New-York tribune., 1893-12-24
HILLS SIMPLE METHODS.
LAX WAYS OF THE ST. NICHOLAS BANK
GAVE HIM A FINE CHANCE FOR THEFT.

| EXAMINERS LOOKED INTO THE
CASH LAST FEBRUARY.
The plan Of operation by which Lewis A.
/ Hill. the receiving teller Of the St Nicholas
Bank. was able TO steal some $4,000 OF the
banks funds was made public yesterday by
! Mr. Judson the State Bank Examiner. who has
been al work on the books Of the bank for the
last three or four days. That Hill was able
to get away with this amount was due to the
lax methods employed in the bank. and the care
less manner in which the examinations of the
State Banking Department made. Hills
plan of operation could have been checked at
the outset II there had been any business sys-
, TEN in operation at the ba nix, and it would have
| been known long before this that the cash end
Of the business was wrong If the State Bank
! Examiner at his last examination had looked
| into the cash as he looked into the securities.
| Hills plan Of operation according to Mr.. Jud-
son, n simple one. He was the receiving
teller. and at the end Of each days business he
would turn over to the paying teller Of the
bank Elias Il. Van Der Veer a certain amount
Of cash which was supposed to be the amount Of
cash which he had received during that day.
II seems that the paying teller took IIs word
for the amount Of cash which turned over
to him, and put the box containing 1t in the
sd1e Nlt0)ut counting II. his manner OF uOlllB
business gave to Hill his opportunity for steal
ing the funds Of the bank AS he the re-
ceiving teller. he knew the exact amount Of the
money which was paid into the bank each day,
and he alone made the return to the paying
teller Of the amount Of money received. OF
course some of the receipts i'm checks, in
drafts, and In cash and in Postofiice orders.
HIS SCHEME WAS SIMPLE As 4, b. c.
According to Mr.. Judson's statement yesterday
afternoon. Hill merely returned each day to the
paying teller n sum of money minus the amount
! which he had abstracted at the same time. how
ever. telling the paying teller that the amount
Of money which he had turned over that
! which he had received during the day. Mr..
( Preston. the State Bank Superintendent. also said
yesterday that Hill evidently abstracted from the
daily receipts such amount Of money he
/ wanted and told the paying teller. he turned
over the days cash to him. that the exact
amount Of cash which the books would show
/ having been turned into the bank was in his tin
! box.
toned the word OF the receiving teller. for II he
/ had done 50 he would have found on many oc-
casons that the cash IA returned did not foot up
/ the amount which the receiving teller said II
/ would. lIill said yesterday that he had been
I carrying on his method Of subtracting from the
/ banks funds for several years. ana that the
total amount Of the money which he had taken
from the bank was $4,000. on the day when Mr..
Iudson. the representative Of the STATE Bank
/ Superintendent began the examination into the
affairs of the St Nicholas Bank Mr.. Ii con-
Tossed to him that he was behind in his accounts
and that he would fix up everything that after
noon Even while the detectives were looking for
him on Friday iii was I'm the bank. cOOlly smOi
Ing "A cigar. and he did not appear 10 BE- at all
worried until after word was received that the
District-At'orney looking into the case.
/ When he heard ~ this H. suddenly left the build
ing and started for his home in NewJersey
where he arrested on Friday evening.
THE BANKS LAX METHODS.
Bankers who learned Yesterday Of the manner
In which Hill had taken money from the st.
Nicholas Bank were surprised at the lax methods
used by the State Bank Examiner In making
his examinations OF banks. and those used by
the officials OF the bank in conducting their
business In every well-regulated bank the re-
caving teller. at the end ~ each days busl-
ness turns over his daily receipts To the paying
teller He gives to him the amount OF the
checks drafts. silver. gold. pennies. etc. re-
/ ccived In the course OF the days business The
paving teller goes over the money. checks.
drafts etc turned over 10 him. and II he finds
that the receiving teller's accounts are correct
gives him receipt for what has been turned
10 him. Then the paying teller checks Off
the cash checks drafts and other receipts for
the DAY and turns them over 10 the cashier. who.
in turn gives him n receipt for the days return.
In the Of the 81. Nicholas Bank there
seems to have been no check on the receiving
cashier Of the bank said Yesterday that when
the paving teller found that he had more cash
than he could conveniently put In his safe he
turned the surplus over 10 the receiving teller.
who put It In his safe.
CARrLTsSNESs OF STATE EXAMINERS.
1t IS considered In Wall-st, however. If the
state Bank Examiners would look closely into
the cash Of & bank as they do into the securities
which bank holds against loans many failures
bn eI In fhp Of
the cash had not been looked into for some time.
The state Bank Examiner in February counted
over one two packages of bills when he made
examination. and. finding that they We're
all correct. went no further. If the State Bank
Examiner then had gone through the cash OF
the bank as carefully as the National bank eX-
aminers do he would have found a deficit In
the cash and could have prevented the failure
Of this bank. on all sides the complaint IS that
the bank examiners merely look over the Sc
curities which bank holds for the loans which
It has made and seldom examine the cash Of
the bank.
Assistant Distrtct-Attorney Vernon NJ. Davis
visited the ST. Nicholas Bank yesterday to OBJ
tain evidence OF Iis guilt In stealing the si2-
600 Mr.. Davis saw Superintendent Preston ana
easily obtained the proof he desired. on
"Wednesday he will lay the case before the eX-
traordnary Grand Jury. and an indictment will
doubtless be found at once. Hill Will then be
extradited
II waa reported from Newark last night that
Hin declared that he had not made any con-
fcssion Of stealing $4,000 from the bank. His
wife asserted that he innocent and had
been made tool Of He told reporter that he
would go 10 New-Ycrk TO stand trial on the
charge whenever he was wanted without extra
ditiOn papers.
Both the state Superintendent Of Banks and
Mr.. Judson. the Bank Examiner. were at the ST.
Nicholas Bank for an hour two yesterday |
morning but they had nothing to give out be- |
yond an explanation Of the method by which Hill
robbed the bank and "A statement of the probable |
deficit The probable deficit including the Inn
paired capital and surplus. according to Mr.. !
Judson's last figures. Will reach S2500oO
DIED AFTER FASTING FIFTY FIVE DAYS.