The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-09-19
THE BOSTON DEFAULTING TELLER.
Examination 81 the Afieused-ssock Gambling
the Cause Of the Lapse.

lFIOm TIE BOstOu fOSt, Sept lb.J
The case OF David e. Saunders Jr., the defaultlng
teller OF the North National Bank came up yesterday
before Commissioner Hallett. Mr. Dickinson, Assist
ant District Attorney appeared for the government,
ana S. b. Ives Jr, OF Salem. for the defendant The
first witness Charles G. Nazr0 president of the North
National Bank, testified that he had known Saunders
about five years. during that time having been
employed IN the bank. The duties OF paying teller
described by the witness his duty being to pay
out all the cash on checks, and he had In charge
all the cash. The checks from the Clearing House
were brought to him, and kept separate from other
question. The president and directors of the bank
had examined the cash OF the bank six times within
eighteen weeks. 1t was rule with HIM not to
animation. and when an examination was made 1t
was usually about two p. NJ, at the close Of bust
ness. on the 9th of September an examination was
made In the usual way, Saunders being told to bring
in his money. While counting lot OF silver
memorandum was found which called for So
Witness said to Saunders, "This memorandum
calls for $4,000 or 5000, and we find but
Saunders replied, "Gentlemen, must tell you my
cash is short" To the question, "How much ~
Saunders replied A6oSt $4,000 ana then ha stated
stock, putting up money on margin, and the stock
mad gone down. To the inquiry whether that was
$3.50, 600 but he could obtain the margins In the
hands Of brokers an amount which would reduce 1t
TO 100000. Saunders stated that the brokers with
| whom he had done business were Lee Danforth &
Co. After further conversation with him relative to
the deialcaton, 1t was thought advisable to consult
counsel, and the witness did The complaint was
| made against saunders on the Saturday following,
after further examination was made Of the books,
saunders meanwhile remaining voluntarily in charge
! OF an 0ficer.
on cross examination by Mr. Ives, Mr.. Nazrc
| stated that the defalcaton amounted TO about
sl31, 900, and 1t appeared on the face Of 1t the
books on that day would have shown Il. In explain
ing the manner in which the deiacatlon originated
| Mr.. saunders said he had first overpald money OF
cheeks amounting to some 81 1000 or $4,000, which
| man had promised to make good; and the witness
also Thought that saunders said he had failed to sent
| ri the Clearing House before
O'Clock, having retained them on the promise Of
man who would make them good, but having ialec
to do so, ne had resorted 10 these speculations II
order TO make the bank good. After leaving TIL
bank Monday afternoon Mr. Saunders declined Il
give any further Information about the afair saying
that he was liable to criminal prosecution; tna
for himself he did not care, but there were other
whom he wanted to protect, therefore he though thu
ought not TO tell how II was done. MI. Nazrt
inferred that 1t was his wife he desired to protect.
John o. Stafford, a director OF the bank, testified
substantially to the Facts on the examination Of the
bank as gwen Dy Mr. Nazro. He could not gay
whether they examined the books TO cover the def
cit. Mr.. saunders brought In a written statement
| winch he gave them remarking that would show
the actual state OF the bank, which they would md
| 10 be correct
/ Co., brokers, testified that he had known Saunder
| since 1865, and that he had bought stock OF thea
since that time. Mr.. Saunders had given his order
for stock and it had been bought for him. the Urn
requiring the usual margin OF ten dollars on share
The witness did not know where the money came
from. II stocks had declined he had called on Mr.
| Saunders for the margin. His firm had never don
any business with the North National Bank. He ha
| called on Mr.. saunders at the bank perhaps 81
| times, but he could not say he had ever taken an
| money. The buying OF stocks Tor saunders ha
| chiefly been done IN the New York markets. and h
| had been notified Of such purchase.
on cross-exsminauon the witness said that Saun
ders' operations in stocks commenced in sums Q
| 500, $500 or $500. and gradually worked up.
| John NJ. Danforth. OF the firm Of Lee, Danforth
| Co. testified that the margins put up by Saunder
seyeraly were IN bills; their books would not sho'
| whether there were checks II there were any;
| there were any checks they would have been dep0t
lied IN the Union Bank; ne never inquired nor knew
| saundcrs where the money came FROM and coul
| not Dsy how much the whole amount might hav