The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-24

From the Boston LEDGER
Ttaf the times moes sadly Of joint is made ap
parent every day. and q no time than in the revela
tons which were obliged to chronicle yesterday We
asoDndcd than yesterday by the reports of
malpractice and deception by individual than he who
was connected Win the affairs Of the Bay STATE Mills As
believe that no good and great injustice is done by
keeping the aancs Of parties holding responsible trusts
who depart from an honest course gave the of
Mr. Lawrence in our last evenings artaoae As we said
then with regret We felt called upon 70 it,
but when men who know the difference between right
and wrong abuse the confidence Of stockholders and
friends nothing is gained by generales or making blind
statements that would apply TO innocent parties.
State street IL full Of runors Of these transactions
which II s USELESS 10 give sucent known 70 bring
disgrace the and fame of the mercantile integrity
Of Boston. The firm Of Iawreucetone Co areo mixed
sble know what rs TO be the fate Of the stockholders
That there not much faith in ts intrinsic value Is to be
Il II per cent the par 81 ,OO0 and no buyers
Hon George Kuhn has been chosen Treasurer OF the
Corporation in place Of Mr. lawrence and there viii
doubleday be thorough examination into the transactions
OF the firm with the corporation, which will oppose the
state Of the The Developments completely
upset all confidence in everybody and thing and
who holds corporation certificate Of stock can tell whe
her represents property not No wonder that those
who have money ON deposit let lay idle when such
things we have mentioned come to light.
SATURDAY, Nov. 1880 N.
The absorbing topic in State street this morning is the
troubles in the Bay State Mills and matter Of COURSE
taking in all It's bearings, very justly As have
remarked above the street full Of all sorts Of rumors
parties implicated TO show their hands. We have dis
position exagerate sOr set down ought in malice" Our
business public journalists, 70 state things ~ they
appear when they are asserted by responsible parties
and persons expect 70 shield themselves behind
their past character who have done that which ruins ano
We mention this because parties Interested from rela
onshp any other cause fit TO deny by wholesale
what others assert facts Wealth and station are not
recognized in courts OF law and the poor who steals
loaf of bread from the door to satisfy his hunger, Us
punished by fine and imprisonment
The only way TO relieve the public mind, as we have
said for the parties implicated 10 show clean sheet
and when that done shall be most happy to give the
publicity to it, have in speaking OF this matter
the public generally have spoken about it, One thing
very certain that manufacturing stock has received
Mills, and it will take long to restore that
hdence which has been 30 much shattered by recent de-
yelopements
from the Worcester Transcript Nov 21.1
Painful rumors reached this city yesterday morning,
from Boston with reference Of the largest
tile houses in the city was reported that the senior
member OF commission house which had the agency of
several manufacturing companies and authorized to
the Of three corporations promssory notes.
of the firm for his private specuatons. The amount
of the deacaton reported from $500 900 TO $500 0O0
The effect OF the rumor State street was to create
panic IN the money market and TO make it almost mpos
sible to negotiate any paper whatever.
We learn that the person above referred to is Samuel
lawrence Esq, of the firm OF Lawrence, Stone 4 Co.
He said to have used the accepances of the Bay State
hddssex and Pemberton mills, Of which he was Treasu
to pay the debts of the firm of which he the
senior member.
Since the above written learn that Hon. George
Kuhn has been appointed Treasurer of the Bay State
Mills in place of Samuel Lawrence, Esq, resigned The
affairs OF the company in process OF investigation
report is expected at an early day.
The high estimation IN which Mr. Lawrence has been
held by the mercantile community leads great many To
hope that II will yet appear that he had ample authority
TO the OF the firms of which he agent
uTrom the Boston Traveller, Nov. %
FINANCIAL ACCOUNTABILITY.
The system of checks by which the selling agents and
the of our manufacturing corporations have
when il was established and has proved in practice.
Where this has been adhered to there has been
any mixing up of accounts nor any difficulty in ascertain
ing which is the debit and credit side of the account in
fact, as well as upon the books.
On the other hand where this practice has been sban
dored, and the departments have been united,
fusion has ensued and probably loss If the commission
selling house under this system credits the whole
amount for which they accept the reasurer's drafts,
though was for cash advanced constantly brings the
corporation debt to the frm and makes 1t impossible
without long examination to ascertain what Is the true
state Of the account In business OF several millions the
commission house may be the debtor to considerable
amount, without any positive knowledge Of the fact by
themselves. y Is only when the amour. becomes large,
commenced which leads TO development equally unex
pected 70 all concerned.
Ii under such circumstances the property OF the
mission house is sound there be loss to the corpo
ratons But If the other hand their property s
OF the same Kind AZ the corporatons and unavailable,
then they become debtor and creditor at the time,
thus increasing the embarrassment This has happened
recently in more than one instance.
From all can learn, the statement which has been
made IN OF the newspapers about the purchase OF
stocks by one OF the houses recently suspended and using
the funds Of the corporation TO pay them Incorrect
II Is said the other hand, that they have purchased
stock in their corporations TO limited extent partly
maintain the price and support their credit and the
belief that they sold too low but not for the purpose
indicated.
We have been told by those who are acquainted
with the business Of this firm, that they undertook
vast enterprises, relying their ability TO ma
nuaeture in competition with Europe under our TOO low
tariff; that they covered up their losses hoping To
carry these enterprises through until change in the
tariff could be had that they went making great efforts
to obtain action by government and at great expense
pectng every year relief from the change in the duties
Their w& first in undertaking what could not be
performed, secondly submitting great sacrifices with
out informing those who associated with them in the
same enterprises and thirdly using the corporate funds
they did their with determination succeed At
any risk They known TO be moderate vers home,
not given any vices, lovers Of money for its
sake They have spent their lives In labor, and
have nothing but disaster 10 show for ~ disaster IN them
selves and 10 all concerned with them. Under such
cumAances the assertions Of excited creditors should be
received with dgtruEt