New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-20
DE BAUNs sKILFUL WORK.
HIS METHOD OF EMBEzzLEBfENT Exs
PLAINED.
gnEerDENr MOORE, OF THE Pack BANK, DD
MES THAT DE BAUM CAME FROM CANADA
TO HELP THE ACCOUNTANTS ON THE
sooKs-rHE BANKS EFFORTS TO


BOOKSHELF BANKS ErFoRrs TO
CATCH HIM.
President " Mumford Moore. Of the Park Nsx
tional Bank was seen at his home. No. "A West
Forty y-eighth-st, last night and asked il thers
was any truth in the statement published in the
afternoon that the defaultng assistant cashier
Charles De Baum. had been in this city since his
fight to Canada and had held consultation with
officers Of the bank in the course of which he had
assisted them in unraveiling his complicated ao-
counts and had afterward dined with them and viss
tied the Brooklyn Club In the article referees ~
il is stated that De Baum wns guaranteed immunity
from punishment and absolutely came to this city
and was set at the strange task Of showing the
experts the extent and character Of his robberfes
and revealing the devices by which he bad been
able to cover his tricks even from their trsdned
pursuit.
President Moore said: Tho story published IN
the evening paper referred to Is the vest verisgd
ever published in any newspaper in this city.
Neither the bank as corporation, nor any official
of the bank, has held any communication with
De Baum since his fight, and no offer Of CONS
promise has been made to him on any terms All
we have done is to try to arrst
him, in which we have fortunately sue.
ceeded, and had he offered to return
u4O 00ogvVV WiuCu iIc sbDiSs VIC WOulu uOb u3N0
accepted it and let him go free. sailed foj
Europe on April 81, sss, and had previously been
requested by Frederick A. Potts to postpone my
trip as bis father, who was then president of ths
bank, seriously i'll. Having private business
TO settle abroad / could not postpone my visit
but on the day previous to my departure Cashies
Il. K Wright reported to the directors that De
Baum was defauiter TO the extent Of $4,000
This was not communicated to President Potts,
owing to his critical condition. De Baum was thsd
absent on the plea Of sickness. On my arrival IN
Europe received dispatch saying that the de-
falcation amounted to sos, 600, on De Baun's own
confession, which was made to the
chief bookxeeper Of the bank, who visited
him daily at his house. and aftGS
receiving his statements came to tho bank and
verified them from time to time in the books a.
they were confessed In the meantime W. W.
Rossiter, De Baun's brother-in-law and bondsman
in the of 10000, came to the bank and
acknowledged the defalcations and De Baum weat
to Canada
The method Of his embezxlement was bott
original and ingenious. He had charge Of the
exchanges with country banks and all the de-
falcations were made in the account of the
Farmers and Merchants Bank of Baltimore.
De Baum drew forged drafts on wel-known
firm and instructed the collection clerk to charge
the amount TO the Baltimore bank, to whom it
would be sent for collection in the ordinary course
of business. Instead of allowing the draft to 60
through, he would get it from the collection
clerk, saying that he would forward it to Bati-
more himself, as il matter Of accommodation
for personal friend The collection clerk COM
piled, as DE Baum was an officer Of the bank and
responsible. in four or five days, by which tmo
the draft should have been taken up in Baltimore,
he would 20 to the collection clerk ana say that
the draft had been met and ask for q check for the
amount which was given to him, and as the draft
had never been returned from Baltimore it was
presumably all right
:" The Baltimore Bank sends us monthly ac>
count of collections, which, in the course OF our
business system would go to De Baum. who
would interline the fictitious drafts on both
sides of the account to balance with the
Park Banks ledgers. He thus escaped detection
until the bank examiner at Baltimore wrote us to
give him our exact balance on certain day,
when we found the discrepancy Of one of these
drafts which he had outstanding, not having re-
ceyed the usual monthly account from Baltimore,
and which appeared in our books but not In those
of the Baltimore bank Now, | want this expressly
understood, that when called vi on Inspector
Byrnes TO arrest the man he made it an express
condition that there should be prosecution, and
no compromise. We have spent 81 5, 900 to arrest
him, and l personally requested the District-At
torncy TO get the bail fixed at so high a sum
as would preclude possibility of his escape, as
in the interest of our depositors who have
S25, 000 900 in our charge and of the stock
holders in the bank, the directors feel that on
example must be made of the man, and 10 such
crime allowed to go UNPUBLISHED, as has too often
been allowed in such cases."