New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-08-18
THE DEFALCATION OF GRAY.
HALF A MILLION DOLLARS EMBEZzLED.
HIS YACHT AND HANDSOME HoUsE-sPECuLATioNs
IN STOCKS AND BUILDINGS.
fBY TELEGRAPH To THE TRIMMED

part as yet apparently in the search tor William Gray
jr the abscondng treasurer of the Atlantic and In
dian Orchard mills but the detectives with the warrant
charging embezzlement of halt million of dollars
are prosecuting vigorous search for him. All rail-
road cars going to Canada inspected and the po-
lice in all cities and towns of the State have been in
formed of Mr.. Gray's fight. The chief hope of the
detectives Is that Mr. Gray may be traced by means
Of his horse and buggy
Mr.. Gray is assessed for 1852 $50 real and s15OOO
personal estate Tho have notice from the
Manufacturers' Fire aud Marine Insurance Company
that 1t holds mortgage Of S3l 900 Upon the real
estate and 1t has been common remark among people
who within fifteen years have come to inquire as to
the assessed value of Mr. Grays real estate that they
were surprised at the amount as it morgaged for
twice that sum. The Home Savings Bank held
mortgage originally for $4,000 on Mr. Grays real
estate but the mortgage has been reduced to about
100000. The Atlantic and Indian Orchard mills
have each placed attachments on Mr. Grays property
for $300,0OO Mr.. Gray was large depositor in the
New England National Bank of which he was also a
director His deposits all made treasurer of
the different corporations. lie drew money on his
accounts nearly every day but never overdrew his
account. When the time to pay of the hands
he would draw larger amount than at Others but az
no time did his transactions excite any suspicious.
On Saturday he presented his book and took a small
OF money, but not enough to make il appear that
hc gong any extended trip. At the New
England National Bank of which Mr.. Gray is one of
the directors, official said to-day: Mr.. Gray will
remain director this bank until his property is
attached, he makes assignment sells his stock.
He has not resigned and immediate action will be
taken by the directors of the bank in regard to asking
for his resignation" At the Merchants National Bank
an official stated that $4,000 worth Of the Atlantic
mills paper was held hy the bank and also a small
amount of the Indian Orchard mills paper. The latter
paper however. was projected by good ndorsers The
directors of the Merchants Bank have been assured by
the directors of the Atlantic mills that the notes of tho
latter corporation will be promptly paid. 1t was fur
ther stated by the bank official that the savings banks
and trust companies large holders of Atlantic
mills notes. 1t was the gentlcman's opinion that
nearly all the larger banks OF this city at present held
papcr OF the Atlantic mills
The handsome cutter Huron, the yacht which Mr..
Gray himself designed is still lying quietly ut anchor
in the usual yacht anchorage oil Rowe's wharf; her
sails being snugly slowed and everything aboard look
ing ~ shipshapc if her owner was expected back
any moment. Her skipper Captain Watson, came
ashore and talked freely about the yacht and her
ovuer. " / was never more surprised IN my life he
said than when | read the morning papers and
found that Mr.. Gray believed to be II deiaulter
W hen lac left the yacht Monday morning asked him
contrary my usual custom whether we should go out
In the afternoon He made no definite reply and CAV
no hint of the time be would return The cost OF tie
Yacht WAS $50 ,O0O but Mr.. Gray had made aera-
tions costing $2OODO. Mr.. Gray WAS very reserved
man aud made but few visits to other yachtsmen aud
received but few in return"
The manager of Russclls Commercial agency says
Yesterday We sent the copy for our September hook
to ,ress and we omitted from it the rating of the
Atlantic and Indian Orchard mills until we can know
how seriously the defalcaton may embarrass Them
Tho Indian Orchard mills will probably not be
financially embarrassed, as 1t Is more OF family
corpo alton in which H. Payson is largely interested
understand from broker that the atters note sold
for a very hgh rate last week. la regard 10 the
Atlantic mills am afra aid that this enOezzemcnt may
seriously cripple them for the present at least" Many
OF the banks OF thit city hasten to disclann any
business connection with either mill corporation and 1t
il hopcd that the deialcation OF Mr.. Gray will not
seriously hasten a slight financial PanIc some siSns
nj which have bee0 evident in Boston to-day.
Mr. GRAY was man OF correct labits ana when not
cruising in his yacht hc spen his leisure time with his
wife aud Ills eight children at HE pleasant home III
Dorchester lie the great grandson OF tie famous
merchant Billy" Gray and proud and dig nlhed
man. Ills family is anxously awaiting some uu'hg'
from him , -
t;on. saws should not be at all surprised to learn
that he Is not alive And this belief Is shared by
many of Mr. Gray's social and business friends. Inc
trace of him after be left his home on Monday in
creases their apprehensions. Much sympathy Is ex-
pressed with the aged father. William Gray, sr was
tor several yeais treasurer of the mill corporations
He was one of the prominent managers In getting up
the grcat pool auction sale OF mill goods In Boston over
years ago and made the opening address
10 the merchants and business men from all sections OF
the country The sales netted over s3oOO,ooo
The managing directors of the Atlantic Mills Com
many are st engaged upon the books OF the corpora
ton in relation 10 the shortage OF Gray Out a esen
his lefalcatiOh cannot De ledreI
with certainty. In an interview this morning WIN two
of the principal directors who are ANXIOUS that .ne
names should he withheld the following tacts were
learned Last Friday the deficiency was discovered oy
an examiner appointed by the directors ana on SHtu
day Gray came to the office and was confronted Nn M
thc charpe He, after moment or two cOntcsseu the
crime and acknowledged that lie had cmDeLNeu the
funds of the corporation to the extent oi between
$500 900 snd s6OOOOO, but az to the use 70 1 wncn
he had put the money his only reply was " ouidihg
operations" This accounting believed 10 ot true y
tbe drectors who say his operations OF this character
in Roxbury have been notorious 1t Is also oenerea s
that Gray has told the truth regarding the aoun. %
embezzed and the directors do not expect 10 una that
II will exceed 5000 600. On Sunday Gray. accom-
nauied by his brother law and party OF gentlemen
niricnds went on board his yacht, the Huron. and
crnised about the lower harbor and bay during the
day and spent the night below. Mr Cunningham VINO
alone with Cray on MS yaona SITeay had teep
hi. wont There nothing IN word or look to snow
that he had been called account by the directors OF
the corporations of which he was treasurer a
warrant ha. been issued charging Gray with enbezzi
inc funds of the two mills From gentle eman inti-
mately connected with the two corporations II was
learned the directors fear that matters are MVio
mons than was at first thought 1t is generally
conceded that the amount embezzed appro1imates
$500 900 aud it is feared from the successful way 10
which the books we're manipulated that the chai %
forrerv NAV have to be entered against the mi'sng
man. Gray's extravagances entirely In the di'
r.cton of stock gambling and the gratlhcaon o Pc
culiar hobbies. .. - .,o
About twenty years ago he began fitting up the
magnificent stone mansion In which his faHiiiy now now
reside For nearly two years ne had about |oo men
WORKING there lie had bothouses, truit trees anu
overv sceompanimcnt to a fine residence. The ex,
pen 20 attending this very great lie next tutneu
10 Horticulture and raised OF the finest fowerhs
nlsnts in this region OF the country. Two OF thiee
later GRAY became interested in hens and bought
them with his usual extravagance. lie had every
species of fancy breeds This venture cost him many
thousands of dollars. His next .hobby was horses anu
LIE Lnualt eiolt or ten tine hOLses anu