Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-10-18
A TRUST BETRAYED.
Mr.. Merick Reynolds Charged
with Embezzlement.
THE DRANE CASE REVIVED.
Mr.. Reynolds Secures the Company,
and an Expert is Searching for
the Facts.

Readers of the papers need little to re-
call to their minds the defalcation of G,
K. Drane, who SO grossly betrayed the
great trust reposed in him by his em-
ployers, the San Pedro Lumber Com
pany. The story was 30 sensational in
its features and is of go recent occur-
renee, that the details are still fresh In
memory.
Yesterday that matter was utterly
eclipsed in its lurid melodrsmatic
features by a scene in the Board of
Supervisors. Detective Lawson appeared
before the board just after noon, and
made statement that certain papers in
the possession of the County Clerk,
which had heretofore been carefully
guarded from the eyes of newspaper peo-
pie, were to be given up to the reporters.
Mr.. Merick Reynolds was present, and
undertook TO prevent this being done.
This brought Captain Lawson to the front
with great vigor, and warm debate was
the result. Mr.. Lawson distinctly as
serted that Mr.. Reynolds was no less
than thief. At length the papers in
dispute were produced, and proved to be
two bills put into the county for lumber
sold to the road overseers by the San
Pedro Lumber Company. MIR. Reynolds
swore to the demand on the 18th Of Sep
tember, 1888. Deputy Clerk Lowry took
his affidavit as to their correctness, and
as Mr.: Reynolds was about to swear
to the two bills, one for $24 55, and one
ff,v& 600 no hn 1@o1xnI - L.
said it was for $1S3.03. He claimed there
was faint line in the place of the hum
dredth figure, and he proceeded to make
1t plain. He went over the paper and in
all places where $33 03 appeared he
raised the figures to $133. .Q3. He did not
add up the itemized bill, in which there
were but three items, but simply took it
for granted that the raise ought to be
made. In this form he swore to the
demand. When it came before the board,
casual scrutiny revealed the incorrect
ness Of the bill, and warrant was drawn
for $57.5S, the 500 raise being taken off.
MIR: Reynolds never made any subsequent
claim for this amount. He explains the
matter by saying he made mistake.
Ot course this scene before the board
and what it revealed gave cause for in
quiry. 1t was further known, that on
the 9Th day of the current month Mr..
Reynolds had resigned his place as gen.
eral manager for bis company, and that
he was replaced by Mr.. L. w. Blinn,
nephew of Captain Marshall Blinn, one
of the Oldest and best known lumber men
on Puget Sound. At San Pedro an OK
pert has been examining Drane's books
ever since he fed the country, and
oil rfa @f
thick at the harbor. Whispers
were naturally connecting some of these
matters with Mr.. Reynolds name. Mr..
J. A. Hooper, Of Ssn Francisco, Presi-
dent OF the company, has been here
falcation came to light. Yesterday at 5
O'Clock he sat in the Office of the West
minister when HERALD reporter called
on him. The question of Mr.. Reynolds
troubles was opened at once, but Mr..
Hooper proved to be very reticent, and
not at all inclined to tell much of what
he knew. The reporter was, however,
in possession of go much positive in
formation that Mr.. Hooper was forced to
admit sufficient to show that Mr.. Rey-
nolds did not resign for nothing, and that
the runors on the street had only too
much foundation in fact.
1t appears that in searching into the
Drane defalcation there were others dis
covered which he had no connection
with. The pay roll had been falsified,-
and the books have in several respects
been falsifed. This has been going ON,
for long time past. Mr.. Reynolds has
been with the company as its gem
eral manager at San Pedro since
khn hro nh Erak
five years ago. The company has 70.
posed implicit confidence in him. But
these false entries were brought too di-
confronted with the facts Mr.. Reynolds
has in some cases confessed his guilt.
This being 80, month ago he turned
over to Mr.. Hooper a large amount
st sto oSe personal rs property rumo5 ;nS. says s
the company for any defalcations
Hooper would not say how much the
but said it would be more than ample to
cover any possible iregularity to be dis
covered. Drane was the book-keeper,
and made the false entries by Mr.. Rey-
nolds' orders. 1t is confidently claimed
that Drane will be brought back here for
trial, and if he is, very queer develop
ments may be made. Mr.. Hooper is.
very reticent, and therefore little of q
definite nature can be learned; but if
Mr.. Reynolds peculations should have
been going on when Drane came into his
Office three years ago; if the book
keeper found q man of Mr.. Reynolds
reputation and standing making false
entries in the books, any young man
like him might very easily become pos
sessed of the idea that where so smooth
a game was in progress he might take
hand.
1t is not the intention of the company
to prosecute Mr.. Reynolds in tho Grim
inal courts. That will be left to the
Grand Jury and the District Attorney,
who is now in possession of the material
facts in the case.
Merick Reynolds prior to his advent in
Los Angeles, was the trusted agent of the
Stars, large milling company at Vallejo,
with an Office at San Francisco. Mr..
Reynolds was their Stockton agent,
where he purchased large quantities of
wheat. Both there and here he has
been looked upon as man of strict in
tegrity, and Of exemplary life. He was
by no means extravagant or fast, but the
opposite in all respects. He has
a most estimable wife and q very
interesting family. He has enjoyed both
the confidence and respect Of the general
community in all circles of business and