New-York tribune., 1894-03-29
STOLE THE BANKS GAINS.
FREDERICK f. EDGAR. OF THE TRADES
MEMS NATIONAL, A DEFAULTER.
HE WAS DISCOUNT CLERK AND TOOK $1,000
THE BANK WILL RECOVER $4,000 FROM
HIS sURETY-THE THIEvING
CLERK ILL AT Ills


Sensational rumors Of a large bank defaca-
ton proved upon investigation yesterday to
relate 10 the peculatons Of trusted employe
OF the Tradesmens National Bank at No. 29l
Broadway. which were discovered three months
ago. The man is Frederick f. Edgar formerly
the discount clerk Of the bank who is now i'll
al his home in Greene-ave, Brooklyn The
amount Of the defalcation is about $1,000. but
most Of the sum will be recovered by the inst!-
tuition from the bond given by the guilty clerk.
James f. Granniss. president Of the Trades
mems National Bank. talked freely of the case
when seen at his home. No. 66l Fifth-ave.. last
evening by Il Tribune reporter. According to
Mr.. Granniss's statements the story is fol-
lows: Frederick f.. Edgar had been discount
clerk OF the bank for nineteen years before his
wrongdoing was uncovered. lie came 10 the
bank well recommended. and was bright, capa-
bic clerk who commanded the confidence Of the
officers When he was placed under a security
bond Of 100000 by the United States Guarantee
Company. about three years ago. his record was
reported by that company to be excellent. lie
had previously given a bond from individuals.
but in 1890 President Grannss decided 10 make
a change in the system. and all the employees
insured by the United states Guarantee
Company. Edgar's peculatiOns began four years
discovery. He began taking the funds Of the
bank in small amounts. but gradually became
emboldened to steal more. and about two-thrds
of the total sum distracted was taken in the
last two years.
THE DEFN'LTER WORKED ALONE
Edgar had no accompoe in his knavery. ac-
cording 10 Nr. Granniss. His method rested upon
a Justification of the discount books by which
the Profits accruing to the bank from IT,, dis
counting Of commercial paper were made To- ,iy
with other records. Edgar had the handling #
no money except that which cam" To h..l
when the makers of small notes paid off thei.
obligations short time before they fell due.
Generally the notes were for amounts ranging
from $50 10 800 or 600 Edgar would pocket the
money. and then alter he books So that his ac-
counts appeared 70 be correct when submitted
10 the banks officers or when examinations were
made by thc National banking DEPARTMENTS
examiners. The imperative suallurss %: the
sums taken each time helped the clerk To- conceal
his deialcations. The discovery WAS made about
The middle ~ last January. after Edgar had b""n
sick week from cryspolas. The clerk who took
his Piac" found discrepancy which lci to
clos" examination. and after going through the
books and accounts II thu discount desk FOR five
years back. the officers ~ the bank found that
ih" institution had been robbed In The last four
years % the amount ~ $1,000. NV methods
were at once adopted - prevent the possibility
oi another d"falcation of this sort.
M ADMITS HIS GtHT
Mr Graunss said las; evening that when Edgar
had recovered from the worst phase Of his i'll
ness ne was confronted with the result OF the
banks Investigations. He admitted his pecula-
uons. )ut Mr. Grnnniss said that hc could give
no adequate explanation Il what tempted him
- his wrongdoing. He said that he spent the
money fof personal and household expenses
Elgar did not live eXtrlVagantly. he was not 4
drinking man. and he had no bad habits. So far
a H. known. Edgar Is about forty-seyen years
ii
salary was fl.700 year. He is out II bed. but
has not recovered from his attack ~ cryspclas
ana Is confined to his home.
~" is under surveillance 10y the United states
Guaraute" Company. which insured him t. the
amount Of $l0Oip. but Mr.. Granniss sail that the
bank officers did not know what action with re-
gard - the d,ftu.,er would b. taken 10y that
company tn" bank does not contemplate any
proceedings ~ present The $1,000 bond ~ the
Gu1raute" Company VIII Sccur" the bank for the
larger part ol Edglr's stcalings AMI the recovery
~ this sum vii, MAKE tn" institution feel that
much richer. 10y adding To profits what the
banks books did not show. owing u Eigars
lalsincation of his accounts
|, was announced yesterday that Logan G.
Murray hal resigned as yloc-prcslrnt of the
Trad"sucu's National Bank Mg. Murray placed
hl- resignation In the hands Of tho directors ot
the bank last Friday. but it had no connection
whatever with the Edgar dcfaica'ion NJ Mur-
ray Wns formerly president ~ IN" United states
National Bank He retired about three years ago.
after cyrus w Fic.d lort control oi his heavy
holdings of stock. and for two years and half
ne has been vice president Of TIA" Trad Gosm"n's
National Bank For about a year b" has not
been actiy" in the affairs Of tn" bank. ana has
been preparing tp r'Inqush his connection u
make other business engagements. Mr.. Granniss
said last evening that no successor 10 MI Murray
had been decided upon. There was TO need oI
early action as The position Of vice president az
A small-siZc1 bank was Of little consequence. cN-
ccpt that II provided an Alternative officer IN
"a sc Of the disability absence Of the president
Mr.. Murray is vlcc-prcsiG'nt OF the In!t"i states