The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-07-25
ASTOUNDING DEFALCATIoN.
Treasurer Uses the Funds Of Corporation for
Private SpoCuIatlOn--Over 5000, 900 Involved
The Company Suspeuds 10 Have Its Condition
Investigated.

Private Speculation Over 5000 900 Involved
The Company Suspends 10 Have Its Condition
Investigated.
Boston, July 22-The announcement this after
noon of the resignation Of John G., Tappan as
Treasurer of the Boston Betting Company, a posi-.
ton he had held since the organization Of the
corporation, thirty years ago, and the statement
that he used the credit Of the company in the In
terest Of private speculation, was a surprise in fl.
nancIal circles where Tappan was regarded as
man of most exemplary character and unim-
peRchable integrity, The corporation had paid
up capital of 100000, and It's reputation under
Tappan's management had become such that It's
paper was readily discounted, and even sought as
among the safest offered for discount. It's capital
stock was 900 shares, 500 each and early in the
year It sold for sl75 per share, while at the last
auction sale 1t was sl25 per share, Upon the res
lgnatiOn Of Tappan, K. s. Converse, Treasurer of
the Boston Rubber Shoe Company, was chosen
bis successor, and found the affairs In such con-
dihon that he called meeting of the stockhold
ers and creditors to-day, at which II was stated
that yappan had issued notes TO the amount of
5000 900 and Is also held for $4,000 on outside in.
dorsement as Treasurer, the proceeds of which
have not yet been received by the company The
total liabilities Of the company are SS390O0 nom
inal assets, S93OO00; notes payable as above stat.
ed t62S, OO. 1t also appeared that Mr. Tappan to
make good the losses of the company, the respOn.
sibility for which rests with him, has handed
over TO the creditors his entire property Of the
nominal value ofSl 100000
In consequence Of the condition Of affairs the
company has suspended. James p. Nelledge, VIM.
P. Hunt, President Of the Atlas National Bank,
and George A Alden have been appointed to
make thorough examination of the affairs OF
the corporation and irregularities Of the late
traBurer
Following Is an abstract OF the condition of the
company from the annual return of the corpora.
ton fled in the office Of the Secretary Of the Com
monwealth, February 10. The officers were Hen.
ry F. DurOnt PRESIDENT John G. Tappan Treas.
urer, and these two gentlemen with Josiah 8.
Tappan constitute Board of Directors: Assets
Real estate, Sl2737 machinery, $4,000; other
assets, cash and debts receivable S672 900; manu-
factures material and stock in process $500 S66 :;
miscellaneous, Sl275O total, 81 377,55 Liabili.
ties Capital stock, 100000 debts, S69207 re-
serve balance profit and loss SlS5,57S total, ST.
377556,
John G, Tappan who has held the position Of
treasurer, business manager and agent Of the cor
poratiOn from It's organization until 1t became so
heavily involved through his irregularities and
whose losses in private specuations had induced
him to use his financial position as treasurer of
the Boston Betting Company to extriCate himself
from pecuniary embarrassment, is one Of our citi-
zens whose long business career had made him
widely known and generally respected. He was
quite large specuator in real estate not only in
this city, Chelsea and other places in the imme.
ate vicinity, but in Colorado and Texas. Though
the nominal value Of the property turned over by
him to his creditors is over one million dollars,
there is considerable question as to its real value
He was interested in the Merriam Packing Com.
par of Texas and had raised money upon It's pa
per with his own Endorsement and 1t is stated
thai two hundred thousand dollars of this prop.
erty Is In this State. Quite an amount is also rep.
resented to be In Colorado. 1t also includes his
family residence in this city and Chelsea, quite a
large amount Of mortgages add various other
property. The paper of the Boston Betting Com.
pany the proceeds Of which have been misappro.
priated, is held by twenty-one Boston banks, and
Is pretty well distributed among them, no one
bank holding an extraordinarily large proper.
ton. 1t is stated in mercantile circles that Mr.
Tappan has of late raised large amounts by en-
dorsng either his own name or that of the Boston
Betting Company upon the paper of the following
firms: ]. A. Hatch & Co., dry goods commi sion
merchants, % Kingston street; John E. Tappan
& Co., Successors to KilVert u Tappan, dealers In
machinery and yarns, 25 Kingston street. and
Merriam Packing Company, a Texas firm engaged
In packing beef in which 1t is said Tappan is
largely interested. To what extent these firms
are involved is at present impossible to state, but
1t is feared they will suffer severely The Boston
Betting Company will meet their liabilities, and
1t is hoped the property turned over by Tappan
will be sufficient to protect the stockholders from
lOgq