7dbf711dFull suspension
Other: Bank was a private banking firm; criminal indictments and receivership follow closure.
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PETITION FILED BY BANK FOR RECEIVER NEW YORK. June 29. (Exclusive) Clarke Brothers, a banking house, has applied to the United States District Court for the appointment of receiver. In a statement issued by the concern it was said that unexpected demands for withdrawals made the action necessary and that an orderly liquidation of assets should produce an amount sufficient to pay all debts.
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Old Banking House Fails Second Time New York, June 29 Withword of warning. Clarke Brothers, closed its doors today, going into bankruptey. A federal was put in control pending liquidation of the bank's affairs. The bank had some 85,000,000 of depositors' money, it is understood. This the bankers expect to pay In full. For 87 years Clarke Brothers had conducted its business. Some 20 years ago the bank suspended for time. but got under way again. Its collapse today thunderelap to its wide clientele The bank did business up to closIng time Friday night.
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RECEIVER IS ASKED YORK BANK NEW YORK June Clarke Brothers, bankers. the banking institu tions in posted today unable demands for creditors apply the Federal court receiver charge the had been existence since the Civil list depositors and conducted cated fringe of the district.
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Old N. Y. Bank Closes Doors; Had $5,000,000 Deposits NEW YORK word of warning. Clarke Brothers, bankers, closed its Saturday, going into bankruptcy. A federal receiver put control pending 11quidation the bank's affairs. The bank had some five million dollars of depositors' money, it is understood. This the bankers expect to pay in full. For 87 years Clarke Brothers had conducted business. Newspaper men Park Row, city employes, business men, clerks, stenographers deposited money in Besides that it did thriving business in bonds and securities, and travelers' checks and brokerage. Some 20 years ago the bank suspended for time, but got under way again. Its collapse Saturday was thunderclap to its wide clientele. The bank did business up to closing time Friday night. None of its depositors knew anything was wrong until they began arriving at the bank at opening time. They were amazed to find notice on the door.
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HEADS OF BANKING CONCERN INDICTED Federal Grand Jury Charges Conspiracy And Using Mails To Defraud NEW YORK. July 12-(P)-Members of the firm of Clarke Brothers, a private bank that failed to open its doors two weeks ago after having done business 80 years on the fringe of the downtown financial district, were indicted by federal Grand Jury on charges of conspiracy and using the mails to defraud. Three younger brothers of the founder, William H. Clarke, who inherited the business on his death three ago, were named in the indictment. Those indicted are James Rae Clarke, Hudson Clarke, Jr., and Philip L. Clarke, together with John F. Bouker, who joined the firm recently. They were indicted on the eve of a public "John Doe" hearing their management of the business, insti- long staple importations, the Department of Agriculture informs me, are small compared to the grown here. Besides about half of our total production is exported."
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OWNERS OF OLD BANK CLOSED ARE INDICTED FOR CONSPIRACY, FRAUD (By Associated Press) New York, July -Members of the Clarke Brothers, a private bank that failed to open its doors two weeks ago after having done business for 80 years on the fringe of the down-town financial district, were indicted yesterday by a federal grand jury on charges of conspiracy and using the mails to defraud. Three young brothers of the founder. William H. Clarke, who inherited the business on his death three years ago, were named in the indictment. Those indicted were: James Rae Clarke, Hudson Clarke, Jr., and F. Bouker, who joined the firm re-Philip L. Clarke, together with John cently. They were indicted on the eve of a public "John Doe" hearing on their management of the business, instituted yesterday by U. S. Attorney Charles H. Tuttle, as long lines of the depositors, many of them middle aged women, filed into his office with complaints. Others included small business men, workmen, stenographers and clerks. Shortly before Mr. Tuttle laid his case before the grand jury, accountants for the Irving Trust Company, receiver, at work on the bank's books, reported indications that the partners owed their bank more than $380,000 in addition to $440,995 which they had charged against* themselves on the ledger. The bank's failure was attributed to a shrinkage of between $4,000,000 and $5,000,000 in assets.
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Partners in Bank Closing Silent at Referee's Hearing NEW YORK, July Three of the partners in Clarke Brothers, defunct private banking concern, refused to answer many of the questions asked them at bankruptcy referee's hearing today. Coincident with this, United States Attorney Charles H. Tuttle asserted at John Doe hearing into the failure that the bank's four pratners had admitted they transferred many millions of dollars their wives and other their families before the bank went the wall. Later Tuttle corrected this statement to many hundreds of thousands of dollars. The witnesses questioned at the referee's hearing were James Rae Clark, senior partner and owner 70 percent of the stock: Philip Clarke. brother. and John F. Bouker. Hudson Clarke, the fourth of the partners, all of whom have been indicted for using the mails to defraud. was not questioned today. Philip and Hudson Clarke and Bouker each owned 10 percent of the stock of Clarke Brothers. James Clarke said at referee's hearing that he took the bank over from his grandfather. 25 years ago Bouker said that he was president of the Georgia Fullers' Earth company and had interested Clarke brothers in the concern. but would not state haw much the bank had invested in the company, which he said had never produced anything but was ready to go into production now.
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Hoover Would Cut Military Expenses WASHINGTON, July 23. President Hoover today plan to set up the general of the army study of drastically reducing military expenses during the next four years. program outlined the chief executive persontoday press contemplates of the tire military program of the United States with view to bringing prospective into line with the world military situation fected by the treatles and the progress of naval duction discussions. ACCEPTS FAILURE BLAME NEW works blame for the failure of the private banking firm of Clarke Brothers was shouldered today James Rae Clarke, senior part- maker Russ when he pleaded guilty to comic dictments in both Federal and General Sessions courts. The the eral Court indictments charged with using the mails defraud while those in General STAR THE accepted knew the bank
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Banker Admits Using Mails Fraudulently NEW YORK, July 23. (P)-James Rae Clarke, senior partner of Clarke Brothers, private bank, pleaded guilty today to using the mails to defraud and accepted full responsibility for the banks $5,000,000 failure. Sentence was deferred until the brothers can get together and assist in salvaging the wreckage. One indictment charged them with concealing assets in bankruptcy and another with accepting deposits after the bank was insolvent.
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CLARKE BANK ONLY HAD $34 AT START Partner Testifies at Senior Bankruptcy Hearing New York, Aug. 1 (AP)-James Rae Clarke, senior partner of the defunct private banking firm of Clarke Brothers, testified at a bankruptcy referee's hearing today that when he reorganzed the bank in 1904 the total capital was $34. During the next 10 years, he said. there were deposits of $1,000,000. When the bank went to the wall recently there were deposits on its books of almost $5,000,000. Clarke pleaded guilty to both federal and state indictments after the clash. assuming full responsibility for the failure. He testified today that he had turned over to the receiver all real and personal property held in his name or his wife's. his sentence having been deferred on his promise to do this. He said he signed the deed of transfer from his home in Yonkers last night.
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THREE PARTNERS ALL BANKERS GO TO PRISON NEW YORK, Aug. 9 (By A.P.) Three partners of Clarke Brothers, eighty-year-old private bank, today were sentenced to serve terms in a Federal prison on charges growing out of the $5,000,00 crash of the bank June 29. Another partner also received a prison sentence, but It was commuted to probation. AH four had pleaded guilty to Federal and State indictments resulting from the failure. James Rae Clarke, senior partner in the bank his grandfather founded, was sentenced to eight years in the Federal Penitentiary at Atlanta, Ga. He was also given a suspended sentence not to exceed eight years in the New York State Penitentiary Philip L. and Hudson Clarke, Jr., brothers of the senior partner, and John F. Bouker, all partners In the defunct institution, were sentenced to a year and a day in the penitentiary at Atlanta. The sentence of Hudson Clarke, Jr., however, was commuted to two years probation, the court indicating it was moved by compassion for his aged father, who was described
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THREE BANKERS Sentenced To Prison On Federal And State Counts Growing Out Of Crash. And Mail Of Deposits Acceptance Misuse Are Charged Against Clarke Brothers. partners of today year-old private to in sentenced charges prison $5,000,000 crash of the the June 29. partner received Another prison All four muted probation. and pleaded guilty resulting from failure. Rae senior partner James bank his grandfather founded. in the eight years in sentenced Federal Penitentiary. Atlanta. Ga. He received suspended tence not exceed eight years the New York State Penitentiary. Philip and Hudson Clarke the senior and brothers partners in the John defunct sentenced and the penitentiary The sentence of Hudson Clarke however. two the Court indicating for his aged moved by described father. needy circumstances. The latter three partners also from year and sentenced years and two days of the state tences The pleaded guilty more 13 Federal the his plea, send 127 The state charged him the partners with accepted after they knew their bank The Federal charged them with having used the mails defraud and conspiracy to Six hundred of the depositors had early in the forenoon elect Trustee for which they selected the Irving Trust Company. the bank's receiver. meeting informed that they would probably receive than 20 per cent their money.
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CREDITORS CLARKE IN PRISON Couprt Agrees Depositors Might Attack aJiled Banker If He Attends Hearing. personal violence by raged depositors feared. Jamse Clarke, senior partner Clarke Brothers banking wreck, examined by creditors Monday behind the grim walls of the Federal detention prison, and Wests sts. manhattan. This decided today crediReferee when Milton Black Clarke Brothers' stated he wanted to examine Clrake further. informed that Federal sign order release Clarke absolute necessity forth affiThe jurist's reason fear Referee Lyttle declared also his opinion removal from the prison court room Referee Lyttle signed order the granting Irving Trust property and claims, subject his approval. Clarke the Federal detention where he has been tenced eight years $5,000,000 ruin Clarke Brothers. John Bouker Brooklyn partner. also Atlanta for terms of one and John W. Cutler, former secretary of the New York Private Bankers Association. and Milton Quimby, "wildcat" to plead joint accusing them of mail fraud connection with the $5,000,000 Clarke Brothers bank crash. Monday Cutler Federal thorities yesterday was released Quimby free bail in the amount. speedy expected. borrowed money from institution unsecured and $100 weekly. Quimby option apparently James Clarke lending him more than his word.
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CREDITORS IN Court Agrees Depositors Might Attack Jailed Banker in He Attends Hearing. personal violence by enraged depositors feared. James Rae Clarke, senior partner in the Clarke banking wreck, will be by creditors Monday behind the grim of the Federal detention prison, and Wests Manhattan. This decided today credihearing before Referee in Bankruptcy Lyttle, when Milton M. Black, for Clarke Brothers stated he wanted to examine Clarke further. Black was informed that Federal Judge Coleman had previously stated he would refuse to sign an order of release for Clarke "unless absolute necessity set forth in an affiThe jurist's reason was fear violence. Referee Lyttle declared was also his opinion that removal of Clarke from prison to court room would Referee Lyttle signed an order granting the trustees, the Irving Trust to sell personal property of the and claims, subject to his apClarke is in the Federal detention prison awaiting transportation where he been tenced to years for the $5,000,000 ruin of Clarke Brothers. Clarke, also waiting go Atlanta for terms one and years. John W. Cutler. former secretary of the New York Private Bankers Association, Milton Quimby, "wildeat" are scheduled to plead joint accusing them of mail fraud connection the $5,000,000 Clarke Brothers bank crash, on Monday. Cutler surrendered to Federal thorities yesterday ball. Quimby under bail the same amount. speedy trial expected. borrowed money from the defunct and received weekly. option services. Quimby apparently "talked" James Rae lending him more than his word.
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INDUSTRY AND FINANCE Couldn't Find Creditors NEW than 40 of per cent dividend checks mailed few days ago to depositors and creditors of Clarke Brothers, private New York bank, which failed for about $5,000,000, returned to bank's because post office authorities could not locate addresses. Big Plans for Airport Curley, before legislative committee on municipal finance, declared he is prepared spend $3,000,000 or more to make East airport one of finest world. He spoke in favor of his bill which would allow Boston to borrow sum equal to per cent of its total property He negotiating, he said, with General Motors Co. which of transatlantic planes, capable of ocean in two and one-half days to use airport as base. Becoming Serious NEW YORK in building trades in New York city becoming to union leaders and employers. Best estimates indicate 40 to per cent of the building trades are idle. varies from about 20 per cent of 8000 union electricians per cent 12,000 painters. Norman, head governors of Building Trades Employers' placed average unfigure at 40 per against not 20 per cent in 1921. slump is almost as bad as in 1913. when 50 and 60, per cent of mechanics were looking work. the expenses of the trip. A good sized sum was realized. will dance held in Falcon hall on Park street Saturday evening. Lennon, local druggist, has been confined to his home by illness for several days. Robert Kirkbride assisting in the store during Mr. Lennon's absence. -Miss Betty Smith, daughter of Mr. and Mrs. Edward Smith VanDeusenville, has gone to California where she will reside. -Mr. and Mrs. Tracey Harris have returned from visit with relatives in Middletown, Conn. "Kid" Decker to Fight Edward "Kid" Decker, local pugilist, will appear on the next boxing card at the New Winter Garden in Pittsfield. His opponent has not been announced yet. He will journey to Bridgeport, Conn., next week where he will also participate on boxing program. Notes of Sturdy Links. A meeting of the Sturdy Links was held last with 100 per cent attendance. At this the music memory contest was and plans were made to become acquainted with the required selections. Many of the girls have ideas for posters. Booklets on "Food Groups" have been started. was voted that the club do to raise money. A food sale was suggested. Thursday afternoon the annual 4-H rally for southern Berkshire was held in Great Barrington. Owing the kindness of friend who loaned an automobile and furnished capable driver, the club members were able to enjoy the pleasures of the The boys' work bench is completed with the exception of painting. Mr. Tucker met with boys Friday afternoon and helped them in making their bread boards. Ruth has joined the club making total of 15 members. A. Baseball Plans. Plans are under way for the baseball team to represent the A. of this village during the coming season. Dances have been held to raise fund to purchase new uniforms and expected the uniforms will arrive here shortly. The players will be called to meeting in the near future when captain and manager will be elected. Joseph Yurga, manager for the past few years, making the plans and has charge of of until others are appointed to serve. Mr. Yurga declines to act as manager this coming season. -Alec LaPrise is confined to his by injured foot. He expects to go to Boston this week for treat- John B. Kreyenbuhl has turned her ing week with her mother in Bos-Frederick Coleman has gone to Philadelphia, Pa., where he will be -Miss Mary McGraw. student the nurses' training school at St. Luke's hospital in Pittsfield, has been visiting her home here. -Joseph has returned from few days' visit with friends in Schenectady, regular weekly social meeting of the Men's club of the Methodist Episcopal church held the Monday evening Epworth League society the Methodist Episcopal church serve public supper in the church social hall Friday evening. '-Clark P. Comstock has been in Springfield on business. machine room of the Rising Paper company plant in Risingdale is shut down this week during the installation of new machinery. regular mid week service in the church will be held tonight at o'clock. There will meeting of the official board at o'clock following the church service. For sale fine location for gas sale station. Snyder's store, Housatonic, Mass. REGISTRARS' NOTICE The board of registrars will be in session for the purpose of revising the voters' list and registering voters in the town clerk's office, Gt. Barrington, from on Thursday, February 27, 1930, and in the Housatonic, from p. m. on Friday, February 28, 1930. Kelly, Clerk of board of registrars. Loans for Farmers passed bill setting aside $7,000,000 be lent to farmers in 15 states, as result of recent floods, droughts, and hurricanes. Need More Funds special to Herald says decision of United States court in O'Fallon valuation case has placed so much additional work on interstate commerce comthat appropriation $1,000,000 will be necessary for next three years. To Pay Dependents NEW says Standard Oil of New Jersey will pay $250,000 more in compensation dependents of victims in recent Elizabeth. N. This is far more than the law requires. Old Golds Big Sellers NEW increase of Lorillard Co.'s Old Gold cigarettes in January double all brands in United States for that month. To Have Costly Yacht NEW private yacht in world will be built in Germany for Harrison Williams. It will be 410 feet long and it will cost upward of $3,000,000. Big Railread Planning Pacific will spend $21,000,000 in this year, says D. Coleman, vicepresident lines. Branch line construction will $11,and of existing lines will take $10,000,000