The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-03-22
BrNGHAMroN's BROKEN bank.
The Examiner Tells the story of the
Discovery of the Shortage.

Discovery Of the shortage.
Binghampton, y. y. March 2l.-The
expectation that some sensational testi-
mony would follow at the continuance
of the preliminary examination in the
case OF the people against Tracy r. Nor
gan and David l.. Brownson this morn
ing drew a large crowd OF interested spec
tators TO the court house.
PhilO H. Baokus. the bank examiner,
after testifying in regard to his taking
charge OF the Chenango Valley Savings
Bank. said: During the forenoon of Jan.
%, l accidentally discovered an item on the
ledger and found an item In an account
l then became suspicious After l re-
turned from dinner Mr.. Morgan stood at
one OF the desks and said he was work.
ing on the general ledger. / went to the
ledger ana found an item In an accout
erased. 1 said: Mr. Morgan. | don't like
TO see erasures In books l told him the
erasure looked very bad. Morgan said he
had no knowledge of when the entry was
made or when II was erased. | said: Nor
gan, you are lying to me. You are short
here. How much Is itR lie hesitated
and finally said: Five or six thousand
dollars. told Mr. Money to go over
to the chief of police and have an officer
detailed TO watch MIR. Morgan.
Il went into the back room and again
asked Mr. Morgan how much he was
short. lie said $4,000 or $4,000. I told
Morgan he had better be truthful and
tell me all he knew. He again promised
TO do so.
II agreed to see Mr. Morgan at my
room at 10 o'clock. / waited till $50
O'Clock. and Morgan did not appear.
About a quarter to Y opened my door
in response TO a rapping and let Mr.. Nor
gan into the room. l ut the gas and
went to bed again. He drew up chair
beside the bed and said: This Is a hard
row for me. have been In business
sixty years here He did not want the
good opinion that existed here of him
broken down. | told him / was sorry for
him. / said: How much are you shortT
HE answered that he had no chance
TO get at the books and find out, but
IL was considerable. He estimated the
amount to be not over $4,000. He said.
My brother has cost me a great deal
Of money, and Mr.. Brownson has cost
me fortune, and there are others who
have been costing me dear
Il asked him for the names OF the 9TH
ers. and he refused to give them'
The Mr. Brownson referred to in Mr..
Morgan's conversation is the president OF
the --.enango Valley Savings Bank, and
Is Mr.. Morgan's son-in-law.
Albany. n. Y, March N.-Supt Preston
of the state banking department has com
pleted his report to the depositors OF the
Chenango Valley Savings Bank of Bing-
hamton. The superintendent says he
found the banks books TO have been fal.
sifed by forcing debit entries; by closing
depositors accounts ON the ledgers wher
in fact they were open accounts with q
balance due the depositcrs; by carrying
as live assets mortgages which had been
satisfied; and the Investigation had not
been concluded when this report was
made. AS far as IT had gone the inves-
tigatlon showed that the assets Of the
bank will not pay the liabilities within
$l39 279. How much this amount will be
increased by the continuance OF the eX-
animation, II Is impossible to say, as there
are many passbooks yet to come in, and
there will undoubtedly be further dis
closures which Will increase the impair
ment