Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1886-11-24
A BIT; STEAL.
inc treasurer Of the South Boston
Horse Railroad Arrested for Embez.
element.
RoaroA. Nov %

BosroN. Nov 23
Ihis morning VIM. Reed. treasurer of the
South Boston Horse Railroad, was arrested
on the charge of embezxling si0O. 600 in cash
and *lOO, 600 in over issue of stock of the
company 1t Is charged that the embezzie-
ment has been going on for the pas, Eve or
six years Mr. Reed has been treasurer of
the company ten years and has always been
trusted with all the funds. He was arrested
at his home in South Boston, No. 57l East
Broadway, by Chief Inspector Hanscome
and inspector Houghton. He refuesd 10 say
ANYTHING to the accusation against him.
LArER.-The facts in regard to the en-
bezzienent of Wm Reed, treasurer of the
South Boston Horse Railroad COMPANY, show
the total amount embezzled is Sl04 600, of
which S34, 800 was over issue of stock. Reed
has confessed to the police and turned over
ali his property to the directors
AT private hearing before the municipal
court Reed was held in $4,000 for appear
a. ce before the superior court at the Decem
Der term. Reed did business as a stock
broker on Devonshire street and stated that
the funds Of the railroad company came so
mixed with his own that it is Impossible to
tell at present just how the accounts stand.
Reed is 10 jail.
Wm. Reed, treasury of the South Boston
Horse Railroad COmpan,, was arrested at his
home in South Boston, this morning bv In
spectors Hanscom and Houghton upon a
warrant charging him with the embr zzl ement
OF o35,00O from the funds of the railroad.
Reed, tie police state. confessed his guilt
and acknowledged the embezzement of
some $50, 800 in cash and an over issue of
$40 shares of the company's stock, having a
cash value If s34 500. making the total
amonnt of his defalcation Sl04 900. Reed
became treasury about eight years ago. He
has been very active and efficient in looking
after the company's affairs and had full con-
hdence Of the directors. His Unauthorized
use of the company's funds, it is stated, be-
gan in 1881. He invested heavily in Mexi.
can central secul tiles at high prices and sue
ceeded until only few days ago in concea =
ing his illegitimate operations from the other
officers OF the company. The discovery of
the irregularities was cause d by the election
Of Chas. II. Henry to the presidency, and by
the investigation which that gentleman and
Hon. Benz. Dean, one of the directors, be-
gan about ten days ago. The result was an
application for the warrant.
Reed has been ill al his home for three or
four DAYS, but he accompanied the officers to
turned over to the directors all of his proper
ty, including his seat in the Boston Brokers
Board. worth about Sl5, ZOO and securities
worth about $4,000. He also made over
his stock contracts which he and the director
believe will nearly if not quite make good
the full amount of the embeZZlement. Reed
WAS arraigned in the municipal court this af-
ternoon, he waived examinations and was
held in 500. 900 for the grand jury. No at
tempt was made to obtain bail and he was
taken to Jail
A gentlemen familiar with the inside facts
of the embeZzlement and who has known
Reed for years, said this afternoon that it
would be impossible for some time vet to
state positively how much the loss will be.
Undoubtedly the capital stock and surplus
will be entirely wiped out Reed has been
engaged for some six or seven years in de-
frauding the company, and it is a matter of
surprise that the discovery had not resulted
long before.
The discovery came about in this wav
Mr.. Reed had been speculating in stocks for
a number of years and had been losing con
stantly. After losing all the money stolen
from the company, Reed put up over issues
of the company's stock AS collateral for the
margins on the stock being carried for him.
pO lluCu VI tbt paper bclhR VI
fered without apparently any rroprety tor it,
when it was supposed the company had mon
ey on hand to paw the bills aroused suspi-
cion and the directors were notified. An ex-
animation resulted, and while it was pending
Treasurer Reed was kept under constant sur
veillance at his residence by men hired BY
the company The moment thi. was done,
Reed broke down completely, fairly cursed
himself into severe sickness and was un-
sparing in his depunciation of his folly and
crime 1t is stated that this is the first de-
facation BY over issues of stock know in this
city. 1t Is probable that when the certificates
of stock are offered for verificstion, at the
company's Office, in about month, it will be
known ust how much stock has been over
issued and not before. Reed lost all his
money in stock speculation. Domestic
troubles are believed to have hastened him in
his downward career. Reed didn't own \
share of stock of the road. He is said to
have been largely interested in mines in
Utah as well as mining, railroads and other
schemes in Mexico.