Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1886-07-08
THE CHAMPION DEFAULTER
A OOoE 0ONFEsBION BF THE
ThEASURER.


npeako a. Delaware Canal Coms
panY = How tue Late President
was Imposed Upon.
-
The GAZETTE briefly announced the
great delaloation Of J. A. l.. Wilson, Sec
rotary and treasurer Of the Chesapeake &
Delaware Canal Company, In Philadel-
phia, in its telegraphic columns last
week. The following is n later account.
An enormous ovt trlssue of bonds, of
which the Chesapeake n Delaware Canal
Company in Philadelphia, is made the
victim, was exposed by tho confession and
subsequent flight Of the secretary and
treasurer of the corporation, James A. L.
Wilson. The oyerissue will amount to
about SGl5, 200, and experts are engaged
in looking over the .accountsof the
company.
When President J. e. Gillingham
reached the company's office yesterday
week he found upon his desk letter
from MIR. Wilson. IL contained full
and complete confession of his crime.
He seemed very penitent, and In several
places noted his regret that he had been
drawn into the affair. He said that the
overissue amounted TO $Gl5, 200 and had
been commenced by his cousin, Henry
V. Lesley, who was Secretary and Trea-
surer before him. In this letter he said
that his accounts would be found correct
except in the transfer book and the bank
account, both of which had been altered
TO hide his fraudulent transactions. He
blamed, Lesley for all the trouble, but
the Board of Directors know nothing of
l'esley's criminality, and the exainina-
tions have not yet shown anything of
this kind. In his letter Wilson said he
had not thing to call his own.
Immediately a meeting of the board
was called, and il continued in session
nearly two hours. At the conclusion of
the meeting the following notice was
given TO the public:
Defalcatlon by the treasurer of this COM
pany hnve been discovered this day The
interest on tho loan due July LIST, 1886, will
not be paid until further notice. nnd the OK
tension Of the loan cannot be carried out In
the mode provided for. Holders OF Ger.
1lioates OF loan are requested 10 produce
them at once at the Office of tho company
for examination. Transfers Of the stock
and loan will not be made until further
notice.
by order OF the board OF directors.
j. II. GILLINduAM, President.
TO those connected with the company.
The annual meeting and election was
held on June 7th, and not the slightest
idea of anything wrong was entertained
by any one, and implicit confidence had
been placed in the secretary and tren-
surer. He Ind been connected with the
company for 80 years, much OF the time
as assistant secretary and treasurer. He
was only elevated to full responsibility in
those positions three years ago, when MIR,
Lesley retired. Warrants were issued im-
medintely after the meeting yesterday,
and placed in the hands of detectives, but
no cine ms TO the missing mans where
abouts was left
"fhe oyerissue was accomplished by
this MEANS" said one of the board Of
directors last night. "During The years
the late Andrew Q. Gray was president of
the company he always gave the treasurer
n large number of blank bonds bearing
his signature. These were To he used in
transferring an old bond TO now pur-
chaser. Mr.. Gray was resident OF New
Castle, Del, and this was done for con.
venience. BY this means MIR. Wilson hal
full scope, and it is supposed that in fill
ing out the bonds he wrote only small
amount on the stub, while he could make
out the bond proper for any amount he
pleased. The bank accounts have not
been thoroughly examined, but as far as
they have been gone over they have
been found in terrible con
diiion. A deficit of between $50, 900
and $4,000 has been discovered
in one institution alone, the Proyident
Life and Trust Company. The only way
! know in which the money could have
gone is that the greater part Of 1t was
spent in paying the interest ON the fraud
lIlent bonds first put ON the market. |
think Mr.. Wilson must have speculated
some, and with i'll success. He was in
terested largely in building speculations,
and don't think he ever made very much
out of his Investments.
Wilson was at the Office very late on
Tuesday week with Mr.. Gillingham. He
WAS left at the office by the president, and
must have written the letter after the
latter's departure. Ths fraud would
probably have been discovered to-day,
and certainly later on rs tho bonds were
brought in for extension.
The Chesapeake IL Delaware Canal Com
paAy was just emerging from n long
period of fnancinal depression when the
defalcation was discovered. Its stock
had recently sold as low as 25 cents u
share, but with the extension of the loan
for so years and the improved financial
condition under the present management
the outlook for the future was cDcourag-
ing. According to the statement made
by the treasurer at the annual meeting on
june 7th the liabilities were given as fol-
lows; Capital stock and scrip, S2,079,
2I3.5O; mortgage loan due on July LIST,
1886, 81, 800, ,750, and profit and loss,
S57, III .O3; total, $i,13l. 1880. The
company finds, however, that the mort
gage loan amounts to $2,608, $4,000, ac-
eordinp 10 the statemont of Wilson, and,
as the forms of law appear TO have been
complied with in the issuance Of the
bonds. the company will probably be
Obliged to bear the loss. This loan the
company had arranged to extend for 80
years at 8 per cent.
Mr.. Wilson lived in very good style at
Forty first street and Baltimore avenue
A new stable has been recently erected on
the grounds. Ills daughter was married
Il few months ago, and the ceremony was
very fashionable one. Among the
presents was one from her father of al
elegantly furnished house at Wayne sta
ton ON the Pennsylvania railroad. Wllsoi
WAS known TO be Of very quiet dlsposi
tion, and was not addicted 10 Any wees
He has served ns urganist for long whit
in the Woodland Presbyterian Church il
West Philadelphia.
HUNTING ron TIE CANAL coMpANY's THiEylsl
TREASURER,
PHuApEIpniA, July 1.-The heavy defnl
cation of the treasurer Of tho Uheshpehk
4 Delaware Canal Company, which wa
discovered yesterday, continues TO be III
main topic OF discu-slon In financial clL
cles, Several experts have been set 70 worl
mt the books Of the corporation ana the
nre busily engaged to-day In examining IN
a,,eounts TO ascertain whether the Feculi'
tion of James A. &. Wilson, the abscohdln
treasurer, aggregate more than he u.
kDowledgpd In his written confession Y
President Dillingham;.
The latter has sworn ont warrants Tor ~
arrest Of Wilson ind Henry v. Lesley, W
former secretary and treasurer nl tne con
many, charging them with emDezllemen
Ine description Of Wilson furnished 70 IN
detective department was telegraphed 10 y y
I,nllce districts In the Uhlieh S'illes'Nahhu'
Furope and elsewhere. n
Tht chief OF detectives believes that N
fnDitIyes have Bone IN Cnnhdn ana thi
wilson is without means. Inh hIR'V
holders OF the stock of tho company W
H., ITniteJ States government and the stu
Of Nlarylnnd, while the bonds are owned !
anmmher of prominent people IN this elli
Moucurs ID. Robinson possessing he'r'
s600,0OO.
WHERE THE STOLEN MONEY WENT
philadelphia Record of Friday
The heavy defalcation of James A. n
wilson secretary and treasurer OF IL
t,iasorsoLa Il Delaware Canal Compan,