The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-07-23
CROOKED FINANCIERING.

HE TREASURER OF A LARGE MANUFACTURING
COMPANY A DEFAULTER TO THE AMOUNT
OF HALF A MILLION DOLLARS.
By TELEGRAPH TO THE HERALp.l
BosroN, July o. 1878.
Al the meeting OF the Boston Betting Company
here to-day statement was made that the treasurer
John G. Tappan, had made 10 the corporation q
large amount of property 10 make good certain de-
neits In his accounts amounting TO abou, $500, 600.
Tappan resigned his position about week ago
aud has been confined to his house by illness
since that time. HIS successor, L. S. Converse,
upon making investigation found u rather chaotic
and alarming financial condition, which he reported.
70 the creditors Of the company. meeting held
and a committee OF three appointed TO make still
closer examination OF tho accounts. A deacit OF
$500. 900 discovered, to cover winch prop
crty estimated at nearly tina. value has been made
over; but there Is good deal Of suspicion that
II Is not worth nearly that amount. Mr.. Tappan
has lost good deal OF money III Texas land specua.
tions. The belting company has suspended payment
on account Of The delAlcaton OF Mr. Tappan. He has
issued notes 10 tho amount OF s6o0o besides
SOS 900 Tor which tho company Is responsible through
his Endorsement Inc total liabilities or
the company are $3.50. 900, their nominal assets
The capital stock Is 100000, OF which Mr. Tappan
holds 5000, 900.
now THE IRREGULARIrY WAS COVERED.
Andher report says that Mr.. Tappan issued notes
to the amount of sSoo,oo charging them On tho
books OF the company as bills receivable AS he had
full aud entire charge OF the finances OF tho
corporation, and his integrity was unquestioned,
there was no suspicion OF any irreguarty
until the new Treasurer mado the invc-tiga-
which resulted IN this sad development.
Tappsn has been raising money on tho paper
OF the Boston Betting Company MckiIIop, Sprague l.
Co. and the Merriam Packing Company, OF Texas,
with his Enforcement. 1t is SAID that IN the last
namod company Mr.. Iappan has become largely
vowed. A visit was paid 10 Mr. Tappan at his board
ing house IN Andover Tonight. He refused TO make
said that newspapers have no right To look into
his private u fairs.
THE STOCKHOLDERS.
Tho paid up capital OF tho Boston Beliing Company,
s5oOoOo. was divided Into 5000 soarcs, held by tho
following parties: John g. iappan 1884; Heury +.
Durant, 500; Johu II. Checver, 500; josiah 5. Tap
pan, 305; Lewis N. Tappan, Jr. 49,; Fred H. TapDan,
loo; John D. rappsn trustee, 81, James b. Forsyth.
Cuis, trustee so; Mrs. Harriet stevens, SO; Edward
Uphan. SO; Charles a. Stevens, 49, John +. TanpaI,
HSs u.' Ss ' f. B. smith q u lr j. Dows.s 20
Moses !. stevens, 10; Mary ). Ki,nbal II; liza l..
sr lnuo" TO- o.: Lacs ). upna% 10; asG WIZ
Maine, 10; Joshua love.', lo Horace n Stevens, s;
Moses T. Stevens. O. Arthur w. Tut, s; Walter Tap
pan, 2, ana Herbert Iappan, 2.
FINANCIAL REPORT.
The iolowng is an abstract OF the certificate Of the
condition oil the company from the annual return OF
the corr GRAFTON filed IN the oiice oil he secretary
tho Commonwesith, February 10, 1873. he officers
were -Henry +. Durant, president; John G. Tappan,
treasurer, and these two gentlemen. with JOSIAH ).
Tappan constitute the Board OF Directors
Assets
Real estate NEUTRALITY-SUSPICIOUS.. 1927 $40 40
Machinery Observation-Disclosures. 1000 90
Other assets
Cash aud debts reccivable...... ...... 672 800 "a
Manufactures material and stock In
process ................. 800 SIG 90
Miscc Han cous. ACKNOWLEDGEMENTS. III sos %
Total. ,377 656 II
Lilbiiltics-
Capital stock $500 600 90
Debts. OBSERVATION-DISCLOSURES. 6g2 U1S As
Reservcs--Balance, proat loss 1875, 5.S -
Total. 81, 377, 500 II