Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1886-11-24
ADDITIONAL TELEGRAPH
A Tickle Fiduciary.

BOsToy, Nov. 23.-This morning VIM
Reed. treasurer of the South Boston Horse
Railroad company, was arrested on q
charge of embezxling $100, 600 in cash and
500, 900 in ever issle OF stock of the com.
pany. 1t is charged that the embezzlemen1
has been going on for the past five or six
years Reed has been treasurer fer the
company ten years, and has always been
trusted with all its funds He " as arrested
at his home in South Boston by Chief OF
Police Inspector Hanson and Police In
spector Houghton. He refused to say any
thing in regard to the accusation against
him.
Later facts show that the total amount
of the embezzlement is $1O4, 900, of which
$34. 500 is over issue of stock Reed
has confessed to the police and turned over
all his property to the directors of the
company.
His authorized use Of the company's
funds began, it is stated, in 1881. He in
vested heavily in Mexican, Central securi-
ties, and succeeded until only a few days
ago in concealing his illegal operations
from the other officers Of the company
The discovery Of his irregularities was
caused by the election Of Charles II. Her
sey to the presidency OF the company.
That gentleman and Hon. Benjamin Dean,
one of the directors, began an investigation
about ten days ago, which resulted in an
application for a warrant for his arrest.
He waived examination and was held in
$50, 900 to the grand jury in default OF
which he was committed to Jail. A gen
tlcman familiar with the inside facts says
ii will be impossible for some time yet to
state positively how much the loss will be.
An expert has been at work on the com
pany's books for week, and from present
says this gentleman, it would
seem as If the company has been practically
ruined by Reeds defalcaiion. Undoubtedly
its capital stock and surplus will be wiped
out entirely Reed had been engaged some
six or seven years defaulling the company,
and it is 4 matter of surprise that his
crOOkedness was not discovered long before.
The discovery came in this way: Reed
had been specializing in stocks for num-
Der OF years, and losing constantly; after
losing the money stolen from the company
Reed put Up over issues of the company's
stock as collsterals for margins on stocks
being carried for him. SO much OF the
paper being offered without ap
parently any reason for it, as it was sup
posed the company had money on hand to
pay bills. aroused suspicion and the
directors were notified and an investiga-
ton resulted. 1t is possible that certificates
of stocks are offered for verification at the
office In about q months
time it will be known just how much
stock has been overissued, and not before.
Treasurer Reed lost all his money in
stock speculation. He was Of quiet, re-
firing disposition. moderate in his expendi-
lures and with no bad habits as far AS
known. Domestic troubles are believed to
have hastened his downward career Reed
did not own share of stock in tho road:
he Is said to be largely interested in mines
In Utah, as we'll IS in mining railroad and
other speculative schemes in Mexico. He
is also treasurer of the Mexican Telephone
Co, the funds Of which he asserts are in
good condition
Owing TO the doubt as TO the genuine
ness of stock certificates Of the South
Boston company. sales Of its shares were
Withdrawn from the brokers' board this
afternoon.