Evening star. [volume] (Washington, D.C.) 1854-1972, 1879-08-15
A HEAVY DEFALCATION.
CITIZENS NATIONAL BANK.
ROACH 100000 SHORT.
President Cresxvell's Statemcnt-The
Bank All Right

Bank All Right.
The different banks and banking associations
in this city to- day received note from the Citi-
zens' National Bank, to the effect that VIM.
N. Roach, the late ca sher OF the bank, had
been discharged from his place and no longer
had any connection with the bank as its cashier
or otherwise, and that the bank would not be
responsible for his acts after the 11th inst. 1t
was not long before their notification was a
matter Of current gossip on the streets, and the
widest rumorS were at once at1Oat. In a neatly
caIpeted room Immediately In the front Of the
bank building, on the first floor, is the office Of
Hon, j. a. CreSwell, who was Gen. Grants
Postmaster General. Mr.. CreSwell Is president
the father-ip-law of Mr.. Creswell. He is a man
of large wealth, and the TWO jointly owR about
two-thirds OF the interest OF the bank
WHAT PRESIDENT CREswELL SAYS.
When the representative Of THE STAR called
on President Creswell to apprse him that it
was common rumor on the street that the bank
had met heavy loss through the defalcation
pleasant mission was to request from him the
facts concerning it, Mr.. Creswell said frankly:
$. It is not gossip, young man; 1t IS the truth.
am sorry to say that the bank has lost large
sum of money, approximating many thousand
dollars, through the dishonesty Of It's cashier.
Sit down. will tell you all about It, The
L
you saw fit to call upon me for the facts, rather
than to accept as facts mere street gossip"
"Weil, to begin," said Mr.. CresweIl, 'the
cashier Of the bank was VIM. NJ. Roach He
Las heretofore borne a good name, and up to
the time Of his dishonesty filled his trust as
cashier with at least seeming fidelity to the
board Of directors. Now for the details. The
Citizens National bank is the depository for
the funds of the Northern Central Railroad
company, the Baltimore and Potomac company
and the Alexandria and Fredericksburg com-
MOI no 0nE }UnS fhn 6nr0 {tc 6af3x
and the custom has been TO remit to the COM
panies, through its treasurer, Mr.. Leib, once
week, by drafts on Baltimore. Philadelphia and
orders were imperative to Cashier Roach that
no matter what other remittances might
not be sent with exacting prompt
once each week and on Wednesdays. Matters
ran along, as thought, strictly in accordance
with my directions until one day happened to
OF the Pennsylvania railroad company, told me
that the weekly remittance from the bank had
not reached his Office on time. 1t struck me as
atiSe directions to Cashier Roach, that there
had been derenctton in the weekly remittance
to the railroad companies. came over to the
bank and as said go LOOK o;o here, Mr. Roach how
road drafts on time as have ordered always
should be RENTED on Wednesday of each week."
He displayed no trepidation at all, but told me
that the remittance had been made ON the
regular day, and in proof OF his assertion
showed me his ledger with the entry OF the
remittance therein recorded, as having been
occurred a delay In the remittance, when con-
cluded would investigate the matter, for to
ten you the truth, was becoming suspicious
and from Mr. Leib received the envelope In
which he had received one OF the deferred
drafts. 1t was superscrlbed in Roach's
IN also resed the
urer Lieb on the regular day the remittance
should have been made. This latter envelope
was mailed on Wednesday, and the weekly
Wednesdays package it was not sent from the
bank here until Friday, and was then sent
privately by Roach. l said to myself, Why does
by further examination that Roach was not act
ing honestly with the bank, at once notified
the directors, and In view OF the previous good
character OF the cashier, the directors rather
them my suspicious l subsequently con-
fronted Roach with the envelope which went
out OF the bank on Wednesday. on which should
own supeIscr1bed envelope of the Friday fol-
lowing, in which was the draft. told him he
could not blame the blunder on the mails, al
ported to have been sent on wednesday.
think Roach then became suspicious that dis
trusted him, and he said that he was quite un-
Sa Ms IS 5ae With ana the ss s ana would
Thursday last. am In the habit of going to
my home In Maryland every Saturday morning
and returning to the bank on Monday evening
and said that he would be at the
bank on Saturday and that II wished to
60 home as usual, not to internit the visit as
| did not go home on saturday Mr.. Roach,
however, came to the bank. In his presence /
directed our bill clerk to make me out tran
script OF all the bills on his ledger as wished
Uf 40 v1oU noH0
ceived. When did this Roach saw that had
the "dot" on him, and confessed that he had
defrauded the bank.
PRESIDENT CRESwELL'S THEORY
"Now, my theory is that he delayed the re-
mittances to the railroad company, as he did,
and used the amounts thus deferred in stock
speculatiOns. This do not know. 1t was not
only, however. in this respect that Roach was
erased and forged. Erroneous and false entries
have been made Another system OF peculation
he 1ndulged In was to defraud us In our settle
ments with our eastern correspondents Fre-
quently In making our settlements our New
York correspondents would ask for good COM
mercial paper, preferring it to money. Roach
would give them bills and credit himself with
the payment OF cash. He has also deceived the
national bank examiners by his forced balances
on the ledger"
MANY THOUSAND DOLLARS.
The Star:-How much Will the defalcation ag-
Mr.. Cresrell:-Many thousand dollars
Star:-Are you indemnited in any way?
Mr.. CresreH:-Yes, we have his bond for
$25,OOO, which Is good. he has also consented
to turn over TO uS ial his property. 80 that the
loss OF the directors OF the bank viii be about
$4,000.
Star:-Wfl you prosecute him?
Mr.. CresneU:-FOr the present there has been
no determination reached on that subject.
UPWARDS OF $60, 900 SHORT.
The above statement was given by Gen. Cres-
well with refreshing frankness. While he did
not say just how much the bank had lost, he
left with his.interrogator the impression that 1t
would aggregate upwards OF 100000, which
was more than half covered by the bond
filed for Mr.. Roach by responsible gentle
men andthe transfer of the property OF
the delinquent. "Of one thing you can
confidently assure the public" said Gen. Cres-
well, !" and that Is that the bank will 20 right
on. No one but the directors will suffer. We
propose to meet 1t like men, of course regretting
the occurrence.
1t may be added that Mr.. Tome one of the
directors OF the bank, is fully able To keep its
condition unimpaired, even though the defalca-
ton had been three times as large.
MR.. ROACH,
the defaulting cashier, Is In Virginia on farm
ne owns In that state, and Is said to be labOrtng
under terrible depression of spirits He is a
native OF this city, son OF the late T. N Roach
VINO Tor many years was the Register of Wills
OF the District. For some years he was q clerk
In the National Metropolitan Bank. OF thi,
city, but resigned that position som
years since to take the position of cashier
OF I'll Citizens National Bank. Heretofore he
has borne an unblemlshed character, and the