Savannah morning news. [volume] (Savannah) 1868-1887, 1886-07-01
AN OVER-IsSUE OF BONDS.
Flight of the Treasurer of an Old
Canal Company.

PHILADELPHIA, June 30.-The hasty
summoning OF the members of the Board
of Directors of the Chesapeake and Della
ware Canal Company at an early hour
this forenoon created a stir in financial
circles, and report quickly flew about
that heavy defalcatiOn had been discov-
cred in the accounts of.one ofthe officers.
! The company iR one OF the oldest, and was
in carrier times one of the weaithiest cor
| porations in the Middle States, holding a
charter under the Legislatures of Penn
| sylYanla, Delaware and Maryland. The
| first rumOr that reached the street was
that Treasurer James A. l.. Wilson had
| defaulted in his accounts to the extent OF
| $178,000.
THE OVER ISSUE.
The facts as subsequently ascertaiped
| more accurately were that an over issue
OF bonds to the amount of $6l5,26 was
made under the thirty-year mortgage loan
OF the company of July, 1856, for $780,
600. The loan natures tomorrow, and
preparations having been made for it's eX-
tension the return of the bonds for
certifcation at the office to-day
would have revealed the over issue.
treasurer Wilson did not appear at the
office to-day, but on his desk was note
containing confession of guilty knowl-
edge OF the fraudulent transaction. He
lett the city last night, 1t is alleged, in
company with Henry V. Leslie, the for
mer treasurer, under whose administra.
ton the over issue was made. MIR. Will
son ls about Is years of age and for over
~ years has been connected with the
Chesapeake and Delaware Canal Compa-
ny, having been Its treasurer since 1888,
when he succeeded MIR. Leslie.
MEETING OF THE DIRECTORS.
At meeting of the board OF directors
this afternoon, the facts of the defalcation
were briefly announced by President Gil
lingham, who said that peremptory action
by the board would be necessary in view
of the proposed extension of the loan,
which was to go into effect tomorrow.
Wilson on his desk, which
was written closely and to some
length on several small sheets OF note pa
per, was then read to the board. A dead
silence fell over the room. The defaulting
treasurer gives full and melancholy &C
count OF the over issue which had re-
manned a secret for so long a time He said
the over issue was made when the loan
for s., 800, 600 was first negotiated while
Henry V. Leslie, his own first cousin,
was treasurer.
ONLY KNOWN TO THE TWO.
Mr.. Wilson, who was assistant secre-
tary and treasurer at the time, was the
only person outside OF Mr.. Leslie who had
guilty knowledge of the transaction.
During the years he had held the position
of treasurer OF the company he had con-
tlnued to keep the matter secret, but
after to-day revelation could no longer
be ayerted. A discussion at some length,
and at times considerably animated, fol-
lowed. A tedious examination of the
books and accounts was made and num-
bers OF fraudulent loans ascertained.
The action of the meeting eliminated in
the following notice, which was directed
to be published:
The company makes the following state
ment. A defalcation by the treasurer of this
company has been discovered this day. The
interest or the loan due July |, 1886 will not
be paid until further notice. and the extern
sion OF the loan cannot be carried out in the
mode provided for, Holders of loans are re-
quested to produce them at once at the office
of the company for examination. Transfers
of stock and loan will not be made until fur
Their notice. BY order of the Board of Direc-
tors. j. f. GILLINGHAM,
President.
WILSON'S STANDING.
In the neighborhood where Treasurer
Wilson lived in West Philadelphia the
residents universally regarded him as a
man of large wealth. His house at
Forty-frst street and Baltimore avenue is
a very handsome structure, and recently
he completed a costly stable attached to
it. His daughter was married a short
time ago and all the surroundings of
wealth and fashion were visible at the
wedding. Among the presents received
by the bride was handsome villa ready
for occupancy at Wayne Station on the
line or the Pennsylvania railroad.