St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1878-04-26
Another Defaulter at Fall River.
HIS DEFALCATIoN ESTIMATED AT 5000,
000 N---N

HIS DEFALCATION ESTIMATED AT S6UU,
900. ~
FALL RIVER, Mass, April 22.-The
suspicious of last week regarding the
financial condition of the Border City
and Sycamore Mills, were realized this
morning by the treasurer's, Geo. L.
Hathaway, admission to the board of di-
rectors that he is defaulter to large
amount. The extent of the defalcation
is not yet known.
The developments to-day in relation
to the Border City Mills reveal the fact
that Geo. T. Hathaway, treasurer of that
company, has been in league with, OF
under control of S. Angler Chace, the
defaulting treasurer of the Union Mills
Hathaway has been intimately assOci-
ated with Chace, and it appears he has
been playing into the hands of the lat
ter, 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 successfully
prevented them from taking the direc-
ton of the company out of his hands, OF
realizing the extremity into which he
had brought it's affairs. The Hathaway
affair is not anew deal, but is strictly
an outgrowth of the Union mill rascali-
ty. There are thousands of rumOrs
afloat, but it is absolutely impossible to
obtain anything definite regarding this
continued defalcatiOn.
There was meeting of the directors
at half-past 3 this afternoon, and the
treasurer was invited, but failed to put
in an appearance or send any statement.
The board adjourned without knowl-
edge of the amount of either the Border
City or the SaGamore,s Indebtedness
The board meet again tomorrow. IL is
said Hathaway will then make further
statement. 1t is said he confesses that
the ultimate paper will amount to
$500, 900 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 re-
tanned as counsel for Hathaway, and is
in the city tonight, holding an inter
view with his client, who now declines
to be interviewed by correspondents
relative to the mill affairs. Notwith
standing the rumOrs as to his arrest to-
night, up to this hour 11.30) 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 not
withstanding Hathaway has made oath
that the whole of the capital stock was
paid up, some 1910, 900 of the 81 ,00O,
it.l fnr nv
notes of parties subscribing, and these
parties are said to be in a ring of which
S. Angler Chace was really head centre.
Hathaway, it is alleged, held some $780,
600 of this stock, and quite an amount
of it is said to have been issued in his
wife's name. For this amount the di-
recters are liable in addition to the 9TH
er liabilities of the company. From all
that can be gathered it appears that the
actual defalcatiOn of Hathaway in the
two corporations will be between $780,
600 and 100000, though it is hard to
tell to what extent the notes of the cor
pOratiOn have been discounted. To-day
representative of Lynn bank came
to Fall River, having Il note of the BOr-
der 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 af1oat, it is impossible to
say and consequently to what extent
the total Indebtedness may be swelled.
Several attachments were placed on the
property of the corporation to-day by
employees and others. futile g. Milne
are reported as failing to-day through
f,.,n at IIat In 81,
since they sold him cotton and received
in payment two notes of $4,000 each.
These they endorsed and discounted,
and now, by the failure of the Border
City mills to take care of them, they are
themselves compelled to meet them.
ARREST OF HATHAWAY.
FALL RIVER Mass, April 23.-George
T. Hathaway was arrested this after
noon, and brought before Judge Blais-
dell on charge of embezzling 100000
from the Border City Mills. He plead
ed not guilty, and was bound over, and
goes to Taunton tonight.
A DENIAL BY MIR. CHACE.
City Marshal Brigham, brother-in-
law of Mr.. Chace, the Union Mill de-
taulter, now in Taunton Jail, received
word from Chace this morning regard
ing the reported confession of Hatha-
way, the Border City defaulter, which
said he (Chace) had received 100000
of the money. He informs Mr.. Brig
ham: 81 have not had one dollar from
Hathaway in three years, excepting
$4,000 that | accepted at his anxious
solicitation, a few evenings before my
downfall. When informed him of the
circumstances hanging over me he re-
piled, IF you go | must also,' and final
ly begged me to take the money"
Brigham makes this statement openly