New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-05-02
THE PARK BANKS LOSS.
NEARLY A HUNDRED THOUSAND GONE

NEARLY A HUNDRED THOUSAND GONE.
A CLEVER SYSTEM OF THrEvISG CARRIED on FOR
YEARs-rHE BANK WILL NOT FEELIr.
At meeting Of the Board Of Directors OF the
National Park Bank at Broadway and Fulton-st,
yesterday, at which resolutions Of regard for the
memory Of the dead president, George Ii. Potts,
were adopted, the cashier made known q defalca-
ton of $4,000 by one Of the old trusted employees
Of the institution. The facts were not unknown
to all Of the directors, but although, for several
days at least, the discovery was a secret in the
possession Of some Of the persons interested, not
n breath Of suspicion had reached Wall Street,
that usually prolific source and receiving point OF
rumors having more or less foundation of truth.
The financial position of the bank is so strong
that the sum stolen is Of comparatively small i'm
| portance to 1t, but universal regret is felt that
the developments should be necessary at time
when the burial Of the dead president would other
wise have absorbed the rcgretful attention of
officers and directors
There was full attendance Of the Board at
the morning meeting, there being present Eugene
Kelly, who was chairman; f. Kellogg Wright,
who is also cashier and acting president ; Arthur
Lesry, George S. Hart, Edward c. Hoyt Francis
H. Leggett, Charles Sternbach, Joseph p Moore,
Parker. Frederick A. Potts, who was attending
the funeral Of his father and V. Mumford Moore,
! who is in Europe, were the only absent directors
| Cashier Wright submitted full statement of
the defalcation and expressed himself satisfied
that sos, 900 was the outside limit of the banks
loss. The directors voted charge it to the profit
and loss account Immediately and this was done
soon after the adjournment. They also voted to
proceed criminally against the defaulter, and the
matter was placed by General Francis G. Barlow,
counsel Of the bank, in the hands Of the police
| authorities. The surplus account Of the bank
is s1,6s5,O0O, or little below its total
capital. The loss in itself represents
little than the amount that is charged to
surplus, at least every year, and s-mctmes within
six months.
THE DEFAULTER SAID TO BE MISSING.
The defaulter, Cashier Wright said, after the
meeting of the directors, was Charles l. De Baum,
formerly assistant cashier. De Baum is reported
to be missing and at his home In Brooklyn no
satisfactory Information could be obtained as TO
where he was The officers and directors Of the
G. the defaulter. The plea was that this might
interfere with his arrest or discovery. Dc Baum
resigned his position on April lS, on the ground
offered any other position Cashier Wright states
that the knowledge of the defacation was not
learned until within the last few days. 1t IS
not clear exactly how the facts came to light, as
the bank officers decline to enter into these de-
tails.
the employ Of the Park Bank for twenty-five
years, having entered It a clerk from the
Ninth National Bank. He was efficient IN his
work. and became correspondence clerk at
salary Of $500 year About six years ago he
was made assistant cashier, and his salary was
raised to $1,000. He enjoyed the entire conf
dence OF the managers Of the Institution, and was
esteemed to be one of the best men in its service.
He believed to be correct in his habits, and
his connections BY family and n society were OF
Brooklyn, near Lafayette-ave., and be has lived
in excellent style He was O member OF the
Brooklyn Club and of the Oxford Club OF that
city 1t is generally believed that his pecula-
tions were made to enable him to maintain the
social position that he occupied, and dld not
grow out Of vulgar intrigues or disslpated habits.
He married Miss Rossiter, a niece of w. w.
Wickes, and has children.
HOW THE THIEVING WAS CARRIED ON.
The defalcation covers period of about ten
years. and appears to have been begun when Dc
Baum was correspondence clerk. 1t was
through the manipulation of the &C
counts of out-oftOwn correspondents that he
was able TO conduct his populations. Ills method
is thus described by one OF the directors OIL the
Park Bank: DE Baum, having charge of the
out of town correspondence accounts, was constant
y receiving Enclosures of checks and drafts TO be
placed to the credit OF the correspondents. When
ever he wanted any money, he would appropriate
these Enclosures, carefully making memorandum
of the amount, the name, etc. III IA private book
Of his. IT is the rule to send every month state
ment of account to correspondents, but DE BAUM
would take personal charge of the matter and
either see that the statement was not sent or did
not 20 until he had injected the proper entries
that would satisfy the correspondent that every
thing was correct, while, Of course, the books OF
the bank would not show the amounts that mad
been appropriated by him. In any emergency ne
could use Enclosures from one correspondent Tor
the credit OF another TO keep the cash balance
all right but he seems TO have tempered only
with the accounts of banks or firms which con
stantly kept large balance in their favor with
the Park Bank. In this way he reduced the
danger Of detection to a minimum, and there was
no way by which any ordinary eX-
animation Of -. the books Of r the ol bank
Of work was ingenious and il was something which
has not occurred 10 bank officials as capable OF
1t Is said that De Baum was under bonds to the
amount of only $4,000, the security being
given by some Of his personal friends. The Park
Bank managers declined yesterday TO say VINO
were his bondsmen Officers OF the Fidelity aud
Casualty Company denied that De Baun's
name was on their books. although they guarantee
many Of the employees Of the Park Bank.
HIS EXPENSIVE STYLE OF LIVING.
De Baum was well lslown as q clubman in
Brooklyn. being most frequently at the Brooklyn
Club. lie was On excellent billiard player, and
had few antagonists who could beat him in
contest He played euchre well, and occasionally
INDUCED in poker but he never played TO heavy
limit in that game. He was fond OF giving dinners
10 friends and was generally liked as genial
companion. 1t was admitted that his style Of
living while not extrayagant, was hardly au-
as il was generally understood to be, but
It was believed that he had outside sources Of in
come and his wife credited with property IN
her own right None Of his friends ever knew OK
his Specializing in Wall Street
A director OF the National Park Bank said yes
terday: "Mr. De Baum will be prosecuted TO the
end for his offence and no compromise VIII be toll
Grated II is time that bank managers took de-
cided stand against anything Of that sort Some
system should be adopted similar to that which
pledged 20 allow no compromise with officials or
employees guilty Of peculation but TO push every
case TO the end They share any loss which may
fall upon one Of their number through dishonest