The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-12-12
National Shoe and Leather Bank Lost
$354,OOO Through Him.


Samuel c. Seeley was, for fourteen years,
the trusted bookkeeper OF the National
Shoe and Leather Bank at Broadway and
Chambers street, New York. The discovery
was made Tuesday, Nov 20. that the funds
of the bank were short sS54.00o and IT was
ascertained that for nine years Seeley had
been methodically and persistently stealing
the banks money. 1t was not till after
banking hours of the date mentioned that
the discovery was made known to the po-
lice, but even then it had the effect of
startling the whole financial community.
The news reached Wall street and COM
mercial circles just after the close of busi-
ness in notice issued by the bank. 1t
was to the effect that, as result Of an
examination of the books kept by Seeley,
made by the bank examiner. defalcation
of $S54,00O was discovered. The notice set
forth that the directors had called on the
stockholders for an assessment sufficient
to cover the deficiency. Seeley had disap-
peared from New York some days before
that and ii was this fact which led TO the
investigation.
Seeley managed to make away with SO
mrch money through a confederate on the
outside who had running account with
the bank extending over thirty years The
bank pursued the old-style ledger. book
III.
slips are used, the depositor simply present
ing a pass book, In which the amount OF
the deposit is entered by the bookkeeper.
Seeley's confederate was said to be Fred
erick Baker, lawyer who was drowned
at Sands Point, Long island, Saturday,
Nov. "a, just four days after the discovery
lieved that Baker purposely drowned him
self. but his frienus persisted that he had
no dishonest dealings with Seeley and that
he was drowned by accident.
confederate a simple one. False cred
its entered by Seeley for small
amounts in the pass book. Then ne charged
them in another account and cleverly car
ried them along in his books from year to
year. The stealing began about nine years
ago and had swelled to the total of $780,. .0C0
when the defalcation detected. The
bank, some time ago, decided to change Its
system of keeping books and to adopt a
more modern method. Seeiey became con-
vinced Immediately that his Justification of
the entries in the books would be revealed
and as soon as the Overhauling of the
books commenced he disappeared. 1t was
at once suspected that Seeley had been
wrong in his accounts and the examina-
tion was carefully proceeded with. On the
result being made known, the directors held
a meeting and Ii was decided 10 make
good the impairment at once
AS soon as the news OF Frederick Bak-
er's death by drowning was heard, those
especially interested in the affairs of the
bank became convinced that he was the
confederate of Seeley and that his death
was premeditated as an escapes from the
exposure he dreaded One thing that
puzzled the directors was how Baker spent
the great sum that must have been his
share of the stealings. probable explana-
ton was given when Austin Corbin In
formed the bank directors that Baker was
one of the hackers of the Boynton Bicycle
railroad and huge land scheme connected
with it. In telling of Seeley's connection
with the bank President John M. Crane
spoke as follows: 'Seeley came here rec
commended by fellow-clerk and was get
ting a salary of $500 a year as book,
keeper His honesty and faithfulness had
never been questioned until we had unde-
niable proof of his crime His method
seems to have been that of balancing vari-
Gus accounts Suppose man who had an
account with our bank of $4,000 and an
other one of 10000 Seeley would take
5000 from one account. which he would
appropriate to himself and put $500 to the
other account which would, apparently,
balance the accounts OF the bank at the
close of the day To secure such large
amount required an immense amount OF
balancing He had to be careful not TO di-
minish a depositor's account so much that
on attempting TO draw the depositor woul1
discover that his account had been tar
Dered with. r