The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-01-17
LENDING MS COMPANY's CASH
The Discovery OF n Deficiency In the Account.
of - Rafirond Trcnaurer

Of Railroad Treasurer.
BRTDGEPoRT, Conn, Jan. 16-Much sur
prise was created in this city when tho an
nouncomcnt reached here to-day, by way of
New Haven. that W,illam A. Burroughs. treas
urer Of the New York Now Haven and Hartford
Railroad Company. and one OF the most es-
tccmed young business men OF this place, had
tcndcred his resignation by reason Of his being
detected in tho misnppropriation OF the funds
OF the company. and that his resignation WAS
likely to be accepted. In point Of fact his
resignation was demanded on Monday last, was
promptly rendered. and the formalty Of accept
Ing it was as promptly concluded.
A hint Of Burroughss irregular doings
reached President Bishop during the latter part
OF last week. An examination OF tho books OF
the Troasurer's Office was made Sunday. in the
absence OF Burroughs and UNEXPECTEDLY to him.
resulting in tho discovery OF the misapproprla-
tion OF sums amounting to about $4,000. On
Monday the fact Of the examination and It's dis
closures were made known to Burroughs. and
his connection with the company was speedily
terminated. Bonds are required by the COM
pany from all OF its officers and employees who
have the handling OF tho companYs money
and this precaution protects the road from any
| loss I'm this instance Burroughs's bond was
| for $50 600. TO which there are three signatures
one n business man In Now York. another a
man Of wealth in this city. and the third aresi-
| dent Of ncighhorngt 1t Is expected that
ABOUT siZuuV OF the missing sli.upv VIII ult,,
| matcly be recovered. SO that the bundsmen will
| probably not l1se more than $4,000.
| The motive ot burroughs was n strange one.
| and his method Ot cOncraliug his irregularities
! wns ingen niOus. He was appointed treasurer OF
! the road about two years ago. At that time he
| was only 20 years Of age. but he had received
| bank education under eN-Treasurer shelton.
| and ai the time Of the lntters death he was tho
| transfer clerk for tho railroad company In the
/ lutfpr pf 1877 when he hal lppu tTauaIrpr
| only a few months. he began loaning the funds
| OF the company TO his friends. taking demand
| notes. bank checks and other unsecured paper.
| In some instances the paper was originally made
| payable 20 the company y.andin others Burroughs
| appeared n the creditor and then made over
the papers to the company. During the period
| covered 10y these operations. Burroughs loaned
are all his itlcnds. and are mostly persons IN
business. Nearly onc-halt OF the entire amount
wPs borrowed 10y on9 man. Ihe eIaminatl2n
| Of hls books dis 'loscd the TACT that Burroughs
| has himself ovrrdrnwn his salary to the extent
| Of about $500. which IL comprlsed in tue
| cline To disclose tho names Of the persons To
whom Burroughs loaned money for The reason
lc recoverable might be- delayed or prevented
thorahy. and the bondsmen made TO suiier un-
The sums loaned by Burroughs wore takcn
from the moneys forwarded to the Ireasurer's
Office from stations on the road. and turned in
total each day. Monthly examinations OF the
accounts 81 the treasurer are made IN behalf Of
the affairs of the road are made IN behalf ot the
| stockholders. Burroughs knew when such cN-
eminau1us Were To tafe plare. ana prrparrsd
lor them. He method w,s as loI"ws Inc
statements Of the companys accounts
with country banks. where some OF
instead Of forwarding the cash TO the
trrnsurcr'S Office are made no on the day
preceding These examinations. and the state
menis of accounts with the New York banks are
prepared on the day OF such examinations. In
order 20 make his books appear correct. Bur
rnuklR drew checks the country banks after
the King OF tho balances sent IN Tor lnspec-
banks prior to the striking Of tho balances sent
in 10y them. In this manner the deficiency in
his accounts could be easily conccalri 30 hong
made. Tho unexpected oyerhnulng of the
books revealed the true condition Of his ac-
President Bishop expresses the opinion thu,
burroughs aas not proiltrd by III" loans lie mas
h"'aus' bntf"uShs lld hp' thr stamina ~ shl
NO. wncn ms friends asked him 20 loan them
money Wiuln hls icAch; LIZ IIrin a oi IN. IN.
that in some instances nj least. the borrowers
knew that they were receiving the railroad COM
puny money burroughs style ol hNinE was
not cons spicuously ,Ntravasaut though II mp
peared to De- somewhat moro cNp, nsivc Ian
hl- salary oi 81 100 would warrant Nothing has
a., L.Du l.y.l'l,i tn show thnt Burrnush,
wus engaged IN any losing outs ld" sp"rulaii ION.
| President Bishop says in regard 10 appoint
INK so young man a. the position q trruSur-
rr. that tho office is no., one % such grcni re-
spc nsihilitlns rs It would ~ first seem. Tho
Aud pay certified bills. lie ha- ~ OPTION IN "a"
matter of di-poslng of th' company funds
! Tn" mo. Is one ~ vastly less imporianee than
that Of cashier 81 hauk. The consideraiiou
which made Burroughs treasurer w"s thHi u
! would Doe moro pIudsuttp pr'uute me who hnl
served the company faithfully and In every WAY
satisfactorily than to call To- that position some
one who might have the advantage in YEAR. ana
| property. lat without experience IA the nliaIis
Of the roud.
Burroughs Is the son Of q worthy and well-to-
DO farmer in tho town ~ rrumhul. lie has q
wife and two chiidr d. and lives IN - u 'At houss
IN West avenue. When confronted wuh tn
charge NJ improper use ol the company 4unds
hc attempted no dcieneo Of his acts, but 4.
know rdgcd that his course was all wrong. H.
appears to feel koenly his disgrace His repu
tation IN this city has been very high. and hi'
business AndlSocial qualities have given him al
influence and standing seldom enjoyed by mel
of his years.
In reply to the question whether Burroughs 2
transact 'ons do not amount 60 IN indlciahl'
offence. President Bishop said that he mad no
looked into II. Nnd oppressed tho opinion tina
burroughs would not be proc -cuied.