The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-11-24
HE HAD NO BAD HABITS,
But Mania for Stock Speculation Led Him
to Steal Over 100000.

BOSTON. Nov. % William Reed, treasurer of
arrested this morning at his home in South Bos-
ton, upon warrant charging him with the en-
bezzlement of $35. 600 of the railroads funds. In
the police station Reed confessed his guilt, and
Acknowledged the embezzlement of S69. 500 in
cash and an overissue of three hundred and
forty shares of the stock of the road, having
a cash value of $34. 500. making the total sum OF
the defalcaton 100000 Reed became treasurer
of the company eight years ago. He had been
very active and efficient in looking after the af-
fairs of the company. and had the fullest con-
fdence of the board of directors. His unauthor-
lied use of the company's funds began, it is
stated, in 1881. He invested heavily in Mexican
Central securities, at high prices and succeeded,
until only few days ago, in concealing his ille-
gal operations from the other officers of the
company The discovery of his Irregularities
was caused by the election of Charles a. Hersey
TO the presidency of the company. That gentle
man and Hon. Benz. Dean, one of the directors,
began an investigation. about ten days ago,
which resulted in application for a warrant
for his arrest. Soon after his arrest he turned
over to the directors all of his property, worth
about $l5, 900, ana securities worth about $780,
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 mu-
1icipal court this afternoon. He waived exani-
nation, and was held in $50 900 bonds for the
grand jury. in default of which he was commit
ted to jail gentleman familiar with the
inside facts says it will be impossible for some
time yet to state positively how much the loss
will be. An expert has been at work on the
compsny's books for a week, and FROM present
appearances, says this gentleman, it would seem
as If the company has been practically ruined
by Reeds defalcations. Undoubtedly. it's capi-
tai stock and surplus will 70 wiped out entirely
Reed had been engaged some six seven years
in defrauding the company, and it is matter of
surprise that his crookedness was not discov-
cred long before. The discovery came in this
way: Reed had been specializing in stocks for
number of years and losing constantly After
losing all the money stolen from the company.
Reed put I'D overissues of the eompany's stock
collateral for margins stocks being car
ried for him. So much of the company's
paper being offered without apparently any rea-
son for it. as 1t was supposed the company had
money on hand to pay bills, aroused suspicion
and the directors were notified, and an investi-
CATION resulted. 1t is probable that when the
certificates of stocks are offered for verhcation
at the companys Office, in about months time
it will be known just how much stock has been
overssued and not before. Treasurer Reed lost
all his money in sto,k speculations. He was of
a quiet retiring disposition, moderate in his ex-
penditures, and with no bad hahrs as far as
known. Domestic troubles are believed to have
fastened him in his downward career. Reed did
not own share of stock in the road. He is said
TO be largely interested in mines in Utah, as
well as in mining. railroad and other speculative
schemes in Mexico.
He was 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 certificates of the
South Boston Railroad Company. sales Of it's
shares were enjoined in the Brokers board this
afternoon.
Later facts show that the total amount en-
bezzled is $l04. 900, of which $34, 500 is
issue of stock. Reed has confessed to the police
and turned over his property to the directors of
the company.
At private hearing before the municipal
court, Reed was held in So, 900 bail for his APP
pearance before the Superior Court in the De-
cember term Reed did business as a stock
broker on Devonshire street, and it is stated
that the funds of the railroad company became
SO mixed M with his own that it is impossible to
tell at present just how his accounts stand.
Reed is in jail