The Providence news. (Providence [R.I.]) 1891-1906, 1893-05-22
HIS LONG EXILE ENDED.
An Aged Embezzler Returns to Answer
for His Crime.
WAS RUINED BY SPECULATION.
History of Case which Greatly Excited
Fall Kiver-Paine Need Have no
Fear Of Being Called to Account-To
Dismiss Case.

FALL RIVER, Mass, May 22-Waiter
Paine of Fall River linen mill fame sur
rendered Saturday in Boston to the au-
thorities there. He was ad Omitted TO bail
In the sum of $4,000, his sureties being
Ray Greene Huling of New Bedford, his
s~on-in-law, and Sidney b. Paine of Boston,
his son.
Paine had been for IA years in Canada,
where he went after he became an embez-
zler of the funds Of the American Linen
company, of which he was agent and treas
urer. OF late a petition has been circulated
and signed very n~umerously, having for
its object the settling up Of all matters
pertaining TO the embezzlement.
1t is stated on reliable authority that
Paine need have no fear of prosecution, be-
cause the case against him will not be
pressed, and action will be taken at the
June term of the superior court
To Have the Case Dismissed.
The reasons for this determination are
the long exile of the man "a years., the
character of the petition in his behalf, pre-
sented to District Attorney Knowlton,
which was signed by every person living
who suffered by Paine's embezzlement,
and the advanced age of the man, which
is about 20 years.
In 1878 the Border City mills were
wrecked. and then followed a period of the
most exciting times Fall River has ever
known. Mill treasurers had had great
temptations to speculate in cotton, and
they did 1t to their hearts content. Their
losses were generally charged up to the
corporations, and the winnings were peck
eted by themselve Directors and boards
of managers discovered too late the actions
of their servants, and IL was only after
credits were impaired, regulations gone
and much money sunk that the true con-
dition of affairs that existed could be
lear ned.
Then came the change in ownership OF
the mills. Factories went for nearly half
their value, land that is why, in a great
measure, the dividends look so great to-
day on the small amount of capital stock.
Paine was treasurer Of the American
linen mill. He had married a daughter of
the late Jefferson Borden, and his social
connections were Of the highest. Though
He Lived n Life of Luxury
II was supposed that his income was suf-
fcient to warrant it. He entertained
lavishly and was prominent in church
affairs. The breath of scandal had never
touched him.
But from what was afterward discovered
It was known that he fell a victim to the
Elton speculation craze, and became an
embezxler.
As treasurer of the linen mill, he had
control Of much money, and, owing to the
rather loose business methods i'm vogue at
that time, could do pretty much IA he
pleased with II without fear of being de-
tected.
In August, 1879, Walter Paine disap-
peared, and his friends then discovered
that the linen mills funds were short
nearly SIS, zoo, and that the. corporation
had received thereby ahard blow.
Investigation afterward proved that
Paine had been q comparatively poor man
for some time, and had tried to recover his
lost fortune by gambling in cotton. His
losses in IA great degree were due to his
method Of
Bisking s1 to Get $40.
The late Mrs. Mary b. Young, with the
few persons who owned the Fall River iron
works, controlled about all the stock in
the linen mill at that time.
When Paine had lost all his own funds
In speculation, he borrowed of friends and
made good most of his obligations. Then
the ccmpany's funds were called into play,
with the results stated. The stockholders
were duped because Paine had fixed up his
books to suit the needs of the situation. but
he knew that sooner or later the end would
come, and he anticipated it.
He left this city and, 1t was stated, went
to Canada. His family, two sons and a
daughter, followed, and IL was learned later
that all were living in Montreal.
Paine, IL Is believed, never again set feet
on United States land in IA years until he
came to surrender.
The Linen Mill Was Saved
for its stockholders, and a reorganization
was accomplished, with magnificent re-
suits. After the new system was intro
duced i'm the mill business steadily inn
proved. Now IL is almost an impossible
ity for a treasurer or agent TO use corpora
ton money for private purposes.
Paine, IL is said. has been engaged i'm the
cotton manufacture business in Montreal.
but for a few years past his health has
been impaired, I'M his friends have en-
deavored to have the prosecution against
him waived.
lit was never discovered whether m
warrants were issued against him, but
since the circulation Of the petition il is
believed that there were. People who
were defrauded by the embezzler signed
the appeal for clemency in his case.
Paine's daughter married Ray Greene
Huling, principal Of the New Bedford high