The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-07

Slado and Perry were also present Mr.. Hall, the
President told Mr.. Lawrence that they were assem-
bled 10 learn from him the amount OF indebtedne 81
of his firm to these mills and made allusion to tn
message he had sent him the preceding evening a al
then begged him to tell everything 80 that they
might know the worst. Mr.. Lawrence replied tn,
on his return from Europe, on the I'd of October he
was surprised to learn that the firm had been usi
a large amount OF funds obtained by him, as tr,a-
surer-quite 5000 ,0O0-about 1898 900 of which was
due to the Middlesex, and the balance to the "
State Company; that it had been used for a co l.
siderable length of time, the amount of which he
was unconscious of until within short time. One
of the directors asked what he had to show for this
amount of money. lt 4...
He replied, large amount of stock in both COM
panies, about 100000 1--WE are not aware OF any
such item Of property in uncovered real estate some
Lowell stock, and other things but not representing
much value. That the firm had expended $50 900 IN
procuring the passage of the tariff. He then went on
to that two or more years since September 1862
at the time the Salisbury Manufacturing Companys
accounts made up badly, the Bay states Deing
of the Company that the directors should know the
result fearing that if they did they would be dis
couraged and stop the mills, he conferred WIN ms
partner, Mr.. Slade and they concluded 70 ana dla
send up to the mills wool to the amount OF $4,000
to $40 OOO which was included on the account OF
stock then taken making no charge OF 1t, but giving
il outright to the Company, feeling that they could
afford to do it, as it was but their commissions for
two wears BY this act, as the wool was included in
the Company's accounts as q" stock on hand" and
there was no charge for the price of it, their affairs
looked better by that amount than the actual result
The prospect for the future was so fattering they
felt they should soon overcome their present def
cheney; but they had never been able to do 80.
He added then or soon after, that If the Company
had after that have done good business and made
large profits he intended to ask payment for the
wool. Such was the statement. The misrepresenta-
tions were never corrected, but continued to the
time of the disclosure.
The 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 in brief Mr.
Perry came recently-January l, lS56-into the firm,
and his duties were to attend to the department more
immediately conAected with the manufactures car
ried on at the mills. He never undertook the man.
agement of the finances, or in any way interfered
with them. He alleges, and we understand that the
others admit that he had no knowledge OF the
frauds and concealments we have noticed. He was
informed when he entered the house that it was
not only solvent but rich, and he seems to have
trusted too implicitly to such information. That he
did So confirmed by the fact that he left an excel
lent situation, that Of agent at the Bay State Mills
to enter the firm, and that, although the Junior
partner at the failure the firm owed him larger
balance than was due to Mr. Stone, to wit, the very
considerable of SIS Ol9 93-they being the only
members who are not indebted to the firm. The com
mittee therefore eXonerate him from blame.
Messrs. Stone and Jenkins reside in New York,
and conducted the business of the house there and
in Philadelphia, and were not often in Boston.
They both deny their knowledge Of any Indebtedness
misrepresentation of funds but they distinctly ad
nit that they knew of the Misrepresentation Of the
true condition OF the companys affairs as disclosed
by Mr.. Lawrence to the directors in regard to the
wool transaction in 1855, at time after ii took
place-at what particular time does not certainly
appear Mr.. Stone thinks it was nearly year
AFTER but there is scarcely doubt that it was
within a few weeks or months at farthest. When
al N1.nsr
and thereby sanctioned and assented to it. 1t is
clear. indeed it is not denied that they knew also
that the funds and paper of the respective compa-
MES were used for each other almost indiscrimi-
security for liabilities of the firm. They knew the
firm had capital and were large stockholders in
the Pemberton, Bay State, Middlesex and other
companies; that they were to advance, and did add
vance largely for the New England Worsted Compa-
ny; and that they expended large sums to secure
the passage Of the tariff and consequently that the
firm were largely in debt
1t is true they protested against large loan to
and guaranty for private partnership in Boston,
and were informed, untruly, by Messrs. Lawrence
and Slade that il would not be undertaken For the
rest, Messrs. Lawrence and Slade were more imme.
diately concerned in these Interpretations and
concealments and are the more guilty offenders.
OF the latter il is not necessary more particularly to
speak. The former left the country q few days be-
fore the meeting at which this committee was APP
pointed having been advised by his counsel-of
that he was liable to criminal prosecution for his
acts. through a fear Of the consequences.
II is painful TO make such disclosures The COM
mittee would be glad to soften and mitigate this
statement If we might. But justice TO the directors,
TO YOU TO ourselves and TO the public, requires that
thee things should be fully exposed; and we cannot
neglect our duty by hiding or CLOSING over such
glazing misconduct.
These persons had much the largest pecuni-
airy interest in originating and carrying on
the business and affairs of this company, and
they were 10 and have received a most liberal
compensation for their services-a compensation
given not merely TO secure the services OF
their hands and heads of managing the business,
which was almost wholly under their own control
and direction, but 10 secure zeal honesty and faith
fu devotion TO the best interests Of their employers;
an integrity which should consider the good Of the
stockholders rather than their own individual gain
and advantage. They undertook trust which was
freely and conhdingly bestowed upon them by un-
suspicious acknowledgements grudgngly, not such as
il sometimes given where the trustee IL subjected TO
a jealous and yexatious superintendent which was
extended with liberal hand and with confding
spirit.
A trust which should have been performed with
the most scrupulous, anxious, pains taking fidelity,
which required the recipients Of il to have dealt
openly and truly with those officers Of the company
10 whom the general supervision OF its affairs was
confded. and with the stockholders themselves, in
their statements and communications which were
from time to time made to them, to enable them to
understand the true condition Of their property and
afars-a duty which exacted from them TO use the
property and credit Of the company for its own be-
neft. without intermngling or employing IL for the
benefit OF Others and least Of all for their pur
poses. which prohibited them from in any way put
ting il at hazard for any not required by the in
terests Of their employers. How their trust has been
executed and how their duties have been performed,
has already been stated.
II is lamentabe TO read and 10 hear the excuses
which some persons make for such course OF con-
duct and dealing and which we regret TO be called
n -
ries are 10 he held sufficient for such offences we
must be prepared TO give up all hope Of the confirm
ance of that commercial integrity aud mercantile
uprightness which have hitherto been considered 10
lie az the foundation and 10 form the basis upon
which our trade and business are conducted, and
must seek new devices and safeguards for our pro
perry and TO render possible any confidence or trust
among men. and our city will justly become a re-
preach and bye word among nations, and our well
earned credit and character for honest dealing must
depart from