The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-07-21

NEW YORK. July 2l-Arthur NJ. Hun
ter. member OF the Union, Riding. Man
haitian. and New York clubs. and at one
time one of the most skilful gentlemen
jockeys in the country who was recently
suspended from the Stock Exchange. was
arrested last night in obedience to an or
der issued by Justice Dugro, Of the Su-
p-eme Court Hunter gave bail for S10.-
COO
The order for Hunters arrest was issued
at the instance Of William r Gurley and
Richard A. Johnson. members of the firm
of Gurley & johnson. stock brokers. Of
Washington. They asserted that Hunter
had misappropriated and had converted
10 his own use So. S06.66 which he had re-
ceiyed as their broker. Several months
ago Hunter. who had an Office at p
Broadway. failed in business. Gurley &
johnson were his chief creditors
In their complaint in the suit to recover
So, So666 from Hunter. Gurley John
son. set forth that between April i. 1899.
and February .. 1850. they employed Hun
ter as their broker TO purchase certain
stocks and securities. To enable him 10
do So the plaintiffs said they advanced
certain sums of money as margin. II was
admitted by the plaintiffs that Hunter FUR
nishel the additional money necessary 70
purchase the stocks. The complaint then
recited that subsequent to February last
Hunter sold the stocks and securities
which il was alleged. he bought ior the
plaintiffs for So. SG6.56 and converted the
money 10 his own Use '-wTUngfdllv and by
fraud" The plaintiffs then alleged that
Hunter had refused TO return TO them eth
er the stocks or the money equivalent
After the suit had been begun against
Hunter. L. EllGry Andersen. his counsel,
fled an answer. which admitted that Hunt
er had from time 10 time purchased secu-
rites on the order Of Gurley K Johnson
but denied that he had committed fraud or
had been guilty of any wrOpgiCing. II was
also set forth in the answer that the per
centage of margin to be given TO GUrley
e. johnson was agreed upon and that It
was also agreed that, in event Of a de-
cline the margin was to be kept good
II was further allege' that il was an
derstood between the plaintiffs and the de-
fe ldaut that Hunter could use the securi-
tes so purchased By him il. connection with
ether securities in his Office as collateral
fer loans
II was also alleged On behalf OF Hunter
that Richard a Johnson. one Of the plain
tifls. is a member Of the New York Stock
Exchange and was well aware Of the fact
that the money required to pay for the
large purchases in question could not be
advanced by broker from his own capital.
but had 10 be borrowed by using the secu-
rites as collateral
Then followed the allegation that about
December 10 1898. d heavy decline oc-
Cured in TIRE stock market and Hunter
demanded additional margin to which he
was entitled. The addition margin. il was
asserted. was not sent TO him D. time TO
protect the securities and there the bank
ers who held the securities sold thin.
MI. Anderson said that under the most
Uufav0Tahle aspect Of the ease Hunter owed
only so 525. % which amount he had Of
fered &c pay in settlement OF the litigation.
He said that Hunter had never received
the money for which the plaintiffs sued.
and he did not see how a man could con
vert to his own use money which he had
never received
This answer was not satisfactory TO
counsel for the plaintiffs. and he procured
the order on which Hunter was arrested
He SAID that the uurpCse CT the answer
was 10 change the nature Of the suit from
one O. fraud and cCnver- ion 10 i simple
suit on a debt.
Richard Johnson. the partner in charge
% the New York brokerage business CT
the firm Of GurI=y & Johnson. is out Of
the city William b. Gur.ey. the senior
ILt-LDtI OF me ulll. Wa seen az MS Cl-
fee, 1881 r Street this afternoon. re-
sardiDr the arres: Of Arthur Hunter. the
New York broker. bus refused 20 discuss
the matter in any way II WAS learned
at the Ofiee. however that che firm has
left the entire matter in the hands Of its
New York lawyers, Rowland and Murray
and that the arrest Of Mr.. Hunter must
have been made by the authorities al TIE
instance Of the attorneys. Gurley &
johnson were not ware Of the arrest
until informed by reporter Of The Times
Il is understood THAT the local firm
hopes 20 obtain the larger part Of its claim
against Mr.. Hunter through the compuiso-
ry sale Of his Stock Exchange seat which
is worth in the Eeishborhood Of $40. eco ac-
cording TO recent prices paid. By the rules
OF the stock Exchange and according to
many precedents at law members seat
cannot be seized for debt. the Exchange
being private organization with no legal
existence. Debts between members Of the
character alleged in the suit against Mr..
Hunter are. however. an exception 10 this
rule. the Exchange itself forcing their pay
ment by the sale of the membership seat.
Mr.. Hunter has been in this city fire.
uueGtly and was well known and much
liked by the younger brokers and specuIa-
tors here. He was the New York CORE
spondent Of Gurley & Johnson for some
months.