The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1878-04-11

FALL RIVER, MAss., April 10.-The
Union Mills have been attached by H.T.
Pesrse, private banker of Providence.
Chace, the Treasurer, in letter to the
Directors, acknowledges $480,00O delsl-
cation. Some of the Directors are said
to be on the mill paper. The Five-Cent
Savings Bank of this city, of which
Chace is President is said to be secure
but they are exscting sixty days notice
from deposltors. The banks recently de-
cliued to receive notes of the Union
Mills. Thus Chace found himself una
bic to meet the payment of the note,
which went to protest, disclosing the de-
falcstion.
The defalcation of Chsce, treasurer Of
the Union Mills, Is represented by an
over-i,sue of notes of the company. The
discovery was made yesterday, when one
of the notes went TO protest. The in
vestlgation began immediately and lasted
all afternoon. The directors finally be-
came convinced that nearly half mil
lion dollars of the corporation money
had been used by Chsce and was covered
by notes bearing his own endorsements.
I'LL within 3 short time the notes Of
the corporation were held to large
amount by five Boston banks, the Ma
tional Bank OF Redemption, New Eng
land Trust Company, Webster National,
The defalcation has been going on for
ye'rs, and recently paper of the Union
Mill had been scattered freely, though
regarded good by the banks. The cor
poration is an old one, and as it has
been erecting q new mill lately, the sur
plus of paper ahoat did not attract
attention. Yesterday some OF the paper
went to protest in Boston, New
York and other places. 1t
is 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, aud It Is believed
that between the assets of the mills and
the directors, all claims can be met.
Clace, the de!aulting treasurer, occupied
a high social position. He is about 5S
wears of age, and has been resident OF
Fall River since 1922. He WAS member
OF the House in 1862 and of the State
Senate in 1867 and 1868 Besides beng
treasurer of the Union mills, he was
president of tbs Second National bank
and OF the Five Cent Savings bank.
The Union Mill Company was started
in 1859 by Hale Remington, Of Fall
River, who associated with him David
Anthony, S. Augier Chase and Oliver
Chase. The nominal capital was
$4,000. The par value OF the stock
was $1,000 and 1t has been IN such de-
maud that it has sold as high as IS 5000
per share. The last sale, made few
months ago, realized between So 900 and
s. 900 per share. The mill employed
500 operatives and the weekly pay roll
amounted to $l3,5OO. The annual pro-
duct of the mill was u 100000 yards
OF what are technically called "print
cloths" 1t runs 44,7S4 spindles and
1850 looms. The liabilities of the COM
pany are largely in excess OF the capital
According TO the laws Of the State the
officers and directors are all individually
liable Tor the debts Of the corporation,
and the chances are that the creditors OF
the company are in little danger of suf-
iering the loss which will principally fall
on the stockholders. All attempts to
interview Mr. Chase are repulsed. Con-
seQuently no statement OF personal liabll-
tiles can be given, although they are
known to be heavy. The only statement
Of the directors of the Union Mill is
that Chase, who contesses to using from
S48O,OOO to 100000 Of the corporations
money, commenced his operations
three years ago.