The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-09-11

surer The story is an old one, and only re-
markable because of the amount of money in.
volved. The deiaultng treasurer or cashier has
become as standard character in our financial
associations as the heavy villain in the domestic
Drama. Presidents and directors OF banks and
stock companies seem to regard these frequent
deialcations as matters of course, and take no
precautions to prevent and few measures to
punish them. So loosely are affairs conducted
that when an expose occurs 1t is Impossible for
those concerned 30 ascertain accurately how
much money has been stolen. The temptations
thrown IN the way of cashiers, clerks, treasu-
rers, and tellers by this careless mode OF trans
acting business are aim ost irresistible, and the
TACT that the criminals are generally permitted
to escape even when their operations are
detected, adds another powerful incentive to
crime.
i'm the case of the Nassau Bank--to which we
referred few days ago-the embezzlement was
discovered by accident The detective police
happened to notice person OF gentlemanlY APP
pearance haunting the Broadway gambling
houses, and upon making certain inquiries they
discovered that he was the cashier of the Mas
sau Bank, ana had been losing large sums at
play. Thereupon they went to the Bank Presi-
dent and informed him of the fact, and an IN
vestigation disclosed the connection between
the gambling operations of the cashier and the
missing money at the Bank. The case before
us was revealed by circumstance quite as acci-
dental. stock company had been formed for
purposes fully set forth IN our report,
and an eX-Secretary of War, an eX-
Governor OF New Ham pshire, an ex-Trea-
surer OF the United States Mint, and an
eX-Secretary of State OF the State OF New York
with many reputable merchants IN this and
other cities, were associated in the enterprise.
The eX-Treasurer of the Mint at Philadelphia
was elected treasurer OF the Company, and IN
his clearinghouse the preliminary meetings OF
the shareholders were held. board of dlrec-
tors having been chosen, 1T was agreed to sub
scribe the sum of two hundred and fifty dollars
each to start the Company, and the money was
paid 10 TO the treasurer. Other subscriptions
were also received, and as the names of those
in charge of the concern appeared to guarantee
its stability, the general pubic began TO buy up
the stock. 1t is supposed that, IN addition to
the other receipts, at least thirty thousand dol
lars must have reached the treasurer in the
form OF remittances by letter; but the amount
may really have been double that sum.
In the meantime the treasurer was residing in
Grand style at fashionable hotel The Gus
tomary indulgences in high living, fine wines,
fast horses and Havana cigars fiji out this chap
ter oil the story. OF course there was woman
in this as in every similar case. Like Jenkins
this treasurer hau wife and family to support
besides his illegiumate establishment. He
seems to have had a follower, too, who bad OBJ
tanned some knowledge of his crime, and drew
upon him for funds in the ordinary style of
these fellows in novels. Affairs drIfted along in
this happy routine tor some time, and although
the capital of the company was being daily mis-
appropriated, the president and directors were
unsuspiclous and the stockholders none the
we have alluded. resulting in the reve-
lation of the defalcations. carpenter
had done some work IN the banking
house, and brought ill q bill which was
declared exorbitant. Payment was consequently
refused, and the carpenter Instituted a SUIT
against the firm and recovered Judgment. In
liquidating the claim the treasurer gave a check
which had been paid in by merchant of this
city as a subscription to the stock OF the COM
pany. When this merchant took up his check
he noticed that 1t had been used to detray the
private deOt of the treasurer, and at once de.
manded an investigation. If the treasurer had
only cashed the check himself and handed the
carpenter the money he might have gone on
| swindling Tor another year undiscovered. This
accident, however, checked him in his career.
| He appeared before the investigating committee
appointed by the directors, promised to produce
| his accounts next day at noon, and OF course
| ran away. Although this occurred on the I'd
| of July, and the defaulter resides in Phia-
| delphia, no effort has yet been made tOl his
| arrest.
Now, what shall we say of such gross mis-.
| manaeen ent as these facts reveal? What is the
| use of president who does nothing but draw
his salary, and of board of directors who direct
| nobody Here IS company composed of respOn.
sible gentlemen, and otiicered by tnanciers o.
experience, and yet its treasurer is allowed tC
appropriate Its funds undetected by any OF these
shrewd business men, and is only discovered
through the accidental agency of a carpenter
When the treasurer is found out he runs away
no attempt being made to stop or to pursue him
much money he has embeZzled. The very fac
of his crime is kept from the public as long a
possible, although unsuspeGting persons may
still be subscribing to the company's STOCK. /
it we're not for the Herald and its enterprise tht
true state of the case might have beer
concealed for years, as it already has been To-
months. We could have published the intorma
tlon which we gave yesterday some time ago ha(
we not been obliged to verify every statement
by careful examination instead of being assisted
by the company in making the fraud public, al
a warning to all concerned. But, useful as sucl
warnings may be to the people at large they
seem totally unheeded by the conductors of ou
financial institutions One after another thes
dealCations are exposed but the next weel
another OF the same sort is allowed Il
happen. Certainly our financiers ought to b.
wise enough to guard against these endless repe
titions or the same fraud. If we must hav
crimes let there be some little variety about them
This falce OF the innocent president the un
sophiscated directors, and the knavish cashie
or treasurer begins to grow tiresome and to bt
played out People will soon believe, and YER
rightly, that there is no institution in Wal
street worthy of confidence, and that men VIII
are wise and keen enough in their own priyat
business become foolish and blind when orga
niZed into boards of directors or placed IN tb
presidential chairs. But, for the sake of al
those who already nave funds invested in stock
or deposited in banks, we again call upon eac
company to rieidly overhaul its accounts, an
we intend to urge the Legislature, at its mex
session, to institute thorough investigation
these institutions.
} MIR. Beecher's Second Letter.
From the World.