Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1890-03-03
HEAVY SHORTAGE.
A BOSTON TREASURER NEARLY TWO MILL
ION BEHIND IN HIS ACCOUNTS.
Startling Revelations in the Investigation Of 8 wOo
COmPany's Affairs This Discrspan-
ciss Cover Period
Since 1875.

Boston, March IA deficiency Of ST.
700, COO has been found in the books ol
George P. Brown, the head OF the big wool
firm of Brown, These & CLARK, end Treas.
urer of the Riverside and Oswego mile,
whose failure las. summer created such 8
sensation. The report Of the expert &C.
countant, which contsins this information,
was submitted to the sssignees Saturday.
He found the books in demorslz,d con-
dition.
1t took months TO ascertain the exact
condition Of affairs. Brown bad handled
immense sums in his official capacity. In
the last four years he had deposited $780,
600, 600 in two banks, to say nothing o
deposits in five other banks. The books
do not, however, account for 81, 700, SAC
beyond tie fact that the money had beer
Withdrawn by Brown. Where that biz
sum has gone only Mr.. Blown knows.
FOB THIRTEEs YEARS.
Henry A. Fifer, the accountant, afte
stating assets and liabilities show on tn
ace of the accounts, says in his report
"a trial balance of the ledger on August
6. 1899. shows an apparent surplui Of
$245, ,9s3, but on an analysis there is found
among the assets accounts to q large
amount that are worthless and have been
for years. In looking over the books
found discrepancies spread over each year
from 1875 to 1888"
Tl hal I'D 10 he
amount of 81, zoo, $40 existed on August 6.
1889, that bad no record upoD the firms
books, thus swelling the direct debt to So.
1l2,159 No detailed record of this sd-
oitional Indebtedness was in existence. ex-
capt such as could ne gathered from mem
oranda on slips Of paper. Besides being
treasurer of the Riverside and Oswego
Mills, Mr. Brown has for many years
acted as financial agent for three corpora.
tions to certain extent. He has also been
accustomed TO get notes and scceptances
discounted for his own and others benefit,
besides the discounts obtained by him for
his firm.
The FIRMS business bank account was
with the National Bank of Redemption.
Mr.. Brown had another in the firm name
with the Metropolitan National Bank,
where be alone was authorized to sign
checks, aud be had an individual account
with Brighton Market Bank. As Treas
urer he bad five other bank accounts.
THE METHODS EMPLOYED.
The methods employed by Mr.. Brown in
conducting his business are as follows:
First, discount OF one or more pieces Of
paper would be obtained on bsnk other
than where regular account WAS kept
Quite probably there was an Indebtedness
maturing at such bank. The amount of
such debt woula be deducted and q check
drawn by Mr.. Brown for the balance. This
check, instead of being deposited In some
one of his regular banks would be used to
partially pay debt elsewhere, his check
or the firms being given for the difference.
Thus DO record Of the transaction appeared.
Second, note or notes would be placed
in brokers hands for sale. TIE broker
advances say $40 900. Tbs check thus ad-
vanced is endorsed direct TO A. ID. JUL
lard & Co, New York, and the only clew
obtainable 10 the transaction is a check
given the broker for an smount represent
ing interest or discount. Third, dis
count is obtained st some bank. The pro-
ceeds are paid 10 Mr.. Brown in New York
funds. These funds are Immediately
mailed TO New York, aud thus no record
remains to show what notes were dis
counted, or where.
By the aid Of copy books and letters
many Of these transactions have been ar
rived 1T, but in proportion to the whole
they are OF email amount.