The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-08-12
rne Phenrx Bank Robbery.


We publish in our news columns this
morning some of the details of the defalca-
ton at the Phenix Bank, with it's curious,
romantic and tragic incidents. A short time
ago the Mercantile Bank of this city
was defrauded of about three hundred
thousand dollars by similar populations. In
that case the officers of the bank did
not know that they were being robbed until
the sudden fight of Windsor to Europe alarmed
their suspicious and caused an investigation.
Windsor. it will be remembered. was arrested
in London, and en- English court held
that he had been guilty of theft. A British
jury distinguished themselves by passing
vote of censure upon the managers of the
bank The censure was, of course, deserved;
but it was characteristic of John Bull to find
fault with an institution three thousand miles
away, while so many rotten and mismanaged
concerns existed in London, under his very
nose, ,unrebuked.
Scarcely has the excitement about the Mer-
camille Bank died away when The Phenix Bank,
one Of the oldest in the city, is found to be in
similar plight. In this case, as in the other,
the bank officers knew nothing of the robberies
which were being committed. Windsor stole
about three hundred thousand dollars-ffty
thousand of it in gold-from the Mercan-
tile Bank, and Jenkins robbed the Phenix
of two hundred and seventy-fve thousand
dollars, and yet in neither instance was the
loss of the money discovered until the crlmi-
nails had confessed their guilt Windsor by run
ming away and Jenkins in conversation with
the cashier. What commentary Is this upon
the present system of bank management! One
would think that its old president would rise,
phenix-Ake, from his ashes after such astound-
ing revelations. Since the bank which he 80
long conducted has since been SO badly man
aged, what must be the condition of our
other banking institutonsf What security do
they give depositors and stockholders that they
are not as badly off as the two recently ex-
posed? Until they have made careful exarni-
nations Of their accounts and the cash on hand
they can give ne such security. The sooner
these Investigations are made, therefore, the
better it will be for the banks and the public.
All those implicated in the defalcations
have, we believe, been arrested one has COM
mitted suicide, and the others, as the evidence
seems very clear, will doubtless be found
guilty and locked up in Sing Sing. But what
Is to be done with the bank officers They
are trustees Of the money OF many people, and
their negligence has certainly been criminal.
Bank presidents and directors apparently sup
pose that they have nothing to do but to cit
in the bank parlor and discount notes. The
president receives large salary, but seldom
earns it. The whole party leave everything
to the cashier, the teller and the clerks,
and we observe how the Windsors and
the Jenknses take advantage of their OPP
portunities. How can any bank be certain
that it is safe before it makes a rigid in
vestigation? When two or three hundred
thousand dollars can be stolen from bank
without being missed, we can readily be-
lieve that its business must be very
loosely conducted. The very men who are
placed in Office to see that nothing wrong
occurs shut their eyes to the details of the
business, sign any papers which may be pre-
scented to them, and are perfectly contented SO
long as they get their dividends. One half of
the capital stock Of the bank may be spirited
away; but they never miss it. They are
too soft hearted to suspect anybody and
too negligent 10 add up column of
figures. To investigate anything might wound
the feelings Of one of the employees, and SO
they never do it. To ask to see the books
would break the bookkeeper's heart, and so
they forbcar 1t is astonishing how tender lazi-
ness makes some people; but It is a relief to
know that such tenderness is appreciated.
When jenkins was asked how much money he
had taken he declined to tell "for fear il would
make the bank officers feel badly" Unfortu-
nately we have no such sympathy with their
weaknesses. II has been suggested that the
best way to stop railway accidents is to tie a
director to each locomotive. The best way to
prevent bank frauds is to arrest or sue one or
two bank presidents. r-.-.....,..