The Portland daily press., 1878-04-23
ANOTHER DEFAULTER.
Two Fall River Mil. Companies
Ruined
BY A DISHONEST TREASURER.
His Defalcation Estimated at $780,
600.

FALL RIVER, Mass, April 22.-The suspi-
cions of last week regarding the financial con-
dition of the Border CITY and Sycamore Mills
were realized this morning by the treasurer's.
directors that he is defaulter to large
amount. The extent of the defacation is not
yet known.
The developments today in relation to the
Border City Mills reveal the fact that Geo. T.
Hathaway, treasurer of that company, has
been in league with or under control of s.
Angler Chace, the defaulting treasurer of the
Union Mills. Hathaway has bsen intimately
associated with Chace and it appears he has
been playing into the hands of the latter, but
the positive assertion made by him to some of
his directors during the past week that he had
perfect confidence in his ability to carry his
corporation through the present. crisis success
fully prevented them from taking the direction
of the company out of his hands or realizing
the extremity into which he had brought its
affairs. The Hathaway affair is not new
deal, but is strictly ar Outgrowth of the Union
mill rascality. There are thousands of rumors
afoat, but it is absolutely impossible to obtain
anything definite regarding this continued de-
falcation.
There was meeting of the directors at half
past 3 this afternoon and the treasurer was in
vited, but failed to put in an appearance or
send any statement. The board adjourned
without knowledge of the amount of either the
Border City or the Sagamore's indebtedness.
The board meet again tomorrow. 1t is said
Hathaway will then make further statement
1t is said he coDfesses that the ultimate paper
will amount t, $300,000 on each corporation,
which he says was loaned to Chace, but this
taken in connection with other statements
made by him is not received With much credit.
A. G. Somerby Of Boston has been retained
as counsel for Hathaway and is n the city to-
night holding all interview with his client, who
now declines to be interviewed by correspond
ents relative to the mill affairs. Notwith-
standing the rumOrs as to his arrest tonight
up to this hour I'll 30) no arrest has been made,
but he remains quietly at his residence in Rock
street.
One peculiar thing in connection with the
Border City corporation is that notwithstand-
iug Hathaway has made oath that the whole
of the capital stock was paid up, some 10000
of the 81 100000 capital was never paid for ex
cept by notes of parties subscribing and these
parties are said to be in a ring of which s.
Angler Chace was really head centre. Hatha-
way, it is alleged, held some $4,000 of this
stock and quite an amount of it is said to have
been issued in his wife's name For this
amount the directors are liable ia addition to
the other liabilities of the company. Ftom all
that can be gathered it appears that the actual
defalcation of Hathaway in the two corpora
tons will be between 5000 900 and $500, 900,
though it is hard to tell to what extent the
notes of the corporation have been discounted
Today representative of Lynn bank came
70 Fall River having note of the Border City
mills endorsed by Treasurer Hathaway, of
which no account appears on the books of the
corporation, and no stub on the check book
How many such notes are atoat it is impossi-
BILE to say aud consequently to what extent the
total Indebtedness may be sweled. Several at
tachments were placed on the property of the
corporation today by employees and Others.
futile & Milne are reported as failing today
through transaction of Hathaway's. Some
time since they sold him cotton and received in
payment two notes of $4,000 each. These
they endorsed and discounted and now by the
foiiure of the Border City mills to take care of
them.
Boston, April pit is reported that the
FIRST National Bank in this city holds $4,000
In Border City paper.