The morning call., 1893-04-27
HOW FLOOD STOLE.
Bank Commissioners Tell
Their Methods.
ALL THE COIN WAS COUNTED.
No Possible Way to BamboozIe the
Commissioners During Their
Examination of the Cash.

The facts regarding the discovery Of the
defalcatons from the D0nohoe-kelly Bank
by Cashier Flood have never been fully
brought before the public In a general
way IL has been known that the shortage
was discovered by the Bank Commissioners
While ursning their usual examination
into the affairs Of the bank. but in jus
what manner has not been stated.
CALL reporter yesterday interviewed
Secretary Hardisty Of the Bank Commits
sion. and also Messrs. Dunsmoor and
Knight. Bank Commissioners.
These gentlemen were highly incensed
over the Misrepresentation that have been
made in regard to their methods of exam
ming the banks accounts and of tracing the
loss.
The absurdity of the statement that the
Commissioners were fooled by the character
OF tbs coin will be apparent to any one who
understands the working Of the commits
slou." said Secretary llaIdi,ty.
In the first place, the TACT that The Com
mlsSlnners discovered the peculai0n by
counting the coin settles that argument.
any one familiar with the workings of the
commission knows hat it would be impossi-
bic to deceive the Commissioners.
All banks present semi-mOnthly state
mentS CT the standing of the Institution on
tue day the statements are presented. These
statements are sworn to by the president of
the board of directors and The cashier. The
amount OF actual cash on hand appears in
this statement, Int the Commissioners do
not Investigate The matter WAtn t. state
ment is made.
They choose their cwn time to investi-
gate and then actually count every dollar in
the Institution. ANY discrepancy in the
cash at this tiue is made apparent.
when the Commissioners examined the
affairs OF the D0nohOe- Kelly Bank, nearly
year ago, the cash was correct in every
particular. On the 4lh OF the present month
another examination was made and short
age of $4,000 found.
In these investigations the balances OF
the books at the close OF the previous days
business are taken as a basis and the cash
on hand counted to ascertain if it is in ac-
eOrdance with the balances. 1t is never
known In Just what amounts the gold.
silver or currency and notes due the bank
appear separately, but it is all counted as
cash.
"The absurdity of the claim that silver
could be substituted for gold is thus APP
parent.
"Ou January l. 1898. the statement of the
bank showed balance in hand of gOlu.
silver and currency 10 the amount Of
S55O,OS3 81. The amount of actual cash on
hand has varied in the case of this par
ticular bank to the extent that some state
Whereabouts, and at other times the first
amount has been increased.
when on the 4th Of the present month
the shortage was found in TIE actual cash,
the directors OF The bank were immediately
nOilhed. The following day was the regular
meeting day of the directors, and it was
then settled that the directors should make
good the shortage, and the bank resume
operations.
ION the following day the report of the
commissioners, showing the defalcation, WAS
filed"
The count by the Commissioners was so
much cash, but it does not show the proper
ton of currency. If the amount taken by
Flood was In currency in large bills he
would not have had any difficulty in remov-
Ing SO large sum at one time. but II it was
in gold the weight would be about 675
pounds, and it is not probable that it was
taken away at one time
Messrs. Dunsmoor and knight reviewed
the .acts substantially as above. though they
were inclined to make no statements for
publication beyond q general denial Of the
charge that they were negligent of their
duties.
Another erroneous idea is that the
people pay for our work." said Mr.. Dnns-
moor. The fact IS that the banks of the
State pay the expense of the commi, sion"
Mr. knight was asked in regard to the
statement that silver was substituted for
gold.
Perfectly ridiculous he exclaimed,
THE Commissioners have only had one
opportunity TO count the cash since the de-
falcatIons have been going on, Then the
shortage was discovered, and the actual
amount of il ascertaiued
at is utterly impossible" said he, "to
know the actual character of the cash
taken, whether gold. silver, or currency.
All we can tell is that 50 much cash has
gone"