The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1891-12-24
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ANOTHER LOAN MYSTERY.


Tho Mechanics Lonn Association Short
$4,000. Possibly Nfore--ln the Hands
of Expert Accountants.
Building and Loan Associations
seem to have run their day in vii.
mington and some of those which
have stood the test for many years
are not having u very honorable end
ing. While the pilferings OF J. Ell.
bridge Pierce, secretary OF the City
Building and Loan Association, BY
which the association was virtually
wrecked, are still freshly remembered
comes the report of crooked transac.
tions In the Mechanics Loan Associa.
ton.
Henry Drnunstein is President OF
this association; W. J. Morrow was
secretary and William McMenamin
was Treaurer until within few days,
when Messrs. Morrow and McMena-
min were suddenly relieved OF their
offices and Charles W. Grant as sud
denly appointed secretary and treas
urer protein.
The cause for this very sudden change
In officers was the discovery of a
short ge of Sl2, 900. This startled the
directors, and as Secretary MorI ow
and Treasurer McMenamin could not
give n satisfactory explanation of what
became Of II o money their peremp-
tory dismissal followed.
The discovery of shortage was q
startling announcement to tho stock.
holders OF the Mechanics Loan, as the
most implicit confidence had been
placed in their financial officers, espe-
ciaily in Mr.. McMenamin.
The books of the association have
been placed in the hands of William A.
Reynolds TO be audited and the cred
itOrs of the association have beer noti-
fled To PIE en-. tEelr claims to him as
soon rs they can possibly do SO.
q. w. Grant, secretary protein OF
the Association, referring to the trou-
bles, said tho deficiency seems to have
been made IN the Interpretations
OF the surplus funds which were do
voted to the cancellation of matured
stock. The first discovery OF crooked
ness was made By one of the members
away back about the first OF June,
when he found that some of the stock
supposed to have been paid off and
cancelled was still In existence and
drawing interest.
This clue was carefully followed up
until a shortage of $4,000 was discov-
cred. when IL was thought high time to
strike and hence the change in officers
Continuing. Mr. Grant says the books
appear TO have been regularly kept
and posted and the money used as d.
rected by the association, but the
amount Of maturod stock said to have
been paid OF falls Sl2, 000 short Of that
charged against the association.
The Difficulty seems to DO between
Secretary Morrow and Treasurer Nc
Menanln. Morrow has MeMenamin
charged with the surplus money,
which should have been used to pUy
off mntured stock, but MeMenamln
says he never received it, and Morrow
has no receipts TO show that he ever
paid II TO him.
MIR Grant says he has been elected
secretary some three months but he
has never yet been able to get down
to the true inwardness of the affair,
| only 10 know that the loan is $4,000
short, and how much remains for ex
pert Reynolds to find out Mr., Grant
blames the loans misfortune5 on ito
loose manner of doing business.
He did not believe there was ever a
legal quorum present to elect direct.
ors Tor ten years. One of the loose
plans OF doing business was to pay
the dues nj the secretary's private Of
flee between meetings, thus taking il
out of the regularly constituted chan,
nels
Treasurer McMenamin is under
bonds. and MIR. Grant supposed the as
sociatlon would be able to recover IL
the loss is not too heavy.