The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-31
R. F. STRAINE ARRESTED.
HE Is cHARG ED WTTH EMBEEELINa
S7S,3sf ~ BOSTON.

Onlciais or the Postal Telegraph Company or
New York Swear That N1r. strnine. ne H'rea-
idcnt or tho Uniicd Telegram Company
in Boston. fIns Taken Money Illegally.
Boston. Aug. 3o.-Robcrt F. Straine. President
and Director OF the United Telegram Company.
was arrested here this afternoon by officers Of
tho Bank squad. charged with conspiring 10
commit larceny, the amount specified being
R73,371.17. Mr.. Straine's arrest was Mt the In.
stig ton OF the officials OF tho Postal Telegraph
Company of New York. The arrest was the cui.
mination Of litigation in tho United States
courts in New York and Massachusetts,, In
which the telegraph company had endeavored
to wind up the affairs of tho United Telegram
Company.
The complainant charges the defendant and
Charles A. Lamson, the treasurer Of the com
pany, who was arrested this evening, with mis-
arpropriating the funds Of tho company. W.
NJ. StoCkbridgo. counsel for Straine, said this
evening:
1.-THE arrests OF Mcssrs. Straino and Lamson
were the result of personal luminosity. The deh-
cit named was fully covered by the shares Of
the stock OF the company owned by Mr.. Straine
deposited by him in lieu OF the money. Mr..
straine owned ninc.tcnths OF tho entire issue OF
stock OF 5000 shares. and | am satisfied that
, he, MS President of the company, had a perfect
right to borrow money and to deposit az security
for l, the stock owned by him.
The Postal Telegraph Company owns ONLY
twenty.nine shares out OF the entire number OF
5000. Since the appointment ota receiver the
telegraph company has made strenuous efforts
to gain control Of the property. The report OF
the receiver. OF the company appointed last
February makes mention OF a deficit in the cnsh
on hand, but ncglects TO state that that deficit
was fully covered by the number OF shares Of the
COMPANY stock deposited by Mr.. Straine as coll
friends of Mr.. Strain"
MIR. Straine is 40 years old and resides in Brook
line. Part Of his life Was spent on the Pacific
coast in tho mining regions. He Is a relative OF
Commander Straine who made the first sue
ccssful exploration Of a route for q ship canal
across the Isthmuso OF Panama.
William H.. Baker, tho complainant against
Robert +. Straine, is the Vice President OF the
Postal Telegraph Company OF this city, M well
Mr.. Straine Is the President Of the latter COM
pany. The two companies have many directors
and officers in common, but are separate com.
panies. The United Telegram Company supplied
Boston with stock quotations over the ticker. The
Postal company carried its stock quotations,
The criminal charge against Straine is based
treasury OF the United Telegram Company
without authority and merely left his notes az
security.
Mr.. baker. who caused President Straine's ar
THE arrest is the result Of a suit which was
brought against President Straine several
months ago to compel him to render an account
ing for the SO 900 shortage which was found to
exist in the treasury OF his company. Judge Colt
OF the United States Circuit Court at Boston last
February appointed J. Marsden Perry as re-
pany against President Straine. The receiver
found after an examination of the books thai
the shortage for which the President was held
responsible was due to the fact that he had
drawn out the money and put in his notes and
some stock of the company as security. The
notes have never been paid"