The New York herald., 1873-11-14
ANOTHER DEFALCATION.,
The Cashier ef tho Commercial Matlon9s
Bank OF Providence . DcfA Aulter to the
Amount OF SIS, OOO-FI0w He Did II. :

The Cashier sf the Comm eroial Natlonss
Bank OF Providence . DofAu utter to the
Amount OF 81, ,O0O-FIow He Did Il. :
PROVIDENCE, R. L. Nov. Is, IsT&
The latest local sensation here is q Dank defaI-
cation TO the extent OF t45,000 Our whole COM
munity was thrown into surprise to-day upon
learning that stephen p. Wardwell Cashier OF tho
Commercial National Bank In this city, had become
defaulter to that institution to the amount
stated. 1t is the same old story OF speculation,
loss and ruin, and furnishes additional evidence Of
the inattention and too connding policy
OF our bank officials and the general
loose system upon which some OF our moneyed in
stitutions are conducted. For several years this
cashier has carried on his dishonest transactions.
and during that long period has adr0itly and sue
cesslullY managed to conceal the business from
the knowledge Of the directors and other onicers
OF the bank-even escaping the quarterly exami
nations. 1t transpires that former teller OF the
bank, w. J. Clarke had . hand in the doings hav-
ing carried on the greater portion OF the proceed
ings, and when, several years ago. he was ais
charged from the bank, lie succeeded by per8ua-
SHIFTING THE RESPONSIBILITY
and burden or the affair upon Wardwell. Tho
actual extent OF the latters specuations exceeds.
It Is said not half the whole amount abstracted;
but with fear and weakness produced by tho
threatened exposure he assumed the whole
burden.
The money panic which has spread with such
disastrous effeots throughout the country has
already brought TO light numerous financial irregu.
larites, and no doubt forced the disclosure OF the
present one, which has startled our community
loan at the New York corresponding bank an q Of the
this loan was required further W .concealment
was useless, and the unfortunate cashier
guilt, which ne carried lor SO long a time Ward
Wel sn0cked ana a surprised one 9f the b
spread 1t was generally considered
NATTER OF wONDERMRNT
how ne managed to continue so long and elude the
directors, Immediately upon hearing OF the delal-
cation, assembled, and, slmmoning the National
the way, has had his hands full OF late nom
weak banks placed IN critical condition ~
ns Sn so ns ss q
thus far has been found correct and the examiners
ported. though til thorough @ b aud an Ss ooial invest
CATION can only show the actual amount taken
speculation. WardweII as q matter Of course.
Was was at once displaced, and his position Is now %
bonds Of the deiauting cashier amount to Sic, ,o0O
and his private property, which is understood to
be considerable. he being the owner OF real estate
TO some extent In the city, is valued at about the
same amount, and win be transferred to the bank.
THE ACTUAL LOSS TO THE BANK,
as far as 1t appears at the present tme will not be
very large. The institution has q capital Of
1900, 900 and has excellent standing, tnat is
1t is an institution that was generally thought
sale and secure against any such business. Ward
well Is q man about fOrty-hve years, is married
and has three children. His father who died re-
Gently, was deacon and also cashier OF the Eagle
Bank In this city. stephen Wardwen enjoyed tho
confidence OF his associates and the business COM
munity generally; but his case is only another illus
tratlon Of how such confidence is oftentimes abused
The general expression Is that he is the last
and the Commercial Bank the last institution that
one would think likely to be subject TO such sur
prlsing defalcat0n. The Official report OF the Bank
Examiner and directors will be completed to-day.
and, when the real situation OF the bank will DO
made known,
wARDwELL AND CLARK
will fare about the same as HOar and PearsOnS, tho
defaultng cashier and teller OF another one OF our
national banks, who were discovered nearly two
years ago, and who now serving out their
terms OF Imprisonment In the State Prison.
This late defalcatiOn, following as does the dis
closures about the banks in connection with the
Sprague crisis, occasion an increased leeing Of in-
security and uneasiness In money circles
1t Is said Wardwel was placed under arrest this
afternoon. Walker, the discharged teller and ac-
complice Of Wardwell, has ned and, II s reported,
gone west. The bondsmen Tor Wardwell are
General Ambrose L. Burnside and Wardwells
fatlerin.laW.