The Providence news. (Providence [R.I.]) 1891-1906, 1893-09-27
In the Accounts Of the Old Colony
Company's Treasurer
lE MAKES A CONFESSION.
Omcials Have Little to Say Concerning
the Matter-The Treasurer specuiatcd
with the company's Money. Losing
Thousands Of Dollars.

greatly surprised the Old Colony stock
holders yesterday by announcing that
since the printing and distribution OF the
annual report discrepancy had been dis
covered In the accounts Of the treasurer.
John w. Washburn.
According to his report there was 600, 900
In cash In the treasury. 1t was found in.
stead that securities, stocks aud bonds
purchased by the company's money repre-
sented part Of this cash. The purchase
was unauthorized. The treasurer's Office
has been vacated and the treasurer has
made an assignment OK all his outside
property for the benefit Of the corporation.
1T 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 30
much cash" 1t will not affect the prep
erty; 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.
Mr.. Washburn has been the treasurer OF
the Old Colony railroad for more than H
years. His reputation Las been held un-
blemished. He is now rs years of age, and
quite feeble from the inflrmities OF years.
He lives with his wife and daughter at 529
Beacon street. He 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. 1t was stated
there that the shortage was a surprise to
everyone. Mr.. Washburn Is assessed In
Boston for real estate to the value of $4,000
and no record OF personal property ap-
pears on the books.
washburn specuiated.
Washburn's speculations started in q
small way at first few years ago. He
plunged deeper and deeper into the game
Of stocks until bis losses made him
respondent. He expected day after day
fortune, IL not good luck, would smile
upon his investments, but they proved
failures, and finally 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 $50 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 ex-treasurer was put to his bed, which
he has not since deserted. He said he had
walked to Marblehead. He looked it, for
family sent for Vice Pres ident Kendrick,
very near friend of the treasurer.
His absence from the Office was not
thought to be Of any consequence until
Saturday, when the directors got ready
for the annual statement. The secret Of
the mans peculiar fnanciering had been
kept long enough. He was asked to re-
sign, and z. G. Parker, corporation clerk,
was placed in charge, pending the election
OF his successor.
Monday Third vics President Kendrick
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 full confession.
The Confession.
He admitted his speculations and his
using Of the conpany'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 mp. even though 1t makes the Wasn-
burn family homeless.
In regard to the discrepancy in the ex-
treasurer q accounts, the Old Colony Of
ficials are rs mum" as oysters They
refuse TO divulge the real inwardness OF
the ex-treasurer's affairs because of the
fact that he has been q trusted official
and always has enjoyed the most explicit
confidence Of the other officials of the cor
poration. They admit, however, a. a re-
suit OF premature investigation, that his
wrongdoing extends back several years.
In his absence Saturday the auditing
committee was forced to make an exam
inatiop of the safe at the Kneeland street
station, and 1t was then the real condition
of affairs was demonstrated.
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.