St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-09-27


SpecuIating-HeW Treasurer
OF the Road for Thirty Years
Boston Shocked by the Big
Sensation.
Boston, Sept. 26.-The regular meet
ing of the stockholders of the Old
Colony Railroad company was held at
the United States hotel today, President
Charles f. Choate presiding. The an
nual report of the directors OF the road
was read and accepted by unanimous
vote.
4 big sensation was sprung on the
meeting when it was announced that
Treasurer John Nj. Washburn had been
misappropriating the funds of the COM
pauy. Mr.. Washburn, it was said, start
ed in small way some years ago to
take money from the cOmpany's
cash to speculate with. He lost in
these speculations. Securities III stocks
were turned into the company as cash
at the price Mr.. Washburn had paid for
them, and as they deterioratsd in value
during the last few months when the
money market was tight, Mr.. Washburn
had to
TAKE MORE MONEY,
and finally it could no longer be con-
cealed from the auditor.
i he accounts of The treasurer of the
road were audited by a committee of
the stockholders appointed each year,
and the only way that can be thought of
for the auditors not 10 have discovered
the shortage is that the treasurer had
taken the funds of the Old Colony
Steamboat company to make up his
losses when the auditors made their ex-
aminations, or that perhaps they trusted
him so much that they took his word
for the amount of cash which was OH
hand.
Last Wednesday Mr.. Washburn left
his office, but did not 90 home, and his
family was much worried. He came
back the next morning in a pitiable
condition, saying that he had walked
around all night. A doctor was called
in, and he was ordered to go to BED,
where he has been confined ever
since. Saturday the shortage IN his
accounts was discovered. Yesterday
MIR. Kendrick, one of the directors
of the load. and Col. Benton, the
counsel, went to MIR. Washburn's house
and had conference with him. A full
confession was made by Washburn.
he said he had no idea that he had
taken so much money as was missing.
Yet he resigned his position as treasurer
OF the company, and made an assign
ment of all his personal property to the
railroad % make up the deficiency as
far as possible. Some of the stock Sc
curitieS which were put in as cash are
worthless. Part of them can be sold
for a good price.
THE BONDSMEN
of the treasurer will also be called upon
to assist in making good the deficiency,
and the Old Colony officials claim the
defalcation will not affect the dividends
of the stock of the railroad.
Mr.. Washburn is seventy-fve years
old, and has been treasurer of the Old
Colony for about thirty years, and treas
urer Of the I'D Colony Steamboat COM
pany from the time it started. He is
also treasurer of the Union Freight
line. Whether these concerns lose any
thing it is Impossible yet to say. Mr..
Beacon street which he owns. He is
married, ard has daughter and son.
The report OF the auditing committee
was read ana accepted at the meeting
today, alti Ough the amount of cash
stated in the report as $685. was not
correct, owing TO the shortage IN the
treasurer's repOrt.
w. a. Rust, of Boston: William Say
ory. of Carver, and Oliver Ames, of
North EastOn, were reelected as audi
tors, in order that they might continue
the work OF investigating the treasurer's
accounts, and, if necessary, they were
gIVeA the power 10 hire an
EXPERT ACCOUNTANT
to ~ over the books and find what the
shortage will be. At the last meeting
of the directors of the road they were
given power to issue S2,000,OOO worth
bonds at t per cent to pay 81, f92, 900 z
per cent Old Colony bonds and
100000 New Bedford road per cent
bonds. AT this meeting it was voted to
issue S6,0O0,00O bonds at per cent if
necessary.
Messrs. Adams and Parker were
given the power TO approve the register
ing and issuing OF these bonds.
There was a rumor on the street
today that the amount of the defaca-
tiUn was Si25,000 but Counsel Benton
said there was no authority for any
such statement.
A call at the home of Treasurer
NaShburn proved To be without avail
The reporter was met at the door by a
daughter of Mr. Washburn.
as Mr.. Washburn at nome?" was
asked.
''He is, but too i'll to see YOU" was the
kindly but firm reply
His SOB at home?''
cit would be of little use to see him
or any one of the family, for none of
Them will talk"