The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-01-03
A GIGANTIC EMBEZZLEMENT.

TIE ASTOUNDING DISCOVERY WHICH Mr. BABBITT
MADE AFTER YEARS OF coNTDENcE-Loss
ABOUT SEVEN HUNDRED THOUSAND DOL
LARS.
One OF the most extensive cases Of embezzlement
that has occurred the commercial circles OF New York
for years has just come 10 light The amount stolen
aggregates, as TAR known, nearly $500 600 ana
before the investigation is completed it is mprob
able that 500 900 more will be added 10 the sum.
The victim OF this gigantic ROBBERY is Benjamin
T. Bab6tt, Of No. 90 Washington street, the widely
known soap manufacturer, and the person at whose
door the guilt is laid by evidence apparently incontro
veruble is a former trusted employee by name Charles
r Beckwth The robberies cover period OF ave
years-from 1865 the date OF Beckwiih's employment
10 1873 the year OF his dismissal from the establish
menL Yesterday afternoon Beckwth was arrested
and to-day he will be fully committed for the felony
The history OF the is repete with instances Of
unbounded confidence tho integrity OF his dishonest
CLERK on the part OF Mr. Rabbit, and depth Of Gun.
ming knavory on the part Of Beckwith seldom met
with. In the carrying OF bis extensive business Mr..
Rabbit had no partner but delegated to
Beckwith, who held the position OF chief
bookkeeper and cashier powers and privileges
almost as great as those enjoyed by himself in the
management Of the business. Beckwth super
intended the llisg Of all large ORDERS engaged and dis
charged employees kept the books OF the firm and at
tended TO the payment OF all bills. He prompt,
active and energetic in the discharge Of his muttudi
nous duties. and regarded by Mr. Rabbit in
valuable man. His compensation was more than gen.
erous and he enjoyed not only the confidence OF bis
employer busipss point Of view but also his social
esteem Mr. Rabbit
RARELY OVERLOOKED MS BOOKS
On occasions when inquiry into the OF business
Beckwlth upon the point asked about was sufficient
Frequently Mr. Rabbit in the extent OF his trust,
permitted the affairs Of his establishment to 60 on for
months at a time relying solely upon Beckwith. Once
he went to Europe and gone several months pay
ing attention to his business other than receiving
an occasional letter from Beckwth announcing that al
was going on we'll
This state Of things continued for period OF over
four years. AT last day came when Mr. Rabbit had
his attention called, by accident than anything
else TO a small irreguarty in the payment Of bill
The evidence Of the irreguarty almost conclusive
but still he hesitated, firmly believing the honesty
Of his trusted lieutenant, and tried to account for
the discrepancy the ground OF carelessness
Shortly aiterward another irregularliy cropped
out and Mr.. Rabbit, now suspicious, determined
make investigation. He then discovered that Beck
with had dishonest but he never dreamed Of the
dred dollars at the would It, Unwilling to
retain in his employ who had proved unworthy
MI Rabbit discharged him. This was in March, 1874
Mr.. Rabbit after this heard from Beckwith,
and soon his petty dealcation was forgotten
REoPEH1NG
period OF over two years passed before recolec-
tions OF Beckwth were revived. In the early part of
last November Detective Timothy Golden formerly
attached TO the Central ONCE squad but at that time
doing patrol duty in the Sixth precinct learned OF the
defalcation and from what he heard in relation to il
became satshed that the sum stolen was much larger
than supposed. He acquainted Mr.. Babbitt
of his suspicious, and that gentleman concluded
TO have thorough investigation made. He first
ployed two experts to go over the cash account
of bis firm for the eighteen months Immediately pre-
ceding the dismissal OF Beekwh and compare the
suit with the accounts for the same length of time i'm
mediately following the dismissal
STARTLING DIFFERENCE WAS
to exist The latter period showed an increase
the former Of the large sum of $763 00G No possible
variation IN the business of the establishment for the
two periods could account for this mammoth differ
ence research into the business of both periods
showed approximately that difference Of one-nh the
sum in the natural order of things large esti
mate.
HIS eyes now thoroughly opened to the enormitv of
his former clerks dishonesty, Mr. Rabbit ordered the
experts TO make minute and extended investigation
covering the entire period Of Beckwithis employment.
Their work revealed system Of embezzing rarely
equalled. HIS Bodus operdndi was follows when
payment for stock purchased became due Beckwith
would draw check payable TO himself for larger sum
that the due. Owing to the frequent absence
from his business Mr. Babbit was accustomed TO sign
the money from the bank and pay over
10 the creditor the proper amount pocketng the bal
ance himself Hewould then charge the amount drawn
so his cash account might balance with his bank
count and at his leisure he would further cover his
tracks by altering the bill presented by the creditor
from ITS true amount TO the drawn from the bank.
When this latter course was nexpedient, for fear of
detection he would make out new bill The increase
was regulated IN methodcal manner ten per cent
being the amount generally added.
AS an instance, one bill calling for 1924 had been
altered to So IA increase OF $500 ON larger bills
n n viii lie llfpU
for small sums the pilterng small. This system
the experts have found existing from shortly after
his engagement with the firm until the day of his dis
m:ssaL Thus far they have completed their invcsti.
cations period covering less than three years. and the
amount found stolen in that time is over $500 600 A
period of nearly years yet before them and II is
believed, judging from what has already been un-
eartbed, that
win reach 500 600 '>7' . r, = -l' '2f----
shortly alter the experts had commenced their labors
which was In the early part OF last November, Mr..
Babbtt placed the in the hands OF his counsel
Messrs. Beach and Brown. On November s the coun-
sci sent communication to the Board OF Police, re-
questIng that Detective Golden, who then doing
post duty the Sixth ward be detailed for thirty days
10 up the case Tho request granted and the
detective at took the matter in charge under the
immediate directions OF Superintendent Waling VINO
gave the case HIS personal attention.
warrant for the arrest OF Beckwith based upon
Babbitts affidavit was granted by Justice Blxby aud
peced in the hands Of the officer.
The whereabouts Of Beekwith we're unknown, but It
was believed that he was still in the city. Early in
employed as a clerk by the Manhattan Insurance Com
pany but had recently let leave OF absence. Fol-
lowing up the cew he again learned that
Beckwith resided Sixth near Fifty.
sixth street, occupying French nat
BY a clever ruse the detective soon located his vic
TINS abode. IL the top floor of No 99S Sixth
avenue where he living with his wife For
twenty days the officer watched the premises, hiring
for the purpose a room IN house the opposite side
OF the street, but his man never appeared.
Tired Of waiting and almost believing that
Beckwith was not there at all, tho detective
concluded yesterday TO adopt a and enter
the house. at the risk OF giving the tn ugh
his wife In case he elsewhere A few hours later
the time being two r NJ, rewarded his pa
thence. The blinds of the window watched opened
female head thrust out After looking up and
the blinds
ARREST BECKwITH.
Ten minutes later Beckwth emerged from the house
and walked toward Central Park the detective follow
ing AS he entered the Park the officer laid his