The New York herald., 1869-12-29
THE ERA on DEFAULTERS.
The Merchants Exchange National Bank
Vlctimized-A Defalcation Of One
Hundred and Fifty Thousand Dol
la.s-Reticence of a Bank
President Screw Loose
Somewhere.

Peesident-A Screw Loose
Somewhere.
II looks as If a regular epidemic OF swindlinx and
defaulting had In OF late and was raging abroad
in the business world with unchecked violence.
Detautlng cashiers are becoming as common as
pickpOckets, and iorgers, swinders and counter
felters teams beyond the ability to keep count
OF them. The worst OF among the cashiers is that
OF late they happen be nearly all old and trusted
men, some OF them as long as twenty and twenty
Ave years In the service OF banking and insurance
institutions, growing gray in the harness aud bear
ing the unlimited confidence and regard OF their
employers. When men Of this stamp break down
near the end OF their usefulness and dshonor the
long and honest record of their previous lives
there must be some radical rottenness at the
bottom Of business society. Tbs latest case
furnishes the key TO most OF the recent
financial defalcations. The monomanla for
speculation, the discomfort with small, hXed
incomes and the ambition to live up TO the extrava
giant style OF the period the impelling forces 10
fraud and breach OF trust among telles and cashiers
OF banks and other mOneyed institutions +. j.
Oakley, Cashier of the Merchants' Exchange Ma
uonal Bank, the last addition to the list of de-
faultlng cashiers In the sum Of about $780, 900. lt
appears that about week ago Mr.. Sprouts, pres
dent OF the bank, discovered some inaccuracies IN
the books OF the cashier which led MN to notify the
board OF directors, who held a meeting and ap-
pointed committee, which commenced Its nvestl
CATION Christmas Eve. The examination OF the
books ana OF the cashier in person was resumed
Monday and IL still continued. Yesterday the commit
reported to the president that they mad discovered
declaration in the cashiers account TO the amount
OF $3.50, 900; that the bank had large surplus on
lau md wuG in snlV
oakley was merely suspended from the duties OF his
onlce pending the investigation. He appeared
before the committee in response to their request
and made full and detailed statement OF the
manner In which the deiacation originated and was
carried on. The information thus furnished the COM
mee. which consisted OF Messrs william A. Thom-
son. John g. Davis, Robert Seaman, Henry Collins
ana Benjamin c. Bogert, would have been exactly
what the public desired to have ana what would
Lany be to the true interest OF the bank to give TO
the press. Why 1t should nave been withheld II is
dlcult to say. All the news OF this kind is legiti
mate public property. When man s dis
covered 20 have been no mean transgressor Of
TO screen hlm from the exposure which his offence
entails Nor IS 1t possible for any bank IN which
deialcaton Of such a magnitude crops up suddenly
one fine morning 10 prevent the press from getting
information the matter. The reporter OF the
HERALD called yesterday upon the president OF the
ucuars Of the occurrence which was causing SO
much excitement among the stockholders and de-
Mr.. SpRoULLs-Tne committee have authorized
me say that after investigating the DOCKS 0I tie
bank and receiving The volunteer statements and
explanations Of the cashier, Mr.. Oakley, they find
deialcaton OF si50,oO0. The work OF invesil-
CATION is not yet quite completed, and the
amount cannot, therefore, be definitely stated. i
myself noticed some little Time ago certain irregn-
larlties, anu had an idea they could be traced 10
the cashier. | believe my suspicious pretty
wen confirmed There iced be no alarm whatever
as TO the bank. THIS matter VIII be settled salts
factorily.
Rrpoprrp-W hat arc Tho names M the committee
Mr.. Sprouils2
Mr.. SPRoui rs--well, that there is occasion for
you to know; you have enough Information ior the
present.
REpoRrRR-I wish to get the name Of some on
the committee to iino ont what statement was made
by the cashier.
Mr.. spRouLLs-I can't give any more information
on the matter That's as much as the committee
authorized me to give Good morning.
A lew hours after this q call was made again on
Mr.. Sprouts, who seemed good dcai put about by
the cOndltlOn oil matters in the bank
REP0RTER-Has anything more ranspred, Mr..
Sprouss
Mr. SPRouLIs-No nothing at all. believe you
called here once or twice before. Wen, there's no
use. You got all the Information tnat can give,
REp0KTER- Well, can't, you tell one OF the COM
mltiee that the HERALD wants the information
Mr.. SPRoULLs--My word j suppose Is as good
is sufficient, IS It notp
REPoRrER- Decidedly; you don't choose to give
1t we must look Tor information elsewhere ,,
president was gone minute or two and returned TO
say)-I can inform you that Mr.. Charles Calender,
Ing matters VIII probably get through day after
tomorrow. didn't know he was IN the bank until
just now, so that you have the Information eXcu-
slvey. Good morning
THIS important item Of news was duly treasured
up and written out Us above. The only comment
necessary is that when bank president has to be
told 10y u committee Of directors what to give and
what to keep from the press about the AFFAIRS OF the
institution over winch ne Is presumed to preside,
accidents Of some sort are Sure to happen.
Mr.. William A. Camp, manager OF the New York
Clearing House. was called upon for some nforIna-
ton OF the case as 1t was presumed on account OF
his visit to the bank In the morning that lie knew all
the particulars. When the reporter Of The HERALD
entered the room where Mr. Camp, ali alone in ms
glory Ornamented the principal arm CHAIR 1T the
end Of % ne directors table very amusing M scene
tam daily Journal entered the room and while one
engaged the Clearing House manager III conversa-
ton the other took shorthand notes az u furious
rate few teet away. The interviewer
poured vo!iey after voey OF questions in
upon the confused and unhappy Camp, apparently
with the purpose OF provoking that genai gentle
man. II tell you know nothing about the case,n
see here" ne exclaimed, II don't want anybody
taking notes OF what says" but all IN vain, down
cuded and nearly all ofthe latter KIND.
Mr.. Camp saw two or the committee. They told
him the uefalcaton was the amount already stated,
but ttat $lOO0oO OF surplus renamed. Mr. Camp
thought that Oakleys securities would meet the de-
clency and that the affair would turn out to be oil
comparatively tl1nlng Importance.
About MIR. Oakley the following items were
gleaned:-He was man OF regular ana temperate
haplts twenty-ve years connected with the bank as
cashier aud enjoying the unbounded confidence OF
the managers and directors. Some say extravagant
living was one OF the causes Of Oakley's troubles.
Last year blInsef and his family attracted much
attention At Long Branch ny the costly style III which
they lived.
Another version OF the AFFAIR s that the $16O,oO0
was loaned 10 the firm of william Oakley ~ Co.,
extensive dealers IN topacco, and that the transac-
uons OF Oakley have been known foi upward oil eight
months to persons officially connected with the bank.
1t IL stated IN Wall street that on t2e first nmation
Of the affair being known Mr. Fisk, Of the firm
OF Fisk Hatch despatched his brother TO the bauk
to ascertain thc truth or fasIty Of the rumor The
president indignantly denied all knowledge OF the
alleged defacatIon but on Mr.. Fsk's statement that
II he was not allowed access TO the books he would
publish II "the street rs fixed fact the presl-
Ia,. ttoA :,