New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-10
Stoppani and Hotchkin Ar
rested as Clerk Identi-
fed Account No. 80.
DEPOSITORS' MONEY
JUGGLED, HE SAYS
Changes Previous Testimony and
Tells Assignee Where
$15O,00O Went.

e. Hotchkin under arrest in Brooklyn.
Leon Lauterstein, attorney for the as
signee, succeeded last night In Identify
ing the mysterious Account No. 30. which
appears to have swallowed about $50, 900.
II was one of the firms speculative ac-
counts.
Mr.. Lauterstein also wrung from en-
ployes OF the firm the information that
cash or collateral deposited by customers
with an order to buy stocks was some
times deposited to the credit OF the firm.
which contented itself with placing an
order to buy stock. The money might
delivered. Nevertheless, the stock thus
bought" would be lent At tho end OF
the series the customer found himself
without either cash or stock.
All this was discovered largely through
Benjamin Morris. loan clerk for the firm,
who, after listening to Mr. Lauterstein's
examination Of his fellow employee. Wolf
gang Walter. head bookkeeper, sought pri-
vate conversation with Mr.. Lauterstein
and offered 10 change his previous testi-
mony. In his changed testimony he put
Account No. 80 right up to Stoppani and
Hotchkin, as we'll as the mythical trans
actions In stock.
Clerk Accuses Firm.
Despite the testimony Of Stoppani and
Hotchldn that they had no idea what Ac-
count No. 80 might represent. Morris said
that he never made an entry in that ac-
count except by the personal direction of
one Of the members of the firm.
The examination was conducted in the
offices Of Park Potter & Co., certified pub
lie accountants, who have gone over the
books Of the firm. Next Tuesday after
noon Mr.. Lauterstein will call q meeting
of the creditors at the Broadway Central
and lay the facts in his possession before
them.
So far It appears that the firm owed
about $4,000. Stocks valued at about
$4,000 are unaccounted for unless Nor
ris's exposition of the firms business
methods is taken as solution of their
disappearance. The assets amount to
about $500
With Walters. the former head book
keeper. Mr.. Lauterstein took up several
individual accounts The first was that
Of John Maggiolo, of Brooklyn. Accord
ing to the books, as explained by Walter,
Maggiolo paid cash for 100 shares OF
Katie" On the books the entries OF
May 16, the last day that the Arm was in
business. show that Maggiolo was still
long Of the stock. Nevertheless. the firms
accounts show that on the same day the
money was received the firm sold the
stock. Maggiolo has neither tho stock nor
his money.
The account Of John F. Smith, on
whose complaint the arrest was made
yesterday. shows a similar state Of az
fairs. He left with the Arm two Steel
bonds valued at S2,04S, and a check for
5000 with an order to buy Steel and B.
r. T. stock. The amount he left with the
firm was greater by $50 than that neces-
sary to purchase the stocks.
Was that stock bought" asked Mr.
Lauterstein.
The blotter shows 30 Steel bought from
A. c. Sumner on that date" answered
Walter.
Was the stock delivered?
Not that I know Of
Then II wasn't paid for?'
mo. sir. We gave an order to buy.
On the night OF the same day II was lent
to N. W. Peters and returned the next
day. can't tell what happened to It
after that, but on the day tho thirty
shares were returned thirty shares OF
Steel were lent to Bancroft"
WAS any money paid to anybody for
this stock2"
mo, SIR"
Money Kept, He Said.
The witness said that 50 far a. he knew
none Of Smiths money was used to buy
either Steel or b. r. T. II went into the
Mechanics & Metals Bank to the firms
account. On May IS. when the assign
ment was made, the firms account in
that bank was $24 2s.
Park. Potter & Co have found about a
dozen such deals and say that they have
just made q beginning.
Morris, the loan clerk, said that he was
nervous and ratified when he testified at
tho previous hearing. 81 knew what Ac-
count No. 90 was all the time" he said.
Il don't know why | said I didn't. 1t
was the firms account"
At the previous hearing he had said
that he knew accounts No. 10 and No. 20
were the firms accounts. He said that
all three accounts were speculative and
that he used his discretion as to which
certain transactions should be listed I'M
der. He baked when Mr.. LAuterstein
sought to find out which member OF the
firm gave certain orders listed in No. So
1t was either Stoppani or Hotchkin, Morris
said he couldn't remember which.
Stoppani and Hotchkin were charged
with the larceny Of 1900 from John F.
Smith. retired merchant, before Magis-
trate Voorhees,.
Tho men were informed yesterday
that they were wanted at the Butler st
court. Brooklyn. stoppani was the FIRST
to appear. and he was quickly followed
by Hotchkin. who was taken into part
nership in tho n-m because Of his social
prestige"
Magistrate Voorhees, fixed bail In
5000 each. II was furnished by q
surety company. stoppani and Hotchkin
had offices at IS Broadway and Is Court
st.. Brooklyn. They also opened other
branches upstate.
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