The Providence news. (Providence [R.I.]) 1891-1906, 1896-12-19
Frank c. Miles of Boston
Is a Dcfaulter.
He Was Treasurer of the Safe
Deposit Bank.
Speculation Is Alleged to Have Been
Cause Of Downfall

Aooeois becs iS.--r Tdiik y. Miles, luz
more than 20 years the trusted treasurer
OF the Boston Safe Deposit and Trust
company. one Of the oldest and most
conservative Of Boston's banks, y . de-
fauiter for at least 100000.
The defalcation was discovered late
yesterday afternoon by the president,
and a meeting of the directors was inn
mediately called. After a hurried con-
sultation Of the bank officials, the fol-
lowing statement was given:
The examining committee Of the Bos-
The examining committee OF the Bos-
ton Safe Deposit and Trust company,
III ding deficit in their securities. called
upon the treasurer, Frank c. Miles, for
an explanation, when he confessed that
he had misapplied securities which may
involve a loss to the company of from
$4,000 to $4,000. The company holds a
responsible bond of indemnity I'm the
$4,000 to 100000. The company holds a
ton with the safe deposit vaults of the
company. F. NJ. Stone, President"
More than the above the officials re-
fuse to say, except that Miles had been
treasurer OF the institution since II be-
gan business, IN 1875, and during all the
company In most conservative and
careful manner, not even a wbisper be-
ing heard as to his integrity until yester-
day.
Ihe company has capital Of 81, ,O0o.-
wv ana does regular trust company
BUSINESS besides having a large num-
Der OF sares, which il rents TO private
Parues Tor the safe keeping of securities.
mies nad full charge OF the cash de-
posits and securities belonging to the
company and those held as collateral
LOT ioans, and 1t Is from these securities
tnat ne apstracted those missing.
Al a late hour last night the examining
committee was still in session at the
oank' trying to ascertain If the 500. 900
covered the entire deficit.
Immediately after the defalcation was
uncovered. Hon. Solomon Lincoln. the
counsel for the company as well as di-
rector, was notified, and prepared the
necessary papers to present to the court
ior the issuing of warrant for Miles
arrest. 1t was, however, too late for the
granting OF such warrant Mr.. Lin
coin stated that the securities of the
company had probably been hypothe-
Gated oy Miles, and the money raised on
them used in speculation. He deplored
the unfortunate acts OF the treasurer.
VINO, he said, had always been looked
upon as absolutely Trustworthy.
Miles, who is 46 years old and a native
or Massachusetts. has a most luxurious
nome at 346 Beacon street. and sur
rounded by every modern convenience
ne mas lived there with his wife and two
children for a number of years. Mrs
Miles was completely prostrated when
the news OF her husbands downfall WAS
nrst broken 10 her by reporter. She
said that her husband had telephoned
from the bank late In the afternoon that
ne would not be home until late, but she
mad no idea OF the cause of his absence
Her husband had always been extremely
reticent of his business affairs. and sha
could ascr1be no cause for his actions.
T The Boston Safe Deposit and Trust
company Is state institution, and does
not come under the national bank act
being directly under the supervision OF
the savings bank commissioners OF this
state.
The last examination of the companv
was made by the commissioners I'm No
vember. and. according to the statement
Issued by the commissioners, all the Sc
curities We're intact at that time. In
order to deceive the examiners at the |
time, Miles either substituted other se- |
curities or persuaded the savings bank |
commissioners that everything was all |
right, and they took his word for it.