The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-05-25
CR00KEDNESS IN A BANK.
PAPER DISCOUNTED WITHOUT
GOING TO The DIRECTORS.


The Cashier and Assistant Teller On
der Arrest as the Ones Guilty o the
OTense-A Belief That the Institution
as Lost from $4,000 to 100000.
New HAVEN, CONN, May 24-Ysster-
day Bank Examiner Cooley, in the course
of his exami alton OF the affairs OF the
Merchants National Bank. discovered some
thi wrong. This became known to-day
and created decided sensation in business
and social circles, and facts developed to-
light indicate pretty clearly that the bank
will De heavy sufferer, and the bottom OF
the sensation has bean by no means reached.
Several days ago the direct RS became sut-
plci us that there was somethi & wrong,
and after preliminary examination OF Ie
b 1oks yesterday. placed Cas- Ter John c.
Bradley and Assistant Teller Charles W
p liner under police surveillance, AID afte
further vesiiE CATION to dav eY were held
in the cuSto o sheriff, but have no
yet beeh jailed.
NATURE OF THE TROUBLE.
The examination of the books showed
that the cashier aud assista teller were
involved in a system OF disc unit & notes
without submit lug the paper to the direc-
tors for approval, and that this practice
had been carried on for a number 4 yea 8,
un il now the bank was pretty heavily H.
v1lved The bank officials are eKtre nely
retice t and will not name the extent OF
he losses, but it is named a. from 10000
10 10000, and the la ter sum is generally
held by business mon to tho CORE
figu e. Late this afternoon President Bige-
low issued the following card:
To Tue PuBLic-Certail irregularities have
been found 10 the bank involving the cashier
and the assistant teller. There will probably
be consider b loss TO the bank, which will not,
however, impair It's capital; 1t Is not yet
aScertaned whether these officers ave been
beneiiciaries OF those irregularities,
out notes have been discounted
which we're not presented to the
board ofdirectors tor their approval, and the
loss on this ella s OF paper cannot at this mo-
President Merchants National Bank
The di ecto 8 we at work on the books
al last light, and have beSu ia consu Va
tiol nearly all day. When ox-Goy Bi e-
wv wa sssn tonight he was badl
democrat zed ami grea lv excited condition
YER the ex osure. When i Associa cd
Press repo ter call d hi, attentl n to the
. orios afRec ing the banks entire surplus
AID the implication Of well-knowu bu ines
men in he note-di, counting scheme, and
asked for Palmsrs confession, the ex-
Governor was iun'i ID to make public the
inside story Of the affair.
HOW II CAME OUT.
Tc-day's expose was precipitated by thu
lis .ovsry Of notes ting e. Ab)u Sl7,-
900, drawn by John E, Ba soft, a prominen
VIII lesale and retail hardware dealer,
which had been irrsguarly discounted oy
the shier or the t=ller. Mr.. Bassett al
once secured the bank by giving them
mortgage on his real e,ta e for $3.50
Other promi 4ent merchants are
mixed up in the note discouuting
expose. Teller Palmer has made full
co fession Of all the ansactions Teller
Palmer ia intere,tei in the m anufacture Of
patent med cine and ons story current s
% the effect that hs borrowed cOnsderag lie
money TO exts his business ald, being
unable to meet his payments, tided over
discounting notes for par les OF whom he
mad owe money. This practice, it Is
stated, was discovered by Cashier Bradley,
but Teller Palmer | duced aim to Nee
il quiet, promising to lake no he notes
IS IA as they became due. Failing TO DO
rAis, other notes we-e dscoun,ed uutil the
cashier and teller became deepl involve
and ere compelled ~ Ike p quiet Tor thelI
own safety. Where all the money mas gone
or WAC a. of ted by the crooked WORK
mas not yet come out. The general Upi1io
tonight ls that the affair is niue worse
han the bank officials care to adj nit.
Cashier Bradley is ape ding the nighJ Ia
the sherifH's office and Palmer Is a. his own
lome. in charge Of deputy.
CHARGED WITH wRECKING A BANK.
ROCHESTER, N. Y, My 24-Ca bier
Kuhn, OF tho la svills bank, vas ar este
v tie sheriff Of Liv ngston cou4ty to-day
for alleged cjmplicity in the wrecking of
that institutio =