Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-07-23
HOW TAPPAN TAPPED
The Boston Betting Company, OF which
he had been Treasurer for Thirty
Years-A strange story.

BOSTON, July 22.-The announcement this
ttternOon OF the resignation of John G..
Tappan as treasurer of the Boston betting
company, a position he had held since the
organic alton of the corporation thirty years
ago, and the statement that he had used the
credit OF the company IN the interest of pri-
yate speculation, was surprise IN financial
1rcles, where Tappan was regarded a man
of most exemplary character and of I'M
mpeachable integrity. The corporation had
a paid-up capital of 100000, and its
eputation under Tappan's management had
become such that its paper was readily dis
cunted. and even sought, as among the
afest offered for discount. It's capital stock
was 5000 shares OF 800 each, and early in
the year it sold for $l75 per share, and the
asst, an auction sale, was at $125 per share.
Upon the resignation of Tappan, Z. S. Con-
.erse, treasurer of the Boston rub
Der shoe company, was chosen his
successor, and finding its affairs in such
condition, called meeting of the stOckhold-
ers and creditors to-day, at which it was stat
I'd that rappan had issued notes to the
amount of 100000, and it is also held for
5000 on an outside Endorsement as treas
lrer, the proceeds of which have not been re-
ceived by the company. Total liabilities of
the company; 1886, 900; nominal assets, $780,
900; notes payable as above stat
ed. 1928, 600. 1t also appeared
that Mr.. Tappsn to make good the losses to
the company, the responsibility for which
rests with him, has handed over to the credi-
ors his entire property, of the nominal value
If 81, 100000. In consequence of the con-
dition of affairs the company has suspended.
Jas. r. Milledge. William P. Hunt,
The president of the Atlas ma
tional bank, and George A. Alden have
oeen appointed to make a thorough investi-
CATION of the affairs of the corporation and
the irregularities of the late treasurer The
Ill - =
The condition OF the company from the an
nual return OF the corporation, filed in the
Office OF the secretary of the commonwealth,
February 18th. The officers were: Henry F.
Durand, president; John G. Tappan, treas
urer, and these two gentlemen, with
John S. Tappan, constituted the board
# directors. Assets-real estate, 1927, $40;
machinery, $4,000; other assets, cash and
debts receivable, 1872. 800; manufactured
material and stock in process, 1899 S76; mis-
cellaDeous, 1927, sos; total, 81, 377 ,656. Lii
abilties-capltal stock, $500 goo; debts, $685.,
078; reserve balance of profit and loss, $685.
SIS; total, 81, 977, 656. Jno. G. Tappan, who
has held the position of treasurer, bust
ness manager and agent of the cor
poration from the date Of its organi-
zAtion until 1T became so heavily involved
through his irregularities, and whose
losses In private speculations had induced
him to use his financial position as treasurer
Of the Boston betting company to extricate
himself from his pecuniary embarrassment,
Is one of our citizens whose long business
career had made him widely known and
generally respected. He was quite a large
speculator in real estate, not only in
this city, Chelsea and other places In the i'm
mediate vicinity, but In Colorado and Texas.
Though the nominal value of the property
turned over by him to his creditors is over
81 COO, 900, there is considerable question as
tn IN al ltra Ia inf tad q
Merriam packing company of Texas, and had
raised money on its paper with his own in
dorsement. and it Is stated that $200, 900
OF this property is in this State. Quite an
amount is also represented to be in Colorado.
1t also includes his family residence and other
real estate in this city and Chelsea. Quite
large amount of mortgages and various other
company, the proceeds of which
have been misappropriated, is held
by twenty-one of the Boston banks,
and Is pretty well distributed among them,
no one bank holding an extraordinarily large
proportion. 1t is stated in mercantile circles
hat Mr.. fappan has of late raised large
amounts by indorsing either his own name
company upon paper of the following
trims: J. A. Hatch & Co., dry goods com
mission merchants, % Kingston street; John
T. Iappan Il Co., successors to Kelvert &
Tappan, dealers In machinery and yarn, %
Kingston street, and the Merriam packing.
company, Texas firm engaged In packing
beef. of which company, it is sand, Tappan is
firms are involved Is at present impossible to
state but 1t is feared that they will also suffer
severely. The Boston betting company will
meet their liabilities, and it Is hoped that the
property turned over by Tappan will be sufi-
cient to protect the stockholders from loss.