The Providence news. (Providence [R.I.]) 1891-1906, 1893-10-30
Bank Clerk Sanfori's Clever SViDd.
ling Scheme Detected.
WAS A SPLCULATOR IN STOCKS.
His Secret Carefully Guarded From His
Empioyers-He IL said to Have Em.
bezied s53,OOO Of the Funds OF the
Continental National Bank.

BosroY, Oct. 3o-Boston banks are con
gra ulating themselves on the fact tha
Benjamin Il. Sanford of New York con
stincts to his own city. He is said to hav
embezzled s53 600 of the funds of the Con
tinental National bank of New York
That at least two Boston banking institu
tions are not sufferers by his peculation
n due TO the circumstance that he wa
only corresponding CLERK in the Cont
mental.
The Bank of the Republic and tn
Hamilton National bank OF Boston have
deposits in the Continental National
These, with Washington bank, strucl
Mr.. Sanford as desir able concerns to assis
him in his operations. There Is Away
some new swindling scheme cropping u,
In the banking business. but old fnancia
heads confess that the game of Sanford
was the most daring which was ever per
petrated.
Sanford had been corresponding clerl
of the Continental for Is years. The banl
trusted him implicitly. even going so far
as to permit him to cond uct both the in
coming and the OUTGOING business
which in many large banks is handled by
two persons.
This was Sanford's cue. He formed ;
connection with brokerage firm named
Harris & Co. This Harris 81 Co. wai
backed by another firm. Maurice Mend
ham g. Co., who did business for tn,
Harrises, experimenting the closing ou,
Of their stocks, etc.
fs xifo al et,1o - ha fNa <av bo,
none Of its employees shall engage in an,
outside business, but Sanford kept hii
secret well. As Sanford controlled botl
ends OF the corr spondencs, he looked
about for n means by which he coule
profit himself
His Modus Operandi.
Under his nimble fingers forged ordel
would develop. purporting to come from
one Of the banks, and asking that Ger
tain sum be transferred for them to tn,
firm Of Harris & Co., through the Nc
chanics' National bank.
This done. he would prepare a checI
conforming to the order, get the cashier {,
sign it and then sent it to the Nee hanics
National, which would accept it withou
question.
Another order in Sanford's expert pen
manship would form the basis of anothe.
check in favor of another firm. Anothei
signature from the cashier, and SANFORD
would change the name of the firm I,
whose credit the amount was to be de
posted, to Harris & Co., aSd duly for
ward the check to the Mechanics Ma
tiosal.
In this ingenious way and between tn,
dates of July 10 aud Aug. o seven check.
had been received by the Mechanics ant
deposited to the credit of Harris & Co.
three for 10000 each, two for 5000 each
one for $1,000 and one for $4,000.
Liberties with Boston Banks.
Mr.. Sanford then cast his eyes on th,
balances of the Hamilton Natio lal OF Bos
ton and the Washington bank. He pro
ceeled to take liberties with them, anc
when the monthly statements to these
bruks were made out he would DESTROY
them and forge others with his owr
checks omitted.
The Continental bank requests all Of 1t.
correspondents to show in detail Just wha
items they find correct, so when the re
turn statements from the Boston banks
came to hand 1t was Ssnford's hand tha
clasped them, and it was Sanford's hant
which altered them TO. screen his doings.
A surprising illustration of the contro.
Sanford exercised over the correspondence,
is given In an instance in which one Of tn,
banks sent on two drafts, which, with the
forgeries. would have shown an over
drawal OF it's account. President Ran
dolph OF the Continental became pos
sessed of the two papers, and having beer
informed of the state OF the correspond
ents acc punt. At once telegraphed the
bank asking the reason of the overdrawal
But Sanford was ready { " all such con
tingencies. He destroyed the message
according TO President Randolph's com
plnint, aud on he following morning tina
official 4 und on his desk forged repl,
from the outside bank. The presideul
wrote letter 10 tue correspondent ex
pressing bis congratulations that the hare
times had not so much affected It as "a
compel IL to get behind in its accounts
aud when Sanfords hands reached foI
this letter, that was the last seen of IT,
On the 2lst the Continental learned foi
the first time that Sanford was a mem bel
of the brokerage firm. When questioned
the next day about the matter he ad
mitted that IL was true. He was at ono,
discharged.
Following this came the snuffing Of tn,
firm of Harris & Co., whose members van
ishei.
Out $50. 600
The Continental bank commenced M
investigation of affairs with their CORE
spondents. They ha no idea that any
thing was wrong; nothing but the sus
picious fact that Sanford had been doin,
business outside the bank. Comparisons
were made with the corresponding banks
aud after much labor the truth was oui
and the bank was out s53 600.
The Continentaps officials are wrotb
against the Mechanics for receiving per
sepal- business from one of the former,
clerks, but the Mechanics excuses itsel
by declaring that IL thought Sanford had
money. The cashier Of the Mechanics
states that the account Of Harris a. Co
was Lsken by his predecessor in the Office
hut s<as alwava sharplv checked mn ane