St. Paul daily globe., 1886-07-01
STOLE ALL IN SIGHT.
The Aged Treasurer Of the Chesapeake 4
Delaware Canal Company Leaves
for Canada.
Gigantic Frauds in Which he Had q
Hand We're On the Eve Of Coming
to Light
aged to Get Away With
$615. 700,
By Overissuing Series Bonds Which
Become due To-
day.
a HeavY Defalcafion.

PHILADELPHIA, June SO.-A hastv
summoning of the board Of the Chesapeake
d Delaware Canal company at an early
hour this morning created stir in financial
circles, and the report quickly few about
that heavy detalcation had been discoy-
cred in the accounts of one of the officers.
The company is one of the Oldest, and was
III earlier times one of the wealthiest. cor
poratlons in the Middle States holding a
charter under the legislatures of Pennsyl-
yania, Delaware and MARYLAND. The
first rumor that reached the street
was that Treasurer James A. l.. Wilson had
defaulted in his accounts to the extent of
Sl7S, 00O. The facts as subsequently,
ascertained more accurately were that an
owe Tissue OF bonds to the amount of S615.-
S6O was made under the thirty year mort
gage loan OF the company of july. 1856.
for So, 500, 600. The loan natures to-mor.
row and preparations having been made for
It's extension. the return of the bonds for
certlfcation at the Office to-day would have
revealed the over-iSSue. Treasurer Wilson
did not appear at the Office today. but on
his desk was note
CONTAINING A CONFESSION
of guilty knowledge of the fraudulent trans
action. He left the city last night it ia
alleged, In company with Henry v I.esly,
former treasurer, under whose administers
ton the over issue was made. j. A. l..
Wilson, the accused defaulter. is about 65
years OF age, and for over thirty years has
been connected with the canal company.
having been its treasurer since 1883. when
he succeeded Henry Lesley. The annual
report was regarded as very good one.
1t stated that the annual revenue for the
year ending May 81 was S21O, 974, and the
expenses, including $119, $40 interest ON
mortgage loan, were SITS, $40. and the net
earnings $50, 344, which the direct-l
ors thought, considering the unset
tied state of labor and depres-
sion in business, was gratifying
exhibit. 1t was also learned at the meeting
that considerable number of the bond
holders had given their assent to the extern
sion of the company's boat loan at per
cent. for thirty years from tomorrow. Tha
amount of these bonds outstanding was
supposed to be 81, 993, 750, although by the
fraudulent over-isSue the amount standing
to the credit of loan holders is So, sos, $50.
at meeting OF the board of directors this
afternoon the facts Of the defalcation were
briefly announced by President Gillingham.
who said that
PEREMPToRY ACTION
by the board would be necessary in view
OF the proposed extension of the loanWhicf1
was to go into effect tomorrow. The
letter left by Treasurer Wills on his desk
which was written closely and to some
length on several small sheets of note pa
per, was then read to the board. A dead
silence fell over the room. The defaulting
treasurer gives a full and melancholy ac-
count OF the over issue, which had remained;
secret for SO long time. He said the
over issue was made when the loan for
$2,S00,0 600 was first negotiated, at
the time Henry ". Lesley, lis
own first cousin, was treasurer.
Mr. Wilson, who was assistant secretary
and treasurer at the time, was the only per-
son outside of Mr.. Lesley who had a guilty.
knowledge of the transaction. During the
years he had held the position of treasurer
of the company he had contin8ed to keep
the matter secret. But after to-day a reve-
lation could no longer be averted A dis
cusslon at some length and, at times, ami
mated, followed. "a tedious examination of
DOCKS and accounts was made and the num-
| bers OF the fraudulent loans ascertalned.
The action OF the meeting eliminated in
THE FOLLOWING NOTICE,
which was directed to be published:
| The company makes the following state.
| ment: DefalcationS by the treasurer of this
| company have been discovered this day. The
| interest Of the loan due July 1, 1885, will not
| be paid until further notice. and the extern
sion of the loan cannot be arried out in the
mode provided for. Holders Of certificates OF
loan are requested to produce them at nee
at the Office Of the company for examination.
Transfers OF the stock and loan VIII not be
made until further notice. By order OF the
board of directors.
j. e. GILLINGHAM, President.
In the neighborhood where Treasurer
| Wilson lives in West Philadelphia, the
residents universally, regarded him as a
man of large wealth. His home at Forty.
first street and Baltimore avenue is a very
! handsome structure and recently he com,
pleted the structure Of costly stable
attached to it. His daughter was married
a short time ago and all the surrounding Of
wealth and fashion were visible at the
wedding. Among the presents received by
the bride was a handsome villa ready for
occupancy at Wayne station on the line of
the Pennsylvania railroad.
| N0wr0