Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-07-06
ABANK H0NEYC0MBED
And Rendered Unable to Ever Com
pete for Business Again.
FOUR THOUSAND DEPOSITORS
Soaked to the Tune of Nearly Half Mill
ion Hard Dollars.
BOTH THE WREcKERs NOW IN JAIL

0V1A lu6 WhEOAEho NVW In JAlu
ESPECIAL TKLEaRAM TO THE DrsPAroH.l
BUFFALO. N. Y, July a-The head and
front of the conspiracy to defraud the 5000
depositors of the National Savings Bank
was Edward s. Damn, who has been under
lock and key only q few days, although his
defalcation and confession became public
two weeks ago One of his associates is
under arrest, and another is out on bail
1t is likely that the defalcation will foot
up $500. 900. About one quarter of the ac-
counts have been compared, and the deficit
has been figured beyond 500, 900. The bank
has been declared insolvent, and Charles N.
Preston, State Superintendent of Banking.
has charge of the institution. The work of
examining the books will not be finished
for three weeks An order to show cause
why . receiver should not be appointed is
returnable in the Supreme Court tomorrow,
and as no opposition will be offered to his
appointment. Deputy Attorney General
Hogan will be the receiver.
Mr.. Dann's good side was the only one
seen by the public until the crime was dis
covered two weeks ago. He is So years old,
and was born In Little Falls, N. Y, where
his father was banker.
Lots OF Style on a Small Salary.
Twenty-Five years ago the National Saw
ings Bank was organized and Damn became
its secretary and treasurer, holding the
office continuously thereafter. His salary
was only g, 800 year, but his mother was
rich and the family lived in expensive style
ne1a avenue
Damn married daughter of his former
oil partner, George G. Webster Their son
is famous college athlete. The smallness
of Mr. DAMS salary was known to few
people, and his style of living was not a
matter of comment, because he was believed
to be Independently rich. Mr.. Damn was
very prominent in the councils of the Pro-
testant Episcopal Church, and an intimate
and trusted friend Of Bishop Coke. He was
the warden of the fashionable Church of the
Ascension, of which Rev. Oliver j. Booth
was rector, aud he took an active interest
in shielding that clergyman from the con-
sequences of a scandal in which he became
involved
Mr.. Booths habits caused him to act in
discreetly, and January 3, 1887, General
William Sooy, Smith assaulted the rector
on a railway train near Niagara Falls, for
having forced his unwelcome attentions on
1avished gifts of wine on the clergyman,
and his indulgence led to the scandal.
Considered Model of Virtue.
Mr.. Damn acted as mediator and Rev.
Mr. Booth was sent to an asylum, after he
had been relieved of further duty at the
Church of the Ascension. Mr. Damn was
Treasurer of the Church Home, an impor-
t8nt institution, .and was a member of
the standing committee of the diocese of !
West New York. Mr.. Dann's piety and
goodness were proverbial. He was friend
of the widow and the orphan, the adviser of
many acquaintances, the associate of rich
men and apparently the personifcation of
honor and manhood He was the executor
of his mothers estate and that has suffered |
Also He advised his friends and others to
place large sums in the bank, paying no at
tention to the So, 900 limit for deposits and
accepting amounts as high as $40, 0,0C0 His
methods of embezzling were cool and dar-
ing, and without assistance they could never
have succeeded for the many years they
have been in operation.
Charles j. Armstrong, the bookkeeper of |
the bank, had been employed in that |
capacity about year. He and Damn
married sisters. 1t is not believed that |
Armstrong profted very much personally
by the defalcation. but that he was actuated
by a desire to save Mr.. Damn from ex-
posure and disgrace He is under arrest
Money Made by the Bookkeeping.
A curious feature of the way the bank
did business was in connection with the
reckoning of interest. In the other banks
of this city the clerks usually figure the in
terest from the books of the bank, and de-
positors who call after January 20 and July
20 are credited with the interest due, the
only work involved at the time of the de-
from the ledger to the pass book. In the |
National Savings Bank the depositors were
required to leave their passbooks, and the
Interest was figured on what they showed.
Sometimes books would be retained for
weeks.
The reason for that peculiar course is per-
fectly plain now. The interest could not in |
most cases be rectloned accurately from the |
banks books, because the latter credited
most Of the depositors with less money than
they had in the bank. Money was stolen in
two ways until the Bank Examiner discov-
cred something wrong, and then it was
taken without any attempt to cover up the
robbery. A favorite method was to credit
the depositor on his passbook with the
amount handed in, but, if it was for large
sum, to credit him on the banks books with
a lesser amount, $4,000 or 81, 900 short. The
sum stolen was invariably in even thou
sands.
How Some of the Stuff Was Taken.
An old lady deposited $4,000 several
years ago, and had left it untouched. Re-
Gently she went to draw S., 900 to lend to
friend, but McCredie tried to persuade her
that it should be left in the bank She had
great difficulty in getting the 5000, which
is all she has to show for her faith in Mr.
DAMS bank.
James w. Mckay, sporting man, put in
S400 about the time of the crash, and that
has disappeared. His book shows that he
put in several Thousand dollars more than
DAMS records show. Alderman White is
out $1,000
Mr.. Damn, who was let out on $40, 900
bail after the first arrest, was rearrested
and the bonds were increased to $50, 600,
but in view of the magnitude of the defal-
cation that amount was deemed insufficient,
and on Saturday he was arrested again
The bail is fixed at $100, 900. Damn has re-
funded $53, 900, but that amount is only a
drop in the bucket 1t includes S25, 600
which was secured on his bonds. 1t is pos
sible, although not probable, that Damn
will refund more than that amount. The
depositors will probably have to stand the
deficit
There is some doubt as to the liability of
the trustees, and the courts will have to
Settle the question. President Daniel G.
Beard is quoted by commercial agency to