New-York tribune., 1902-08-16
ADMITS 4 BIG SHORTAGE.
SECRETARY SAYS HE GOT NONE OF
100000.
LOAN ASSOCIATION MAY GO INTO RECEIE-
ER'S HANDS-CULPRIT. CITY TREASURER
PENNILEss FROM RESTITUTION.

PENNILESS FROM RESTITUTION.
Passaic, Aug Is (SpeciaD.-Willam Malcolm,
City Treasurer and for twenty years secretary
of the Passaic Mutual Loan and Building Asso-
citation the largest and oldest association in the
city last night admitted TO the board of direc-
tors that there was a shortage In his accounts
of that associat ton of over 100000. The Mutual
association is composed of over six hundred OF
the poorer people of the city. 1t did a tre-
mendous business, and last year its assets We're
over $4,000.
Mir. Malcolm was reputed to be worth over
100000 and had the respect OF every cltZeh'
few months ago there came rumors that lhe
association was in difficulties. but few "ouid
believe it, Anything that had Malcolm name
attached TO it was considered gilt edged Now
was told last night that he would be arTes'eu-
He turned over to the trustees named by 'he
association three months ago every dollar he
had in the world including his big stationery
store and his own home, and all property pe-
longing 10 his wife. These footed up TO Soo'"oo'
and his shortage at that time was said 10 pe
about an equal amount 1t had heeh ulse0N
cred by State Examiner J. d. ConkLh' Oh
Paterson who made an investigation Oh the
books The announcement at that time by MI
Conklin was not believed by the board OF dl-
rectors Of the association. Mr.. Malcolm "heh
asked regarding his shortage. SAID;
L have never reaped cents worth OF
benefit from the money apparently missing. l
made errors in bookkeeping that resulted IN the
association reaping the profit through mere
dividends and larger receipts. mat W MAeIe 'N
money went. 1 have made Sood as lat as
can. and am to-day penniess, for the beneht OF
association.
Then the associa ton reelected him seCreI >
though many stockholders howled. Mr NAL
colin was forced out after few weeks more ana
F B. Conant elected in his place Last hlshI
at a private meeting of the directors MI. In
ant reported that since the examiners mao
turned over the books to Mr.. Malcolm ne hau
found more shortages amounting to somewhere
near S20, 900. The shortages were salo 10 pe ~
accounts marked closed which We're reaIiy sun
in force. Startling statements were mace ABOUT
erasures and accounts cut out OF DOCKS.
Mr. Malcolm was sent for. He broke down
when demand was made for an explanation.
He said he had none to make. but nnally crled:
DO what you wish with me! L have given
YOU every dollar have in the world admit
that l have been at fault Arrest me II you
will II will kill me; that's ALL"
Then he broke down and cried. lie was 4eu
to his home and kept under surveillance All
night. To-day one had the heart 10 cause
his arrest. .
When asked what had become of the money
Mr. Malcolm said he did not know. While ad-
nittinr that some of the money had been used,
he still clings to the statement that he mace
errors in bookkeeping. He says he does not
know where the money went The stockholaers
DENY that they ever reaped any benefits. The
State examiners are in charge OF the aSsocldtloi
and the stockholders in a state OF excite
be proba bly, placed in receivership this week
Examiners are now going over the DOCKS OF Jle
CITY which have been found to be badly mud
died So far no shortage has been found