The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-04-24
MIL Troubles az Fall River-Another
Treasurer DefauIter to Large

FALL RIVER, April 22-Since the defalcation
OF Chace, the treasurer of the Union mills con
siderable uneasiness has been felt about the
solvency of the Border City and saga
more mills, of which George L. Hath
away is treasurer. This uneasiness cUlmi-
tion's paper at Providence last week, which
then was attributed to an oversight OF the
been permitted 10 remain unpaid. In conse-
quence of this fact the directors made an I'M
peratlve demand upon Hathaway for an I'M
mediate statement of the affairs. The latter
has been busily at work upon the statement,
and to-day Ii was submitted to the directors,
but no official intimation of its contents has
been made public. 1t is said however that al
fairs are terribly mixed, and that Treasurer
Hathaway is a heavy defaulter to both mills.
An expert has been put upon the books ana a
statement will be given as early as possible.
Several directors of the Border City and saga
more mills We're also directors OF the Union
mills. and the affairs OF the three corporations
are closely alliCd.
No statement can be obtained of Hathaway,
and the directors meet again. when ~ j. SAID
they will give "A statement. The Border city
mills is involved to the amount Sl,2uO,OJOi and
the Sycamore largely, but no figures are given.
1t appears that Hathaway was drawn into the
affair through close Intimacy with Chace, the
latter, IL is understood, receiving large
amount of the funds of the Border City. The
and consisted of two mills until November,
1877, when mill No. was destroyed
by re o oo n aT g enfb ner
employed 800 hands. When the first mill was
built il was called the Peoples mill, the stock
being held by many small stockholders. Geo.
city and became bOokkeeper for the MassaSoit
flour mill, and became associa' ed with hls
cousin, Mr.. Chace. A few years ago, when
real estate was bringing fabulous prices, Hath
away invested and realized splendid advances
on his purchases, and soon there WIS started
the Border City mill No. through his lnstru-
mentality. Mr.. Hathaway won the
respecs of everybody, and business men
COMING man y The hoard of trade sent him to
England a few years since to see what could be
done in exporting cloth. Border City mill No
l was burned, and hardy before the fire was
out measures were taken towards rebuilding
This was opposed by many, yet Hathaway
carried his point, and the mill was started, TO
be paid for by the insurance money. Within
a few years the Sycamore mills were built, but
by Acknowledgement the property dec eaSed In
value. The cry arose for Hathaway to b.
treasurer, and he was accordingly elected,
and matters Immediately improved. Lately
there was agitated the question of
another Sycamore mill, and accordingly
a few weeks since Sycamore No.2 was also
started. Taus Mr.. Hathaway had two mills on
his hands when the Union mills crash came
Owing to the close association OF Chace and
Hathaway, suspicion was Immediately aroused
as to whether the Border City was all right. a
meeting of the stockholders of the Union
mills was held to-day, at which statement Of
the condition of the finances of the corpora
ton was presented: Valuation of mill proper
ty, s9o5.l2Q; amount of regular notes outstand-
ing against The corporation, Sl33 ,b63; amount
of irreeu aud void notes remaining unpaid,
sos. 4O7; whole am unit of irregular notes is
sued, S536,4G; total amount of regular
and irregular or fraudulent notes. s9i2O7l, aud
the'amount of bills payable in additi IN to the
notes. as far as known, will probably not eX-
coed $4,000. The property Of the corporation
is placed at a low estimate, and if the illegiii
mate notes are not included in its Liabilities
the company will have splendid property
left after paying ali Its legitimate notes. Even
should they be held liable for the irregular
notes, the corporation, at the present Valua-
ton o. its property, can pay very nearly 100
dollar \ TfCOluf1On 2dOnTG1
TO appoint an advisory committee consist
ing of 3hn B. Anthony, Thomas \. BraytOn,
James NJ. Morton, Jr., to advise with and assist
the directors in regard TO the course and con-
ditiOn OF the corporation. The capital stock Of
the Border City mills, which was always rep
resented by Treasurer Hathaway all paid
in, now apcear only to have been about three
fOurths paid. The feeling expressed against
Hathaway by many is very bitter, and his az
rest VIII not probably be delayed as long as
that of Chace. He has persistent
ly falSified affairs to the direc.
tors since the Union mills defa' cation.
His friends claim that he can
show that not one dollar of money has been
appropriated to his own use; that the original
loans of money to Chace We're made In good
faith that Hathaway had property enough to
hold corpOratIOus harmless, and until within
a few days he believed his mills would not
lose; that the recent loans to Chace had been
made because the latter threatened and drove
him into course of action which he never in
tended