Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-12-21
MILES GOES WRONG.
Is a DefauIter After Twenty
Years of Service.
Boston Safe Deposit and Trust Com
pany Will Lose About 100000.
Downfall the Result Of Speculation - Warrant
Issued for the EmbezzIer.

Bosom, Dec. 20--After serving the Bos
ton Safe Deposit and Trust company
for q years, Frank c. Miles, the treas
urer is found to be defauter. Miles
shortage will reach 500 900.
The defalcation was discovered late
Friday afternoon by the president
and a meeting of the directors was i'm
mediately called. After hurried con
sultation of the bank officials. the fol
lowing statement was given:
THE examining committee of the Bos-
ton Safe Deposit and Trust company
finding deficit in their securities. called
upon the treasurer Frank G. Miles. fol
an explanation, when he confessed that
ne had misippled securities which may
involve a loss TO the company of from
$4,000 to Sl000 The company holds a
responsible bond Of indemnity in the
$4,000 to 100000. The company holds q
ten with the safe deposit vaults of the
company. f. NJ. Stone, President"
More than the above the officials re-
refused to say except that Miles had beer
treasurer Of the institution since it be-
gan business. in 1873. and during all tin
Il years had handled the funds of tho
company in Il most conservative and
careful manner. not even a whisper be-
ing heard as 10 his integrity until yester-
day.
The company has n capital Of 81 900
coo. and does regular trust company
business. besides having a large mum
Der Of safes. which II rents to private
parties for the safe Keeping of securities.
Miles had FUN charge OF the cash de
posts and securities belonging to thu
company and those held as collateral
for loans. and il is from these securities
that he distracted those missing.
Immediately after the defalcation was
discovered. Hon. solomon Lincoln thu.
counsel for The company, as well as di-
rector, was notified. and prepared TIL
necessary papers tea present L. the cour.
for the issuing Of a warrant for Miles
arrest. Ii was however. too late for tn.
granting of such a warrant. Mr. Lin
coin stated that the securities of the
company had probably been hypotha-
Gated by Miles. and the money raised on
them used in speculation. lie deplore.l
the unfortunate acts Of the treasurer.
mo. he said. had always been looked
upon as absolutely trustworthy.
Miles, who is ~ years Old. and native
Of Massachusetts. has Il most luxurious
home at BAG Beacon street, and sur
rounded by every modern convenience.
he has lived there with his VIE and two
children for a number Of years. Mrs.
Miles was completely Frustrated when
no n her hT,.1.af,,f"e, u e,t
first broken to her by q reporter. She
said that her husband had telephoneG
from the bank late in the afternoon that
he would not be home until late. but sh.
bad no idea OF the cause OF his absence.
Her husband had always been extremely
reticent OF his business affairs. and she
could ascribe no cause for his actions
A warrant was issued for Miles ar
rest early Saturday morning. but few
other facts have developed in connec-
ton with the affair. II was learned
Saturday that the securities taken by
Miles were lost through the failure of
q small brokerage concern. which went
under two weeks ago The firm was
Gage * FELTON, who, it appears. bought
some 5000 shares of Boston and Mon
t1na Mining company with the funds
which they raised in securities deposited
by Miles. Then Just after election when.
after few incipiant rises. the market
fell Gage & FELTON, sold all the securi-
ties in their hands. including those
given them by Miles. The firm i'm
mediately suspended, and soon after
went into insolvency. The wiping out
Of all the securities with no possible
means of replacing them in the vaults
from VI hich he had taken them. disclosed
the crime of Treasurer Miles. for when
President Stone found the securities
missing Friday, Miles was unable to
produce them and confessed his guilt.
At a meeting Of the directors Of the
Boston Safe Deposit and Trust com
Iany held Saturday. Miles was re-
George L. GGodspeed was elected as
sistant treasurer to cover the vacancy.
The following statement was given
to the press by President Stone Of the
company:
4 committee Of the directors is now
engaged upon an examination of the af-
fairs of the company. 1t is impossible
a present to state exactly the loss which
the company will suffer through the
misconduct of Mr.. Miles. 1t is possible
to say that the loss will not amount
to much as the undivided profits of
the company and will not impair the
capital and surplus amounting TO
s. 600 900
THE STOCK MARKET.