New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-03-17
COMPOSING HIS GUILT.
A BANK TELLER EXPLAINS HOW lie EN-
BEzZI.ED MONEY FOR YEARS.
STARTLING THE PEOPLE OF LYNN MAss.-HIs
BOOKS BAFFLED HIS EMPLOYERS AND THE
GOVERNMENT MISUNDERSTANDING
PART OF THE DEFIcIT-sPEcULA.
TIoN THE CAUSE OBJ
mn frrTAf

PART OF THE DEFIcIT-sPEcULA.
TIoN THE CAUSE OBJ
THE CRIME.
IBY TELEGRAPH TO THE THIBUNs.l
Boston, March le.-.rhe people of Lynn were
astounded this morning to learn that one Of the
most exemplary men in the city had confessed
the embezzlement OF nearly $4,000. Edgar
Swan teller Of the City National Bank was brought
before Commissioner Hallet. in Boston, this fore
noon, on complaint of Bank Commissioner Gatchell,
charged with defalcation, and was required to
furnish $4,000 in bonds. He was unable to do
so. and was locked up. He has always been re-
garded as quiet, Woodworking bank officer, of
no extravagant habits, except that it has been
thought he did not keep his family expenses at
low figure as was prudent. Mr.. Swan is
thirty-four years Old lie lived in house owned
by his wife's father G. W. Stone. For o long
time it has been his habit to take
his dinner to the bank, and often
his supper, in o little lunch basket The
bank hours in Lynn are from $50 a. M TO
p. m, but the teller Of the City Bank has
rarely left his business of late till nearly
o'clock. lie had been harassed and worn in
his appearance for several days, but no significance
was attached to this, other than that he might
be overworloed On Thursday noon, he quietly
called B. V, French, cashier of the bank, into the
directors room and said:
Mr.. French, am defaulter, have robbed
the bank"
The cashier could not have been more startled
had the building suddenly been blown up. Swan
was very submissive. He appeared anxious TO
do all In his power to make restitution. The
cashier was overcome by the information, and
could scarcely credit it Swan said: :" If you
win go to my books, you will find that they
show exactly what tell you"
He stated the exact amount, but this the bank
officers positively refuse TO divulge. The cashier
would only say that the net loss 10 the bank is
about $4,000. Swan said:
Here are valuable bonds and securities on
which the bank can realize something and he
took package of notes from his pocket and gave
them to Mr.. French. The latter found that they
were excellent securities at present held at high
figure. Swan said he would remain TO help at the
bank. if desired. Mr.. French said to Swan:
II want you to promise me two things; that, If
you come in contact with any more money here,
you will not take any oft and that you will not
run away
Swan said: "No, 1 am ready to face the music"
Mr. French sent to the president OF the bank,
Amos p. Tapley, to whom Swan stated the same
facts he had given to the cashier He said that
he had been taking money for long time. The
bank directors were informed, and al were nom
pluSSed by the exposure. Swan had covered up
his populations by system Of entries SO shrcwdly
devised that the bank examiners, the present
official and his prede eessor, had failed TO detect
him. and his books had passed creditably, showing
no error even at the semi-annual examination
by the directors. Swan has been in the en-
ploy Of the bank for seventeen years, and
s.nce 1881 has served as teller succeeding to the
Il,
the present cashier OF the National Security Bank
at Lynn. He was required 20 furnish no bonds.
and the loss comes directly upon the bank. From
bis statement il was learned that he took the
money in different sums, gradually growing arger.
He did not gamble nor drink, his habits we're
gco1 and he appeared to be domestic in his tastes
but he developed passion for stock speculation.
lie bought heavily In the hope Of realizing for
tune, retrieving his losses and making the bank
good. lie was caught in u pool and could not
unload.
Cashier French went TO Swans books and
found TIM amount Of his deficiency exactly as hc
had stated il. Bank Examiner Gatchell was sum-
moned by telegraph from Blackstone He spent
Friday IN a thorough examination of Swans
accounts. Swan was proved to be cor
rect in fysEg BY advice Of Sr %
uty Marshal Hoyt, and taken TO Boston TO answer
in the United States Court to-dey. He told Presi-
dent Tapley to send TO his house 70 get more bonds
and securities which he desired TO surrender TO
the bank The amount OF these Cashier French
would not divulge. IL was enough for the public
to know that, after the bank had realized upon
the stocks given up and had deducted the amount
from the total OF he defalcation, the net loss TO
the bank would be S35, 900. Swan showed "A dis
position TO surrender everything, and has turned
over oil his personal property. Some time ago,
when his careworn expression was noted, IL was
proposed TO rearrange the banking system 20 re-
leye the teller some whit, and additional help was
employed The knowledge of this reaching Swan
before it had been carried into effect he objected
strongly. claiming that it was an intimation that
want the change made, and il was not carried
out. He continued to handle the money received
and all that was paid out, listing the checks him
self to be sent 10 Boston. He kept his own ac-
In this way he was enabled TO deceive the eX-
amners as well as the directors. Cashier French
said .-,.,- IL
Mr swans books passed the best bookkeepers Of
the countrvp We never had n thought OF any
thing being wrong" Yet when Swan led him
e the books ThursdSSy ana showed , h
he had taken Swans salary WAS Sl,60O year
It is generally believed that the total defalca-
ton is from $50 900 10 $4,000, and that the Dank
win realize from $1,000 to saOOS2 on sg gasb
Ter French said the bank was perfectly solvent
It's capital is 100000 1t had $4,000 surplus
at the last report besides $50, 600 on the Pront
and loss account. 1t would continue business
without any trouble and run along as smoothly as
1t had done. The first knowledge of the dcfalca-
ton reached the public this forenoon
Two years ago Swan founl that he was Dadly
In debt and thinking that he saw chance to get
out Of IT by speculation ne INVESTED N dranSC6
$4,000 When the boom in Thomson-Houston
stock came, Swan thought he would make another
attempt to retrieve his loses, and bought heaVly
Of that stock lie bought IL at 49, and 10
dropped on his hands TO 270. This demorallzed
him en,n nIatoI., a,d be decided 10 make clan