Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-09-28
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BnaxoN. Sept .7-John n Waehoorn.
q. e.easursr IL the Old Colony railroad.
also treasurer Of the Fall River Hoe ana
Union Freight line. Is accused OF m'ssp-
propriation Of tho Old Colony corpors-
tion,s funds What the exact amount OF
his misappropriation l., cannot oe aseer-
tanned until better Investigation mas
heen made, II will reach into the tnoas-
ands
According to his report there was SUo"
in cash In the treasury. II WAS FOUND IN
stead that securities, stocks ana oon"s
purchased by the conpsny's money repre-
sented a part Of this cash. The purchase
va, unauthorized. The trcasurer's ONCE
has been vacated and the treasurer mas
made an assignment Of all his outside
property for the benefit of the corporation
1T cannot be tols'." said Mr.. Choste'
show much the loss will be. These Sc.
carities are not all worth their nomihai
value, which was represented To ps ;"
much cash. IL will not affect the prop
er,y; il will not affect the dividends Inc
matter will be further investigates ana
pushed. In other respects the o'oAs Oh
the treasurer are all right.
Mr.. Washburn has been the treasurer OF
the Old Colony railroad for more than ~
wears. His reputation las been hela un.
blemisbed. He is now rs years OF age, and
quite feeble from the intirmities OF years.
He lives with his wife aud daughter Mt 40
Beacon street. He is greatly broken IN
health.
Doubtless his age will b. factor in de-
termining what action the company shall
take. MIR. Washburn has not been at his
Office for the past week. II was stated
there that the shortage was surprise TO
everyone Mr.. Washhurn is assessed IN
Boston for real estate To the value of SiSoo
and no record of personal property APP
pears on the books.
How 1t Happened.
washburn's sp EQUATIONS started in
small way at first few years ago. lie
plunged deeper and deeper into the game
OF stocks until his losses made him
Respondent. He expected day after day
fortune, if not good luck, would smile
upon his Investments, but they proved
failures, and fiually in despair he gave up.
This was last Wednesday, lie left his
Office at the Kneeland street station at
the regular closing hour Of O'Clock, o.
tensibly for home The hours sped on,
hut the home of Washburn, mt 80 Beacon
street was not entered by the old mau.
Instead, he wandered about the streets,
hopeless although not friendless, and next
morning put in an appearance AT the door
of his palatial residence.
The family physician WAS called in and
the ex-treasurcr was put to his bed, which
he has not since deserted. He said he had
walked TO Marblehead. He looked 1t. for
he was footsore aud mental wreck. The
family seat for Vice Pres ident kcndrick,
very near friend of the treasurer.
His absence from the office was not
thought to be Of any consequence until
Saturday, when the directors got ready
for the annual statement. The secret OF
the mans peculiar fluanciering had been
kept long enough. He was asked to re-
sign, and +. G. Parker. corporation clerk,
was placed in charge, pending the election
of his successor
Monday Third Vice President kendrick
of the Consolidated road, accompanied by
the Old Colony counsel, j. A. Benton, Jr.,
called upon Washburn at his home, and to
them he made n full confession.
Acknowledges His Guilt.
He admitted his speculations and his
using of the company's money, but he
said lie had no idea that such an amount
rs stated by President Choate was miss
ing Washburn annually gave bond of
S35, 900 in two sureties for the faithful per
Torrance OF his duties. and they will be
called upon to reimburse the Old Colony
for the loss. The veteran treasurer has
also offered certain stocks and securities,
but many of them are of no value, and the
loss to the Old Colony cannot possibly be
made up. even though it makes the Wash
burn family homeless.
In regard TO the discrepancy in the ex-
treasure, IS accounts, the Old Colony Of
ficials are AS ''mum" as oysters. They
refuse to divulge the real inwardness OF
the ex-treasurer's affairs because of the
fact that he has been trusted official
and always has enjoyed the most explicit
confidence of the other officials OF the cor
poration. They admit. however, as a re-
suit of premature Investigation, that his
wrongdoing extends back several years.
In his absence Saturday the auditing
committee was forced to make an exam
inatiop of the safe at the kueeland street
station, and it was then the real condition
of affairs was demonstrated.
Previous auditing committees never dis
cover any wrongdoing and do not know
whether he covered up his Old Colony ir-
Irregularities by the temporary use of the
funds OF the steamboat company on the
funds of the Union Freight company,