The sun. [volume] (New York [N.Y.]) 1833-1916, 1890-05-11
DEFALCATION IN ALBANY.
THE CITY NATIONAL BANK ROBBED
OF $4,000 10 $4,000.
george r. Whitney, tho Individual Bso6s
Keeper ArreStcd and NJ akos n Confensioa
"A Prominent Bualneas Firm InplIcntnA.

George r. WhItaey, tho Individual BeoN.
keeper, ArreAtcd and NJ akos n Confession
"A Fromlnent Business Firm Implicated.
ALBANY, May 10.-Georgo 2. Whitney, the
individual bookkeeper OF the City National
Bank oil this place, was arrested by United
States Marshal Luclan Tufts this afternoon at
the instance Of tho American Surety Company
OF New York. He was arraigued before Conn
missioner VIM. II. King on two counts-for I'm.
bezzlement and making false entries-and be-
Tore night had secured two bondsmen to
20 on his $4,000 bail bond. Bookkeoper Whit.
ncy is accused Of Iobbing the bank through
colusion with tho law book publishing firm
OF VIM. Gould & Sons, ana his mode
OF operations is said to have been the
false entering up OF their accounts and oertia-
cation OF checks and failure to report whom tho
firms account was overdrawn. The Goulds,
all young men. are alleged to have specialized
heavily and as Whitney was much In their So
ciety he Is thought to have shared their profits
whom there CHANGED to be any. The extent Of
the defalcation ia variousy estimated at be-
tween $4,000 nnd$7O0O0, although the officials
OF the bank declare that tho amount Is not lia-
BILE to exceed $4,000 or 100000 The unfaith-
full bookkecper has been with tho City Bank
over twenty years, entering 1t when q boy I'M
der his father, Stephen Whitney. who was then
the bookkeepcr As all the persons implicated
ulo NcIl hlONu III DuSluehS auu sO Clal ClTCleB,
the affair has caused much comment. They
have lived OF late in style betokening large
income, the source OF which was not known.
Byme Associated PresG
The defalcatlons have boon going on for at
least eighteen months, and probably would not
have been discovered now had it not boon for
the fact that check was received at the bank
on Monday which Whitney PRONOUNCED good.
but which, upon investigation. was found to be
worthless. This aroused suspicion. and the
banking authorities notified tho American
Surety Company Of New York. which was on
Whitney's bond for $4,000. A representative
OF that concern came to this city three days
ago. and an examination OF the accounts was
begun. Whitney was accused OF the crime and
made n confession which may result in impli-
eating a prominent business firm hero. Tho
understood that the deiHlcatlon Is tho result Of
conspiracy between Whitney and the firm
referred to. For the past two days he has been
assisting tho eNperts In unraveling his ac-
counts. and has shown no disposition to evade
the law.
The total amount OF tho defacation cannot
be positively ascertained. but he cum fnt Opin-
this is so, tho capital OF the bank is impaired,
as by Its last report the surplus and undivided
profits amount kto only 100000, with profit
and loss rGring of only 5000. Muoh sympathy
Is expressed Tor Whitney, who. 1t Ii believed,
was instigated to the crime by the pressing de-
mnnds Of tho parties who derived the benefit
from his theft. Though he had been in the
employ Of the bank for twenty -four years. his
salary has recently been only $1,000 u year. It
Is thought he has been living beyond his
means. Speculation IL assigned as one OF the
causes Of his wrong doing.