The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-09-26
!, Mr.. Kernochan, the President of the bank,

ofMr. Kernochan, the President of the bank
tells the whole tale.
S.oung Lane, it seems, concocted clums!
-. !, - his being agent of firm in New
Jersey and com. ''iSSioneu 70 NAN .ol..''on
sar a without takins the trouble 70 inquiry
,what,.,. there was ), ,tualy such firm in exist
,ence-for it they had tn, if"ua would have
esoon ao,aotos a. tho frat stem hey allow their
clerk to open an account with them in us own
name though professedly on behalf of his ina
ginary firm, which was represented by the ini-
r4ials A. d. d. From time to time commencing
in 1857 and running on down to the date of his
arrest, ne himself recorded in the register books
entries of pretended notes for sums ranging
from five to nine hundred dollars, drawn by
any person in creation upon any other person,
20 be paid either at Philadelphia or at Boston,
and to be credited to himself, w. J. Lane, Jr.,
who was probably the only real flesh and blood
individual in the financial transaction. The re-
cord in the books would further show that these
Imaginary notes were forwarded for collection
10 the Bank of Philadelphia OF to the Mer-
1hants' Bank ct Boston; and on the strength of
these entries young Mr.. Lane could, and did,
get checks from the cashier of the Fulton Bank
to any amount he might demand.
The first question that will suggest itself on
thissstatement of facts to any intelligent mind,
not having a knowledge Of the loose manage
ment of our banks, is, how it was that the Full
ton Bank did not look for vouchers or returns
frem the Philadelphia and Boston banks for
these pretended notes. and how it was that no
weekly, monthly, quarterly or half yearly
balances of accounts passed between them?
Every business man who sends by mail to a
correspondent in distant city any money or
valuable security naturally looks for an ac-
acknowledgement of its receipt. Do not our banks
practise such common and necessary rule? 1t
seems not: at least as far as the Fulton Bank is
concerned. Here were a dozen of notes enter
ed as being forwarded to the Bank of Phladel-
phia and the Merchants Bank at Boston, and it
seems to have been the business of no person
in the Fulton Bank to look for their acknow-
ledgment, or to make inquiries whether or not
they were received If this neglect be custom
ary, then it is no wonder that robbing the
mails is such a common offence.
The Developments made in this case would
possibly apply quite as well to nearly every
other bank in New York. The management of
The Fultonis probably no more loose than that of
all the rest. Men are often made presidents and
directors not because they possess financial
ability or a thorough knowledge of accounts,
butbecause they own a certain number Of shares
in the bank, and have some object of their own to
accomplish. They are purse-proud in proportion
as they are stupid and ignorant, and think it
beneath them to recognise or be familiar with
the tellers and clerks. These latter, left to
themselves, and having thorough contempt
for those moneyed parvenus who affect such
airs, soon find out how they can carry on, with
out much fear of detection, a system of pecu-
lation by false entries, and so they soon present
the very curious spectacle of men, on salaries
ranging from one to three thousand dollars a
year, living in marble or brown stone houses,
driving fast teams, keeping fast women, fire.
uuenting gambling houses, and living in style
requiring an outlay of from ten to twenty
thousand dollars year. AS in the case
of Lane, the sole reason why they do not
keep yachts is because they have not time
enough for that style Of amusement. The di-
,rectors are the last persons to have their eyes
opened to the anomaly. 1t is only when some
accident occurs to bring the fraud to light that
they realize how befooled they have been
There are few banks in New York and few
commercial houses that have not had some ex-
perience in this way. But, for every case that
comes before the police courts and gets into
the papers, score of cases are quietly ar
ranged within doors and all publicity of them
suppressed. 1t is in this way that the public
who are stockholders in banks, or have moneys
deposited in them, are often victimized. Blu
there is no remedy for the evil so long as the
management of our banks is characterized by
the gross negligence that has been brough
home to the Fulton Bank by the developement
in the case of young Lane. 1t is well, however
to bring the matter fully before the public.