Savannah morning news. [volume] (Savannah) 1868-1887, 1885-04-30
A RUSSIAN RrvAn TO WARD.
Swindlfng a Russian Bank OF Millions
Through Pretended Contracts and
Transactions.

pean notOriety. TOOK place some Itue Iii-lO
ago at the Moscow Assizes.
The Bank of Skopine, founded In 1868
was a communal, not strictly govern
ment institution. By kov was appointed
manager, although he had been guilty,
while holding previous appointments OF
extensive malyersation. But the oiiense
was overlooked, perhaps fer reason sug-
gested by the Russian proyero' 'Only he
VINO has not s.nucd against God has not
robbed the Gar" The malversations O.
the ex-r1arager and his coufederates were
reckoned at l2oo0,o00 roubles-probshly
the biggest robbery ever perIetratcd, even
in the empire OF the Car.
The chief of police was in RykOy's pay.
Aleksandrof. the local Justice Of the
Peace. called in derisiou Byk ". laekay,
received from the bank a loan OF 100000
roubles and a stipend Of 500 roubies year.
His successor, Likared, was put ON
similar footing The c0nnVance OF the
smaller official fry, such as the postmaster
and the inferior police. was secured Ia
like fashion, as also the members OF the
force who acted as the managers spies.
Having thus bought The entire local adj
ministrati9n. Ry60y became as much the
au Ocrat 81 Skopine as the Car Is oil all
TIE Russias,
Ia 1858 there was deficit Of $4,000 rou-
biCs. kykOy drew up false balance
sheet. and OF so satisfactory character
thal it drew deposits from all parts OF the
country. From mi. date the affairs OF the
bar / went from bad 90 worse, but the
more desperate became its condition the
more brilliant grew its balance sheets.
Though be was U0.ug no legitimate bank
ing business whatever RykOy, by the
offer Of y per cent interest on deposits
(whila other banks were paving 3 ), pro-
cured funds In apuf dance. To show how
his exceptional profits were earned. By-
kOv entered in the banks books divers IN
geuieusl- contrivel financial operations.
There were fictitious discounts h'ti ious
leans. fictitious purchases, and fictitious
sales. An old man in the pay Of the bank.
so illIerate than he could hardly write his
own name. signed every December con-
tract for the purchase Of several millions
wOr Of imaginary securities. and this
transaction. and the resulting imaginary
profit thereon, always 81 cured on the bogus
balance sheet presented to the Minister
and published iu the G0-ette.
Rykov not only paid his depositors
high rate 0f interest. he gave away large
sums 10 charitable ir situations, supported
schools ard subsidized churches, thereby
securing The good viii of the clergy and
acquiring high reputation for piety and
-
All these afts, as we'll as RykOY'5 own
personal expenditure. which was on law
isa scale, were taken from the banks cOt-
iers and entered as payments to dummy
customers. The remainder and greater
part OF the receipts and deposits were
simply stolen, either for the managers
own purposes 0r ID buy the silence Of his
coniederates. Paper was made on an ex-
tensiVe scale and with little attempt at
"a IN gf "a "
IN satOneh, equally man of straw, for
$4,000 or 100000 rOuDles, discounted the
bill and got the money. Then the opera
ton would be reversed. ard Safoneff get
the money. Purely fictitious bills with
imaginary names were discounted, and
the IOrters and MESSENGERS OF the bark
figured IN the books as debtors tor tens Of
thousands - roubles taken by their mas
Ter. Everything was done Ell Jdmule,"
said one OF the witnesses.
But 10 profit by all this profusiOn it was
ne sary 10 belong to the clique. to be
either a protector. a kinsman or an &c.
complete. Lists Of suppiiants were laid
regularly before Rykov, who, according to
his caprice, wrote opposite each name
''granted" or refused" When a bill fell
due the acceptor was cuurteously re-
quested to accept another, including the
discount, which. il is hardly necessary to
say, nobody ever thought Of paying in
coin. But after awhile even these for
malities ceased to he observed. When the
favored few wanted money they asked for
it-sOmetimes took il without asking.
''They took money from the cash box
without counting it, said one witness.
''Ihey came with a pocket handkerchief,
filled II with bank notes and went home"
testified another.
Such was the method Of doing business
in the famous Bank Of Skopine. And the
swindle went on, not for a few weeks OF
months merely, but for something like tif
teen long years, an astounding fact even
for Russia, and elsewhere unimaginable
In small provincial town. where every.
body knows every body else, ROkoY's do.
ings and the banks position could not be
secret, and when the crash came the en-.
tire province (kTasar) produced but nine
teen uniOrtunates who had intrusted
their savings 20 NJ. Rykov and his fellow.
roi among t6. tners Of
O. one dwell ln ... ue. How
a0OA aga, dld the irregularities escape at
tentionl For the law places communal
banks under the immediate supervision Of
mayors and municipalities. 1t is theii
duty each month TO examine the books
count the cash and overhaul the securi
ties. The answer is simple. They were
priyy 10 the frauds and participators IN
the plumber. All robbed the bank. Mayor
lkounikOy robbed, Mayor .OotschnnkON
robbed, the town clerk robbed, every
member OF the municipality robbed. The
notify audit Was a farce. The book,
were never looked at, the cash was never
counted, asa The balance sheet was signed
without being examined.
RykoY could do whatever he liked ant
conducted himself with all the Insolenc,
OF an ignorant paryenu. There dwelt in
the town doctor Of the name of Bitni. q
man Of good repute and highly esteemed
but, being SO unfortunate as 10 offend Ry
kOV, he was one day ordered by the polio,
10 betake himself TO the town OF Kas
simyO and there abide. NOreason for thi,
arbitrary proceeding was assigned. aud il
was only when tie day OF reckoning cam,
that DIR. Bitni learned mat his expulsion
was due 10 Ry koy, who had remarked /,
the chlei Of police that HE doctor was an
"eYil-intentiOned man." On this hint ID,
chief Of police bad acted. A young fellow
named sck0l1n was so ill.adyised as {,
whistle while passing the manager in On,
public garden OF ehOpiue. Rykoy chose
70 look ON this as an insult. and the yOuil
was eNlled 10y Administrative order. "rh,
police Of skoplne," said me witness Ians
k0v, whose evidence WIS quoted In the I'M
dietment, "was ready no any moment {,
execute kykOv's least dosUe.p
Nor was this an. Rykoy counted s,