Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1858-03-13
The Union Bank DeraIcntIon.

One OF the Cnlel topics pl ulSCussipi III
financial circles to-day, is the defalcaton
at the Union Bank. We notice that some
persons are disposed to crlticlse the watch
fitness of the presiding officers as IT the loss
were owing to some derelicton Of duty on
their part but we see nothing in the facts OF
the case to warrant such an assumption
A few DAYS ago q detective police Ohcer call
ed at the Union Bank and informed the
President that clerk in that nstltatiOn bad
been seen to Use a large amount OF money
in gambling house, and there was a suSpl'
cion that all was not right The clerk was
known in the house as Bob" and as there
was no one answering the description, the
President thought there must be some mis-
take, but immediately instituted further ln-
quries.
In day or two the detective was able to
identify Benz min X. BrOtberson, a book
keeper in the bank, as the suspected man
The President Guild scarcely believe The
statement, az he had found BrothersOn clerk
10 the bank when he took charge of 1t ~
wears ago and there had never been breath
of suspicion against him. lie Immediately
engaged an expert TO examine BIS ledger.
and the defalcatinn was discovered. The de-
I f4uI,er having observed enough TO know that
he was suspected, left the bank under pre-
tence of having tooth ache, and his where
abputs cannot be discovered.
The ledger shows deficiency OF about
Sl27 900, but most Of this must have been at
stracted many years ago. BrOthersOn's wife
cOnverses freely in regard 70 II, and stated u
a lawyer who called upon her, that some
years ago, previous to her marriage, Il. told
| her that there WAS q defalcatiou in the Union
Bank OF $4,000 and asked her il she would
marry him knowing this fact. She consent
ed, and has faithfully kept his secret, bat she
says tina; it has worried him ri sht and day,
and that be has repeatedly resolved to make
confession to the president, but could not
raise sufficient courage She says that Is.
asked for his pistol when be let, but seeing
| his excitement she refused to let him have IT,,
and he went away without 1t, telling her that
she would not see him again for many years.
As the bookkeepeT did not handle any Of
the banks funds be could only perpetrate q
| fraud by coliu-ion with some If the custom
ers of the bank 10 this case. the operations
run so far back that the whole of the comb
nation has not yet come To light. II appears
that Jacob II Mott opened an account with
the new bank 1.-THE Union having been wound
up as a chartered institution, and reOrgan-
/ lied az an association under the General
! Law in the year 1856, and that the bookkeep-
er continually credited him with fictitious
amounts; in some cases adding a figure at the
| left hand Of au actual deposit, IN others en-
tering an amount entirely fictitious, when DO
deposlte had been made. OF course, these
credits were balanced BY a corresponding
deb! against some account which had large
balance, whenever the boOkkeeper was re
auired to furnish bis ba lance sheet.
The amount e cverlraGts on this one ac-
count, is about SIS 900, and it is probable
that the remainder of the defalcatiOn ran far
back into tue business Of the old bank. A.
sumng the whole nm named lSl2I OOO) as
actually lost it will not be half the present
surplus of the bank, and will not uace 'sarily
interfere with the regular dividends OF the
| institution. This occurrence will teach more
watchfulness and caution, but We would sus-
cest that this care should he directed less TO-
ward the invention Of new safeguards. IN
which we have but little confidence, than t :
wards the character and habits of those who
are now trus ted by the banks. They cannot
avoid this trust, and notwithstanding all their
watchfulness, they will be ccasiOnally de-
ceired.
In this connection, we may venture to re-
mark that there is Il clique Of outsiders who
have been concerned more or less directly In
nearly all of the bank frauds, MT only IN
cases of COLLISION with dishonest clerks In
respectable institutions, but also in those cases
where the bank itself has been originated
with an intent to swindle the public ". !.
Jomnai Of Com.