Evening star. [volume] (Washington, D.C.) 1854-1972, 1867-08-19
Another Bank DefaIcatisn in New York
Ses.000 EmbeZxled by the Tellers.

Another Bank Defalcatisn in New York
Ses,0o0 Embezxled by the Tellers.
The New York Post OF Saturday has the
Tradeemen's National Bank had sustained 3
loss OF sa5,a00 by the alleged dishonesty of tse
paying and receiving tellers, named e. T.
Baker and J. Arnold. They are each be.
hitherto been much respected by their associ.
ates and acquaintances. Both OF the men a We
families.
1t is said that Baker and Arnold have beep
connected with the bank about thirty years
and during all OF that time they have had the
con nfidence Of the e1icers OF the bank. A few
days ago, however, it was ascertained thai
there was discrepancy in the accounts of the
receiving teller, Arnold. The president of the
bank held an interview with him, when Ar
rold became much confused, and said that he
would amount to. A careful examination OF
the books was then made, when 1t was found
that during the past four or we years false
entries had been regularly made In the ac-
counts Of the bank and that the aggregate OF
their sefalcations amounted to nearly one q q
dred thousand dollars.
/, is said that neither Of the men has saved
any money from his REGULATIONS. but that 1t
has all been sQnandered ia speculations or
used in supporting their families. At the
time the unpleasant exposure was made the
families OF both men were at watering places
Mr.. Richard Berry, president OF the bank
mas published card, In which he says that
the embezzlement amounts TO 5000, but tn at
the sureties of the TIVE tellers will reduce the
loss OF the bank to $4,000. The surplus of he
bank amounted to S450,000.
Mr.. Arnold says that there was no collusiou
between himself and the first teller, Mr.. Baker.
In defrauding that institution. 1t is said that
the deficiency in Mr.. Arnold's account is
$4,000, but he does not think IL is so great He
has placed all of the stocks aud other properly
pos sessed by him in the hands of Mr. Berry
the president. These stocks are worth about
5000.
The bank will receive $500 from Mr. Ar
nold's sureties, and he will also place life in
surance policies amo ounting to $4,000 in pos
session OF the bank. Mr.. Arnsld saws the
bank will not lose more than $1,000 through
his operations, aud this amount he intends TO
pay, il possible.
His story is suggestive one to persons fond
OF stock speculations. He SAYS that his ac-
Quaintances urged him to operate in stocks bv
buying and selling on margins" 1t was us
intention, when using the money of the bank
10 @ nave returned it. and he says he conid have
done SO II he had not been cheated. We with
hold the names of the brokers who defrauded
him. Mr.. Arnold says he was engaged in only
four or five operations.
The defalcation Of Mr.. Baxer is reported to
be more serious than that OF Mr.. Arnold, and
from what is at present known of his affairs,
1t was from the same cause. Mr.. Arnold says
ina. wnen nis own deficiency was made
rlous error ia the accounts of Mr.. Baker 1t
appears that the latter was indebted to the
former on the books OF the bank about $4,000,
but Baker gave Arnold to understand that he
held bonds to Offset this amount.
On Thursday morning when Mr.. Baker ap-
peared and asked for his KEYS, they were re.
fused, and Mr.. Berry called him to his private
office. The deficiency OF $4,000 was made
known to him. and the president asked him If
he was defaulter TO any other amount
Baker made no answer, when he was asked
If his accounts were wrong to the amount of
$4,000 Still no answer. care they wrong
to the amount of S20,0G0!' No answer sArs
they wrong to the amount of S5O.OGO,,'
Mr. Baker then said: "For Gods SAKE. Mr..
Berry. don't ask me; don't know; wish l
were dead -
An examination was then made Of the books
and il was learned that there was deficiency
in Bakers account of $4,000 The manner in
which his books We're kept partly Justify the
assertion OF Arnold that he did not know OF
Bakers defalca'isn. Instead Of writing q n his
BOOKS each n1gh', Baker would wait until the
next morning. so that if a man deposited $780,
600 IN the afternoon. the defaulter could use
that money; and place deposit of the next
day to depositor's account. This second
deposit would non be credited until the suc
ceeding day.