The New York herald., 1873-07-20

statement the affairs Of the company given the
that NO eoss will Wanting our part to
bring abou'a prompt and pHS GHAHNcEy
HEExASDER McGGE.
J. Us 5. kock4hLf. aasIfif
s. .,H l; ,HHqnsTEP,, Y vip,,
John !SJ HALsEY. ,
The late Mr.. Mills, who was as stared above,
President Of the company, was accidentally
drowned on Tuesday last while bathing at Coney
Island. His funeral took place on Friday, on the
day that the fact OF the defalc8tiOns became par
TALLY known to the public. Mr.. Chauncey, who
has taken the place of the deceased President and
is now the receiver under an appointment by
Judge Pratt, stated to q reporter OF the HERALD
yesterday that after the death OF Mr.. Mills was
communicated to the directors it was deemed ad-
visable to have a meeting Of the Board, and
1t was then decided that there should be
complete examination OF the books, not
that it was supposed that they expected there
was anything particular to discover, but because
it was usual to do this the accession to ONCE ola
new President. The character and reputation OF Mr..
Mills stood so high that his associates IN the Board
had the fullest confidence in him. and the suspicion
that he had Incorporated any OF the funds OF
the company was entirely away from their antici-
patiOns. An examination OF Mr.. Mills account
showed that he had overdrawn to the extent OF
$4,000. That was revelation to the directors
and they at once proceeded to examine the
collaterals of the company, on which large
advances had been made. This examina-
tion was by no means satisfactory; 1t was
not yet completed, and would not be until Monday
or Tuesday next when the result would be given
70 the public. Enough had, however, been dis
covered to satisfy the directors that If the COM
pany were compelled to realize Immediately on
these securities there must be loss of over
$3O0,0
The first is loan Of $780, 900 $1so,OO0 Of bonds
Of the State OF Georgia. issued in aid of railroads In
that State, and which are better known as the
Bullock bonds, having been issued by Governor
Bullock. 1t is claimed that these b2nds were ile:
gally issued and the State authorities OF Georgia
refuse to pay interest on them, and none has been
paid for the past two years. These may, and
probably will, be redeemed by the State, but at
present they could only be sold at very heavy
discount
The second item is loan OF Sl500OO on $500, 600
OF first mortgage bonds OF the New Haven, Mi cdle.
town and Williamsburg Railroad Company. built as
an independent road, but now pro, ,osed to he a
link In the new air line between New YORK and
Boston. These bonds are also selling mnch heiow
their value; but the dire. .s,ors hone. II not too
c'osS paessea anu com eled to close them out at
sacrince TO reaiize scmething ike the amount OF
t9e m orGlna loan. 1cre are some other collaterals
y, " shn rn IS that may prove loss, but these
Mr. c gate 90 not ,oos % up up Large ,np amount tSa tho
not would show any loss that the company was
.o' able to meet and the deposltors would GER
quence Of the unexpected action OF the Nassau
Bank, 1t had been thought prudent to suspend
Svns the ars Of the BANK the fullest
tion The present deficiency, reckoning the doubt
full securities as worthless, was over $4So.oOo.
THE CAUSE OF THE DIFFICULTY.
Since the organization OF the company, about SIX
years ago, Mr.. Mills has been large speculator IN
real estate. He owned about seyenty-hve houses
In Brooklyn, and, as win be seen by the statement
given below, this property was very largely en-
trance to Prospect PARK built by him two years
ago, were recently sold at heavy loss. The
houses are built % IN very handsome style, and
The houses were too expensive for the general
occupants Of suburban property, and they re-
row % OF ave brown stone front houses in
Clinton street, between Sackett and Degraw
to any property in the neighborhood, and as livery
stables were Immediately opposite these houses
remained also unlet. and were, indeed only y par r
Mills real estate was that 1t was incumbent upon
him to mortgage it; he sought TO obtain additional
mortgages, but could not succeed, and among the
many rumors that were prevalent YESTERDAY It
was said that MIR. Mills had paid five per cent per
month for money very recently.
THE REAL ESTATE OF MR.. MILLS.
The condition Of the estate OF Mr.. Mills may be
estimated from the following list Of mortgages
books In the Registers office. 1t is believed that
all the real estate held by Mr.. Mills is represented
In the list. The mortgages amount to $136, 900 -
Ethebert S. Mills and Ellen L his wife, the New
dated 80 IL. Recorded i6er LOLA page 535 of mort
ths southsa;t Of Warren stree, and
thence side Warren thence
wfss Fl. .sms S.4es TO waxOsase
Sl50 dated March IL lsl recorded liber u5s page al
east soe Of Fourth sixty feet from northeast
2 feet thence north ~ feet: thence west 81 feet to
east side Of Fourth avenue thence south along Fourth
avenue 20 feet to beginning. .
The same parties to Leonard Moody-Mortgage for
So Of mortgages November 8, is72 Beginning point
on west size OF Bedford loo feet north from north
west 100 feet thence eet 100
west sde OF lafayette avenue thence south along Bed
The same parties to the sane-Mortgage for 81, CO.,
dated November 10, 1872 recorded lber ll0 page $50
the side of Bedford avenue s0 feet north from
northwest corner OF Bedford and Lafayette avenues
or % thence 100 % wes e % d ,ef
avenue thence southery along Bedford avenue 10 feet
Ethelbert s. Mills to George d. Munroe-Mortgage for
9a6OO, dated December 1872 recorded liber ,ll6
page 90 Of mortgages December 10 is72 Beginning at
westerly along Dcgraw street ~ feet thence southerly
EtSebert 8 Mills to Benjamin sewaMorgage for
sScf morsaees. March IT, ISIS Beginning on south side
OF Dcgraw street from southwest corner of
street 70 ieet thence south loo feet thence eet
thence north 1v0 feet to beginning -, -. A.. ., N,
pea M ~ ns hn stone On is ws
for &SH0CD dated May 26 1873, recorded liber page
o. mortgages May g 1873 Beginning on s,s.. cas-, side