The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-04-24
THE FALL RIVER DEFALCA.
TIONS.
Hathaway Arrested and Lodged in
Jail.
THREATS OFLYNCHING FREE
LIZ MADE.

FALL RIVER. April 23.-The co % mittee APP
pointed to wait on Geo. T. Hathaway, the de-
faulting treasurer of the Sycamore and Border
City mills, met the latter this morning. but by
the advice of his counsel he refused to make
further disclosures. This determination is a
bitter disappointment to the directors who ex.
pected to fod Hathaway willing to straighten
out the affairs of the corporations involved, aud
there is a general indignation on the part of
the public. 1t is quite evident tn at Hathaw ay
proposes to take advantage of all legal tech
nicalities ia order to escape a criminal jndict-
ment
Chace will evidently take the same course,
and it is believed that should he be held liable
for the irregular notes, he will be forced into
bankruptcy instead OF being arragned for Grim
ioal offence. Chace claims that be received of
I'll thaway but comparatively SMALL amount
and that through the dupllcity and prevarica-
nor of the latter he had involved some of his
(Chace's) best friends.
The banks in the various cities holding the
irregular notes have sent officers to Fall River,
who ara maBi0g attachments. Prov de nee
New Bedford and Boston banks will suffer the
most severely, and some of the Fall River
banks are probably involved
Hathaway was arrested this afternoon on a
charge of embezz log 100000 from the Border
City mills. He pleaded not guilty and was
bouud over and will be taken to Taunton jail
Tonight.
The feeling of Indignation against Hathaway
has been greatly intensified, particu larry
among smaller stockholders, principally me-
chancs and laborbg men who had invested in
the stock OF the Border City mi Is their small
savings, the result of diligent toll. Numerous
threats OF lynching have been made aud of
taking the law into their own hands, and uh-
doubtedly something of the kind would have
happened had Hathaway been allowed TO re-
main at his residence another day. His arrest
was accomplished this aternOoo aud so quietly
that few were aware of it until the prsoLe r
was on his way to Taunton jail. The scene at
his elegant resi- 1ence when the officers made
known their etraud is described as he artrend-
log in the extreme. His young wife tainted
away aud the prisoner broke down completely,
shedding bitter tears.
Since the refusal of Hathaway to make
statement to the directors very little as been
learned definitely of the extent of the compli-
cations. 1t is generally believed, however,
that Chace received at least two-thirds of
Ha'haway's stealings. 1t is thought the LA
bllities of the Two mills will be nearly equal to
the aggregate wealth of the directors, or about
The widest rumors are rife 10 the city of the
existance of rug and though the business
community bids fair to be shaken to its founda-
ton there is general feeling of relieg that
the true stale of affairs is at length arrived at
Rumors are generally prevalent that one of the
prominent directors received S3S, 600 of the
stolen funds. Since the failure of Chace
became known 1t has transpired that he made
desperate efforts the day before his failure to
secure loan of $4,000. and he has since
stated that if he could have secured that
amount before the collapse he could have been
saved. 1t is acknowledged that all the directors
of the Border City and Sycamore mills are
ruiued with the exception of Charles P. Stick
ney who loses $15O,0OO for his investment of
$4,000 in the corporations. Providence, New
Bedford and Boston banks will suffer most
severely by the defalcations The banks of
Fail River aie probblg involved but the officers
are reticent dreadiDg distrust of people. The
First National of Lynn holds 1926 600 of paper
of the Border City mills; Bay State National
bank, Lawrence, holds $4,000
Boston, April "a The Traveller says
meeting of the Davol Mills corporation of Fall
River will be CALLED next week for the purpose
of adding 100000 to its capital stock