The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-24
HATHAWAY, THE DEEAuLTER.
Further Developments Of the Slupsndous Peeu,
latiOnS Of The Border Mills TreaSurfr.
Ii l S A II II L S II.
How His Falsehoods Were Long ClOakcd
and at Last Discovered.
[BY TELEGRAPH TO THE HERALD

lBY TELEGRAPH TO THE HERALD
FALL RIVER, April %, 1878
There IL only one opinion here to-day In financial
and business CIRCLES aud that that the Border City
NH Corporation II in CRITICAL condition and liable
be wrecked the tide Of credit and confidence does
not set the other way Last night and today
have been spont by some Of tho heaviest mill
owners W looking over their securities. their
paper and their bank balances. Every body asking
The question, "who will be the next vctims" Tho
tall Of $. Anger Chace caused the fall OF George T.
Hathaway. They were closely connected by ties Of
blood and financial transactions, and II was between
them only question or priority Of faIl--boIh must
20 ana each knew H. Hathaway has proven him
seli tho biggest liar oil the two He has all
through the troubles Of the Union Mil held that tho
Border City and Sycamore, whose funds he controlled,
were all right. Even whom the paper OF the mills
went 10 protest IN Providence no told the
directors that there cause for fear;
that everything would come out all straight
He has stated to his financial hackers
since the crash, that Cnace caused ruin, that he
had loaned 100000 10 the treasurer the
Union and that tins caused his downfall But Chace
stated last night his prison Taunton that
this all false. no had but $4,000
OF Hathaway's paper. ana that was forced
on him whoa his pressure the Union was strong.
est Chaco further states that both nc and hathaway
knew they must 20 to the wall, and that they were
prepared TO help each other out II necessary. Tho
iragmentary statements that have been made
showing whore tho protested paper OF tho Border
city ana Sycamore give but iistle idca
OF tho extent OF the smash. IL Is hero in FAN River
that II will DO felt; mere credit OF noariy
every manufacturer IL crushed, where poor people
aud people OF noderatc means havo lost nearly theH
All that tue fun force OF tho rascaIies these Iwo
men viii De ieil.
DIRECTORS STATEMENT.
Here IS the htateIient OF prominent director, Nj.
Charles L. Stckpey MIR. Stickney Is the wealthiest
the Border CITY Sycamore Corporations.
he Is, however, only small stockholder owning not
over slo,ooo IN STOCK IN both. He was in.
uuced to take Stock and lend his assist
anc, as director 10 the Corporation. ~ th1
solicitation OF s. Angler Chace, VINO was then looked
upon us a solid, sagacious business man, whose non.
es,y well that his cousin the treasurer was
beyond question; ana even when Chace,s yillanv
Was exposed Mr. Stckneys apprehenslons wore luiIed
by tho assurances oi Mi. Hathaway thar cycry,h,ne
all right the Border City and Sycamore miils
and that tho defacItons OF Chace would III
no way Affect their affairs their prosperity.
= here is thing,v said Mr. Stickney 1that wish
you would make plain. The loss OF wealth can bear.
but II would trouble me very mach 20 have II 90 70
the world that tue present state OF things occurred
because dd not attend properly 10 my Uusncsa Tho
TACT Is, have many interests TO ooE alter, ana
trusted nrst 10 the honesty OIL Mr. Hathaway aud Sec
ondiy, 10 the industry oil those directors wera
appointed TO audit Tho books who reported
everything 10 be NIL right Tue books. ~ can
understand are made TO balance and give nominal
results claimed Tor them ny Mr.. Hathaway How THIS
now thsm makes report" MI. sl,cknsy wa
gentleman WHO stands very high in this community.
"
very large share OF sympathy, because he will bc
heavy loser by Hathaway's acts.
OTHER coNcgKss INvoLvRD.
That there com panes whose condition will
DO more or less Affected by this terrible sure
cumo 10 lns ia.e ,nal roacaed tho Boraer cy saga.
more and Union, Is problem which to-day cannot bs
satisfactorily solved.
HATHAwAy's CAREER .t
Hathaway's fa was as sudden as his rso. He was
born ~ Aasone.' ABOUT eighteen mics rom thus
and was immediately engaged clerk
In the Massasoit Flour Mil. then. as ever,
managed BY Chace although the nrm style Cnnce
Mason AMI Duree. Hs Is a cousin OF ). Angler ChAcc
VINO ~ also native OF Assone,. Hathaway Was known
rs genial, pleasant, democratic Fellow, and made u
host Of friends Whether he OF Chacc - en-
Darrassnsnts while clerk Ia his KNOWN AL
though II Is probable he did not, he would not
have suffered himself 10 be drawn into his presents
tangc. Alter his connection with the border Guy
Mills he specialized considerably In real estate and
| Is CREDITED with lot OF inortgagcd property
In tho north END of the town. His house on
Rock street. which, with the land is valued at about
$40 600. Is n,ortgaged 10 It's iuli value. he Il
Of temperate habits aud exemplary
manner o. ~. a.'s He :. , smooth and psr.aa-
aided him very materially IN covering MIA
tracks, Iu the beginning Of his career every pre-
dcted that would be brilliant one, he has been
regarded one Of Tho best busncss mon in Fan
River, and destined 10 surpass lnis respect his
| iustrious cousin.
A TISSUE OF LiRs
The friends Of Mr.. Hathaway navo labored during
the past lew days ~ dispei tue IDEA that
appropriated any OF tho funds Of corporation whose
cash controlled They asked the public 10 oo
"a
spirit, asd bankrupt IN character well M purse.
simply through unfortunate circumstances winch ha
| coad not coutro. Thoy also claimed and asked tho
sufferers oy his vulany TO believe that the goodness
| OF his heart and the kindness VI his disposition
| hs advanced moocy IN largo sums 20 help OUT h's
cousin. Angler Chace now inmate vi Jail a.
| Taunton. But all tneso stories arc pure aDrica-
tons II - now ascerlained on the very
best authority that Tho money was NOT
| opiy missing from the treasury, but was
squandered IN tho most reckless manner The First
National Bank oil Lynn Tor some tImo past has held
quito large amount oil tho paper oil Boruor Uity
Mills Tho bank has been IN the habit Of late OF d.s~
| counting notes OF large amount believing tho
dnancia coodion OF that corporation TO OF sound
character
rArxR pRorEsTKp.
few days since, however, the president OF tho
First National Bank discovered that nve notes OF no
81 Go1 sss a1a GsS Sas.
go TO protest Acting upon this Information Mr..
Dprne cashier, anu Mr. Augustus jones' tho papk's
council, were directed to proceed 10 Fail River aud
make an investigation They found matters very ut.
settled anu could receive no debate information AZ
| represented would be settled Ar. Hathaway. wncn
called upon by these gentlemen stated that no had rc
signed hts position as treasurer ana that tho stoe
holders would low days present a state
mcut covering NIL OF the facts the case
The representatives, OF the Lynn Bank have found
that 5000. 900 had boon msappropriatcd, but could
hot place the loss with aN degree OF accuracy.
,sa stared IL Inc ,aeo san
tlcfnan, who Knows botn parties we'll, has solved a
portion OF tho mystery, and lhis NO doubt will LOAF 10
other developments winch Will cloar up tho whoi0
auar
LOSING SPECULATION:
During tho month oil May, 1871 according TO tho
HERALD correspondents Informant Hathaway having
large amount OF tho iuuds OF the corporation on
hand. went to Boston and by making heavy
purchases OF print cloths, attempted 70 bull tho
| market. Iie bought IN Fall River. and shipped
10 Boston. The nrst purchase vas 80 0UO pieces OF
prints al four cents por yard In June following he
made a second purchasc OF ~, 900 pieces TOUR ami
thrcs-ernths cents Tho 10, 600 pieces no carried
III January 1878, wncn, owing TO ucprossion
IN that line OF trade no Obliged unload at three
ana half cents yard. For the nrst 81 600 pieces,
confirming 35o. 900 yards, he paid g. 900; tor the
second lot. containing l.soo,ovo yards, no oaid
$751; making total OF $1a2 700. lie received Tor
the aggregate quantity $ilo 800 and thereby incurred
loss OF $225D0
COMPANY ABsrRAcrxD.
The money useJ IN this transaction tax on
doubtedy IRON Tho funds Of the corporation and tho
money realized has not boon recorded on the
books, tho whole amount II lost 70
ths company Tho purchases were mado
| on private account aud charged by tho
l brokar IN georye n Hathawav ana tho Inter 10.