The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-08-14
ANOTHER FALL RIVER DEEAULTER.

WALTER PAINE, TREASURER or THE LINEN
MILLS FOLLOWS THE LEAD OF DURFEE,
cHAcE, HATHAWAY AND sTIcKNEY-DEFALcA-
rIoN OF ONE HUNDRED THOUSAND DOLLARS.
[BY TELEGRAPH TO THE HERALD
FALL RIVER, August Is, 1879.
The mule spinner of FAN River who to-day reviews
the position of affairs regarding himself and his
family. points out the fact that he must by his
labor mako good the dcfalcations Of the treasurers
or managers of the mill in which he
works. aud says that the repayment Of wages
rs he terms 1t, would be his il honesty the
watchword of the day, and If the treasurers
managers Of the different mills had the welfare Of
the corporation for which they worked at heart.
The dofalcaion Of Walter Paine third treasurer Of
the linen mills-a defacation which amounts to
1OO.oOO-furnishes the striker with an argument
which no one refute He has held high social
position here. He has been trusted by his friends
and business associates and has been rated good
church going. pious citizen.
THE CHURcHGoER's CAREER.
He came to this city from Providence number OF
years ago. and with his reputation and some infu-
soon gained a high position among the manu-
facturers and became Of the American Linen
Company. That position in Fall River meant supreme
control the fortunes of the company with
power to buy and SELL the notes of the concern
and be absolute master Of its finances Like Durfee.
Chace. Hathaway. Stickney and others fell from
grace in this city, he out to be the victim an
inordinate desire to speculate. and his deficit
of 100000 or more will be shown to have
not been the result of actual dishonesty.
but rather of opportunity to dispose
OF other peoples funds for personal advantage.
He married years ago the daughter OF Jefferson
Borden, and became at once man OF high standing
and excellent credit. MIR. Borden is president of
nm he
Paine, Philip d. Borden. Richard b. Borden
and George Il. Durfee. Mr.. Durfee. late
treasurer of thes Merchants Mill and the last
derauter in Fail River. is Paine 5 brothern-aw 1t
will be seen therefore. that the linen company is
close corporation controlled by ono family two of
whom defaulters The loss now discovered
has been caused by gambling in cotton. Mr.. Paine
trusted implicitly. He had full and complete
control of the finances and he specialized on tho
company's money and lost.
DIRECTORS.
The directors to-day had a meeting. Mt which the
facts were stated and decision reached to call tho
stockholders together, one week from to-day. to de-
eide what course to pursue. and. in the meantime.
reported the meeting. The directors say they
will not be responsible for the rumors that may
prevail in the meantime and that they
slider it best to find out the exact state OF
affairs before they make q report. The HERALD
respondent could not ascertain whether Mr.. Paine
had used the funds OF the corporation for his
not. but should judge that what he had done
done without the knowledge OF the directors.
1t may be remembered that some time
ago the treasurer sold goods to the Amer
lean Print Works to the amount of S1O0, 900,
similar to the made by George b. Durfee OF tho
Mechanics Mill cloth to the print works 1t was
considered by the stockholders to be very damage
ing salc and from hints thrown out IL is charitable
least to suppose that Mr. Paine ventured i'll futures
to retrieve the fortunes of the linen mill. Yester-
day the stockholders began grow very anxious and
their anxiety eliminated in the meeting to-day such
of defalcatlons only work to the adv antage
of the strikers, who claim that their bone aud
sinew are used to make good that which has been
wasted in speculation and this last story show
that their claims have some foundation in fact.