The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-05-22
FRAUDS ON THE BOOKS.
BAD WORK IN THE DEFUNCr
BANK OF AMERICA.


Large Sums of Money Credited as
Deposited by Men Used to Act as
Blinds-The False Entries Ordered
Made by the President of the In
stitution.
PHILADELPHIA, May 21.--A committee
of the depositors of the dafunct Bank of
America succeeded to-day in getting more
light upon the mystery of where the money
went than the public has hitherto had the
privilege of knowing. The cashier of the
bank testified in regard to the accounts
standing in the names Of two Of the banks
bookkeepers and note broker named II.
E. Yerkes. AS to Bookkeeper Boileau,
Cashier DUNCAN said he had had no account
in the bank. Under instructions of Presi-
dent Pfeiffer, $500 in his name on the
books was passed to the credit of John ].
Macfarlane, subject to his check.
EwBANKs HAD NO ACCOUNT.
Bookkeeper Ewbanks, Cashier DUNCAN
said, had no account at the bank One
hundred and twenty-five thousand
dollars in his name was credited
to the American Financial Association.
The cashier could not tell who were the
officers of this association, except Treasurer
George #. Work, who drew all the checks.
Broker Yerkes, Cashier DUNCAN said, was
the only one Of the trio who had an account
at the bank. HIS account, however,
bore no relation to the size of the loans
credited to him. The amount of $71, TAI /,
standing in his name on the books, was, like
that in the name of Bookkeeper Ewbanks,
credited to the American Financial Associa-
tion and drawn upon by George w. Work,
treasurer.
WHY THE FALSE ENTRIES WERE MADE.
"How came you to pass these amounts to
the credit of MacFarlane and the American
Financial Association, or Mr.. Work, as it
amounts TO in factp asked Mr.. Grant, chair
man of the committee.
II did it under the instructions of
President Pfeiffer,n snd the cashier.
II was only subordinate Off
cial and had to conform to the wishes
of my superior"
Receiver Smith testified to discovering
that certain real estate purchased for the
bank was in the names of President Pfeiffer
and Mr.. MacFarland. These properties he
since had conveyed over to him as assignee.
PLAIN TO ALL.
He Receiver Smith had never talked to
the directors about the banks wrecked
condition, because it was as clear to him as
to them that the real debtors were not
Messrs. Ewbanks, Yerkestand Boileau, but
those for whom they acted as a blind.
He knew that THE money had gone to the
American Life Insurance and American
Financial Companies, either oorporately or
to their individual officers.
WORK ON THE STAND.
The testimony of George F. Work was even
more sensational than what had gone before.
According to his own admission the Amer
| ican Financial Association eighteen months
ago held 800. 600 capital paid in and it got
| nearly $4,000 more from the Bank of
America. When called upon to name
| seme of the actual property
| of the financial association which could be
| Immediately converted into cash, he could
only name $25, 900 worth.
INCLINED TO BE EvAsIvE.
Mr.. Work was questioned as to
what had become of certain col
laterals which have been mentioned
as being in possession of the
syndicate. To some of the questions he
gave evasive replies, and to others his re-
sponse was that he did not know where the
securities were. About every piece of
| property or security that the concern
had ever possessed had either been
sold or hypothecated. and MIR. Work could
not be drawn into an admission that 10
cents on the dollar could be realized for the
creditors on forced liquidation.
DREW A GOOD SALARY.
His salary as treasurer of the Ameri-
can Financial Association was 5000
per month. Mr.. Works testimony
in regard to two investments illustrates the
whole. 1t was drawn out Of him that the
financial association had purchased 500
shares of the Girard trust at $3.50, making
$175, 200. Two hundred shares had been
sold and the remainder pledged for
loans. The Macon, Ga, street railway
stock had cost s225, 200. Asked as to how
that stood as an asset Mr.. Work said: ut
is rather difficult to explain, but that stock
has gone into the American Life"
HEAVY CREDITOR.
Mr. Work said he thought the American
Life owed the financial association 5000, 600
or more. When Mr.. Work was relieved
from further questioning he hurried out of
the room.
Cashier DUNCAN was again brought be-
fore the committee and made most damag-
ing admissions. He said that his books had
not been audited since 1887. He neglected
TO enter ON the books discounts
and loans which had been authorized by
the discount committee. He said that
while he did not at the time know that his
actions were illegal, he now thought they
were.
NADrTor u,1 cuan IN rHm rrDrrom