New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-11-25
DEFAULTER REED IN JAIL
TRACING THE ovER-IssUE OF STOCK.

THE PRISONER APPARENTLY wREcK-CoNsrDxBs
ING rBE CASE IN THs vxcHAxGv.
BOSTON, Nov. "a (SpecidD.-Reed, tie defsultinG
treasurer Of the South Boston Railway, is mush
broken. He Is described by friends who have called
on him at the Charles Street Jail as . wreck Of his
former self His memory seems to bs gone and be II
apparently ten years older than be WAS few ~eeks
ago. Ezra w. Baker, president Of tho American Loan
and Trust Company. who is q director in the South
Boston Railroad Company said this afternoon: =
inclined to believe that the cash deficit will not b
100000, as has been stated although it s not known
positively. large number of bills entered a. paid
upon the compsny's books not paid and Of ceurss
the company is liable for these do not believe that
there any other outstanding obligations due to Mr.
Reeds crookedness than those for which the company
is responsible As to the OF the stock there
seems to be s0me question whether the corporation
will have to assume it. They worth at par value
$50. There is nothing to prevent the company from
these oVerssued stocks ncaea it Is decided thss
the company liable for them, and they be carried
and dividends paid upon them. However. this matter
has not been considered bv the directors yet Tho
embezzement will not have ny serious effect upon tho
road IL is believed that about 500 shares Of South
Boston stock held by members of the Stock Board.
we'll considerable Mexican Telephone stock,
most OF which is held collateral on loans inside to
Reed. One house alone holds $50 shares OF South
Boston stock which has been in its possession since
1882 and which Ia presumed to be part OF the oser
issue.
The Governing Committee Of the Exchange held .
long session this morning. at which MIR. Reeds affairs
discussed 1t decided that ii would be high
y improper at tn present time to expeI him from tho
Board, such action might have tendency to pre-
iudice his in court 1t also decided not 10
sell his securities under the rule until ii had been
determined just what the overssue OF stock amounted
to- and whether not there had been any Issue
OF the stock OF the Mexican Telephone Company. Of
which he also treasurer. The officials of tho
latter positive that it all right but at the
time thorough examination into its affairs Is TO be
made. The committee adjourned 10 meet again
Saturday. Mr. Reeds outstanding contracts tho
Boad amount TO only about SO O00 and at The present
prices the securities in WI ch he interested,
il is believed that these be met dollar for dollar
He has for a long time been a bear Atchison the
Mexican Central securities and New York and New.
England, and for weeks the market has been going
steadily against him. On the Atlantic and Pacific
stock and bonds, however, he has strangely enough
been q bull and through these is repoted to have
made considerable money. The assignment of his seas
IN the Board to the South Boston Railroad Company
really amounts to nothing, there is nothing to be
assign ID. Under the rules of the Board and in
cordance with past legal uccsons the seat ean 10
sold for the benefit OF his creditors who are members
of the Board. Ii is estimated TO be worth Sl0,oOO.
The stock OF the South Boston Railroad Company sold
off to so this morning but subsequently advanced on
small transactions TO So and sill later 10 "a, where
It was quoted at o'clock. People friendly to the
Metropolitan Company are currently reported to be
the purchasers, and stated q at this corpora
ton seeing the opportunity to secure control OF tho
unfortunate road will take the fullest advantage OF the