New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-07-10
VOTES WIDELY SCATTERED.
, ,rrrr TO SHOW FOR A QUARTER OF A
MILLION IN PAPER
,orzs n HoFTaf1Rp eoN cAMn 10 FAIL
THEY WE'RE LED INTO VARIOUS scHrMrs.
AND ARE SAID TO BE VICTIMS OF
SHARP PRACTICE - LrrIoA-

,o+abIs and complicated case Of business
...h.rrassment IL the failure Of the old firm Of
,ohn p. Hofmire & Son. ship-1oiners. OF No.
ecs Fffth-st, which was reported yesterday.
IN. large amount of the firms paper-reported
a. he 5000 OOO-which has been noated, was
.rrnrise to even the Hofmiress most intimate
BUSINESS friends. All Of their trouble on this
.ocount has occurred in less than year The
partners being It would appear. Of an easy, con-
cang nature, doing business in an old-fashioned
nav. they were induced to go into various out
sde ventures, which were represented as prom
,.,ne great returns. They were led into deals
tor timber lands in Canada and elsewhere. a
,rolley scheme, a match company and various
ether concerns. Batch after batch OF the frm's
mites passed into the hands Of note brokers and
promoters. the notes were again passed into
other hands. and. finally, they got so far away
from the Hoffmires that the firm could get no
trace whatever OF the notes, until they were
presented for payment. The firm took up many
Of the notes last spring as they matured. and
ever since 1t has been struggling to keep up the
payrnents on the notes. but at last found the
load too heavy, and had to stop.
NOTES IN VARIOUS TRADES.
IN the spring a number of the firms notes ap-
reared In the paper trade. The persons who
we're handling them. II is said would buy paper.
giving Hoffmire notes in payment, which were
readily accepted. as the Arm was then considered
good The paper would be Immediately sold for
cash at less than cost. The liquor trade and
other trades II is said, were worked the same
way One Of the transactions in which the firm
became interested recently was a trolley line up
the Hudson River. near Kingston, In which It's
paper, to the extent of $4,000. it is said, was
- &c, Good &c MI q
mile or two long. Another reported transaction,
with other parties. was a timber deal in Canada,
which was unloaded the firm, and con-
siderable quantity Of its paper went into this
scheme 1t Is said that notes Of the firm were
used by parties In the deal, to buy lumber in
Canada which was sold in Oswego, N. " Tor
SPOT cash at about 20 per cent less than the cost
price In making the contracts to buy the lum-
Der it is said the parties would agree to pay
for 1t by giving Is per cent in Honmire notes
and % per cent cash, the cash to be paid after
the notes had been paid.
A MATCH COMPANY DEAL
The biggest scheme in which the firm was in
duced to CO. is said to have been a deal to pur-
chase the controlling interest in the Keystone
Match Company, of Camden, N j.. from Phila-
delpha parties, with a view of getting the
Match Trust to buy the firm out at great ad-
vance In price, As reported, $4,000 common
stock and $4,000 preferred stock of the COM
pany was to be purchased with Hoffmiress
paper The most astonishing part of the deal
came later, when, 1t is said after the hrm had
made the notes for the purchase OF the STOCK,
the members were induced to put up the stock
which had been purchased. as collateral security
for the payment Of the notes so that now their
notes are outstanding and they have not got the
stock.
Another transaction OF the firm was with the
Imperial Fire PROBING Company. of which q. "A.
i. MiIair. of No. 1856 Broadway. Is the leading
man. Mr. Milair said yesterday that the trans
action was a purely business one and perfectly
legitimate. The parties concerned had entered
into an agreement for their mutual benefit but
he would not tell the nature OF It, He declared
that he did not handle any Of the Hoffmire paper
FOR negotiation as a broker. and that all the
paper which had passed between them was
wholly in connection with the Imperial FIRE
PROBING Company. The total amount OF TINS
paper was comparatively small. he said. Being
asked II the amount was $4,000. he replied that
It was a great deal less than that Most of 1t had
been taken care OF. and the company would not
be hurt at all.
The notes Of the frm 1t is said. are scattered
all over the country and 1t will be some time be-
fore the names of the holders can be ascertained
Inquiries have been coming In from banks and
firms in this city. Albany. Bingham
ton. Buffalo Toronto Quebec. Cincinnati, Phila-
dephia Paterson, n. j.; NewHaven. Boston and
other cities. which are supposed TO hold some OF
the paper The Sheriff has found nothing at the
place Of business of the firm TO levy upon as all
the property Is covered by the mortgage OF
S25 600 to Mrs. Hoffmire The Marshal is In pos
session under the mortgage. and the foreclosure
sale is announced for to-day.
Samuel Untermycr Of the law firm Of Guggen-
herner Untermyer g. Marshall attorneys Tor the
firm. was asked to explain the particulars at.
tending the issue by his clients OF SzoOVVV Oh
paper He did not feel authorized at present TO
give the particulars as the transactions were
about to be made the subject OF litigation In suits
by the holders Of notes against the nrm ana as
was possible that the firm might succeed IN re-
covering a considerable amount OF this paper
which is now being traced. Mr.. Untermyer ad-
mitted that the Messrs Hoffinire had got INTO
the HANDS Of some of the shrewdest mote sharks
IN this part Of the country, but he declined to
give their names now. They so operated. he sald
as to cover UP all their transactions, as they sup
posed. under forms Of law. There were IN many
cases the usual incidents Of legitimate transac-
tons, such as written contracts negotiations ior
worthless timber lands in various parts or the
country. for match companies for troley compa-
MES mile or two in length and various otner
corporations whose existence rested NANNY on
paper. The Messrs. Hoffmire had got IN cash
out Of the entire $250.oO9 or more OF paper d
SO 800 Of their own obligations, which had been
returned 70 them. making S34oOO in all. me re-
mainder OF the outstanding paper represents Az
solrtey nothing, except the extent TO Wnlcn the
hrn has been imposed upon. Mr. Untermyer. In
said ne did not care to make any lur-
Their statements Of facts at the present time as
they would come out In court within rev
weeks. As they might possibly be the subject or |
criminal investigation and prosecution by the
Messrs IIofmire. he did not care to anticipate |
matters.
OTHER BUSINESS TROUBLES.
Judgment for 1925 entered yesterday against |
The T. l.. Goodsell Company fruit auctfoneers'
lately at No 10 Jay-st in favor Of Manuel Orozco |