New-York tribune., 1882-03-10
PrRLoINiNG BONDS FROM BANK LOANS.


lean clerk, Richard II. Cornwell. The clerk
is an old man, nearly sixty-hve
wears of age and has been trusted implicitly by the
officers of tie bank since the beginning Of his con-
nection with H. eleven years ago. Nothing had oc-
Cured in that time TO excite suspicion OF his perfect
honesty and even when the discrepancy was dis
covered it was not supposed at first that the clerk
had committed crime.
Cornwell was at his post in the bank when the
discovery was made, and soon as be saw that he
had been detected he confessed that the discrepancy
was caused by his emhezzlement of securities. lie
stated that he had taken bonds from loans pass
ing through his hands and on themhad raised money.
which lie hadu He explained fully how he had
conducted his operations, and informed the bank
officers where he had borrowed money on the stolen
securities These have since been recovered by the
bank which paid the advances made on them. and
they have been restored to the loans 70 which they
belonged originally. All of them were rcgained
without difficulty, but the officers of tho bank de-
clned Yesterday TO state where they had been ne
potiated, although they admitted that there were
several places where they had been pledged
TIE MATTER REFERRED TO CONTROLLER KNOX.
For several days there have been mysterious whls-
perings In Wall Street about certain bank, which
was not named. 1t has been rumored that some
bank was in serious trouble and the names of sew
eral banks have been suggested, but these rumOrs
have proved on investigation to be erroneous. The
officers of the Fourth National Bank said yesterday
In explanation Of the fact that the embczzemcnt
had been concealed successfully since its discovery
oil last Friday. that they had expected it to be made
ruhc by the Controller of the Currency, to whom
the facts had been reported They said that the
bank had taken action at all against
Cornwell but the whole matter had been
referred on Monday TO the Controller on the sup
hath uoull
for violation of the National Banking Act. diff
ferant explanation was suggested rs possible in
Wall Street; namely, that the bank had Intended
to keep the matter secret, but became alarmed
at the disquieng rumOrs circulated in the Street.
The announcement of the embezzlement was not
made yesterday until after the close of business at
the Stock Exchange 1t was not generally known,
indeed until late in the afternoon. The news cre-
ated great asonishment among the personal ac-
ouantances of Cornwell, of whom there appeared
TO be many. He was formerly member of the
Stock Exchange, and many of the old
members Of the Board remembered him distinctly,
although they had lost sight of him for several
wears Some knew that he was employed in tho
bank but the news of his crime a great surprise
to them. Jenkins Van Schaick said that lie would
have loaned him money at the asking without
other security than his personal honor. Others
who remembered him expressed similar views in re-
gard to his honesty.
WHAT THE BANK WILL LOSE.
The amount which the Fourth National Bank will
lose will be In excess of $4,000 and it is not i'm
possible that 1t may be somewhat larger. A careful
examination has been made, and it is believed that
the extent of the embezzlement has been learned
accurately. So far as the officers of the bank have
been able to trace them COrnwells operations do not
extend back more than three months The amount of
the embezzlement is over $4,000 but tho loss to
the bank will be reduced $4,000 by the bonds
which the clerk was under. He is said to have no
property of any kind with which he reimburse
the bank even to the smallest amount. But the
loss of the whole amount will not affect the bank
in the slightest degree.
According t. the report OF the condition Of the
bank on January l, it had capital of S9.200000
and surplus of 81 > 16l ,s22 20. No information as
TO the mannor in which Cornwell disposed of the
money could be gained yesterday. His previous
career in Wall Street left him largely in debt, but
it is not known that he has attempted to satisfy
any of these old claims or that any of
tn, creditors had regarded their claims against Ll
as Of any particular value. No explanation of the
matter was given by the officers of the bank Vice
President Baldwin said that the bank paid the
loan clerk $1,000 a year salary and that he
ought to have saved something ont Of it. 1t was
asserted by friend of CornwelPs that he received
from the bank less than 90 600 year, and that he
had very large family to support. He has a wife
and eight children, but none Of the children Is
young. One of his Lieutenant in the Navy,
TO which ho appointed in 1864. This son is ,
now on the Coast Survey steamer Bache.
CoRSwELLs CAREER IN WALL STREET
Cornwers career in Wall Street has been n varied
one His first experience, far as has been learned,
was as clerk with the stock brokerage firm of
George s. Robbins & Co.. which was one of the
most prominent houses in the street thirty years
ago. 1t retired about 1857. COrnwell then went
into business on his own account, and was mem
Der of the Stock Exchange for several years His Of
fee in Pine-st., and he alone until near |
the close of his business career when he took one
of his into partnership under the name of r. H.
Cornwell e. Son. While engaged In the stock busi-
he failed three times first about 1868 and tho
last time shortly before the OnsOlidation of the
Stock Exchange with the Open Board ia 1859. |
After the first two failures he reelected a |
member of the Exchange without great difficulty, |
bat 1t is said that the circumstances attending his
last failure such that be did not make any eff
fort to be reinstated 1t was said yesterday that |
his reelection would have been impossible For two |
three years he a street dealer In miscellane
ous securities-a q curbstone broker but In 1871
he secured clerkship In the Fourth National Bank,
where he remained until his latest fall 1t Is said
that he was appointed to clerkship IN consequence
of his friendship with the president of the bank,
Phio c. Calhoun.
While Cornwell was in the stock brokerage bust
ness In Pine-st. be lived in Brooklyn. He was a
prominent member Of the Sumnerfed Methodist |