Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-03
CLARKES OPENED
BANK WITH S34
One of Brothers Tells U. S,
Referee of Growth to
100000 in Deposits.

Special Dispatch to The Star.
NEW YORK, August 3.--When the
Clarke brothers private bank ran into
financial trouble in 1904. but reorgan-
lied and went on. 1t started its new
operations with capital of $34. This
testimony came Thursday from James
Rae Clarke, who had pleaded guilty in
the Federal courts to using the mails to
defraud and in the State courts to ac-
cepting deposits when he knew the IN
Stitution was insolvent.
He was a witness, with the other
partners. Hudson Clarke. jr.; Philip l..
Clarke and John F. Bouker. before John
l., Lyttle referee. The defendants. &C
cording to William st. John ToZer,
counsel for the Irving Trust Co., the re-
ceiver. have given satisfactory EVIL
dence that they have made all the res
titution of which they and their fam
lilies have been capable. The total is so
short of the $5.000,000 loss. however,
that the maximum assured depoSitorS Is
10 per cent.
Referee Warns DepOsitOrs.
The hearing was enlivened by warn
ing by Referee Lyttle tn depositors,
cautioning them against signing blanks
granting power of attorney to certain
lawyers. Many of these have been
signed by depositors.
L don't like the look of what's going
on" Mr.. Lyttle observed Il warn de-
positors not to pay any money to the
lawyers. Information has come to me
that certain lawyers are seeking to rep
resent depoSitors."
Charles Sonnenreich of ITO Broadway
a lawyer. interpoSed he was one of 10
composing the Clarke Brothers Bank
ers' Protective Association, and added ::
We intend to file those claims with you.
Some of these people can't afford a
lawyer and we are acting without fees. "
Offers His Advice Free.
give advice free of charge" said Mr.
Lyttle. All proofs of claims will have
TO be tried here. II depositors engage
lawyers they should employe lawyers in
whom they have confidence"
Like the other partners, James Rae
Clarke made things easier for the ref
cree by withdrawing previous stand
on his constitutional rights in refusing
to answer questions. Starting with S34
capital in the 1904 reorganization, he
said, the business had 100000 de-
poSits within 10 years.
James Rae Clarke said he and his
wife had turned over TO the receiver
all their possessions expect a burial
plot. Explaining ledger item of $780,
900, apparently due the bank. he said
this represented an investment they had
planned to make in the Chicama coal
fields, Peru. but which never was made
because of the inaccessability of the
fields. The item. therefore. did not
represent actual cash. ne said.
Promoter Admits $4,000 Note.
Milton c. Quimby. the promoter given
to talking in millions and against whose
name stand notes in the bank totaling
$l85 900. admitted his Endorsement on a
note of the New York Port Terminal Co.
amounting to $4,000 with interest.
Judgment has been entered against him
on this. The promoter said he expected
to pay his obligations to the bank from
the proceeds of a suit he has filed for
$750000 against the New York Edison
Co. for alleged services.
Hudson Clarke. jr., swore he had given
the receiver all he had except a small
bank balance. which he had directed
the bank holding it to transfer TO the
receiver
James Rae Clarke is to be sentenced
in the Federal and State courts Mon
day. The other partners said yesterday
they intended to plead not guilty to the
charges against them and TO stand trial.