St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-11-24
HEAVY EMBEZZLEMENT.
Ehe Treasurer of the South Boston
Horse Railroad Company Steals

Fhe Treasurer of the South Boston
Horse Railroad Company Steals
S1O4.OOO.
Boston, Nov. 23.-William Reed, treas
urer of the South Boston Horse Railroad
company, was arrested this morning at his
home in South Boston upon warrant
charging him with the embezzlement of
$50. 900 of the railroads funds. In the
police station Reed confessed his guilt and
acknowledged the embezzlement of 500. 500
in cash and an over-iSsue of 345 shares of
the stock of the road, having cash value
of S34, 5O0 making the total amount OF
the defalcation Sl04. 600. Reed became
treasurer of the company about eight years
ago. He had been very active and efficient
in looking after the affairs OF the company,
and had the fullest confidence OF the board
of directors. His unauthorized use OF the
company's funds began in 1885. He in
vested heavily in Mexican Central securities
at high prices. and succeeded until only a
few days ago IN
CGNCEALING HIS ILLEGAL OPERATIONS
from the other officers of the company.
The discovery of his irregularities was
caused By the election of Charles II. Her
Bey to the resdency of the company. That
gentleman and Hon. Benjamin Dean, one
of the directors, began an investigation
about 10 days ago. which resulted in an
anpIicatiou for a warrant for his arrest.
Soon after his arrest he turned over to the
directors all of his property. worth S15. ZOO,
and securities worth about SO, 600. He
also made over his stock contracts. which
he and the directors believe will nearly. if
not quite. make good the full amount of his
embezzlement. Reed was arraigned in the
municipal court this afternoon. lie waived
examination, and was held in $50. 900 bonds
for the grand jury, in default of which he
was committed 10 jail. a gentleman fam-
liar with the inside facts says it will be
impossible for some time yet to state posi-
tiyely how much the loss will be- An
expert has been at work on the cOmpany's
books for week back, and from present
appearances. says this gentleman, it would
seem as if the company has been
PRACTICALLY RUINED
nv Reed's defalcatiGns. Undoubtedly its
capital stock and surplus will be wiped out
entirely. Reed had been engaged some
six or seven years in defrauding the COM
panv, and it is a matter Of surprise that his
crookedIeSS was not discovered long be-
fore. The discovery came about In this
way: Reed had been specializing in stocks
for number OF years. anu lOSiuS Gull
stantlv. After losing all the money stolen
from the company. Reed put up over-issueS
of the ucmDany's stock as collateral for
margins on stocks being carr d for him.
So mu 4 the company's stock being OF
fered without apparently any reason for it,
as it was supposed the company had money
on hand TO pay bills, aroused suspicion, and
tbe directors were notified and an inveSti-
cation resulted. 1t is probable that when
fhe certificates of stock are offered for veri-
fcation at the cOmpany'S office in about a
month, it will be- known just how much
stock has been over-issued, and not before.
Reed lost all his money in stock specula-
ton. He was of quiet, retiring disposi-
tion. moderate in his expenditures, and
with no bad habits as far as known. Do
mestic troubles are believed to have hast
ened him in his downward career. Reed
did not own a share of stock in the road.
He is said to be largely interested in mines
in Utah. as we'll as in mining, railroad and
other speculative schemes IN Mexico. He
is also treasurer of the Mexico Telephone
company. the funds of which, he asserts,
are in good condition. Owing to the doubt
as to the genuineneSs Of the stock certiti-
Gates of. the South Boston Railroad company
sales of its shares were enjUined in the bro
kers' board this afternoon.