The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-11-20
BANKS THAT WERE ROBBED.

Wholesale Plumber of Money Institutions
by Cashiers. Directors and Burglars--No
Observation-Disclosures of Thousands
Gone Beyond Recall
The New York correspondent ofthe Hart
ford Times sends to his paper an interesting
account of the many bank swndles and de-
falcations which have occurred in this city.
After writing of the overdrait which Bald
win, the deiaulting cashier of the suspen-
ded Mechanics National Bank of Newark,
claims to have granted Nugent, the cores
pondcnt says:
Business men when extremely short use
every effort to obtain the privilege of over
draft, which when granted generally leads
TO ruin. well remember the instance of
Paying Teller McGutcheon of the Ocean
Bank, who yielded to such an appeal and
certified check for friend. The appeal
was continued, and in hope of obtaining
the money thus wrongfully lent other ia
vors were granted. A last the amount be-
came so large that the teller became the
slave of his former friend and was obliged
to keep up the accommodation until the in
evltable explosion took place The bank
lost $9O,0 900 and the teller was ruined,
The Groccrs' Bank was robbed by its pay
ing teller, George Clark No punishment
could be inflicted. The Tradesman' Bank
was robbed by one of its clerks of $4,000
The criminal was shattered by dissipation
and died in the hospital, The Fourth Ma
tiOnal Bank also occupied a,place i'll the list
the loss being about $4,000. The paying tel
Ter of the American Exchange Bank wound
his career by robbing the bank OF $4,000.
The City Bank is one of the best managed
Of these institutions, its president being
Moses Taylor, whose fame as iinancier is
widely extended. Yet in this admirable
concern the heaviest deialcation ever known
in this city took place The cul-
pitts name was Leverich. He came OF
high family, and showed his dignity by the
extent of his pcculation, which was more
than 100000. 1t was admitted that moth
ing could be done, and there the matter
ended. Paying Teller Ellis, Of the Park
National Bank, robbed the latter of SOL 600
with equal impunity.
One instance of a bank clerks punish
ment for peculation, is found in the case of
the Fulton Bank. The note clerk, who was
the son of the cashier, spent $50 600 of bank
funds. The thief actually got four years
III State prison. One of the most curious
bank defalcations of the day occurred in
the Gallatin National Bank. A leading en-
ployc had for q long time used the bank
funds for the purchase of business paper. +"
lie was an expert judge of credit, and found
the traffic very profitable. One day, how
ever, his account was found short. He at
once admitted the fact, and turned out Il
quantity of gilt-cdged" to balance the
discrepancy.
The Artisans Bank was robbed by its di-
reCtors, and so was the Ocean Bank. The
latter had suffered severely from depreda-
tons of its paying teller, and was after
wards Cracked by burglars. 1t might
have survived, but the directors concluded
to finish the work, and this they did in a
very eilcctual manner. Their method was
to discount loans on fictitious securities,
such as paper railroad bonds, and the result
was, that in the hands of receiver, the
stock was only worth ten per cent. Such
was the history OF bank whose capital was
entirely paid in, the amount being n half
million. The Grocers' Bank was robbed in
the same manner, and the shareholders
found themselves the victims of sharp prac-
tice on the part of those to whom they had
committed their interests.
Having referred to Il case of punishment
among deiaulting clerks, ! may add to it
the sole instance of penalty inflicted on Il
dishonest cashier. This was found in the
AtIanti. Bank. The entire capital of this
institution $500 0O) was swamped by its
cashier (Taintor), who was deeply engaged
in stock speculation. lie dabbled in Pacific
Mail till all was gone and then the doors
were closed. The outraged stockholders
succeeded in placing the thief under four
years sentence in the pcnitentiary. As an
additional illustration of the loose method
of banking in this city, it may be added that
ten savings banks have failed within few
years. The term failed is used conven-
tionally. The correct statement is that
they have been robbed by their officers nd
three millions of the earnings of tn, r
have in this manner been wasted F6r2h,s
atrocious series of crimes no penalty has
been inflicted, nor indeed has any arrest
been made.