New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-09-27
TOOK OLD COLONYS FUNDS.
THE COMPANY'S AGED TREASURER DE
FAULTER.
PRESIDENT CHOATE ANNOUNCES An UNPLE's-
AST PIECE OF NEWS At THE ANNUAL
MEETING - TREASURER WASH
BURNS ACCOUNTS SHORT.


BURNS ACCOUNTS SHORT.
BOSTON Sent 26-President Charles F. Choate
caused something of a sensation meeting of
the Old Colony stockholders at the United states
Hotel TODAY by the announcement that since the
printing and distribution Of the annual report
discrepancy had been discovered in the accounts OF
the treasurer, John W. Washburn. According to
the treasurer's report there was $%Vo IN cash III
the treasury II was found however that
curities stocks and bonds purchased with the COM
pany's money represented part Of this cash The
purchase was unauthorized. The treasurers Office.
Mr.. Choate said. had been vacated. and the treas
urer had made an assignment OF all his outside
property for the benefit Of the corporation
at cannot be told" said Mr. Choate, how much
the loss will be These securities not all
worth their nominal value. which represented
TO be much cash. IT will not affect the property
it will not affect the dividends The matter will be
further Investigated and pushed. In other respects
the books Of the treasurer are all right
The Auditing Committee reported that on ac-
count of the rreguartv in the treasurer's Office
It's work is not completed. More time was allowed
and authority to employ an expert accountant.
After the meeting the directors organized and
appointed a committee 10 investigate the matter.
comprising President Choate and Directors John 5.
Drayton, Of Fall River. and Nathaniel Thayer. Of
Lancaster. The general counsel was instructed to
examine the accounts and to ascertain the exact
amount in question. and to determine whether
action. civil criminal will be necessary. Mr..
Washburn gave bonds to the road with sureties,
1t is understood. in $1,000 His salary was said 10
be $500. Mr. Washburn is greatly broken in
health His age will doubtless be factor in de-
termining what action the company shall take.
Mr. Washburn subject to peculiar attacks.
Last Wednesday he did not home at night and
turned up in the morning in very much de-
moralized condition. He said that he had walked
to Marblehead slept outdoors and took car in the
morning and home His dress indicated the
truth Of what ne said. The family Superin-
tendent Kendrick the house Mr..
Washburn was in bed and a doctor had been called.
Treasurer Washburns wrongdong was not dis
covered until last Saturday lie was III at his
house and the auditors had TO inspect his books.
cash. In his absence. Whether former auditors
failed to find it out because they accepted the
treasurers statement Of cash hand without
themselves counting il. or whether he covered the
irregularities by temporarily using cash belonging
to the steamboat company or the Union Freight
Company, both of which in his hands does
not yet appear. Mr.. Washburn has been the treas
urer of the road for thirty years. He is
about seventy-fve years old. and has wife. son
and daughter He has made fun confession
II is probable that his personal assets Will not
make good his irregularities The status OF MS
bondsmen is not yet determined WashDnrn ac-
cordng TO the books in the assessors once Is as
sessed for real estate to the value OF si5 NO rec
ord OF personal property appears 'A'iN va" ="
rumor on the street to-day that the amount oi
the defalcation was $4,000. but Mr. Benton the
roads counsel says there is no authority for such
a statement. 49,
In the opinion Of the general counsel MT WASH
burn began to speculate using the money 9 , inc
road about twelve years ago, ana ms ullIicui's
since then has been due TO the EFFORT 10 recover
from that speculation , - 49,, NJ Uash-
When Mr. Kendrick called upon him M. WASH.
burn told him that he had been using thS "io'es
Of the company. He had tried to MAKE SOM
of the of n
but he had got stuck" and he desired TO urn
over 10 the company everything he had 70 MAX
the amount good. The assignment coVcIeu seS hi
lies found in the safe well az some otnerS With
we're i'm a brokers' office downtown, Inc ho .n
In which Mr. Washburn lives win ms "h''
daughter and son stands in his wife's name an
trbe directors to-day removed him from ms Oincts
and elected Austin ". Adams treasurer 0I nv
steamboat company and BENJAMIN - lo"ey
treasurer OF the railroad company . o
The BOARD of Directors meeting was OF pro-
tracted length President Choate was re-eectG1I,
The following directors, In addition 10 freSln'i,'
Cboate We're elecyed unanimously Thomas }.
Borden Fall River: Charles j. Clark NeW.diatvem'
Thomas Dunn, Newport; George A. Paiuhfr'
pnston: James r. Kcndrick, Boston; CharieS /"
Jovering Taunton, Mass; JOhn j. lfusseii, Iyni',
outb Mass: Joshua VI. Sears. Boston; Naua'i ,r
Tbayer Lancaster. Mass. President Cark S aie
Kew York New Haven and Hartiord i.hiilo '
takes the place Of Il. h. Ames. and the places maze
vacant by the deaths OF Aii1ory '"i"i'"'' N
William J. Rotch untitled . -, 49,, ,,o
II was voted unanimously to authorize me mr..
,ore 70 issue 100000 hfty-year bonds interest,"
navoble semi-annually, not TO exceed per c'"''