Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-03-23
THE DEFALCATION.

A Talk With the Late,Cashier of the Sec
ond National-His Deficit about So, OOO---
Living Beyond His Means---The Solidity
of the Bank.
The change of management in the
Second National bank and the reported de-
falcation of Mr.. A. E. Ferte, the former
cashier, an account of which appeared in
yesterdays issue of the GLOBE, was the
topic yesterday of considerable specula-
ton and comment.
There was not a ripple OF excitement
among the depositors and the business of
the bank went along as though nothing had
occurred. The we'll known financial
standing of the bank, as we'll as the fact
that the president, Mr.. Edgerton, is
bondsEnan for the cashier to an amount at
least five times greater than the defalca-
ton, prevented the least feeling of in
security. Some idea of the standing of the
bank can be formed from the fact that it
is almost impossible to buy any stock. The
only sale made in long time has occurred
since the defalcation was known and that
was a sale of five shares for $3.50 per
share, the par value being 500. That is
showing that $4,000 deficit, which will
be paid the bank by the bondsman, cannot
affect.
The developments yesterday were not of
a startling character, and nothing of very
material interest came to light in addition
to what has hitherto been given. A
GLOBE reporter called on Mr.. Cowley,
vice president, and Mr.. Monfort, cashier of
the bank, yesterday for the purpose of OBJ
tanning additional details of the trouble.
Mr.. Cowley was very reticent and had
nothing whatever to communicate, while
Mr.. Monfort assured the reporter that,
while the discrepancy was light, they had
not yet sifted the affair to the bottom.
He stated that Mr.. Edgerton, president
of the bank, is expected home in day or
two, and until his return no action would
be taken.
The reporter called on Mr.. Ferte last
night, and that gentleman seemed to feel
his position very keenly. In reply to que
ries he stated that the shortage in his &C
counts On the face amounted to $1,000.
This, however, had been reduced to $4,000
by the correction of errors and credits DUE
When asked as to the manner in which the
shortage had occurred, he stated that de-
pOoIIS 1TSQ COu0 III dlLoE
banking hours when the cash was withheld
and carried over until the next day. This
made the accounts all right on the face, as
the tickets were put in and the amounts
kept back were replaced from the de-
posits of the next day.
Mr.. Ferte then alluded to his illness in
September last, which necessitated his alb
sence from the bank, and the cash was
nv ha nth 70ln Of hn
| bank. In this connection he states that in
the $4,000 shortage must be considered de-
ficiencies and errors in the de-
posts, which were frequently made.
Sometimes is finding a shortage or error he
would work late at night to make the cash
balance, which he occasionally failed to do.
He did not report these errors or mistakes,
for the reason that he was afraid the man
agement might consider that he was to
| blame or that he was not attending to his
| duties faithfully.
Up to last month he received only 500 per
week and he confesses to having been more
! extravaganza than his salary allowed. FIRE.
| quently he would not have time to go
home to dinner or supper and in these in
| stances he would dine down town. This in
addition to paying his regular board made
quite large gap in his salary in
| the course of the year.
Then he was quite popular in society, hav-
ing to wear good clothing and his associates
were all young men of responsibility, and
they all received larger salaries than him
self, and in order to hold up
his end he had to be more lib
eral than was justified by his salary.
He had purchased lottery tickets on one or
two occasions, but had never speculated or
gambled in his life. Occasionally he
would play game of billiards or pool at
one of the hotels, sometimes, of course,
losing. The report of his having been a
visitor at houses of ill-repute, as stated in
morning paper, was untrue.
To sum the matter up, it would appear
that the young mans misfortunes have re-
suited from an imprudent desire to make
moderate salary cover too extravagant
course of living.
Mr.. Ferte has many sympathizers, who
have learned of his misfortune with feel
ings of sorrow and regret, and the feeling
exists among those who know him well
| that his trouble was not the upshot of
criminal intent, while his course in mani
Testing a desire to make all the amends in
| his power is generally commended.