The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-23
A NEW YORK METHOD.
How Clerks in Banks Are Watched
in the NIetrnnniis

| IN the IuetrOpOS1S.
| New York, Dec. 15-Tne methods OF
protecting banks against dishonest EN-.
ployees have been mucn discussed since
the recent discovery of three defalcations
in prominent banks and are likely tc
cause a spread of the rigid systems
which some banks have already adopted.
Inc president OF one modern banking
house gave the Sunday Post-Dispatch
correspondent today the following out
line. of his system, which he considers
| perfect:
ITO begin WITH said the president,
IN explaining the system. our bookkeep-
ers OF city Iedgers are all stationed on
the upper floor, and do not even see or
come III contact with our city depositors.
The. latter, when he C. mes in and
hands in his book to be balanced. has no
| idea who the bookkeeper is that VIII ham
ole IT, once every month all the book
balance, and then they art Immediately
transferred from one ledger to another,
SO that they cannot get back to me
| DOCKS to ADJUST any error, If SUCH be dis
covered.
"All charges to city deposltors' ac-
counts are made from checks or charge
tickets. These vouchers, together w n
the voucher list, remain in The custody
! of the clerk who writes them up until
| the passbook is left to be balanced. AS
the latter is handed in to another clerk
! there is no opportunity to arrange the
accounts, if a bcokkseper wanted to do
J so. If errors exist they are sure to be
brought to light.
But the most important things are
the examinations. which we make our
selves. These examinations we make eV-
cry week or ten days.
For instance, cur tellers finish up
their work at say $50 and are rsady to
/ leave the bank. Almost before they are
out of the door or the vice-president-
and we are the only ones who know
when these moves are to be made-send
for, three of the bookkeepers and
make them a committee to so at once
ana make an examination of the tellers'
Department. Now, this W Il take these
three clerks till midnight or after, but
we pay them SIS or S25 extra each, with
a reward. say Of $3.50 if they discover an
error in the tellers' accounts, and so tine
commute are very glad to do this work.
Now. the next morning the tellerS
come to work without any idea that
since they went hog1a. a day or TWO Ia
ter. or on some holiday, I may resolve
the tellers into q committee to go an ex-
anime the accounts of the dis CUNT de-
partment or CT the general bookkeeper.
or the accounts of the very ones who
made M the committee to examine taa
tellers. One. thing about VII On we are
very particular is that the ones selected
at any time to make an examira ton
shall not know whose work thew are 20
examine, or, in fact, not know That they
are even wanted to M he any ex-
animation at all, more than five m nutes
before they are set to work at it. and
that the persons whose accounts are TO
be overhauled have left the bank FIR
home before the call for examination is
made.
Under this system no man in this
bank knows what minute ats 0o----'- =
will be gone over or by whom. If ne is
hor9st, 1T is of no consequence 70 H.,
and If he is dishonest, We catch him be-
fore he has got away with anything.
We pay the committee well for max
ing the examinations, and the rew1rd
for the discovery OF any error stimulates
them to find out If anything out OF the
"a written report. signed by the com
mfttee. is made to US of eacn eXaInlna-
ton for reference.
NOW, this would SEINE 10 be precau-
ton enough. but we go stu further. AT
irregular but frequent intervals, other
the 'vice-president or myself VIII tete-
the bank early the next morning. When
ne arrives there he finds a tel graz from
me, order ng him to change about 81 fne
bookkeepers and tell rs as they report
for work, without allowing them 10 even
go near the desk or books they were
working at the day. before.
That y 3 lay, 5ones. ny ias sccan Of go
to E are kept, will go to the desk used
by Smith. where Q to 7 accounts are:
and Smith will go to work at Jones
desk, and SO on all through the force.
This change may last for five days, per-
haps ten, then there is another shift.
stNow. all this involves some little trou-
BILE in getting the system started, but il
is better than waking up some morning
to find we are s100,0G0 or more sh1rt on
account of neglect of duty. Our employ
ees all like IL, as is is q barrier 20 temp
tsition, and they realize that all men are
liable to be tempted. After the news of
the Shoe and Leather bank defalcat.on
got out a dozen OF our men came into
my private office and said they were
glad we pursued the system aave just
described.
1--WE watch the private life Of our en-
ployees, too. See where they live; If 1t
is in a respecta BILE building and neigh
borhood; see if they live extravagantly
find out their landlord. butcher, grocer
and baker and ascertain If they pay
their bills regularly, and If net. why not.
We have our own detectives IN addition
to those of the guarantee companies THAT
bond the bank employees"