New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-13
TREASURER REEDS lDROITNESS
HE COST HIS ROAD NEARLY 100000 By h's
CLEVER swINDLING.

CLEVER sWlSDLlNG
BosroN, Dcc IL (SpeciaD.-william Reed the dis
honest treasurer Of the South Boston Railway Com
pany, appeared in court on Saturday and pieaoou
guilty to the embezzlement Of 100000 belonging
the company Expert Chase's examination goes BACK
only year from the last annual meeting OF the oon
pany, or about October IL, 1855. Matters were IN
such thoroughly miIed-up state that 1t has taken
all this time to cover that period There are hundreds
of entries upon the books and dozens OF erasures
and changes great Ar cunt of time was consumed
in tracing issues and over issues OF the company
STOCK and the end has not been reached yet Some Oh
the largest certificates of stock have been split up n'o
smaller ones. re-ssued, then absorbed again in'o
larger certificates. some of which ale genuine anu
forgeries. Not only tnaf pu' soo
of largest stock In the road do not appear
upon the books at all. One man who owns Zoo snare'
OF stock is not credited with ceuts worth. lneio
are only 900 shares OF genuine stock in the roaa
but Reed over-issued so many certificates that IN
order TO keep the number right he was oohgeu 70
droo the names OF some tho holders, paving ui'i-
dends upon them in cash OF his pocket Then 700,
further mixed up affairs 1t is ot a wonder
than that he managed to escape discovery as og
he did, and is further matter OF surprise Una. ho
could keep track of his gigantic operations nc so
stock put it up as collateral to any Que VINO "ou,
take it. With consummate bodness he sold over
issued stock the superintendent OF the road 10 ne
starter and to other prominent employees lie soio 70
all his friends and acquaintances and there are some
people who hold such stock who are yet IN deishtiu
nconscousness that it is not good tor anything
Although the examination reaches back only year
the figures attained show that the embezzlement VIII
aggregate sum greatly exceeding the hgures g Pre-,
viousiy given. ranging nearer $500 600 thai than
5000 600 There is tar a cash deficit OF $l6O oOu6
which by the way does not include over $lO'oOO
represented bv disputed notes gwen by Reed and not al
lowed by the company Then the total number OF shares
OF overssued stock has been found to be 222 ihere
is much douot that the railway COMPANY is iiaole
FOR these and "a the market value at the tune they
were issued before the embezzlenent was 800 they
will represent $1222O This added IT. to o the t9tHa gha
cash deficit makes a grand total OF $2SZ.OOO. Inc
capital stock is $75O0OO. while the surplus in round
figures $4,000. BY little figuring it will be seen cen
tn 1t the entire surplus and about one-third OF the
capital stock is thus wiped out by Reeds embezzie-
ment. .
few more OF Reeds rascaies, in addition to those
above stated, have leaked For instance, he sod
all the old iron aud track material and made no,
single entry npon the company's book How much he
realized in this way cannot be told. but it must have
been considerable lie received $1,000 casn down at
one time John Giblin Tor some old iron all of
which he put in his pocket.