q
at S2Oc.CO belonging 10 Hayden " o'""'' o'
Boston. ,.,
ants sold and converted - their own use seVera'
thousand shares Of WhiFkey certificates belong
Ing 90 Couns elman & Day. OF Chicago' out .ndS @
subsequently under threat ~ prosecution am am
,,.tsH r,sslfl llEFTtOn
with Hayden & Stone paying them IN iulI anu
also settled with Councilman x Day, using .he
proceeds ~ the compainants securities therefor
MI Ia Montague was on the H"'r or l'' ''''h
Exchange yostcIlly. and he was cordially re-
c.lv,G bv his fellow brokers. who cNpresscI theIr
sympathy with him iu his trouble. ID Il tribune
reporter Air la Mou'agne said that me- aga nor
car, - discuss ia" matter of his arrest DIX ne
d.roun,cd 10 as An outrage. ~" referred me
luoi.ir.r % his counsel. Charles II. Ru-s"'l VINO
s,d that he hal been informed mat inc DOCKS
- ,hc firm, showed that instead of IN Montague.
clarke s 60 being Indebted L. Nj David
there was small niehtriness from MN ID lh'
firm Mr. Russell said thai Mr. Ia M'ntAsne
had been IN" Stock Exchange member 'i ih'
firm and simply executed orders from the othce
Ile could uYt lu any way have been party u
amy f-tutulcut transactors
Tho firm 81 IL Montagnc, clark" CO. was
formed on January T. 1850. and consisted of L.
La Moniagnc Jr.; rein0n Clarke ard Wallace
- smith on June %. 1892. the house was re-
organized. Elisha NJ. Fulton. jr, becoming 4
r1rfter and his father contributing special cap
ifaI Tn firm took handsome Offices in the
Mills Ruiliing and opened special telegraph
wires to Montreal Chicago ana oih"r cities ~
s,-.s establishing several uptown Offices Tho
rreat bull speculation ia National cordage stock
in the autumn OF 1899 and the winter of 1893
brought the nrT prominently into the eye Of the
W,U street public. The collapse OF the in
dustrial stocks In May. 1893 with the failure of
the Corlagc Company marked the decline Of the
firms business ON the stock Exchange, and
voluntary liquidation was decided on in October
81 that wear.