The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-09-27
WAGON WHEAT
Hig hest Market Price.
ARCADE MILLS
THE OLD COLONY ROBBED.
Discrepancy in the Accounts of the Com
pany's Treasurer Discovered.

BosToN, Sept. 26.-President Charles F.
Choate caused sensation at a meeting of
the Old Colony stockholders to-day by the
announcement that since the printing and
distribution of the annaul report, disorep-
ancy had been discovered in tho accounts
Of the treasurer. John Washburn. Ac-
cording to the treasurer's report, there was
5000 in cash in the treasury. 1t was
found. however. that stock, securities and
bonds purch assd with the company's money
represented part of this cash. The pur-
chase 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.
The loss to the company cannot be told at
present.
small way. some years ago. to take money
from the company's cash to speculate with.
He lost In these speculations. Securities in
stocks were turned into the company as
cash at the price Mr.. Washburn had paid
for them. and as they deteriOrated in value
during the last few monthe, when the
money market was tight, Mr.. Washburn
had TO take moro money. and finally 10
could be no Ion ger be concealed from the
auditors. The accounts of the treasurer of
the road were audited by committee of
stockholders, appointed each year, and the
only way that can be thought of for the
auditor not to have discovered the short
age is that the treasurer had taken the
funds of the Old Colony Steamboat Com
pany to make up his losses, when the audi
tors made their examinations, or that, per-
haps, they trusted him so much that
they took his word for the amount OF cash
which was on hand.
Last Wednesday Mr.. Washburn left his
office, but did not go home. and his family
was much worried. He came back the next
morning In pitiable condition. saying that
he had walked around all night. A doctor
was called In, and he was ordered to go 30
bed. where he has been confined ever since.
Saturday the shortage in his accounts was
discovered. Yesterday Mr.. KendrIck. one
of the directors of the road, and Colonel
Benson. the counsel. went 10 Mr.. Wash
burns house and had n conference with
him. full confession was made by Wash
burn. He said be had no idea
that he had taken as much money
ss was missing Yesterday he re:
the company and made an assignment of
all bis personal property to the railroad to
make MP the deficiency as far as possible.
Some of the stock securities which were
put In as cash are worthless. Part of them
can be sold for q good price. The bonds
men of the treasurer will also he called
upon to assist In making good the de-
ficiency. and the Old Colony officials claim
the defalcatiOn will not affect the dlvl-
dends of the stock of the railroad.
Mr.. Washburn is seventy-f years old
and has been treasurer of the Old Colony
for about thirty years and treasurer OF the
Old Colony Steamboat Company almost
from the time it started. He IS also treas
urer of the Union freight line. Whether
these concerns lose any thing it is impossi-
BILE TO say. Sir. Washburn has a fine new
house on Beacon street which he owns. He
is married and has q daughter and a son.
There WIS u rumor on the street. to-day.
that. the amount of the defalcation wss
S125.OO0. but counsel Benton said there was
no authority FOX any such statement.