The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-09-10

au accouht VI tne cOiinpSe OF Wall street
institution, produced by the alleged extensive
entertainments Of its treasurer. The story is
an old one, and only remarkable because of the
amount Of money involved. Tho defaulting
treasurer or cashier has become as standard
character in our financial associations as the
| dents aud directors Of banks and stock CON-
panies seem to regard these frequent defalca-
| tons as matters OF course, and take no precau-
tons to prevent and few measures to punish
! them. So loosely are affairs conducted that
when an eaposG occurs 1t is impossible for
those concerned to ascertain accurately how
much money has been stolen. The tempta-
tons thrown in the way of cashiers, clerks,
traasurers and teilcrs by this careless mode Of
| transactihg business are almost irresistible,
and the fact that the criminals are generally
permitted to escape, even when their opera
tons are detected, adds another powerful
incentive to crime.
! In the case OF the Nassau Bank-to which we
referred few days ago-the cmbczzlcment was
discovered by accident. The detective police
happened to notice person Of gentlemanly
| appearance haunting tho Broadway gambling
houses, and upon making certain inquiries
they discovered Chat he was the cashier
Of the Nassau Bank, and had been losing
large sums at play. Thercupon they
] went to the bank president and informed him
Of the fact, and an investigation disclosed the
connection between the gambling operations
| of the cashier and the missing money at The
bank. The case before Us was revealed l;y O
| circumstance quite as accidental. A etock
! company had been formed for purposes fully
! set forth in our report, and an eX-Secretary of
Wer, an Ex-Governor of New Hampshire. an
| exeSeeretary Of State of the State ofNew York
with many reputable merchants in this and
other cities, were associated in tho enterprise.
The cy-Trcasurer OF the Mint. at Philadelphia
was elected treasurer Of the company, and in
his banking house the preliminary meetings Of
the shareholders were held. A board of dirsc-
tors having been chosen, il was agreed to
subscribe The sum Of two hundred and fifty
dollars each to start the company, and The
money was paid in to the treasurer. Other
subscriptions were also received, and as the
names OF those in charge of the concern mp
peared to guarantee its stability the general
public began to buy up the stock. Ii is sup
posed that. in addition to the other receipts,
at least thirty thousand dollars must haze
reached The treasurer IN The form Of remitaaces
by letter: but the amount mey really have been
double that sum.
In The meantime the treasurer was residing
in grand style at fashionable hotel. The
customary indulgcnces in high LIKING, fine
wines, fast horses and Havana cigafs fill ont
this chapter OF the story. Of couTso there was
a woman in this az in every similar case. Like
Jenkins, this treasurer had wife and
ihmily 10 support besides his illegiiimatc
establishment lie seems to have had q fol-
lower, 90, who had obtained some knowledge
OF his crime and drew upon him for funds In
the ordinary style Of tlesc fellows Ia novels
Affairs driftcd along in this happy routine for
some time, and although the capital Of the
company wss being daily niisappropriated the
president and directors were unsuspicioGs and
the stockholders mono the wiser. A. las came
resulting in The revelation Of the dcfalcations.
A carpenter had done eomc work in the bank
ing house, and brought in q bill which was
declared cxorbitant Payment was conse-
qucntly refused, and the carpenter instituted
suit against the firm and recotered Judgment.
In liquidatiDg tho claim the treasurer gave q
cheek which had been paid in by a merchant
Of this city ne q subscription TO the stock OF
the company. Whoa this merchant took UP his
check lie noticed that il hid been used 10 deiray
the private debt Of the treasurer, and at once
demanded an investigation. IL the treasurer
had only cashed The check himself and handed
the carpenter the money he might have como
on swindling for another year undiscovered.
This accident, however, checked him in
his career. lie appeared before the in
vestigating committee appointed by the
directors, promised 10 produce his accounts
next day al noon. and Of course ran
away. Although this occurred on the ID
Of July, and the dcfsultcr resides in Phila-
delphis, no effort has yet been made Ter his
arrest
Now, What shall we say of such gross
acknowledgement as these facts reveal What
IL the use OF president who docs nothing but
draw his salary aud Of board Of directors
who direct nobody. Here is company conf
posed OF responsible gentlemen and ohicerad
by Gnanc!crs Of experience, and yet its treasurer
is allowed to appropriate il. funds undo
tected by any of these shrewd business men,
and Is only discovered through the accidental
agency Of carpenter. When the treasurer is
found out he runs away, 10 sieInp. being
made TO stop or 10 pursue him. After lac j.
gone the company cannot tell how mucL
money he has embczzlcd. The very fact OF hi
crime Is kept from tbs public. as long 81 pos
siblc, although unsuspec,ine persons msy still
be subscribing 10 The companys stock II h