The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-04-11
FALL RIVER, MASS.

Astounding Developments-The
Treasurer OF the Union Mills 10
DefnuIter 10 the Tune Of Four
Hundred aud Eighty Thousand d
Dollars.
FALL RIVER, MASS, April 10.-s. A.G.
Chase, Treasurer Of the Union Mills, Is
said 10 be defaulter to the extent Of
S480,0OO. The banks aud other corpora
tion are all secure 80 far as heard.
THE UNION MILLS ATTACHED BY A PRIVATE
BANKER.
The Union Mills have been attached
by II. T. Pearce, a private banker Of
Providence. Chase, the Treasurer, in y
letter TO the Directors, acknowledges q
defalcation Of S4s0,0OO. Some Of the
Directors are said 70 be on the paper Of
the mill. The Five-cent Savings Bank,
OF this city, Of which Chase ia President,
is said TO be secure, but they are exact.
ing sixty days notice from depositors.
THE pErALcATIoN THE WORK OF YEARS.
The defalcation has been going on for
years. Recently the paper OF the Union
Mills has been scattered freely, though
regarded as good by the banks. The cor.
poration Is an old one, and as it has been
erecting new mill lately, the surplus Of
paper afioat did not attract attention.
Yesterday some OF the paper went 10 pro.
test in Boston, New York and other
places. II s.believed that large amount
was sold in New York, Providence, New
Bedford, Boston, Lowell, Taunton and
other places. Much Of the paper has
strong endorsement and it Is believed that
between the assets OF the mills and the
directors all the claims will be met.
Chase, the deiaulting Treasurer, occupied
high social position; is about 90 years
OF age, and has been resident Of Fall
River since 1922. He was = member oil
the Honse in 1865 and OF the State Sen.
ate in 1867 '6S. Besides being Treasurer
Of the Union Mills he was President Of the
Second National Bank and Of the Five.
Cen. Savings Bank.
HOW THE DISCOVERY WAS MADE.
The cause Of the deialcation Of Chase,
the treasurer OF the Union Mills, is rep
resented TO be by an over.issue OF notes
Of the Company. The discovery was made
yesterday, when one OF the notes went to
protest. An investigation began imme.
diately and lasted all evening. The Di.
rectors finally became convinced that
nearly half million Of the corporation
money had been used by Chase, and was
covered by notes bearing his own en-
dorsements. Until within short time
the notes OF the corporation were held TO
a large amount by Eve Boston banks, as
follows: National Bank OF Redemption,
New England Trust Bank, Webster Ma.
tional, State National aud First National.
These banks recently declined TO receive
the notes OF the Union Mills. Thus Chase
found himself unable to meet the pay.
ment Of the note which went 10 protest,
disclosing the defalcation.
BRIEF HISTORY OF THE CO.
The Union Mill Company was started
in 1859 by Hale Remington, Of Fall River,
who associated with him David Athony,
s. Angler Chase and Oliver Chase. The
nominal capital was Sl55, 900; par value
Of stock $1,000 and 1t has been in such
demand that II has sold as high "a 81, 900
per share. The last sale made, a few
months ago, realized between $1,000 and
$4,000 per share. The mill employed 500
operatives, and the weekly pay. roll
amounted to Sl3,500. The annual pro.
duct Of the mill was twelve and half
million yards Of what are technically
called "print cloths. II runs 44,7s4
apindles and 1850 looms.
THE LIABILlr1Fs
Of the company are largely in excess Of
the capital. According 10 the laws OF the
State, the officers and directors are all
individually liable for the debts OF the
corporation, and the chances are that the
creditors OF the company are 10 little
danger OF suffering loss, which will prin.
cipally fall on the stockholders.
CHASE WILL NOT INTERVIEW.
All attempts to interview Chase are re.
pulsed, consequently no statement Of the
personal liabilities can be given, although
they are known to be heavy. The only
statement OF the directors OF the Union
Mill ia that Chase coniesses TO using from
$3.50, 900 to $500, 600 OF the corporations
money, and commenced his oper ations
three years ago.
The Campaign In Louisiana.