The morning call., 1894-07-25
HOW 1T WAS DONE.
Melville's Modus Operandi
Explained.
The DefauIter for Years Kept on the
Mental Rack = He Will Be
Charged To-Day.

The fact that W. r. Melville, the ex-colieclion
clerk Of the Bank of California, was able TO
pecuale 10 The extent of S34, 000 during thir
teen years without detection has caused a
smal-sized panic In banking circles.
Every bank considers its system perfect, and
the Bank OF California is no exception to the
rule. Yet, Notwithstanding its alleged perfec-
ton, Melville was sharp enough TO. tlguratively
speaking, drive coach and four through ii.
How was it done? In the simplest manner
possible and no doubt its very simplicity was
the means OF saving it from exposure. But ii
was done at tremendous risk, aud In later
years kept Melville on the mental rack.
During the thirteen years he was never day
away from his desk. The other officers took
their forInight's holiday every year, but Mel
vile shaved away at his desk, anu his seniors
sagely nodded theit heads and pointed TO
will" as Il bright ana shining example of
young man devoted heart and soul 10 his work;
d Young man who was bound TO rise TO the top
OF his profession, and who was pattern To be
copied by young men ANXIOUS 10 be credit TO
themselves and TO their employers.
Little did Melvllles superior officers imagine
the true cause of his devotion To his desk. He
dared not leave ii for single day for the SIM
pie reason that detection was sure to follow,
and latterly, while absent for an hour at his
lunch, he was in mental agony till he returned
for fear some one had gone TO his desk and ac-
cdentally stumbled upon the evidence of his
crime. 1t was practically hell upon earth Tor
him.
Ii sickness had come upon him detection
was also sure. No wonder he kept his physical
strength in prime condition by becoming an
active member OF The olympic Club and getting
the name OF an athlete. He had method in
everything he did
His modus operandi to deceive the bank Off
Gals was as follows: Surprising the following
collections were turned over 10 Melville at the
opening OF the bank for the day:
Smith, Jones u OBSERVATION-DISCLOSURES. 81 900
Robinson q Co............,.............. 600
"
Little q NEUTRALITY-SUSPICIOUS.. 500
Total $4,000
He would make collections from the first
three, representing $500. aud would hand tags
for he three amounts TO his assistant, 50 they
could be entered in the books of the bank III
he wanted 10 steal $500 he would extract
Brown 81 Jones' tag alter ii had been entered
and destroy II. He would then make out his
hold check. which represents uncollecLed
collections, as follows: Brown Il Jones, $500;
Little & Co, $500; together, $1,000.
AT night he would make The following ac-
counting TO the cash-keeper: Cash. $1,000, un-
collected as per check herewith, $1,000; total,
$1,000 His collections would thus be square
on the banK's books through his assistants
accounts; the cash would balance. thanks to
the hold over check, ard he would have $500
IN his pocket.
Next day he would be charged with new col
ections and his hod-Over check of the night
before. Ii lie did not want 10 steal anything
that day he would extract a tag for some new
collection 10 The amount of his deficiency
OF the previous day and would turn ID Brown
& Jones' account as paid 10 prevent inquiry as
why 1t had not been paid. Then in making out
his hod-Over check for the night he would
account for the deficiency IN the same way as
before. only substituting the name of the new
collection for that OF Brown & JONES'
1t was easy TO account for $34, 600 deficiency
by means of the hold-over check SO long as
collections amounting TO a quarter of million
dollars every day came in. as they usually do,
but when the blockade came on and outside
collections amounted to almost nothing lie had
no new collections to substitute for those he
had collected but had not accounted for. Thus
discovery was inevitable, and he skipped be-
fore 1t came.
About half-past 3 O'Clock yesterday afternoon
Melville was taken by Detectives Seymour and
Byram TO the Bank OF California.
Irving L. MOulIOn, second assistant cashier,
has been for several days exporting Melvllle's
books, and he wanted him to explain slight
discrepancy he had found Melville was not
long in explaining the supposed tangle which
amounted to $500 or $500. Although Mr..
Moullon had been able to lind the dehc ncy of,
in round numbers, $4,000 he was puzzled TO
know how Melville had managed to work the
oracle without detection. This Melville ex-
planned in tue manner referred to, and the bank
officials were astounded at its simplicity and
successful operation. One thing is certain the
hold-over checks will be carefully scrutiniZed
in future.
He expended every dollar of his stealings
from time to time on himself SO he says. He
denies that he was lavish in his expenditure
upon women, but IL was Chiefly Tor his personal
qualification.
His mother visited him in the City Prison yes
terday, and many male friends called TO have
chat with him., He still keeps up his spirits,
and to watch him no one would for moment
imagine that he was q defaulter and had long
term OF Imprisonment staring him In the face.
Captain Lees said last night that Melville
would be charged with felony enlightenment
to-day. The bank will prosecute him. 1t Is
not the loss of the money the bank directors
feel so much as the betrayal of the perfect con-
fdence they placed in him.