Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1886-08-25

Boston, Mass, Aug. 17.-Just before
the close of business yesterday after
noon g. delicately-worded announce
ment was made on State Street and
by circular to the newspapers that
William Gray, Jr., treasurer of the
Atlantic and Indian Orchard corpora
tions, was q defaulter to an enormous
extent. Following close as it did up
on the news of two big entertainments
recently, the report caused great ex-
element and a sharp break in the
stock market. It was g. severe blow
at local credit, and the stringent
money market became sitter than
ever. The official announcement of
the crime of the directors of the vic
timized corporations was made in the
gentlest way. They begged to inform
all concerned that having heard of the
illegal appropriation of their funds by
their treasurer, William Gray, Jr.,
they demanded his resignation, which
was rendered" Following the first
statement came reports upon the
street that Mr.. Gray had absconded,
and that his stealing5 were more than
81. 100000 in amount. No authentic
facts could be obtained before the
market closed, when prices were weak
and demoralized. Efforts to obtain
reliable information of the officers of
the two corporations were met by an
absolute refusal to furnish any facts
whatever. Partial confirmation OF
the report that Gray had absconded
was furnished by the statement that
the officers of the corporation knew
nothing of his whereabouts, and the
fact that he could not be found at his
elegant residence at the Highlands.
Gray was deposed from the treasurer
ship OF both corporations several
days ago, and William Hooper was
Atlantic Mills and Edmund Dwight
of the Indian Orchard Mills. The as
sets of the two corporations amount
to more than "a, 100000 audit is not
believed that the solvency of either is
impaired by Gray's operation. The
capital OF the Atlantic Mills is 81, 0O0,-
600, and its assets, according to its
last annual statement, exceeds ST.
100000. The capital of the Indian
Orchard Mills is $500, 900, with assets
of nearly three times the sum. Mr..
Gray has been treasurer of the former
for ten years and of the latter ,corpor-
alton for eight years. Hehas occupied
a foremost position in business and
social circles. He has lived magnif-
Gently and he was regarded as very
wealthy. He owns the fine cutter yacht
Huron, and he has been commodore
OF tie Dorchester Yacht Club sew
erai years. Mr.. Gray is about so
years old, and has q wife and two sons.
A reporter who visited Mr.. Gray's
house at the Highlands last evening
found the place Swallowed by de-
tective, who had III his pocket o war
rant charging Mr.. Gray with embez-
Element Of 100000 from the Atlantic
cotton mills. No trace OF the missing
man had been found since he landed
at 10 O'Clock yesterday morning from
his yacht ct Central wharf. It was
learned ct che house that no one knew
gone to Old Orchard, but had been
telegraphed for. The only member OF
the family at home was Mr.. Cunning
ham, brother in-law OF Mr.. Gray. He
said that the first any one of the
family knew of the trouble was yester-
day afternoon.
The best information obtainable in
dicates that the amount of Gray's
shortage in both corporations will
reach fully $1,OOO.OOO. Mr. Gray is
a director of the New England National
Bank. as also is Samuel g. Smelling,
the defaulting treasurer or the Lowell
bleschery corporation. It is said the
two men we're interested in some enter
prises ID common. Snelling's shortage
now figures up to 100000. Mr..
Gray was park commissioner of this
city for several years.
The managing directors of the At
lantic Mills Company are still engaged
upon the books of the corporation in
relation to the shortage of William
Gray, Jr., the late treasurer, but at
present che amount of his defalcation
cannot be learned. In an interview,
this morning, with two of the directors
who are anxious that their names
should be Withheld, the following
facts were learned: Lost Friday
the deficiency was discovered by
e~l Ca q h1iIbOA opPOAACCO Ny OEC OAIOC-
tors, and on Saturday Gray came to
the Office and confronted the charge.
He after moment or two confessed
the crime, acknowledged that ne had
embeZzled thefunds of the corporation
to the extent of between 100000
and 100000, but as to the use to
which he put the money his only reply
was building operations" This
accounting is believed to be true
by the directors, who say his
operations of this character in
Roxbury have been notorious.
1t is also believed that Gray
has told the truth regarding the
amount embezzled, and the directors
do not expect to find thSttit will exceed
5000, 900. On Sunday, Gray, accom-
panied by his brother-in-law and a.
party of gentleman friends, went on
board his yacht, the Huron, and all
cruised about the lower harbor and
bay during the day and spent the night
below.
Monday morning the yacht came up
to the city and landed Gray and his