The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-10
FORGERY IN A SAVINGS BANK.

A PAYING TELLERs CRIM8-"Tx GUILTY u
HOW THE MECHANICS AND TRADERS SAVINGS
INSTITUTION WAS ROBBED
William Henry Harrison Bennett, the late paying
teller OF the unfortunate Mechanics and Traders Saw
ngs Institution. In the Bowcry, Houston street,
arragned before Judge Morgan at the Essex Mar.
ket Police Court yesterday, tho complaint Of the
receiver William J. Best, the charges being forgery
aud ENLIGHTENMENT 1t appe that since the APP
poininent Of MI Best his suspicious were
aroused by tho curious methods of bookkeeping
adopted by the paying teller. and boing expert bank
examiner he proceeded with gress and skill 70
unravel the mystery thai surrounded many OF the
counts
In the course OF this examination p 900 pass
books Of depostors personally examined aud
system OF fraud and robbery discovered. the
proofs accommodating rapidly and pointing so clearly
TO tho guilt Of The paying teller that the receiver
caused his arrest Monday evening his resdencc,
No. Az Grand street. Az the hearing yesterday the
complaint was definitely stated tho forging and Ut
ternq OF three drafts the bank purporting TO bear
the signature OF william b. Lynch. dcposttor, for
$500, $3.50 and 800 respectively
The defendant, It was understood intended TO make
stou, Tight for his liberty and character agans. tho
receiver OF the bank, but when that gentleman exhlb
tied. link by link the proof against him, the young
man surrendered, saying, Its no use; I'm guilty"
Tho Judge accordingly remanded him without bail
There was an cndeavor made by counsel TO get Mr.
Best TO that he would only prosecute the one
charge, but It was not agreed TO- as IL believed that
Bennett has robbed the bank tho aggregate OF
nearly 100000 Ho is young Of thirty and
has WIFE II is not known whore he invested or lost
the large sums, the ingenious manner OF obtaining
which ID worthy OF description For instance, man
would deposit OF money. in the OF Lynch.
IN tha hank forf ha amea nd q
psia-,he account being balanced and closed-Bennett
would erase the figures from the ledger and other
count books transfer the statement another page
showing always a credit 10 the depositor, and finally
draw out the funds himself, forging with less
skill the signature OF the uepostor When the name
would be iouno difficult TO counterfeit he would wre
II IN manner TO suit himself, always ssuising his
own handwriting and asing The forging over tho orig
inal writing in the signature book
TIKI hanks MissoRrryxs
said to 90 duo not only gross mtsmann ement,
but TO just such system OF peculation above de-
scribcd, and has been ptmaled that before the
Receiver Bosl are finished others beside
the dishonest paying teller explain doubtful trans
actions INC history o. me oanks rise ana ia' am
the causes that have contributed TO place IN its pres
en condition have not before beca published and were
furnished HERALD reporter by Official connected
with the institution. They are AS follows
The bank was chartered April Ii, 1892, organized on
the 18th and "peued for business May 70 following
There AT nrst sixty IncorpOrators who, however
took active part IN the business. BY amendment
OF March TO- 1857 tho nunoer Of trustees reduced
to thirty as vacancies occurred BY an adroit amend
ment April 5, 1885, this number still further re-
duced to twenty. and remained the OF
failure OF The institution BY section OF the original
law II provided that 1.-The trustees shall not
us such receive any pay or cmoiument for
serv,ces" 10 show how the officers Of the
bank respected tho law found ia the
books within fifteen years payments Tor salaries Of
500, OO0 and during nine years and hnli-that
is from January 1867, to July 1876 they withdrew
from the bank $3.50, O00, average of about
81, 900 per annum On April 8, 1865, amendments
made however. which made It lawful TO pay
trustees salaries.
In January, 1857. Alfred T. Conklln became pres.
dent renamed until the appointment the re-
ceiver, who quaincd July II, 1876 By referring to
OF the original act IL Is found that there
express provision made that president, pres-
dent other officer should borrow money belonging
violated One vice president was frequent borrower,
drew from the bank $500 ia 1874 which has never
been PAID According 10 section OF the
charter law the pei sons defined who arc
In direct violation OF that law President
Conkln is stated TO have loaned 1867 $40, 900
stock broker trm, Orlando W. Josiyn L. Co. on Attain
Mail stock, which has value to-day. This pretty
ment in Southern bonds The par value of thcso
curtcs pearly $500 0O0 what their market value
would be somewhat difficult to state, but Of course
lhe depreciation is tremendous.
Mr. William j. Best, the receiver OF the bank was
called by HERALD reporter after the of tho
arrest yesterday and was asked give hts opinion
the chances OF dcpOsitOrs under this condition
Of affairs He was reticent to the forgery and rob-
berry by the teller. but said that no ready pay
The creditors dividend now, but the statute law
quircs forty days notice to be given to deposors Alter
the notice meeting oil creditors be called The
BANK building when claims can DO proved. A state
mcnt Of liabilities and assets will then be made TO the
court and order applied Tor to pay the dividend.
Mr. Best further stated that he thought dcpositors
would be paid finally ut least seventy 1.-Two per cent
and perhaps. with good fortune great eighty
-fivnn npr ant