Daily Republican., 1879-02-11
THE RICE EMBEzALEMENT.
How II was Accomplish ed-F0und
Out BY the ExAnsimer-The Arrest
Of Mr.. kice-Marshnl NcMuJlen's
Troubles - The Penalty for Mr..
Rt0a,A Erlsna

NhCr -
No new developments have occurred il
the Rice defalcation case since Mr.. Ric
in default Of making up $4,000 bal
was sent to prison. The amount 4m
900 and 2s,0O0, as near as can be As.
certaiDed. 1t is said close exalaina,
, ton of the books shoa that Rice die
not cominenc. his .mbezzleln-nts unit
about i've years ago. ltis but doing
an act OF Justice to the Directors aud
employers of the Bank to say that they
had no knowledge or even a suspicion
that Mr.. Rice had been acting dishon,
estly. He was always present and his
accounts were apparently well kept, and
balanced. 1t has been remarked that
it was wonder that the Directors
should not have discovered the leak
long before the bank examiner found
it out, but Mr.. Jones tn. President
says 1t must be remembered that the
Directors never had the least suspicion
OF dishonesty on tn. part OF the cashier
and this confidence threw them of
their guard. Had the Directors ever
known that Mr.. Rice had been the least
dishonest in any of his business trans
actions, either in or out of thelbank, he
would have been removed immediate.
ly.
The manner in which Rice carried on
his operations made it more easy for
the National Bank Examiner to discov-
er the defacation than for the Bank
officers. In this way Bank Examiner
Adams found out in looking over the
accounts OF the Delaware City National
Bank that sOmsthinb was crooked in
the accounts Of the Wilmington and
Brandywipe Bank. Rice seemed to
have carried on his operations by false
credits, and neglecting to enter cred.
its on notes that had a number OF years
to run. An instance in point is the note
OF a large manufacturing firm Of this
city given for 81 900, about two years
ago which was to be paid in three
equal payments. Two of those pay
ments amounting to 7,333.33 had been
made bat no credits had ever been en-
tered on the books, nor on the back of
the note. Another plan was to keep
up fictitious credits with other banks.
Thus the special surplus fund in Phil
adelpLia was over credited "a, 500; the
redemption fund at Washington was
raised to So, 600 and the Delaware City
National Bank was charged with 81, 800
which had been paid but never credi-
ted, and as it was no unusual thing for
the Country National Banks to be in
debted to the City Banks to a smaller
or greater amount, no suspision was ex-
cited in the minds of the Directors.
Other fictitious debts and credits were
kept up in the same manner until the
losses aggregate the amount of the de
falcation already stated.
1t seems to have been the Delaware
City Bank account that opened the eyes
Of the Examiner. In examining the
books of that Bank he found no credit
to the Wilmington X Brandywine and
coming on to Wilmington he found q
charge against the Delaware City Bank
of S4, 500 which had been paid. The
discovery Of crookednes ia the Bank !
was complete, and when one discrppan.
cy was discovered it was not difficult
10 ma o'herS' lie pfostratioh OF Mr..
hlce ioli"" lhe discovery OF his EN-
bezzlements has been reported and
many friends sympathized with him.
but more especially with his family but !
no steps were taken for his arrest until !
almost week a''er .he discovery OF MS
eln DeA|ieihehIs. he Complaint was
inahe against MN ny or' d. J.. wales,
one OF the directors OF the Bank, on the
part OF the State.
In this movement, Dr.. Wales had
the hearty support Of his brother, Judge
Wales, "Lo 1t is said remarked that he
could never SIT again upon the bench
OF Delaware II such crime was allowed
TO go Unpublished. Inc arrest OF Rice
soon followed by Marshal McMullen
and hearing being waived by Mr..
Bird counsel for Rice, the bail was fix
ed at Sl3, ooo. klce being IN the Gus
tody OF the Marshal 1t was the duty of
that oiiicer to carefully guard ms pris-
oner, but IN deference to the wishes OF
Mr. i'''e '''e,'"' ne NV. .,'' Ie'lo'e
u Jan, ou' 'e,' nun ~ ,iie cus'ody
VI neputs ~! narsn"' WY "nu an ieiiiaih-
eu IN nice ioo,n' anu WV a''ein",e'y
"tn ,no S..nla. .na, ,i". i ",saIns s.a'.,u
nun ,1t t'n,'' 'at.'iuay . ,.y "o'n.ns' = hs .he
Aa'sh"i = n"' uo'" o1''u'oo oy 'he
,r'elis VI m': n'.. . WIN se'eii'y ana
!, !. 10 o.' p'ope' ~ Jos'''e W
'na' once, " Ssate 'ha' lie was resPon-
sipio 'o' w. sa.. AeeP,ns y, i's p''So'
l'er anu no'm i'h.'"no'ns 'n"' 'ao.' lie
allo"eu -, W. NICE nios " ieniain lrol1 hurs,
hay untii oa.uruay al'eIilooh III MIS- oeu
SURROUNDED ny HIS family
Trus there was an officer in the