Morning journal and courier., 1886-11-24
News by Telegraph
 FROM ALL QUARTERS.
 LOST IN SPECULATION. The Thousands Stolen By
 Treasurer Reed. THE McQUADE JURY COME IN But Are Sent Back Tol
 Their Work. THE CIVIL SERVICE TESTS. l The Funeral Of Charles
 Francis Adams. l
THE CIVIL SERVICE TESTS.
RUINED BY SPECULATION.

| Treasurer Reed of the Boston Horse 1 Railroad Company Under Arrest for Heavy Embezzlement.
 BOSTON, Nov 23-William Reed, treasur- | CT of the South Boston horse railroad com pany was arrested at his home in South Bos- ton by Inspectors Hanscom and Houghton this morning upon warrant charging him with the embezzlement of $35, ,0O0 of the funds of the railroad MT. Reed, the police state, confessed his guilt and acknowledged the embezzlement of some $69, 500 in cash and an over-issue of three hundred and for ty-fve shares in the stock of the road having cash value of $34, 500, making the total amount of the dedication $104, ,000. The cause of his downfall was solely speculation. Mr. Reed became treasurer of the railroad company about eight years ago. He has been very active and efficient in looking after the affairs of the company and has had the fullest confidence of the board of directors. His authorized use of the company's funds, it is stated, began in 1881. He invested heavily in Mexican Central securities when they were at high prices and he succeeded until few days ago,in concealing his illegiti- mate operations from the other officers of the company. Indeed had the discovery not
 
 that within few days Reed would have closed out his stock at a profit and made full restitution to the company.
 The discovery of the irregularities was by the election of MT. Charles H. Hersey to the presidency and by an investigation which that gentleman and Hon. Benjamin Dean, one of the directors, began about ten days ago. Hon. Charles T. Gallagher, the attor ney, with MT. c. L. James and others, have been watching Reeds house night and day substantially since last Tuesday night. The utmost care has been preserved to keep the watch uninterrupted and one watcher who was suspected was relieved of his duty and 8 substitute put on: Reed had at one time but 2.5O cash in his pocket but a relative is said to have passed $10 to him within 8 day or two. The prisoner claimed during the week to be able to show books and papers to explain in measure his deficiency, but this appears to have been but an excuse for delay. Finally application was made to Judge Forsyth of the munici- pal court for 8 warrant.
 MT. Reed has been i'll at his home for three or four days, but he accompanied the officers to headquarters Soon after his arrest he turned over to the directors of the compa- ny all his property, including his seat in the Boston brokers board, worth about $1 5 ,000 and securities worth about $10,000. He also made over his stock certificates which he and the directors believe will nearly if not quite make good the amount of the embszzle- ment. Mir. Reed was aIraigned in the mu nicipal court before Judge Forsyth this afternoon. He at once waived examination and was held for the grand jury in $50, 900. He made no attempt to secure bail and was taken to jail. The embezzler is about fifty years old, is married, but has no children. It is said that he has been separated from his wife for some time. In addition to his treasurership of the railroad company he has been for some time also en- gagged broker at 53 Devonshlre street. He is also treasurer of the Mexican Telephone company, the funds of which he asserts are in good condition. Owing to the doubts as to the genuineness of the certificates of stock of the South Boston company sales of it's shares in the brokers board were enjoined this afternoon
 The announcement of Reeds embezzle- ment was great surprise to all his acquain- tances. One gentleman, who knows him in- timately, said: "This affair explains some thing I could never before understand. MT. Reed has always acted in a very pompous manner and has talked great deal about his telephone stock in Mexico. He has as- serted that he owned every telephone in Mexico. I never put much confidence in the statement, but now that his embezzle- ment is brought to light there is possibility that he spoke the truth. I knew that he had been investing largely in some kind of stock, but didn't know what it was. Perhaps the company's money has been invested in Mexican tele- phones. am somewhat surprised that it did not leak out before. I don't believe he has taken anything within the last two years for the accounts have been watched carefully since that row."
 The last report of the financial condition of the road, made ten days ago, shows as follows: