Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1867-08-24

iiN u htt bstt hht " tlCA As1
their systcm of embezzlement with complr
alive safety.
1t is said that neither Of the men has
any money from his peculatio-s but
it has all been s%quandcred in specula>
ions, or used in supporting Their families.
At the time the unpleasant exposure wss
made the families Of both men were at wa
,cring places.
Mr.. Richard Berry, President Of the Bank
has publ he1 n card, in which he says that
the cmbszz cment amounts to S9j, 900, but
that the sureties OF The two tcllers viii res
luce the loss Of the bank 20 so. 600. The
surplus oil the bank amounts to $4,000.
STATEMENTS OF ONE OF Tue DErAuLTEKs.
Mr. Arnold, second tellei OF the Trades
mau's Bank, says that there VAS no collu-
uon between himself and the first teller.
M. Baker, in defrsuding that institution.
|, ia aaid that the deficiency in Mr. Arms
0ia's account is thlrty>four thousand dol
lars, bul be does not think it ia s, great
lie was At the bank on Saturday morning.
and placed all oi the stocks and Other prop.
orty possessed by him IN the hand. o. Mr..
Iie'rc, 'lc president. These - ck- ny
Is oItii about five thousand dollars.
Ihe hank viii receive 50 900 from MIR
Nrnpil'S sure les. and lie will ai4o place
g. in,arn ,ce pol clcs amounting TO SEQ
200 ~ possession OF the bank. Mr. Arnold
-nss tn bank will not iosr tnore than 81,
lOJ thiuush hrs operaii ms, AMI TIL
lnnuu he intends 10 yay It lrss bic.
X story Is 4 suggestive o'c to persons
: "a uf stock ItcuiatiOns. He says tina
49, atqlaiatsuc,s urged hin 70 operate
.ic L. by hlAli, aui selling on 'margiu~'
o. was introduced to two brokers, who,
D though 100, first class. were considered
lc.pon ib,c m,n. NJ. Arnold >ay~ the,
li hcta tuos Ms MONEY 10 use rs margins.
ni afterwards applied it to their own use
lnl then failed. Or course he hal 10 re
ir,s- against them. they arc not rcspan>
sib.c. ,lr. Arnold thinks be has been
realty wrongcd. aud deeply rcsrcis the
exposure which has been made. Ii was his
intention, When using the money of tn
bank, to have returned u. and BE say be
could have done 50 # he had not been
cheated. We withhal II the uames of The
brokers who defraud d him. Mr.. Arnold
says he was engaged in only foIr or five
operations.
The dedication of MIR. Baker is more se>
r,uus than that OF Mr.. Arnold. and from
What Is ut present known of his sifirs i,
was irom The same cause. Mr.. Arnold
says that when his own deficiency was
made known. he had 10 li,a hat there was
Auy SERIOUS criof in the accounts If Mr..
Baker. L. appears tha: tho latter was in>
iebted TO tie f,rn,r On the books OF the
bank about 8 5000. but Baker gave Arnold
80 understand chat he held hoads to offset
ia - amount.
During the examination Of Mr.. Arnold's
accounts on Tuesday by the officers Of the
bank tins discrepancy became know u, but
Mr.. Baker retn ned his place during that
day aud Wednesday Previous 10 that time
al- character had been So far, and the or.
ror appeared 10 lie SO small, that lie was not
Immediately removed. On Nednesday af>
ternoon the president resolved to examine
Mir. Baker also, but before he had called
him into his private Office for that purpose,
Baker had closed his accounts and gone TO
Long Branch, where his family were stop
ping.
The presiden, then went 10 his safe and
found Mariposs ond other almost worthless
to the amount Of 5000. Mr.. Ber-
~ did rot proceed an, further with his in>
vos,isaticns at that time. lie felt certain,
tha, the bank had suffered greater
.css. bu, he had not the heert TO prosecute
the investigation.
On Thursday morning when Mr.. Baker
and asked for his keys, they were
and Mir. Berry called him into his
Office. The deficiency Of $4,000 was
known to him, and the president ask
ed him If he was a detaulter to any other
Baker made no answer, when he
vas asked If his accounts were wrong to the
amount OF SO, 00o. Still no answer. "Are
,hey wrong to the amount Of S20,000'' No
nswer Are they wrong to tie amount Of
$50, 000y" Mr.. BAKER then said For
Gods sake, Mr.. Berry, don't ask me |
don t know | wish | were dead T.
An examination was then made Of the
books, and il was learned that there was q
deficiency in Bakers account Of So, 900
The manner in which nis books were kept
partly justify the assertion Of Arnold that
he i d not know OF Bakers dedication. In
stead Of writing up his books each night.
Baker would wait until the next morning,
50 that il a man deposits $4,000 in the al
i~crnoon. tue aefaulser could use that mon
y, ami place a deposit II he NEXT day 70
he depo,itcr 8 account. This secon de-
post would not be credited until The sue
eeeding dsv.
lti> probable lhat no began by making a
small Geialcation At first. AID gradually n
.r,ased he amount "a his stock OPERATIONS
Z larged. Esch day Baker would be a
. htor 20 the bank, bus as his books were
ot written up e. night the amorr, could
aot hc known. BEFORE writing up his ar
counts in the morning, c would wait until
he deposits were suiliUicrt 10 cover his de
ii.ioncios. aud tAcy would ne credited to tAc
ierosi,cis ct ;he previous DAY.
II is rrohshle that the h.nk will not los
more than 500, ooo or S10,oeo. I,s surplus
5 io0, 600, and the premium en- the United
States bonds held bS the bank amour, %
100000 more.
The officers Of the bark naturally feel
nat their confidence has been grossly
'oused. but It's not probable tina; either
q me deiaulters viii be prosecuted.
Az HISTORICAL IscipESr.
E,riy IN the history Of the rradesmcn's
oans II became noted bv nh a,temr, OF con.
spsrators TO get possession OF il. |, was
sliedged that Jacob I,, ker. the celebrated
banker OF New Orleans, aud some Of
his friends entered into u conspir,c,
TO obtain possession OF the bank.
IL was Barker intention TO secure con,ro,
Of the bark and place his friends in office.
The result was that Barker and several other
men, some Of whom have since been prom
inent cit xens. were indicted for conspiracy.
The affair was finally h,shed up, after a
trial which created much excitement Since
that time (about 1921 the affairs Of the
bank have been in the most prosperous con
dition.-N. i. Pest.