The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-07-06
BUFFALO'S BROKEN BANK.
me AMOUNT OF THE DEFAJCATIoy
rs NEARLY 100000.
rhe Secretary and Treasurer was n Church.
man and Highly Respected, bat re IL In
Hail Now MS the Principal Con pirntor.

rbe Secretary and Treasurer was q Church.
man and Highly Respected, bat re IL Q.
jail Now MS the Principal Couspirstor.
BUFFALO July Ahead and front OF tho
conspiracy to defraud the 5000 depositors OF
,hc National Savings Bank waa Edward 8.
Damn who has been under lock and key only q
few days. although his defalcation and confess
sion bccame public two weeks ago. One OF his
associates IL under arrest and another Ia out
Oh tail The amount OF Treasurer Dams
shortage In tho National Savings Bank
came out in court this morning when the APP
rlica,ion for the appointment OF q receiver
was argued before Judge Ward. Up to date
,hc dcfalcaton amounts to S428.836 Do
Quoting the banks surplus and tho amount
restored by Damn. the bank Is ut the present
time s2SO500 short Several names wero
suggested to the Court for appointment as re-
,ciycr. but Judge Ward postponed tho hear
ins until Thursday morning. The bank
has been declared ipsolvent and Mr.. Charles
y. Preston. State Superintendent OF Banking.
lns charge OF the institution. The work OF eS-
aiming tho books will not DO finished for
three weeks.
VIZ. DAMS good sldo wcs tho only one seen
ly the public until the crime was discovered
two weeks nEo He is IS years old. and was
,orn in Little Falls. N V. where his father
wns n banker Both came hero in 1854 and
engaged in the banking business. In 1851 the
younger Damn became an oil merchant, and
was successful. Twenty-Five years ago the
National Savings Bank was organized. and
Damn became It's Secretary and Treasurer.
holding the Office continuously thereafter.
His salary was only $1,000 year. but his
mother was rich. and tho family lived In ex-
rcnsive style in Delaware avenue. Damn mar
rlcd daughter Of his former oil partner.
4, wah hat "a, so,
lcce athlete.
Tbs smnllness Of Mr.. Dann's salary was
known to fcw people. and his style OF living
was not matter Of comment. because he was
believed to be independently rich. Mr.. Damn
was very prominent in the counsels OF the
Protestant Episcopal Church. and an intimate
aud trusted friend OF Bishop Coke. Ho was
the warden OF tho fashionable Church OF the
Ascension. of which tho Rev. Oliver J. Booth
was rector and he took an active interest in
shielding that clergyman from the copse-
Quenccs OF a scandal in which he became in
VOWED Mr.. Booths habits caused him to act
indiscrectly. and on JAN s. 1887. Gen. William
Sooy Smith assaulted the rector. on railway
train near Niagara Falls. for having
forced his unwelcomo attentions on Mrs.
Smith. The wealthy parishioners had Law
ishcd gifts OF wine on the clergyman. and his
indulgence led to the scandal. Mr. Damn acted
as mediator. and the Rev. Mr.. Booth was
sent to an asylum. after he had becn relieved
DUTY Ut the Ch ~ ths OF The
an important institution. and! was q. member
;Ti,hs s,aRRdinS &c Committee OF the Diocese OF
Mr.. Dann's piety and goodness were pro:
verbal He was the friend OF the widow and
ances tho associate Of rich men. and appar-
emily the personitication q honor i and and man IAN;
1lnnf fafNn . n nd ln L.
i,E man. His, disposition was CHEEKY: no was
srr.shty fer his yepgs and i an excellent con con-
has Just retired from the supreme Court. con;
sdercd Mr.. Damn. who Was hi. neighbor and
% sss IN cash thas he had
in over tho banks counter. Others besides
Judge bapes were 4fssiyed Mr. Pam =,
in the National Savings Banks building. and
SO much. confidence did tho other bankers
have in him that he would have continued as
M
hold both PLACES then and he stayed with I'm
the confidence which was placed in him 50 i'm
rlicity. He was the executor OF his mothers
his friends and others to place large sums in
tho bank. paying no attention to the $4,000
hish as ns' saoooo. His iI methods d embezzIine
we're cool and dnrnE. and without +, assistance IS
they could never nave SurcecCeu lOr inc many
Ch aries J. Armstrong TIT, bookkesrer Of the
bank; Ind been employed in that IS capacity
Ar% Hs vas employed by the Eric County
rawlings, Bank some Years ngo and was dis
reas sen ' Witch we're never made pnIieaSd the
personal friendship OF the late Cyrus : Lee.
perhaps. the reason why, nothing WAS ever
said about the matter. Whatever It may have
s a 'hH Ws
ssSS""ly l under suspicion d suicide 90" on
aIout n eiSht years na ago found his ACCOUNTS
crooked In the Interval between Armstrong;
nam any Lent mt It is N not Believed that Arm
rroi Tey much personally BY vt the
disgrace S e. i" is under arrest. William 4.
,McCiedi". who has beer one Of the highest OF
Giles. bright or shady rs the inclination. "anc.
with an utter disregard for money. He few
protrncted spree he was relieved 1T the bunk:
and h" has, suffered since from the effects OF
Acurous feature OF tho way the bank did
business wns in c2nncction with the reekon On.
cit; the clerks msnal iy llyure the interest from
tho books OF the bank. and depositors who
wit thu @ t. dn a the only y" wo o nyoved
ut the time u the dcposltors .'nll being to
transfer tho entry from the ledger 10 the
passhook In the National Savings Bank the
1"rositors, were required to leave heir pass.
hooks. end the interest was figured on what
they showed. Sometimes books would be re-
tanned for weeks The reason for that recul-
lar course is perfectly plain now. The inter
est could NOT in most clses be reckoned accu-
ratey n ON the banks hooks. because thu lat
ter credited most. OF, tho, depositors with less
monov than they had In the hank. The custom
OF retaining pass books could only be used to
cover up fraud by the ronnivance OF Damn y
associates IN the bank. Damn assumes all the
guilt. and tho others deny any knowledge Of
wrong doing. Damn WAS always around the
bpnE and he gained q reputation for indelatlg,
nb!e attention to business. but witt so many
hundred. Of accounts ialsined the clerks could
not have failed to discover the condition OF af;
fairs. False entries havo been discovered and
tie warrants for forgery and grand larceny arc
based on the fraudulent alterations OF the
ledCcr3 made in tho handwriting Of the accus-
OIL clerks.
Money was stolen In two ways until the Bank
Examiner discovered something wrong. and
then it was taken without yntte,nEt to cover
W. The robbery, A favorite method WAS to
credit tho depositnr on his pass hook wit tho
Amount handed in. but IL It was for large
sum t"rredit him on tho banks books with a
lesser amount, S2.oO0 or 5000 short. The
Gum stolen was invariably in even thousands.