The Wellington enterprise. [volume] (Wellington, Ohio) 1867-188?, 1885-02-18
DEFAULTERS.
Extent Of tho Frauds Practioed
Upon Employers.
IN Expert Accountant Details the systemi
Resorted to by Dishonest Clerks
and Empioyes-Tho "Amerl-
can SystOm."
tchicago Trlbune.l

Defalcatton by persons occupying posi-
tions of trust, which bids fair to des rye
the name OF the american system" hat
become SO c)mm n thai the number OF ex
ID rt accountants who undertake to ferret
out the mystery OF a default has beer
rapidly swe led within the las few years
A resident of Chicago whoss long ex'
perleyce In the examination OF irregular
accounts gives his opni some value, ex'
presses his convict on that there is hardly
a large establishment In the city In which
dishonest prlct ces do not prevail There
Is q remarkable difference, he SAYS, be-
tween the cons ervatiye business concerni
of England and Scotland and the dashing
happy lucky houses Of America. Ii
the steady business OF Great Britain
where the son succeeds the :Ath II an Is
trained in the counting house from hl
early wears, all the details OF the Office arr
carefully elaborated. and no one can stea
FIVE cents without being found out But
here a shrewd man establishes an enor'
nous business without giving any part Of
his attention to, the routine of the office
and as his employees usually receive g
beggarly alowanc, II Is sc,rcely to be
wondered that they add to their salary by
the?t.
"Much as should deprecate any at
TEMPT to excuse the thief" said this man,
al feel no commiseration whatsoever fol
the merchant or the banker who looks for
honesty In clerk or cashier who Is paid
$S5 month for handlln; $lOO.DN a year
without any check or sa eguarl impose1
upon him. An employer who exp cts
| fidelity should reward his servants ac.
cording TO the responsibility of place The
loose and inadequate systems OF some
! arms are amazing. do not believe there
| Is a large establishment in Cllclgo where,
n employed in position OF trusi, l could
not steal thousands OF dollars every year
There are several d RS.ent kinds Of de-
fn'cations which we often have TO deal
with. First, there is tbs bldnderer, w~o
takes advantage Of a mistake to pocket
the odd cash. Suppose ho has the pay
roll to make out In a house where ffty
men are employed. That duty Is gener-
ally considered so purely mechan cal that
some subordinate employe Is delegated to
draw up the payroll. He credits each
man with his proper salary, bus by MS
take makes the footing $500 ins,ead OF
sB7h. The proprietor looks over the roll,
observes the correctness OF each item,
takes the footing Tor granted. and draws
his ch ok for S69. The young man puts
the weekly stipend OF each person In an en-
velope. finds surplus OF $i5, and, discover
ing his error. pockets tuat amount. Then
he r, fleets what fool he has been TO live
on $50 month when by careful bluuder
every week he mi bit easily double his In
come. The suggestion OF accident Is turned
into system. and he becomes regular
defaulter. The preservation OF the pay
rolls ought, Of course, TO be imperative,
but as matter OF fact he quietly destroys
the evidence OF his crime, which is never
suspected until the drain Is felt by the
firm or his own style Of living bs rays
him.
1.-THE blunderer Is harder to detect than
the systematic defauiter. A book-keeper
W III sou ct mes tnter I'll items correctly In
his cash book, but when he comes TO post
his accounts will doctor the footlngs. He
will ent r debit for general expenses,
with some hieroglyphics intended TO par
ticulariz, the items OF expenditure. In
stead Of the correct footing OF s3lS.H he
WILL write $4laG4, get his voucher aud pock-
ct 500. After a month or 50, when the
items are forgotten, he will turn back aud
prefix the O ure to some one Of them,
making the footing apparently correct.
"The expert will readily detect the de-
ceit. II is impossible for a man, after the
lapse OF a month, TO change the figures
bl.JO TO l5l.5J without enabling q prac-
ticod eye 10 reco gnizs the inserted digit.
Generally the intruding figure Is dried with
o blotter, while the rest OF the page has
been allowed TO dry by eva. .,oration.
When the plin OF de alcation Is once made
out the details can be followed with ease.
II will generally be found that the false
en- ries occur at the same time In each
week or month, aud we have only TO turn
10 that date TO find the inevitable traces OF
guilt
IAN old trick Is tho use OF carbon paper
10 duplicate vouchers. A member OF the
frm writes bis 70. X on the voucher pre-
sented to him, and the bookkeeper, having
carefully inserted his car5on paper under
meath, has two vouchers for tbs same sale.
He has left the date blank, and afterward
fills 1t up with any date he plsases.
"Many OF the defalcations are the result
Of conspiracy. Those who are employed
to act as checks upon each other pool Is
sues and divide the profit. Th!s cases rC
hard to detect, as the accounts are often
perfectly regular. But young men who
enter into such dishonest enterprises ar,
apt to be indiscreet, and they usually dis.
PLAY by their extravaganza the dispropor-
tion between their salaries and their OK.
penses.
"The ignorance OF many rich men TO.