The New York herald., 1871-02-24
NAUGHTY b NIX OFFICIALS.

The Webster Bank or Boston ESne Out or
$JO,O0O, and the Boston North Out Of
SJ,000-The Same Old Story of Speculation.
BOSTON, Feb. %, 1871.
The rumors OF defalcation In one Of our city
banks, which have been IN circulation for days
past assumed tangible form to-day, and the sup
posed facts in the circulated and discussed
on the street. The National Webster Bank is
the victim OF a defalcation committed by
the cashier, Mr.. Elery G. Daniel, OF Dedham,
and the amount is about $4,000. Like
other financial Irregularities, the first wrongful
appropriation OF money to his own use was made by
Mr.. Daniel some few years since, when he was DIS
count clerk. His wants originated in speculation
and being skilful accountant he has been able to
cover up The loss and prevent its detection. few
days since Mr.. Ransom United States Bank Ex-
aminer, and Mr.. ]. J. Eddy, his assistant made
their usual examination Of the bank, anticipating
the time few days. This unexpected visit and the
searching investigation which was made COM
bned to show that there was deficit and
when the charge made Mr.. Daniel admitted
that the funds OF the bank were not intact 1t is
stated that one method adopted by Mr.. Daniell to
cover up "a loss, which he hoped and intended no
doubt TO make good was to write a letter to their
correspond ng bank in New YORK, stating that such
funds had that day been RENTED to them for the
account Of the Natioual webster Bank. The letter
duly copied but the original was never sent
The outside coverings OF notes which had been
left for COLLECTION were altered, and the dates
carried forward, and in one or two instances
amounts paid In on notes left for collection were
not credited to the amount Of the depOstors, and
were used as funds on hand, thus deceivng the eX-
aminers and directors The exact amount OF the
defalcation has not been ascertaned, but the of
$4,000 Is stated as the maximum, on credible au-
thory, though the rumors on the street have put it
as high as 100000, which is entirely erroneous.
Mr.. Daniel has for some time past been cashier Of
the bank and also held his old position discount
clerk, which Is not unusual with the banks In this
city. He has always held a high position In social
circles in Dedham, while on the street it is wen
known that he was one OF the prominent promoters
OF the "Petherlc corner,r which, at the time was
regarded as one OF the most ingenlously contr1ved
and well executed bits OF financial f,tesse
which had ever been known on the street.
IL was supposed that he made a handsome sum
by this and other copper speculations. At the time
OF this speculation some OF the stockholders OF the
bank commented upon the fact that bank officer
had been engaged In It, but ii was urged extenua-
tiOn that he did not use the money time OF the
bank, and therefore the directors did not as would
no doubt have been wise, give HIM his option TO
leave or desist from speculation. The loss to
the bank. with It's handsome surplus, will be
OF little damage as the amount is comparatively
ings institutions. one bank in this city holding
nearly 1000 shares, but general thing indi-
vldual stockholders are owners or small numbers OF
shares.
The receiving teller OF the North Bank is also
little irregular in his accounts, the amount not ex-
ceeding $4,000 Outside parties are said to be i'm.
plicated IN this transaction.