Pawtucket tribune. (Pawtucket, R.I.) 1890-189?, 1893-09-27
DEPOSED FROM OFFICE
Old Colony Accounts in
in Bad Shape.
AMOUNT LOST NOT KNOWN.
Washburn's Fall from Grace Due to
Unwise Stock Speculation.

bOS1ON, Scpl. Sa,-JOun NJ, NdSnDuru,
the treasurer Of the Old Colony railroad,
also treasurer of the Fall River line and
Union Freight line, Is accused Of misap-
preparation of the Old Colony corpora
TONS funds. What the exact amount of
his misappropriation is, cannot be ascer.
tanned until a better investigation has
been made. IL will reach into the thous-
ands.
According to his report there was 500. 900
in cash In the treasury. IL was found in
stead that securities, stocks and bonds
purchased by the company's money repre-
sented part OF this cash The pure hase
was Unauthorized. The treasurer's office
has been vacated and the treasurer has
made an assignment of all his outside
property for the benefit Of the corporation.
"It cannot be told" said Mr.. Choate,
show much the loss will be- These Sc
curities are not all worth their nominal
value, which was represented to be SO
much cash" II will not affect the prop
erty; it will not affect the dividends. The
matter will be further investigated and
pushed. In other respects the b. oks Of
the treasurer are all right.
Mr.. Washburn has been the treasurer Of
the Old Colony railroad for more than 40
years. His reputation las been held un-
blemished. lie is now rs years of age, and
quite feeble from the infirmities OF years.
He lives with his wife and daughter at 500
Beacon street. lie is greatly broken in
health.
Doubtless his age will be factor in de-
termining what action the company shall
take. Mr.. Washburn has not been at his
Office for the past week. IL was stated
there that the shortage was a surprise to
everyone. Mr.. Washburn is assessed in
Boston for real estate to the value of s4300
and no record of personal property APP
pears on the books.
How 1t Happened.
Washburn's sp eculations started in a
small way at first few years ago. He
plunged deeper and deeper into the game
of stocks until his losses made him
respondent. He expected day after day
fortune, il not good luck, would smile
upon his investments, but they proved
failures, and tinally in despair he gave up.
This was last Wednesday. He left his
Office at the kneeland street station at
the regular closing hour Of 8 o'clock os-
tensibly for home The hours sped on,
but the home of Washburn, at 529 Beacon
street was not entered by the old man.
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-treasurer 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 and a mental wreck. The
family sent for Vice Presiden Kendrick,
very near friend of the treasurer
His absence from the Office was not
thought to I've Of any consequence until
Saturday, when the directors got ready
for the annual statement. The secret Of
the mans peculiar financiering 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 Kendrck
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 a full confession.
Acknowledge His Guilt.
He admitted his speculations and his
using of the company's money, but he
said he had no idea that such an amount
as stated by President Choate was miss
ing. Washburn annually gave bond Of
$35, 900 In two sureties for the faithful per
formance 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, s 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 u premature investigation, that his
wrongdoing extends back several years.
In his absence Saturday the auditing
committee was forced to make an exam
inatioD Of he safe nj the Kneeland street
station, and IL was then the real condition
of affairs was demons rated.
Previous auditing committees never dis
covered 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 OF the
funds of the Union Freight company.