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

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Investig atom or tho Affairs or the Hank
Interesting Proceedings Before Justice
Osborne-Testnmony Of the President OF
the Bank-The Modus Operandi Of the
Defasltsr-Only sixty Thousand Dollars
4 Missing.
The investigation in the case Of William j. Lane Jr.,
who stands charged with embezzng about 500 oo funds
f 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, WAS examined at great length
Hsgave full and complete history Of the defacauon and
the manner in which enested as viii be from
his afndavt as follows 8
Joseph Kernochan being swor saws that he Is the Pre-
sidcnt Of the Fulton Bank in e city Of New York. and
that during the several hereinafter mentioned and
Jr WAS clerk employed ~ the said bank at the city or
New York, where the said bank is located that the said
toned mas been moneycd corporation, created by and
under the laws OF the State Of New York such has
during all that time transacted, and st ansacs, the
business u banking In said city that the said bank during
s the said period has kept books Of account among
which several books called registers Of foreign notes
which said books designed 70 show and contain re-
cord Of the various bills notes drafts and other secur
ties for money which payable out or the city OF New
York and lodged with and entrusted to the said bank by
s dealers and customers for collection their account
and the description Of such bills notes, drafts and sccur
tcs thc parties thereto from whom the be
scoeccd and the time when the same beeomes due and
the amount thereof entered In the said books that the
said books, In addition 10 the entries aboYc enunerate
kewhe contain the or the frrson Or persons by
whom the said bills notes and drafts have been depo
steA and for whose account the same are TO be collected
and who entitled TO the proceeds thereof, aud
the entries in the said books also show when the said
bills notes, drafts, securities, have been forward
ed " the said Fulton Bank TO the bank with whom
responds Al the place where the said bills notes. drafts
he tine also when he said sal corr bank
charged with the proceeds the same; that the sAid
VIM. j. Lane, Jr, above mentioned, in his capacity ~
clerk in the said bank had charge OF tho said oo1 Of
account; and that IT the duty of the said VIM j.
Iape such clerk to 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 to bo collected,
notcs md drafts 50 dcposcd and was further the duty
Of the said Vim. j. Lane, Jr, on ths payment ncn-
payment of the same TO make entry IA the said books
indicating the fact; mat, by the course Of business OF
the said bank and by its rules and regulations respect
ing the mode Of ransactng business and keeping its
books whenever the corresponding bank whom the said
bills and drafts sent for collection, acknow
dged that the had been collected whenever the
said bank, in week after the maturity Of the had
not notified the Fulton Bank that the same had not
been paid the amount of the said bills notes drafts
charged to the said corresponding bank and credited
to the person who appeared by the entries in the said
registers kept by the said William j. Lane Jr 70 be the
person who deposited the with the said Fulton Bank
and whose account the was collected, and to
whose credit the 10 be passed. and that the
counts so credited were paid to the said persons and that
such credits and charges made and said payments
Of the said credits also made according to the entries
made by the said William J. Lane, Jr And he further
says that the said William Lane, Jr with intent to de-
fraud the said Fulton Bank at various times between the
first day of January 1858, and the nineteenth day Of Sep
tember 1885, made false entries in the books Of account
kept by the said Fulton Bank by which pecunary
dts purported TO be and were created. And he further
says that the said registers contain separate accounts
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 10
which the same have been provided and the place where
the said bank Is located That each page each Of said
registers headed with the Of the place where said
corresponding bank is located And that each Of sait
pages s divided into columns and beaded as follows:
1st column headed To he credEof