The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1892-08-13
SHORTAGE IN ACCOUNTS.
HOW DIsHoNEsr CASHIERS
FIX THE BOOKS.
A Patent Medicine Mans Cashier Kept
tho Private Estate In Good Com
dillon ut the Expense OF the
Medicine Account.

The New York World believes that
In view Of the frequency OF defaulting
cashiers In the East II Is worth while
to learn from professional account
ant In business in New York how the
offenders manage to conceal their
stealings for long time.
A man dealt very largely In patent
medicines and his daily receipts
amounted to some $500 or $500. In
addition to his business he had pri.
vate estate which yielded considera-
BILE revenue. The principal fndipg
his business growing too much for
him to conduct personally. appointed
with power OF attorney to indorse all
checks and deposit them in u bank to
tho principals credit keeping. OF
course. separate bank accounts for the
medicine business and the private es-
tate.
The lax manner in which every
thing was conducted and the want OF
supervision OF the accounts prompted
the manager to appropriate a small
ing purpose. This sum was aug
mented from time to time by further
populations He became so bold that
check for 1886 was one day re-
ceived on account OF the estate. and
he appropriated 1t to his own use. or
the estate accounts the principal kept
close observation. being particularly
Interested in the bank balance to the
credit OF the estate. An inspection OF
this account was made monthly. and
In order to swell the balance OF the
account tempered with the manager
would pay In. a day or so before such
inspection, sum OF money represent
ing nearly the amount stolen. which
was received from the medicine GUS
tomers thus transferring the short
age from the estate account to the
medicine account
The practice was continued for two
years. and each month the deficiency
became greater. until at last it assumed
such dimensions that the manager
who was cashier as we'll had to take
the bookkeeper into his confidence,
and cajoled him into supplying the
principal with falsified balance sheets
The assets Of the concern were false
the stock being placed at some $8. coo
more than 1t really was. and the
unpaid accounts were manipulated at
the close of each half year. 70 that
false charges were made against the
larger customers accounts for goods
purporting to have been only recently
supplied. the payment OF which, 1t was
stated had not become due.
The bank balances always remain
ed healthy and that satisfied the
principal without going closely into de.
tails Had he done so he would have
discovered that names OF customers
who had no existence appeared on
the ledgers and those accounts were
carefully kept active by means.of con-
stantly debiting them with goods new
err delivered and crediting them with
cost never received. But those mys-
tic accounts never appeared on the
list OF customers accounts
Further the principal would have
discovered that the shipping clerks
record was far more each month than
the amount OF goods charged up
against the customers large
parcels OF goods had been sent to
good paying customer but not
charged; aud when that customer
remitted his check it was OF course,
Incorporated.
When the manager suspected that
the principal wished to see the bank
balance to the credit OF the medicine
account" the manager, knowing we'll
that the principal knew approximate.
ly how each account stood, and II Il
happened to be about 81. 900 below
the average collections on account OF
the estate would instantly be made
and placed to the credit OF the .medi-
cine account"
Thus by playing one account
against the other the principal was
deceived; but 1t could have easily
been prevented had the two different
accounts been periodically examined
up to any given point at the same
time.
The crash came. The accomplice
book-keeper died. and the new one
sent out bills for all overdue accounts
upon the books The manager alb
seconded. and the stock to be replenish-
ed or placed at its proper standard |
would have created an overdraft on /
the bank account A new balance |
sheet prepared by the inevitable ex-
pert called in too late showed a de-
ficiency Of $50. 900.
In another case that OF manu-.
concern in Pittsburg, the
cashier wanted money. Numerous
checks drafts bills and cash in a
variety OF forms were daily passed
through his hands and he pondered
which OF them he could take with the
east chance OF discovery. He took
he check received from o customer
II stadning. whose account had just
'ecome due, and who was above sus-
'icion, so far as credit went so that
he payment being shown to be
title overdue no notice was taken of
t. He entered all the receipts in his
ash book that day with the exception