The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-11-24
ANOTHER EMBEzzLgmENT.
Treasurer Reed swindIes the Boston
Horse Railroad Company out
OF sio4 900.
The Company Practically Ruined
by His specuIations In Stock.
Reed Breaks Down and Curses Him
self Into Severe Sickness.

BosToN, Nov. 23-William Reed. treasur.
| er of the South Boston Horse Railroad Com
| pany, was arrested at his home in South
| Boston this morning by Inspectors Hanscom
and Houghton upon warrant charging him
with the embezzlement of $35,OOo from the
| funds of the railroad. Mr.. Reed confessed
his guilt and acknowledged the embezzle-
ment of some $50, 500 in cash and an over is
sue of 1856 shares of the company's stock.
having acasn value OF $4,000, making the
Mr.. Reed became treasurer about eight
years ago, and has been very active and eff
cent in looking after the cOmpany's affairs,
and had the full confidence Of the directors.
His unauthorized use of the csmpany's
funds it is stated began in 1881. He Invest
ed heavily In Mexican Central sureties at
high prices, and succeeded, until only few
days ago in c0ncealing his Legitimate oper-
ations from the other officers of the compa-
ny. The discovery Of irregularities was
to the presidency and by the investigation
which that gentleman and Hon Benja-
min Dean. one of the directors began about
ten days ago. The result was an application
for warrant
Mr.. Reed has been i'll athis home for three
or four days, but he accompanied the officers
to headquarters. Soon after his arrest he
turned over to the directors all his property
including his seat lin the Boston brokers'
board, worth about $1,000, and securities
worth about $4,000. He also made over his
stock contracts, which he and the directors
believe will nearly If not quite make good
the full amount of the embezzlement.
MIR. Reed was arraigned in the municipal
court this afternoon, waived examination,
and was held in $4,000 bonds for the grand
jury. No attempt was made to obtain bail
and he was taken to jail.
A gentleman familiar with the inside facts
OF the embezzlement, and who has known
Mr. Reed for years, said this afternoon that
1t would be impossible for some time yet to
state positively how much the loss viii be.
An expert has been at work upon the COM
pany's books for week. and from present
appearances, says this gentleman, it would
seem as ii the company has been practically
ruined by Reeds work. Undoubtedly the
capital stock and surplus will be entirely
wiped out. Mr.. Reed has been engaged for
some six or seven years in defrauding the
company, and it is matter of surprise that
the discovery had not resulted long before.
The discovery came about In this way. Mr.
Reed has been speculating in stocks for
number Of years and has been losing con-
stantly. After losing all the money stolen
from the company Mr.. Reed put up over is
sues Of the company's stock as collateral for
margins on stock being carried for him. So
much OF the company's paper being offered
without apparently any propriety for it when
It was supposed the company had money ON
hand to pay bills aroused suspicion and the
directors were notified The examination
resulted. and while ii was pending Reed was
kept under constant surveillance at his resi-
dence by men hired by the company.
The moment this was done Mr.. Reed broke
down completely. He fairly cursed himself
int severe sickness and was unsparing in
his denunciation of his folly and crime. 1t
is stated that this is the first defalcation by
over issues of stock known in this city. 1t
is probable that when the certificates of
stock are offered for verifcation at the COM
pany's Office in about menth's time it will
be known just how much stock has been
over issued and not before.
Treasurer Reed has lost all the money In
stock speculation. He was a very quiet, re-
firing sort of man. moderate in his expen-
ditures and had no bad habits as far as is
known. Domestic troubles are believed to
have hastened him in his downward career.
Mr.. Reed did not own a share of the stock
in the road.
Mr. Reed is said to have been largely in
terested in mines in Utah as well as mining,
railroads and other speculative schemes in
Mexico. He is also treasurer of the Mexi-
can Telephone Company, the funds of which
he asserts are in good condition. Owing to
a doubt of the genuineness of the stock GER
tiicates of the South Boston company sales
of its shares in the brokers' board were en-
joined this afternoon.