The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1893-06-06

The company was compelled to pay the
checks.
This trial has caused very great
alarm and anxiety to business men,
and, followed up as it has been by de
cisions In other cases, it reveals new
tendency on the part of courts whicl
may cost business houses many thou.
sands of dollars, since it puts the bur.
den of proof of forgery not upon the
banks but upon those who dispute COM
mercial paper in cases where there
have be en- alterations.
Mr.. Slice says that his investigations
have taught him that the marrying Oh
ink to paper SO as to produce negotia-
BILE bills or evidences of credit cannot
be done in such way as to prevent
alterations or forgeries, with the
chance very greatly that the parties
whose names or paper are thus forged
will have to stand the loss instead OF
banks.
These things have not made any pub
lie excitement, because forgeries OF
this kind have not the dramatic and
sensatio nal elements which used to at
tend great bank burglaries. Yet this
advance in criminal knowledge is far
more dangerous than the old method OF
crime, as some experiences of the last
few months will indicate.
man with letters of introduction,
undoubtedly forged, went not long age
to one of the lar -est banks in New
York city with 81, 900 in one pile and
$50 in another. Ee said to the teller
that he wished to deposit this money
and to take out two certificates of de.
posit having done SO, he chatted
with the teller awhile, who was i'm.
pressed with his manner very greatly
On the following day the man returned
to the bank, saying that he had a
chance for business investment and
would therefore draw the SIS, 600 depos.
cate of deposit. The money was paid
to him without question.
few days later certificate for
IS, 600 was sent to this bank for collec-
ton from Canada, and then on compar-
ison it was discovered that the first GER
tificate which had been paid had been
altered from the $50 certificate re-
ceived the day before. 1t was done
with wonderful experiences. As the
$1,000 certificate paid in Canada was
genuine, the bank was compelled to
stand the loss.
But an even shrewder piece of GRIM
inality than this, and one which banks
or business men anywhere in this coun-
try may suffer from, has recently been
discovered. a man having every APP
pearance of the habit and life of gen.
tleman and a business man with letters
of introduction, called at country
bank in New York state, saying that
he had considerable number of small
obligations to meet and he desired to
buy bank drafts on New York. He
bought mum Der, most of them for less
than twenty dollars In amount. Some
weeks later this bank began to receive
these drafts, and discovered that the
amounts upon them did not agree with
their books. Not the slightest indica-
ton of change was apparent to the eye.
Chemical treatment revealed no alter
alton, and yet it was certain that the
criminal, being skilled in chemistry,
had altered the figures. 1t was his
method not to increase the amount
very greatly. A sixteen-dollar draft
he made one hundred and sixty dollars.
Small amounts like these would not
tend to cause suspicion, and such drafts
could be easily negotiated. AS the
bank could not prove forgery or altera-
ton it was compelled to pay the drafts.
More than one case of this kind has
occurred within the last year, but.
bank officers being extremely sensi-
tive, they have paid the losses, which
have not aggregated very large
amounts, and kept quiet.
Within a few weeks the power of
chemistry to aid criminals has been
made manifest in the case of Buffalo
bank This bank believed that it was
amply protected against fraud, by
what is called the advice system. Its
habit has been at the close of each
days business to notify its New York
correspondent of all the drafts it has
issued that day, and the numbers and
amounts of each Of them. This it was
supposed would prevent the payment
Of any altered draft when it reached
the New York bank. But this advice
cost the bank $4,000. A well-dressed
man, well introduced apparently. with
the manner of an active business man.
bought two drafts of this bank, one
for $4,000 and for $3.50. This trans
action was reported Immediately to
the New York correspondent A day
or two later draft for $4,000 was
4.
dent. It's number correspondent with
that indicated in the letter of informa-
ton sent from the Buffalo bank. and
it was therefore paid. But when a
few days after that another draft for
Si2, 900 of the same number was re-
ceived it was evident that fraud had
been practiced. The last draft was
genuine. 1t had been negotiated in
distant city. The first draft had been
altered so that it's mum Der correspondent
with that Of the genuine draft for S12.-
600, and it had been raised from $120 to
$l2. 900. Yet the alterations were so
perfect that it was almost impossible
for Mr.. Slice to detect them. As the
New York correspondent had paid the
forged draft 1t was, of course, com
PEELED to pay the genuine one, and the
Buffalo bank lost it's money.
1t has been supposed that the use of
the punch was perfect preventive of
raising checks. But that depends upon
what kind of punch is used. One
check issued for $50 was raised to So, 900
and paid, although the figures 80 had
been punched in the check. 1t is proba
BILE, however. that perfect punches will
be invented which will prevent the
raising Of the amount. But this will
not prevent forgery.
One Of the greatest banks of New
York has used for some years patent
paper for its checks, for which it has
been claimed that alterations are Inn
possible without immediate revelation
upon the paper itself. A depositor In
this bank desiring to test this claim
gave check to Mr.. Slice, saying to him
that he would pay him $50 if he would
alter the writing upon that check and
substitute something else for 1t so as
to defy discovery. Mr. Slice declared
that recent advances in chemistry
would make such alterations possible,
aud a day or two later he took the
check to this man with every trace of
the original writing except the sigma
ture removed and new writing substi-
tuted In such q manner an to defy dis
covery either by the naked eye. the
or by che mistry.
There are several kinds of safety
paper in use and when they were first
made they defied alteration. but chem
istry has beaten them. Mr.. Slice has
made experiments with all of them
and finds that it is possible to bleach
writing from them In such a manner
as to make discovery impossible.
Business men who make many checks
are now being made aware of these
dangers, and. understanding that the