New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-05-08
PRICE THREE CENTS.
w. H. GUION'S TROUBLES.
CHARGED WITH EMBEZZLING BONDS.
THE SECURITIES BELONGED TO A CANADIAN IN:
SURANCE COMPANY-HE WAS A TRUSTEE
A SUIT BEGUN AGAINST HIM.

The business community of New-Yorh was
astOnished yesterday at the statement that Will
lam II. Guion had embezzled bonds entrusted to
his to the amount Of 100000. Mr.. Guion
! was at one time member Of the great shipping
| 1rm Of Williams IL Guion, who founded the Liver
pool and Great Western Steamship Company,
! known the Guion Line. He of the
most prominent and respected merchants at the
time of the failure of his firm, January 10, 1854
| This failure was generally regarded an honest
one, and was attributed to Mr.. Guions liberal
| Investments in mining and other enterprises
which proved unsuccessful. and also TO his
treme generosity in lending his credit TO his
| friends These circumstances were recalled by
his friends yesterday in discussing the charge Of
| embezzlement brought against him, and they were
most reluctant TO believe that it was true.
Mr.. Guion was co-trustee with William A.
Booth of a fund of 81 so 900 deposited with them
| by the British American Assurance Company Of
| Toronto, Canada, in accordance with the law of
| this State, which requires foreign insurance COM
| panes doing business here to keep certain pro-
portion of their resources here for the protection
Of their customers within the States jurisdiction.
| They were appointed about ten years ago and the
securities, which were in the form of bonds. were
| kept in a tin box in the Mercantile Safe Deposit
! Company. Each of the trustees had key to
the box, and neither was supposed to go there
| alone for any purpose 1t seems that Mr.. Guion
| began appropratng the bonds to his own use
about two years ago, but managed to conceal from
| Mr.. Booth the fact that they had been distracted
until the latter part of January.
This was easily done by reason of the manner
in which the bonds were counted and the coupons
clipped from them by himself and his fellow
trustee To Mr.. Booth he would hand one-half
| ,f t,o hou for cl in no
pons. For himself he would reserve the batch
of unregistered bonds from which some had been
! abstracted These abstracted bonds had been
pledged as collateral security for loans. but it
| always within Mr.. GuiOn's power Ia obtain tho
conpons attached TO them. He was, therefore,
! able 10 report To his associate that his part OF
the bonds were all present and accounted for and
substantiate his statement BY showing the cou-
pons.
Things ran along in this way until the latter
part of January, when Mr. Booth, who was Ill,
delegated j. Frederick Sweasy, assistant cashier
Of the Third National Bank. TO 60 with Mr. Guion
to count the bonds in his place Mr.. Sweasy after
counting one-haf the bonds insisted upon count
ing the other half, in spite Of Mr.. Gulons assur-
ances and protestations, and in this way II was
discovered that there was shortage OF $4,000.
! He informed Mr.. Booth Of his discovery, and Mr.
| Booth. As soon as he was able 10 verify Alr.
Sweasv's report for himself telegraphcd the
news TO the assurance company in Toronto Jo-
seph Morrison the governor Of the company, at
once came TO New-York.
After learning the condition of affairs, Mr..
Morrison visited Mr.. Guion, who professed 70 be
greatly surprised TO find that any of the bonds
were missing Then both of them called upon
| Mr. Booth at his house, where Mr.. GUiOn was ac-
| cused of having taken the bonds He stoutly de-
MED the charge and insisted that there was no
more reason to suspect him of having stolen the
securities than there was Of slspectng Mr. Booth
Of having stolen them. The conference was
! long one and Mr. Booth finally broke cf the dis
cu,sion and went to his dinner, leaving Mr.
! Guion and Mr. Morrison together. When he came
up from dinner he had a session with Mr. Onion
in private and finally induced him TO acknow-
edge his breach of trust.
Mr.. Guiou said that he had become suddenly
embarrassed and in condition of extreme
financial distress. lie said that it was absolutely
necessary for him to raise temporarily a certain
sum of money and in moment of weakness ne
went TO the box of the safe deposit company and
took from it $50. 900 in bonds Twenty-Five thou
sand dollars of this amount he used 10 borrow tho
sum of SCI 900 from the Bank of Commerce. Mr.
Guion said he could pay back the sum he had
taken if time were given him. lie thought he
would need a year Later he returned five bonds
of the denomination of 81 900 each. lie also
gave an order the Bank of Commerce To sell
the bonds in their possession and turn over 10
| Mr.. Booth the sum remaining after tDe loan OF
! S2l 600 WAS paid. In this way 5000 more was
! reailcd thereby reducing Mr. GuionS actual M
! dcbisdncSs 10 about S22,0r0. No other payments
| having been made hN him during the interval OF
several weeks that has elapsed since the dis
coNctN Was u.ade. Carpenter ~ Nos.cI, oi No.
~ Wall-st attorneys for the British American
" civil SnIf a
The snit however. is not brought against Mr.
| Gui.n lone Nr Booth is mpleadcd with him.
one purpose OF the suit hclng to ascertain now
far he j. liable with his unfalthtul associate
Thomas G. Sherman. OF Sherman N Sterllng,
! ATTORNEYS for Mr.. Booth. says that the assurance
c,mnlu, can recover nothing from bis client be-
cause il va, simulated rs Is usual IN such cases,
! i'm tLc deed by which Mcssr>. Booth and 'iuion
not De Held liable fer the acts or defaults Of the
! othrr II is said that H." company have taken
steps to have new trustees appointed. having
! fund several weeks ago There is said - be Il
| strong diinclinatl0u To take any criminal pro-
/ cccdings AGAINST Mr. Huion. .,
| All those concerned in the AFFAIR were more
or les, reluctant 10 SlV ANYTHING about II yester-
day. Mr. Guion could not lc found during me
! daytime. and in the evening 1t was SAID NJ 'nc
! house where hr lives that he had gone oul ot
| town and would not return during the evening
! AZ the Bank of Commerce il Was said that Mr.
| t;nion had conc jo them from tlnc to time WIN
/ good securities on which he desired 10 ontaln
! loans. There was no marx or othcr ll!ul-
! cation ON them to indicate that they
! were trust funds Mr.. Booth confirmed the fact
| Of Mr. Guions cmbczzement Mr.. ouion has
| shown a weakness which was indeed one OF the
couscs of his failure in ssi. for speculative in-
vestmcnts of any character that held ont glitter
| ing promises of large returns The exact nature
| of his present business seemed 10 he mystery
| tn all who were seen about the subject. HIS
office is the front part of the basement of No. 80
| Broadway On the window Is a sign reading
Guion a CO.. Commission Merchants, ana an an
| other which announces that he is receiver Tor
| Williams 4 Guion. Yet the clerk in charge ~
| the office was unable Ia say what line OF goods
| or securities the firm handled commission ner-
| chants While Mr.. Guion's business friends
were greatly panied at the disclosure OF his
| wronr-doing and were most reluctant - believe H.
| tnere werc many among them who asserted that
| they believed his mind impaired
The firm of Williams X GuOn was established
| by stephen b. Ciuion and John s. Williams in
| ls49 They started by doing large commission