The sun. [volume] (New York [N.Y.]) 1833-1916, 1883-02-25

A case OF dcfalcation lately discovered in
Scotland Is Of general interest for tho facts
brought out show carelessness In tho man
agcment OF q trust which. wO have good
reason to think, is not at all exceptional.
Tho Dissenting Ministers Friendly Society
OF Edinburgh was established in 1897 for tho
purpose OF providing annuities for the
widows and orphans of Dissenting clergy
men. Tho Rev. DIR. JAMES PEDDIE was tho
Treasurer OF the society from its foundation
up to his death, in ls45. In 1888, when Dr.
PEDDIE was in his seventy fifth year, and
was becoming superannuated, he made his
son. DONALD PEDDIE, assistant treasurer,
and tho younger man continued to manage
the funds for the widows aud orphans until
DIR. PEDDIE died. Then DR.. WILLIAM PEDDrE,
another son, was elected Treasurer, and
DONALD was not retained as an assistant.
There Is some reason for supposing that,
some forty years ago, the directors Of the
society had doubts regarding DONALD. At
least they appear to have thought that the
PEDDIE family were too much disposed to
monopolizc the financial management of the
trust. When, in 1874, a year before his death,
the father sought to have WILLIAM appointed
as joint Treasurer, DONALD being continued
rs assistant treasurer, tho request was not
granted, and, instead, the directors suggested
that DIR. WILLIAM Brown, who was then
clerk OF tho society, should be elected Treas
urer. But no change was made DONALD
PEDDIE remaining in charge OF the funds up
to lsi5, when his father died.
1t will be seen that DONALD PEDDIE took
good care to keep the keys Of tho treasury
from 1888 to 1S45, and after the death OF his
father no was determined not to give them
up. The name Of Treasurer no did not care
for so long as he had the actual lingering OF
the money and the accounts. When his
father died, DR.. WILLIAM PEDpIE asked to be
appointed Treasurer. with his brother rs
assistant. The directors refused to appoint
DONALD, on tho ground that he was not a
member OF tho society and was profess
sional accountant, and might be called upon
to act both for n client as borrower and for
the society rs lender. Dr. WILLIAM PEDDIE,
however, was elected Treasurer in May, 1916.
But DONALD, who had profited by his
fathers failing powers. was equally prepared
to take advantage of his brothers ignorance
OF business. Like many another man who
takes place OF such responsibility, DR..
WILLIAM PEDDIE was altogether untitled
for IT. He seems to have had no better quail
iflcations than honest intentions. DoN-
AID had the necessary knowledge and expc-
ricncc, but lacked the honesty. WILLIAM
therefore leaned ON DONALD for assistance,
and tho consequence was that just the ar
rangemcnt to which the directors objected
was brought about, though not In n formal
way. WILLIAM was Treasurer nominally.
DONALD actually. and so continued for thir-
ty-seven years, up to last November.
Such condition OF affairs was dlscredit-
able to DR.. WILLIAM PEDDIE. and to tho
directors OF the society, who let things run on
In that loose way. But DONALD took bur-
den of WILLIAMS shoulders and the direc-
tors were content to manage things in the
loose and sllpshod way which IL pretty COM
mon among trustees like them.
1t seems that the conscience OF the easy
going WILLIAM disturbed him in 1873, after
having occupied a false position for more
than quarter Of q century. He then
wished to resign his nominal trcasurership,
and In letter to DONALD said it Is "un-
spcakably irksomc to be responsible for
affairs OF which am consciously ignorant"
But DONALD would not consent to his lesig-
nation. saying: Although, in many re-
spects, things are changed for the better,
there arc still not n few matters which
would like to SEQ in different position be-
fore they go into tho hands OF strangers,
and especially unfriendy strangers" And
the weak WILLIAM consented to be per-
suadcd; though why should man be afraid
TO have his accounts OF charitable fund
scrutinizcd by strangers, friendly or un-
friendly, II they were honest? And why was
DONALD SO anxious to do duty to which he
was not appointed and to assume RESPONSE
bility which had not been laid on him?
A thorough examination OF the socictys
affairs last fall, the Ist which seems to have
boon made for nigh upon half a century,
showed why DONALD was 20 anxious to
keep the hold no got on the treasury OF the
society during his aged fathers lifetime. 1t
was discovered that nearly all tho funds had
disappeared. And 1t was found that tho de-
falcations began 30 far back as 1910, when
about twelve thousand dollars was alb
stracted. That was why DONALD did not
want to leave the treasury In 1874, when
there was talk Of electing Dr. WILLIAM
BRowN rs Treasurer in place OF the aged DR..
JAMES PEppIE. IL, had good reason to be
afraid OF unfricndly strangers
Tho dcfalcations continued under tho easy
going WILLIAM until. at last, DONALD saw
that all was up with him, and In November
last hc abscondcd; circumstances affecting
his character having been made public, and
an investigation being inevitable. The colt
was gone, and then tho directors proceeded
to shut the door with great caution. At last
accounts DONALD PEDDIE was Oh exile In