The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-04-11
ANOTHER DEFAULTER.

DISCOVERY OF DErALcATIoS OF SEVENTY
THOUSAND DOLLARS By ONE or THE
rELLEgs OF THE SECURITY BANK
Mr. W. N. Banks. receiver OF the Security Savings
Bank, while engaged last week paying the rss divi
dcnd TO the unfortunate depositors in that defunct in
stitution. made discovery which VIII result in .
further loss them OF about fifteen per cent appears
that the bookkeeper and teller, John Seal who has
in the employ OF the bank since June 1872 has
cmbezzlcd funds TO the extent Of 500 ,60o and has
lied 10 escape arrest The in which
this robbery discovered was as iolows:-on Mon
day Of last week Mr. Banks commenced tho payment
OF FIRST instalment to tho dsposors giving checks
for all sums or $500, and paying lesser
than this In cash. Toward evening he called for the
receipt book, and making comparison between the
stubs OF the checks already paid and the receipts
made out in the receipt book which awaiting the
signatures of the depostors yet to call for their money
he found there apparently some mistake either
in the making out Of tho receipts or in the
calculations he had made as 10 the amount
required TO pay the dividend. Seal called and
consultation held. He was asked TO 90 over tho
accounts and books, with WOW TO nnding where the
discrepancy II being timc to close the bank 10
promised 10 do in tho evening and have everything
straight for opening time on Tuesday morning Mr.
Banks then lett the building, without suspicion that
anything wrong Next day. arriving At Tho
offices OF tho bank. lie inquired for Seal, but
MAS tod tnat ne hau not appeared. IniS some
what aroused his suspicious, and he began
himself to make a personal examination OF tho
books when, discovering some triling errors, no
sent Tor two export accountants. These gentlemen
at once commenced operations and very found
that since August 1872 two months after Seal had urst
been employed he had been the habit OF bezzlin2
money and continued his thievery until tho bank sus-
pended. II also discovered that Monday night,
after his conversation with the receiver he had pur.
Joined $500, with which to mako good his escape flo
also borrowed S25 from radesmun IN the neighbor-
hood, and carried away with him, in addition, 500,
~nl n had r,llassn I IN fttn
estate, Of which Excise Commissioner Marshall is nd
ministrator. Tho latter had employed Seal as agent
The way IN which Seal robbed the bank was most
ingenious although had the officers exercised proper
supervision the affairs II would have been impos-
years without detection. IL will also be remembered
that the State Examiner. when the bank suspended
last fall made, as he then stated, ui and thorough
EXAMINATION BOOKS
and assets aud asserted that there then existed
plus. How thorough this examination was this reve-
ation proves had the ledgers cash books beer
then compared the fraud must have been ut dis
covered. IT. appears that when dcpositor would pay
IN certain So, sum o. money Seal seal, would credit The
book he would make I'm entry OF the amount
to the credit OF John Seal. Agent" thus max.
the Same day be would draw out tho money IL was
not until the dopositors' passbooks were examined
anu the entries therein compared with those IN tho
cash book that tho fraud discovered In some
instances he would the entries altogether the
cash book which would show II the depostors ledger
and tho general ledger had been compared, differ
ence, and when tho balance sheet be drawn on
tho robbery must havo been seen at glance 1t
would SEEM however that when the timo Came for tho
preparing OF the balance sheet Seal would call
on the amounts to another clerk and remem.
boring the he had cmbczzlcd, would
also call them, although they not
the book He then made false totals in order To
up his tracks so that when the final balance sheet was
struck the main would appear all straight unless
most thorough examination was mado. Had the
officers looted up the columns OF the general
ledger all would have been known. Seal was formerly
at cler IN the Third Avenue Savings Bank, whore he
bore excellent character Hc resigned his position
there 60 to the Security Bank. He said to DO
unostentatous his habits and mode Of living, and
is married. Lately he has been living az Whitestono,
j. L. but has frequently changed his residence durina
she past two years.
This is the second dcfacacn the part Of the
ployes Of the bank, the first being Of $4,000,
committed eighteen months ago ~ teller named
TuitIa
The last balance sheet showed that the liabilities Of
the bank $324 900 against assets $2V8 600.
These latter Will DO reduced by $40 000 making
deficiency OF 800. 000 even supposing the bank build
Ing realizes 5000 at which prico IL Is estimated ~
fho .dula