The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-09-25
THE FULTON BANK DEFALCATIoy.

Investig alton or tho Affairs or the hank
Interesting Proceedings Before Justice
Osb0rne-Testimony OF the President OF
the Bank-The Modus Opera ndi OF the
Defaulter-Only sixty Thousand Dollars
4 Missing.
The investigation in the Of William J. Lane, Jr,
who stands charged with embezxlng about SEQ funds
81 the Fulton Bank, where he engaged assistant
Cashier was commenced before Justice Osborne at the
Lower Police Court yesterday. The President Of the
bank, Mr.. Kernochan, examined at great length.
Hsgave full and complete history the defacauon and
the manner in which was Effected, win be from
his afndavt as follows
Joseph Kernoehan being swo says that he Is the Pre-
thst during the several hereinafter mentioned and
until the 18th day Of September 1859, William j. Lane,
New York. where the bank 10 located that the said
bank is and during the several periods hereinafter
toned has been, moncycd corporation created by and
under the laws OF the STATE Of New York such
during all that time transacted, and still ransacts the
business Of banking in said city that the said bank during
s the said period has kept books OF account among
which are several books called registers OF foreign noas
which said books are designed 10 show and contain
cord Of the various bills notes drafts and other securi
ties for money which payable out or the city OF New
York and lodged with and entrusted the said bank BY
ts dealers and for collection their account
and inc description o. such Sis notes drafts and sccus
,coleccd and the time when the bceomes due and
the amount thereof us entered in the said books that the
said books, In addition TO the entries aboYe enumerated
likewise contain the Of the person Or persons by
whom the said bills notes and drafts been
sted and whose account the same are 70 be collected
and who entitled 70 the proceeds thereof, and
tho entries in the said books also show when the sad
bils, notes, drafts securities, havc been forward
ed ~ the said Fulton Bank TO the bank with whom cor
responds At the place where the said bills notes, drafts
and securities are payable, the name Of such bank 4nd
s % r ass s s
VIM. j. Lane, Jr, above mentioned, In his capacity a.
clerk in the said bank had charge Of tho snid boo1 Of
account; and that 1t the duty Of the said Vim. j.
Iase J such clerk 10 make true and correct entries
In the said books and keep true and correct account Of
the various bills notes and drafts, deposited with said
bank for collection and the person for whose benefit
and On whose account the same were to DO collected
and the payment or non payment Of the said bills
Of the said VIM. ]. Lane, Jr on tao payment men
payment OF the same TO make entry ia tho said books
indicating the fact; at by the course Of business Of
the said bank and by its rules and regulations respect
ing the mode Of transacting business and keeping its
books whenever the corresponding bank whom tho said
bills notes drafts sent for collection acknow-
lodged that the same collected or whenever the
said bank, in week after the maturity Of the same, had
not notified the Fulton Bank that the had not
been paid the amount Of the said bills, notes drafts
charged to the said corresponding bank aud credited
to the person who appeared by the entries in the said
registers kept by the said William j. Lane Jr, 70 be tho
person who deposited the with the said Fulton Bank,
and on whose account the same collected, ana to
whose credit the same was 10 be passed. and that the
counts credited paid to the said persons and that
such credits and charges made and said payments
Of the said credits also made according the entries
made BY the said William j. Lane, Jr. And he further
says that the said William J. Lane J, with intent to de-
fraud the said Fulton Bank various times between the
first day Of January 1885, and the nineteenth day Of Sep
tcmber 1882 made false entries in the books Of account
kept by the said Fulton Bank, by which ccuniary
dts purported TO be and created And he further
says that the said registers contain separate
statements Of the different bills notes. drafts and checks
forwarded by the Fulton Bank to its several correspond
ing banks at different places and each Of the said &C
counts indicates the particular corresponding banks
winch the nave been provided and the
the said bank is located That each page each Of said
registers headed with the Of the place where said
corresponding bank Located, that each OF said
pages IL divided columns and headed as follows
lat column headed To We credtGvf