The New York herald., 1870-01-15
BANK DEFALCATIONS
The Merchants Exchange and Fourth
National Bank Frauds.
Oakley, the Cashier OF the Merchants Ex'
change Bank, Still at Large-Veitman
and Leith Admitted to Bail-C0pe.
lapd Not Yet Arrcsted-What
the Bank Officials Say.

Several days ago an ailldavit was sworn to before
United States Commissioner Shields upon which
warrant the time issued for the arrest OF
the party implicated TO the effect that the Merchants
Exchange Bank OF this city had been defrauded OF
some S15o0OO through the acts OF the cashier OF said
bank Edward J. Oakley, the party for whose arrest
warrant has been IN the hands OF the officers for
several days. II viii be remembered that some OF
the circumstances OF the deirauding Of the bank, in
connection with the Somers bank Of Westchester
county, appeared In the HERALD a couple OF weeks
ago, at which time Oakley the suspected
party, was removed from his position as cashier.
In making up the books CT the bank. however TO
trace the apparent frauds IN the accounts and which
led IN the FIRST place 10 Oakiey's removal, Oakley
managed points to be permitted TO take part
the investigation into the frauds IN which he was
himself the principal, as now alleged, participant
and actor. Having thus gained sufficient time to
make his arrangements. he suddenly disappeared
from the scene end has not since Deen heard OF.
The aaidavt sworn to before Commissioner Shields
charges Oakley with having embezzed the sum OF
Sl5o000 from the Merchants National Exchange
Bank, and was made by Assistant United States
District Attorney purdy, from his knowledge and
belief of the facts presented to him by the officers
OF the bank. The time covered IN the alleged en-
bezZ!emenL Is two years. Oakley mas been absent
1ro the bank eight days, and though the war
rant LOT his apprehension WIS ISSucu
following his Irsr days absence, ne has not yet
been cd. IL is, however In the hands oil active
onicers, WHO are on his track and wlo VIII certainly
bring the alleged deiauller before the court 10 DC
dealt with according 10 law III q vey lew days
WHAT TIE BANK OFFICERS BAY.
The bank officers state that as sool ~ the defaca-
tion was discovered committee OF four OF The
directors was appointed TO investigate The matter.
Mr. Thompson the newly elected VICE president oI
the institution Is " member OF this committee.
Soon after organizing the committee went ener-
leticaliy 10 WORK and soon became convinced tnat
tnere had been extensive ifIe2uiarlteS," ana thaG
they consisted OF the nanipulaons or tue accounts
OF the codutry banks with which the Merchants Ma
tonal Bank corresponded In a business way. These
manlpuaons II Is needless To state were performed
by Mr.. oakley, and wnen this fact was well cstab-
lshed, Ut the suggestion OF Mr. thompson TIE
casller was suspended.
The committee, however, after few DAYS labor,
found thaL would take tnen several months to gc5
ali the accounts Strengthened out II Oakley did not
throw some light upon the complications into winch
his irregular way OF dong business mad tnrowa the
books. In "a CONVERSATION with one ol the directors
yesterday HERALD reporter learned tlat Uak.ey
was requested 10 help the investigation, on account
OF the superior knowledge ne had OF MS own handi-
work. and he consented. This director states that
Oakley worked dag and night with the nvesiiSa-
tors ana did, as matter OF course, great service Ia
unrayelng the knoity skeln ct mixed or rather
.lAcdu accouutB which he had himself made
II assure you, SAID the director to our reporter,
'that the bank nad To use Mr. oakley 10 facilitate the
work vi the committee. lie mad possession OIL etter5
concernlns the country bank aflals with which our
institution correspondent. and which would have
given an lnnlcisa deal OF WORK even II tney had
oeen placed on hie as Oakley knew ali about thea.
The committee have not yet completed their lauors,
but we nave come 10 tie conclusion that We may
lose si5O,0o0. Ihis WIZ not however, InJure the
credG vi the bank. II is solvent and Ii as noursn-
ing u condition could well be desrel, ala OF tlis
fact the stockholders ana dealers are wen aware.
When the Committee does make ITS fnal re. or it
will PROBABLY maze Il formal complaint asant OAK
ley but wnat the bank win do l cannot say for
taIn.n
"Whcn did You sec Oakley last?n inquired the re.
porter.
Il tank 1t was on Friday last" was the reply.
''He dld not come down 10 work as usual with the
committee IN unraveliing the irregularities but
sent WORD that ne was worn out ~ the excessive
labor OF the lew days previous ana was TOO III TO
come down. Some people say tnat lie had heard
oi an order 0f arrest being maue out against hM,
and so left tie city. But do not think ne mas lett
town, and | never did believe he would IRON the
iirsl. lie did not make anything by the deacation,
1 feel coDllcelt. HIS Drother l lhtnn, got ali the
money; ana allow me TO add that the statement tat
the deialcauon in the Somers Bank OF Westcncster
county was due TO Mr.. OlNey's manipulatlons OF the
account OF that DanX VITA The MefcnanLs' National
Blak Is false III every particular
he oi3cess are night and day on the lookout for
the accused but up To the present Jhey nave
utterly failed IN bringing INN 10 DAY. 1t Is believed
he IL Still lii the city, and close watcn upon his
place OF residence and those OF his friends
tanned by the officers who are Ill search OF him.