New-York tribune., 1878-02-07
THE DEFAULTER's METHODS.

HOW HE CARRIED on HIS TuEFTs-CONrIDENCE
PLACED IN HIM-CoLLUsIoN OF IHE SECOND
TTILEI--TURNEYs FAMILY.
A gentleman cOnversant with the Affairs or
the Bank of North America from its foundation twenty
seven years ago. said last night:
This defalcatIon. coming TO light N this t.ne'
will affect the bank seriously. bat have per
feet faith that business will he resumed at
once, and that few weeks Will see the
institution established firmly Tie story oi
this dcfaicatiOn is peculiar A. NJ Turnry. the paving
teller, q III whom all the officers OF ihc
bank placed implicit confidence. He had been con
nected with the bank almost from its ioundaton.
Nothing had ever been discovered in lis conduct
which led TO the slightest suspicion OF dishonesty on
his part when the Bank Examiner came 10 examine the
condition of the bank last saturday he found that there
was a deficit OF 100000. Mr. TuIney was called
in, and confessed that this large deficit was due to
his own defalcatiOns. Just prior 10 Black Friday III
1869 he began to daolc in stocks. The passion FOR
speculation grew upon him. His first the meet losses
in Wall-st. amounted to $4,000 To pr'scJc the loss
from the knowledge OF the bank officers ne told the
second teller, who was a strong personal friend OF
his ard besousht him TO assist in covering up
the deficiency, promising to make it good IN a shoit
time Between them the accounts were cooked so as
to escape detection The crash of Black Friday, think,
involved Mr.. Turney heavily. Then, 1t is thought, he
drew large sums hoping To retrieve his losses,
but the crisis in the street swept everything away
Since then all his efforts had been directed TO conceal his
heis The two elers by exchanging checks and alter
ing ures in their books escaped detection at all the
eelnannual examinations OF all the money taken by
Mr. Turncy have good reason TO believe that the see
ond teller received penny Mistakenly, he hclpcd
his friends the start and after that he could not win
draw. He still remains AT the bank.
"Of the deficit Of 100000, little over $4,000 has
been recovered Yesterday, $4,000 recovered from
a depositor whom II is thought in collusion with
Turnev Turney gave bonds for $4,000 and his bonds
men are good a clear deficit OF $4,000 Is thus
left which will be dead loss to the bank IA there Is
little prospect of recovering any part OF H.
The capital Of the bank is given at Sl00O.o00
This loss will be about $1,000. The unimpared
capital according to the bank examiners statement IL
$7lG.S95 The deficit between these two sums is eX
laned by the fact that assets to the amount Of the
difference which the bank officers regard good. The
examiner would not admit.
The saddcst feature OF this matter, as OF so many
other defacatons and forgercs is III its effects
on the family OF the criminal Sir. Turney a
a man of about forty-fve years Of an6
has a wife, five sons. and a daughter. The
daughter is about twenty years Old. HIS con
nec,ion with the bank dates back almost to It's foun-
dation 1851. In 1853 he sniten with the gold
fever and went TO California He returned In short
time then has been employed unintcrruptedy
III the bank. Three months told his wife of his long
course systematic dshor sr that last night when
dispatch sent TO her a. tio family home IN llal-
lem the news could only have been reali-
zation Of her forebOdings. The family are said
to have been living in economical circum-
stances One brother Of Mr.. Turrcy died short
time ago in this city. Another Is now living III Cali
fona, and said 10 he millionaire. Those who have
been with Mr. Turney in business ana social
life speak of him as man Of slneulary attractive
character and aniaDle disposition. Inc revelation OF
his dishonesty will be n shock TO all his friends.
"The Bank OF North America founded IN 1851 as
State bank. In 1864 IL became National b3nk. but
four years later assumed e original character and has
continued TO be State bank ever since. This Is
not the first time that 1t has suffered from
the dishonesty OF those connected with IT, Wall
1t. broker named Myer Overdrew his deposit in 1873
TO the amount 5000 Nothing could be recovered
and the whole "a dead loss TO the bank. II took half
the surplus to pay that up. Since then. though the
bank has been impaired, Its stock has always
been quoted at good figure. II is my
opinion Is worth so cents to-day The officers OF the
bank propose 10 make up the deficiency II possible If
this be done, the capital Will be reduced II Is
MENTION connection with the history of this
bank, that until this year 1t has been visited
by bank examiners except during the four years that IL
was National bank. in its existence OF twcny-three
by the State officers. This system Of neglect
searching examination had been held In 1862
the bank would have lost only $4,000. The
cent failures OF financial institutions In this city have
prompted ocal investigations, and thus the last year
has Oeen the hrst III which bank have looked
into the dfiars OF State banks"