New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-02-08

charged they were act given speSlu..""! ~ 80, .,
count and were an charged merely 10 Put ~ III ~,
on,e ar, ,un and keep them from your DOCKS anu '1e
knowledee Of your Directors; and tha1 .noS -. tba,
callv no more were chargeabe TO- % ooI er;Tinnnv
,cc.unt than any, other accePtiCCecc- co1Ss0
tnS =, two different tunes, was sl6'o'J o. OF
which 500 COO has been paiu' $50 i.,r,c,ed ~ roske
m bookkeeper Gays he was lh.t,UC'vu u lhNAo
iHS ~ That was nearly or within the amount
10 NC rdi,urss on that head. The Directors
-; w ,,ndr legal advice, on the 9Th OF December
Ia, assumed the whole OF That account oil the Soin-
,snv The eject of which VIII be that, a. the Com
io! have by the unlawful use of their acceptances,
iyns or credit paid for it, the property will belong
90 tLrn1-and the indebtedness of Lawrence, stone q
10. az stated in Mr. kuhns report, which included
1be accedaDces charged TO that account VIII Dc ula-
terjaiy reduced from the amount Of the dehcleney
stated BY him. 4 statement of this account VIII be
loupd a. the end Of the report. Thore are liabilities
of Lawrence, Stone Go. to various parties, amount
inc A. they state, TO $2S,3ij p, which are not H.
suded, because they do not form lien upon Tue ac-
counts or aAectS.
The Treasurer's statement, made at the last meet
ing i, for convenience printed AT the END oil THIS re-
- Ope of the items of assets in that statement lie
q Assicnees Of ID. :. Mct'llvray * 20, siol'f To-
This IS merely q claim against lnsovent debtors, and
should have been put into " suspense account as
similar claims usually were, and not charged to the as
fi0noes a. though they owed 1t, for they did not Mr..
Slsde wac of the assignees, and they instead of
depositing whatever was collected from the estate in
bank az Is required by law, loaned considerable
10 another firm, Themselves insOveut, and to
Lawrence Stone Co.. the amount TO the latter being
SIf5l9 81 and thus the unfortunate creditors OF the
Mc(iiyray estate are subjected TO second loss
through the illegal Appropriation of the funds by the
assigneos they not being able personally to respond
!Or the amount.
II has been stated that the mslfeasances spoken Of
were done without the knowledge of tho Directors,
and always by various devices aud misrepresen-
tatons carefully concealed from them. TO set this
matter in its true light and at the same time to show
the estimate which the guilty parties put upon thel
own conduct il will be proper 10 mention how, when
md under what circumstances, they first dlvulge
these things. At the first meeting of the COMMITTEE
q communication addressed TO the Directors re
ouestiDg this information from them. From thei
written replies and verbal statements the following
narration Is made:
A gentleman connection of Mr.. Lawrence's, at |
his request called on the President Of the Company
She evening Of November l6 last, and informed him
that there large indebtedness from Lawrence,
Stone g. Co. to the Bay State and Middesex Com
uanies; that Mr.. Lawrence had hoped and made al |
attempt TO raise the money from his friends to save his
character but the amount being very large, 10 had
been unable to do so; and he wished to make dis
closure OF these matters the next morning to the Di
ietors at meeting 10 be held at MI SHADES house,
who was confined there by sickness.
"a meeting was accordingly held there on the next
day, the l7h at O'Clock a. m, at which all the d.
IectOfs were present except Mr.. Fay, who was alb
sent from the country. Messrs. Lawrence, Stone,
Slade and Perry were also present Mr.. Hall, the |
President, told Mr.. Lawrence that they were asson-
BLEED TO Learn from him the amount of indebtedness of
bis firm to these mills and made aluson to the mes
sage he had sent him the preceding evening and then
begged him to tell everything, that they might
know the worst. Mr. Lawrence replied, that on his
return from Europe On the ID of October, he was
surprised 10 learn that the firm had been using
large rmOunt Of fu DDS obtained by him, Treasurer
quite $500 000 about SS, 900 of which was due to
the Middlesex and the balance to the Bay State Conn
pany that it had been used fora considerable length
Of time the amount of which he was UNCONSCIOUS OF
untl within a short time. one OF the directors
asked what he had to show for this amount of money
He rephed n large amount Of stock in both COnpa- /
ne. about 800 O0O- in uncovered real estate, some
Lowell stock, and other things but not representing
tnuch value. That the firm had expended $SOOOO IN
procuring the passage of the tariff He then went on
10 say that two or more years since september lS55
al the time the Salisbury Manufacturing Companys |
accounts made up badly, the pay STATE oelng equal
ly bad and not considering it for the interest OF the
Company that the Directors should know the result
fearing that if they did they would be discouraged
and sep the mills, he conferred with his partner MI
Sade and they concluded to and did send up to the
mills wool TO the amount of $3.50 900 TO SlO,0OO which
vac included the account of stock then taken, max
Ing charge q it, but giving 1t outright TO the Con
pany feeling that they could afford to DO H. as IL was
but their commissions for two years. by TINS ACT, a
the wool was included in the Companys accounts a.
stock on hand and there was no chaTse Ior lhe
1ric of H. their affairs looked better by that amount
dian the actual result. The prospect Tor the future
wa 80 fatteng they felt they shoud soon overcome
their IRE sent dec ehcy but they had never been able
20 do so. He added then or soon aiier, thal the
Company had after that done good business |
md made large profits he intended 10 ask paynen
for the wool. Such wa the statement: me m7rep
rcsentat0ns were never corrected, DuI cohlnUFu W
the tine of the disclosure.
sThe Committee cannot undertake to parcel out to
each of the partners their several portions OF the
blame. 1t is Just, however that their own views, or
the views of such of them as have alleged Ignorance
Of these transactions should be noticed Ia bret MI
Pony came recently-JmuaIy |, lS56-lntO the ilrm !
and his duties were to attend to the depart ment more
Immediately connected with tue manufactures carried
on at the mils lie never undertook the management
OF their finances OF in any way inercred with them
lie alleges and we understand that the others admit
that lie had knowledge Of the frauds and conceal
ments we have noticed. lie was informed when he |
entered tho house that il not only solvent burc
and he seems TO have trusted too implicitly to such
information That he did 80 is confirmed by the fact
that no left excellent situation that of agent at the
BAY State Mills enter the firm and that, although
the junior partner, the failure the firm owed him
lsrger balance than due TO Mr. Stone, 10 wit, the
very considerable sum Of So 0l9 9Lhey being the
only members who ale not indebted to the hrm. Inc
IOinmittee, therefore, eXonerate him from blame,
.'Mcssys Stone snd jenkins reside in New-Yo aud |
conducted the business Of the house there and In Phu
adelphis, and were not often in Boston They both
deny their knowedge of any Indebtedness or nisap-
preparation Of funds bat they distinctly admit that
bev knew Of the Of the true con-
dton Of the Company affairs, as disclosed by Mr.
Lawrence to The Directors IN regard to the wool usns.
action in 1867 at time after 1t took place--at
what particular time does not certainly appear Mr.
Stoue thinks il was nearly year after, but there
scarcely doubt tha: Il was within $ lew weeks, OF
months at farthest Whenever it WAS they held
peace aud said nothing, and thereby sanctioned and
assepied to It, II is clear indeed it is not denied that
they knew also that the funds and paper of the repec-
tive Companies were used for each other almost ndis-
Crminssy, as they We're nlso TO pay liabilities, AMI as
security for liabilities Of the firm They knew the
hIm bad no capital and large stockholders in the
Pemberton, Ray state Middlesex and other Compa- |
MES; that they were 70 advance, and did advance,
largely for the New England Wor-ted Company, and
that they expended large secure the pass age
of the tain, and, consequently, that the firm was
largely in debt.
81" true they protected against large loan to and