The evening tribune. (Pawtucket, R.I.) 189?-190?, 1896-12-19
+. c. Miles Short
Boston Safe Deposit Bank
Robbed By Treasurer.
Deficit Will Amount to Nearly
$780, 900 Directors Ast0nished
Miles Was Trusted Man OF the Bank For II
Years-Speculation Is the Allegation.

Boston, Dec. 19.-After serving the Bos
ton Safe Deposit and Trust company
for 21 years. Frank c. Miles. the treas
urer. is found to be defaulter Miles
shortage will reach 500, 900.
The defalcation was discovered late
yesterday afternoon by the president,
and meeting of the directors was i'm
mediately called. After a 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 a deficit in their securities, called
upon the treasurer, Frank G. 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
tion with the safe deposit vaults of the
company. f. M. 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
II years had handled the funds of the
company In a most conservative and
careful manner not even whisper be-
ing heard as to his integrity until yester-
day
The company has a capital of s., 900 :
coo. and does a regular trust company
business, besides having a large num-
Der of safes, which II rents to private
parties for the safe keeping Of securities.
Miles had full charge of the cash de-
posits and securities belonging to the
company and those held as collateral
for loans, and Ii Is from these securities
that he distracted those missing.
AT late hour last night the examining
committee was still In session at the
bank. trying to ascertain If the 500, 900
covered the entire deficit.
Immediately after the defalcation was
discovered, Hon. Solomon Lincoln the
counsel for the company, as we'll as di-
rector. was notified. and prepared the
necessary papers to present to the court
for the issuing of a 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 by Miles, and the money raised on
them used In speculation. He deplored
the unfortunate acts OF the treasurer
who, he said had always been looked
upon as absolutely trustworthy
Miles. who is 46 years old, and native
| of Massachusetts, has most luxurious
home at BAG Beacon street and sur
rounded by every modern convenience.
he has 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
first broken to her by reporter She
said that her husband had telephoned
from the bank late i'm the afternoon that
he would not be home until late but she
had no idea Of the cause of his absence
Her husband had always been extremely
retcent of his business affairs, and she
could ascribe no cause for his actions.
The Boston Safe Deposit and Trust
company is a state institution, and does
rot come under the national bank act,
being directly under the supervision of
the savings bank commissioners of this
state.
The last examination of the company
was made by the commissioners in No
vember, and. according to the statement
issued by the commissioners, all the Sc
curities were intact at that time. In
order to deceive the examiners at the
time, Miles either substituted other Sc
curities or persuaded the savings bank
commissioners that everything was all
right. and they took his word for 1t.