The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-07-23
DEFALCATI0N IN BOSTON,.
HdLF A MTLLFON, THE CfPTrfL or A
BEL7ING COMPdNr. GONE


Treasurer y q. Tnvpnn's -pccuiatlous Hr-
fore he Hcsiencd-Ihe Temptation Too
Great 30 he Resisted Othcr Firms Involved.
BosToN, July 22-Thc community was
startled to-day by tho announcemcn, that John
G.. Tappan. formerly treasurer Of tho Boston
Blltlng Company. was a d ,fautcr to the amount
of over half million dollars. Mr.. Tar re-
signed his position on July G. giving rs n rea-
son the failure Of his health. He was supposed
to be above suspicion. and was intrustcd with
the entire management Of the company's affairs.
The temptation was too great and he used his
opportunity for private speculation to degree
that has brought ruin. Mr.. J.. S. Converse was
appointed his successor. and upon examining
the books found an unexpected pccunary con-
lition Of affairs. and at onco informed tho
creditors. A meeting was held. and Measrs q.
i. Mellcdgc, President Hunt Of the Atlas Bank.
and G. \. Alden were appointed committee to
make n thorough investigations So far as has
been ascertaned there is mn apparent dcn-
cheney Of moro than five hundred thousand
dollars Mr.. Tappan has conveyed to them
large amount " property to make good the loss.
but the creditors doubt whether it will be sum-
cient The company has suspended payment.
II Is understood that Tappan has issued notes
payable to the amount OF 5000 600 and il also
held Tor s2s 600 on outside endorsement ns
Treasurer. tho proceeds Of which have not
bities Of the COMPANY including thcs" notes.
nrc said TO hr $3.50 COO. and the assets saSO. .0OO
Tho capital stock is sj0OO0O. Of which Tappan
held s2OOOQO; One report gives the amount of
notes issued by him Mt about $500 900. he rharg-
ing them as bills receivable. but Of this the COM
mittee decline Information. Among the firms
involved are Mrkillop. Sprague x Co. OF Bos.
ton. and the Merriam Packing Company Of
money on his own endorscment. The stock Of
the betting company sold engly In the year for
sl75 share. and the last sale was at .l25
Tho mention Of McKiop spraeuc h Co. in
The toregoinG despatch has reference 10 the
Agency Mr.. Tuppan is chief Of the Boston
branch. and has long been identified with the
company. How far his dofalcatons may in
yolye the, company is not known; although it
is hinted in business circles that he has
the company had boon losing steadily for some
time. Th"r" are Indications however. that the
Boston helting Comrany and the Mckiilop
tere-t. hut whether Mr. Tappau has IL IA his
power 10 divert any Of the funds of the latter in
To tho troasury Of tho former To- cover up his
deficiencies cannot ns vet he as'erinlned. Prob
AOly.if he made such conversion L was from the
money of the Boston Branch. Mr.. Lester NJ.
Mchrop ami Spr.Gue company. went
T.. Boston Yesterday i,s,y 9fterncC2p to r9l-
sprnsue. ono ~ the arve mcmborl "f tho COM
pany lies dangerously IN at n watering place
~ Rhode Island In the absence Of Mr. Cnrk.
M,r, John Turnbull manages the main onl'e.
This gentleman WAS found IN his homo last
evening. He said. after hearing - tn Boston
drialcation do not see how Mr.. Tappnns
troubles con AFFECT US. l know of no troubles
Was 9ot Mr.. Topron, one OF the heaviest
" c1n't say about That Hc certainly held a
large interest. few weeks nco the comranys
$4,000 thc extra 100000 going toward the
Who took this extra stock ?"
why Mr.. Tappan and other stockholders "
Have YOU hsnrd ANYTHING about the troubles