The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-11
STARTLING DEFALCATION.

STARTLING DEFALCATION.
4 FALL RIVER CORPORATION swAMPED BIZ ITS
rREAsuRER-A HALF MILLION ovERIssUE-
| 9. ANGLER cHACE, THE ACTUAL MANAGER
| OF THE UNION MILLS, A cRIMlNAL-FULL
CONFESSION OF GUILT.
Icy TELEGRAPH TO THE HERALp.l
FALL RIVER, Mass, April 10. 1878.
The city IL IN Of intense excitement over the
| discovery OF heavy dcfalcation on the Union Mil
Corporation by the Treasurer. which caused the sus
| pension OF the company to-day.
! Mr. 8 Angler Chace is the treasurer and Is also
President OF the Second National Bank. The Union
Mil capital stands at $l66 ooo and the liabilities are
said 10 be $4S2 900. including capital The paper Is
sa,d 10 be neid largely by Boston banks Tho most
Startling portion OF tho reports current hero this
morning is that Treasurer Cnace Is defaulter to tho
amount Of $780, 600 The banks and other corpora
| nons are all secure as far ms heard from
HISTORY MILL.
The Union Mil Company was incorporated in 1889,
with paid in capital Of $l55 000-155 shares Of 900
each. Tho company has about l, 100 looms and
about As 900 spndles, and employs about 500 hands,
| producing some IL, 100000 yards OF print cloths
| annually. The directors are as follows: =
| Jonn B. Anthony, President; Charles P. Drne,
Is. H.
c. Kiiourn, William Mason and S. Angler Chace, tho
latter being the defautng treasurer. No. mill was
bull. in 1885, No 2 IN 1885, and No Is now process
OF erection Although the par value OF the stock is
ST. 900 per SHARE It has sold within ,welve months
high as s. O00 8 Angler Chace the defaultng treas
urar and President oil the Second National Bl nix Of
Fail River, has been carrying largo amounts VI stock
| OF a number OF Fall River corporations. and was
| supposed 10 havo been somewhat Involved. but has
stood very high business circles for character
ability up to present developments. or opera
tons OF John b. Anthony, the president OF the COM
pnpy very little 10 known. Charles p. Drina is OF
/ Inc hrm OF Kilburn. Lincoln Co., schinists, OF
Fall River, and Is considered u man OF considerable
properly.
Mills. and has considerable means. Foster H. Stal.
iora is OF the Davo MILLS and Stafford Co., and Is
called worth over $500. 900. William Mason Is the
celebrated locomotive builder OF Taunton, and Is said
| to be worth $50O,000 The last returns showed
John b. Anthony, James N. Anthony, +. ID. Anthony,
/ ~ NJ. Chace, s. Aug,er Chace. Charles r. Dring Will
lam Mason, George L. Hathaway, James Henry and $.
According to the figures given above II will be seen
that the liabilities 0i the company largely
cess OF their capital which facs according to the
laws Massach usets, renders the officers and dircc
individually liable for the debts OF the corpora
OF the company ara 10 little danger Of suffer-
ing any loss from the defacaton Of The treasurer.
but that the principal loss Will fall upon tho stock
| hoIdera The last quotations for the paper OF the
company was FIVE ana y nall per cent per annum.
UNAUTHORIZED ISSUE OF NOTES.
The first intimatou OF anything wrong obtained
n lew weeks sgo when two notes OF tho corporation
went 10 protest In Boston. Inquiry made Of
Richardson, Hill 4 Co, q banking house where good
deal business was Transacted, and tho
isssa SnU Was .os saa susS saiSas happen
TO the bost regulated companies. The director was
not satisfied with TINS exp!anaslon, ana stated
without issuing corporation paper, much less s;ting
II 70 protest. An Investigation was set on foo. ADD
| treasurer in this c,ty. Hero Mr.. Chaoc FULL
| and Tree confession that he had made a
| tonishsd at this evidence oil irregulsrity in a
| had been SO trustcd the director at once
called upon associates the board and told has
story Asa result last evening the directors hed q
con ference which lasted all the night. A cursory
ana THIS was sufficient 70 show chat the Union Mills
promissory notes had been overissucd TO an amouLs
| between $500, 600 and $500000.
I~N TRUSTED AND TEMPTED IF assasa
The overissuo OF notes was made W Mr. Chace In q
very simple way Trusted entneiy, AS he Was by the
drsclor no had full berty as 10 the method Of issu
ing the notes. Not the slightest check Was put upon
him. ho coula simply issue them Pay TO the order
ana dispose Of snsn Is he saw IT. /. was no. noces.
sary Of one OF the directors should
appear upon tue note ana so AL coasro o. me Treas
Among many business men this laxity oil supervision
10 sharply commented upon, and tho stockhoders IN
| the Union Ills feel very sore about the matter.
WORTHY or STATE PRISON.
In has confession OF overssuins paper he also states
poration issued bogus certificates, used the money
for himself forged the directors names on Endorsed
Is.
| merited, ma he did how soon he won't The
| directors being indorsers on largo amount OF the
concerns paper they will probably sacrifice every
thing. The mill was considered the strongest here.
rALsE
Tho last exhibit the showed the follow
| ing financial condition:--
Asscts-Houses aud land. So 453 u
Mills, buildings and mach merry 600.os2 81
Cash ana depts receivable. 10 S64 "a
Manufactures material aud stock IN process 1891 "A
MhceHaheous. ;.........'s.'..'..' oVvo ~
Liabiiiues-capitai slock.............. lS5,0Vo 20
LIST STOCKHOLDERS.
Following Is list oi ali tho shareholders ana ths
number Of shares each at that mo held, he value
| VI shares then being $1,000 aud tie market price
$s,0o0:-John b. Anthony, SS; Ellen d. T. Anthony,
IL; James Bodgs, 4; James 9. Boomer, ,Jr !, ,;
nara Msr i; ars 00"s 4. Il BAL, q; john ,
J. Bray.on, l; 5. Anger cbace, Al Al. "A: cnace. II
Nathan Daree, 8; hoidcr X Duricc, 8; Mary a. fskc
| So; wnnan X Gordon I; James Hsnry, .; William
$ aa,nes !; George y Aa.h.way; az :. K,iIurn, .;
L; s. s. Potter 2; g. Remington. y. II. stafford,
| Q; IRAN smith. L; Ar,smas Willard. 1; Thomas VII.
| wH.RR THIS rArER IL HELD
| The only Boston banks known ~ hold any Of the
Questouapl paper are the National Bank of Redep-
tioa 800 000 the Blackstone National ,500 aud tue
| fremont Bank, whose officers decline to name the
| amount held Nv them. IL 10 said, however to bs
England Irus, Company, the Webster National State
| National ana FIRST National banks have the past
had largo dealings with The mills. put they are short
| oil tins paper at present.
Rumors having gained circulation affecting tho sol
| veacy Of the Five Ceuts Savings Bank, Of which
| Augnr Chsoe was president, the Bank Commissioner
ers TODAY examined It's Affairs and have ISSUED cir
cusr assuring tho puUlc Of rs sovency and that IL
| surplus will amount 10 nearly 6l4O,V00.
EX-GOvLRNOR MOSES.
| A large crowd assembled IN Supreme Court. Cham