Evening star. [volume] (Washington, D.C.) 1854-1972, 1880-01-20
Defaicati0n of a Building Ass0cia-
tiOn Secretary.


For few days past there have been rumors
that Mr.. Seth A. Terry, notary public and Sec
rotary of the Territorial Savings Building and
Loan Association, had defaulted in the latter
office to the amount OF several thousand dol
lars. Inquiry into the case by our reporters re-
veals the following facts At meeting OF the
directors Of the association on Friday night
last he made statement that he had taken
about $4,000 of the funds OF the association.
This association has been in existence some
years or more, and its first secretary was Mr.. T..
Nc. B. TSmony, who. it Is alleged having been
irregular in his accounts left here about four
years since, and Mr.. Terry succeeded him in the
ONCE. Mr.. Terry came here from Connecticut
during the war, and was for many years con-
nected with the bureau OF refugees Freedmen
and abandoned lands, under General o. o.
Howard. While there, he, with Others in
vested what money they could in buying
claims of colored soldiers, expecting to realize
on them in few months Subsequently he was
a clerk in the Second National Bank, and it is
supposed that while there his first financial en-
barrassments had their origin-he investing all
his available funds in what were known as the
20 per cent. claims OF messengers, government
printers and others, which claims. like the
firSt-named, have never been allowed. 1t is
stated that the amount Of claims (colOred SOL
diers' and 20 pei, cents he has in hand repre-
Sents nearly 100000, and that If they were
allowed the association and his other creditors
would not lose cent. Some years since he
bought square OF ground fronting on MaSSa-
chusetts avenue, on Capitol Hill, and erected
thereon fine row of houses, and realized some
thing on them, but finally he made them over
to his creditors. Recently he has been engaged
in the erection of a row of dwellings on 10th
street, near r, from which he hoped to realize
enough to have set himself straight, but in the
meantime his creditors became impatient,
and the stockholders of the association
termined to make clean breast of it, which he
did, as stated, on Friday night. The association
at once took possession OF the books and papers
in his Office, in the lie Droit building, and ap-
a
that time Mr.. Terry has not been at the office
There is considerable conjecture about the city
as to how the secretary of the association could
default to such an amount without the knowl-
edge of the treasurer when the funds are re-
quired to be paid over to the latter every month.
This Is, however, explained by the fact that the
association being serial one, much OF the
money was loaned on stock, the certificates of
which went into the hands OF the secretary.
These could easily be hypothecated, and it is
said this was the manner in which the defalca-
ton occurred. For some time he has been act
ing as notary for the Second National Bank, but
for week or more past has not so acted.
Some of Mr. Terry's intimate friends, notwith-
standing these facts, have confidence in his in
that he will in The end allow any one to suffer,
and some of the officers of the association are
hopeful that the entire amount stated is not
lost to them, but it will be some days before il
can be ascertained just how his affairs stand.
The association was organized in January,
1872, with T. L, Tullock president and Dr. F.
howard vice president, DOM OF WnOm nave since
withdrawn: J. C. Tasker, treasurer (who fills
the Office now, and E. Mob. Timony. secretary.
The present officers are G. W. Cissell president;
T. P. Sparks, vice president; j. c. Tasker, trea-
surer and S. A. Terry, secretary, with G. Pier
son, Walter Stewart. = Bayne, II. p. Sanders.
- Mayse, Jos. Noble, II. W. Smith, E. L. Stet-
son. w. H. Brown, J. p. Townsend, and -
James, directors.
The modus operandi of Terry is stated to be
that he kept two cash books, and when ad-
vances were paid, by retaining the bonds which
should have been cancelled they were alway
found to correspond with the association cash
book, and the stock left as security for loans he
would sell, in some instances outright, to other
parties. For some time the directors have not
met regularly, and the times being so stringent
the association has not received much money.
1t is stated this afternoon that some three or
four thousand dollars will be saved, and prob
ably that the defalcation will not exceed $780,
600, and there are some hopes that there will be
even better showing. 1t appears that the
money has mostly gone to pay assessments in
the '.claimS ring" and as yet he has not divul-
ged who his associates are.