Evening journal., 1891-01-14

from the City Building and Loan Asso
citation.
Here are the items:
False entries; 1896 ...................S S1t COO q
False entries 1887. .............4... 5000 OOl
False entries. 1889 ...... ..,............ 500 u
Loans in Ledger to him ............ s' so, /, 4
sham oerndcates,... t,is.i 10000
Si7,954 4
The facts are at last given to the
public and the reports published ex
clusively in the EVENING JOURNAL are
proven true.
The City Building and Loan Associa.
tion, according TO Special Auditor Will
liam A. Reynolds will be able to pay AS
cents on the dollar.
Sadly falls this loss upon the hundreds
of poor people who had their all in the
loan.
Everything possible will be done to
make the loss smaller, but the figures
look ominous
The stockholders Of the City Building
and Loan Association held meeting
last evening on the second fcor of the
Maris Building, Sixth and Shiplev streets.
The so.e object of the meeting was 10
hear the report Of Special Auditor Will
liam A. Reynolds on the accounts Of the
association and the populations of
Eldridge Pierce, whose whereabouts are
yet unknown.
The room was crowded before the
opening hour and the stockholders dis.
cussed the situation in low but eloquent
voices. Women we're there whose tired
faces and STOPPING bodies showed how
used they were to toll Men were there
whose rough hands and troubled brow
showed gow they had lsbored and wor-
ried. The room was extremely close, but
no one seemed to notice the atmosphere
and no one stirred while the tals of de-
ception, dishonor and theft was being
told.
President Nathan Lieherman called
the meeting to order at 35 o'clock and
after stating the object OF the meeting
requested Professor Reynolds TO begin
his report.
Mr.. Reynolds said that his duty was
not altogether pleasant, hut as he had
been engaged TO audit the accounts of
J Eldridge Pierce he had done so and
was ready to report II have nothing to
conceal, said he He stated that it was
the FIRST time he had audited the
accounts of that organization He did
not desire the reporters to publish his
account Of PieTce's methods Of working
because other rascals might adopt them
Sharp Book keeping.
He FIRST cited an instance Of a loan
OF 81, 500 to Pierce, on which there
was security for only $l,4OO
All of the $96,S20 in securities on
loans are in hand. but his accounts show
that the loans amount to SEQ, 470 this
leaving $23 $50 on which no interest is
being paid This amount is not found
among the assets
The hrst evidence of his tricky book
Keeping Is found at the close of 1888
when be erased the figures on the debit
side of the ledger, cutting through the
book, and raised the amount $l9, 900
Using a similar plan on the credit side
he raised the figures s. 0O0 He thus
made net raise and steal of $14, COO, for
he kept the money.
Notes done in that year amounted to
$36, ,OOO which was entered correctly but
by concrary entries elsewhere he stole
$4,000. The purpose Of these false
entries was TO cover up steals and they
accomplished their purpose These
raisings first made in 1885 were carried
over to the close of 1886 to escape detec-
tion. Auditors" said Mr.. REYNOLDS.
''Are not apt to 20 back beyond the year
they are auditing" For this reason the
discrepancies were concealed.
In 1887 an entry of 81 100 IL tbe loan
account has been raised to Sc, In
the cash book the 81, lC0 is found on the
debit side as a loan to Beeson The$ 5, 600
is sham made to cover up steal In
1887, Pierce l. BeesOn got a loan of 5000
Pierce raised the figures to SO 600. The
Newell loan of $3.50 was raised to $3.50
A returned loan of $500 was not credited
but poclIeted entire. There are many
instances In the same line
The receipts and disbursements for
1880 are regular except there is 4
shortage in cash OF ST. ,454 Al.
In the check book checks are left
hanging and all are charged as If
paid up. He thus doctored his balance.
One instance was given Of checks amout.
ing to So, 030 as entered as having been
used to pay off liabilities, whereas Pierce
got the money and the liability remained
This was called double header" bv
Professor Reynolds
Cash steals.
On June 10, 1890 the Kent Iron aud
Hardware Company returned $1U 500
which It had borrowed. Pierce made no
record of the receipt on his books and
put the money in his pocket A returned
loan of So, 400 was treated In the same
way. He was again arranging to cover
up his steals Professor Reynolds got
on track of this msthod through the
check on which Pierce had drawn the
money.
Pie,ce's Methods
His mode was this: To take sums from
ALSO to $500 or more a month. as clrcum
stances would allow. He would repre-
sent to the directors that there was no
money in hand, and would conceal his
steslings by using the bogus checks
which tided him over the February
auditing After February his books ran
wild He did not post thing since last
February. When the load got too heavy
he would work returned loan or the
checks.
This was not his only method.
Matured stock was reported last Febru-
airy as S22, $50 Il was found that inter
est was being paid on $50, 600. Just a
few days ago it was discovered that
Pierce had used several bogus certifi .
Gates, creditlng them as paid when they
were not paid. McGonigal of New
Castle, who had So 600 of matured stock,
was put off by Pierce, who used the
money.
A list of checks amounting TO 81, 769. SO
regularly signed by the officers Of the as.
sociation and made payable to certain
persons ''or order" were altered by
Pierce to cor bearer, and endorsed and
collected by him. In one of these cases