New-York tribune., 1896-12-24
4 CLEVER SIVINDLING SCHEME.
HOW A BOOKKEEPER ROBBED THE BuF'
FALO BANK OF COMMERCE.

Buffalo. Dec 2s.-Edwir ]. Smith. individual
bookkeeper Of the Bank OF Commerce. was arrested
last night the complaint of the receivers OF the
bank who charged him with falsifying the books.
effecting a practical embezzement OF between
81 800 and $1,000 Smith confessed and said he had
acoompces. He was not arraigned In police
court to-day. his relatives having agreed with the
bank receivers that settlement Of the shortage
should be deferred until tomorrow. If this settle
mont is made and bonds are given to cover any ad-
ditional stealings discovered Smith may no: be
prosecuted.
Smith did forge checks nor take cash out or
the funds OF the bank but simply used his persona!
checks collected through other banks. These
checks In the course Of banking went through the
clearing house. and returned 20 him at the
Bank OF Commerce. AS head Individual BOOK
keeper. Smith always opened the clearing house
envelope. Therefore, 1t was a simple matter for
him To take the checks which he had drawn ana
had secured money on. and TO DESTROY them.
But there was the danger OF having 10 explain
the clearing -hous. accounts. lie must have money
from somewhcr. TO accouu, fer tho check charg 81
which would appeal. lie did that b. charging up
the amounts Of the checks he had drawn himself.
end which he had got money against the
accounts of depositors in the Bank OF Commerce
In tina, way Smith managed to keep his books ap-
parently straight and to avoid detection
Then when there was danger that one OF the de-
positors whose accounts he had falslhed might
bring In his bank book to have interest added. or
TO have 1t written up. Smith rescrted TO other
methods TO make the depositors appear TO be all
right Ir one he wrote off sl.co from the IN
tcrest account Of the bank and placed Il 10 tn"
credi; OF a depositor whose accoun; ho had robbed
BY charging 1t against his personal checks for over
500 Placing tho money stolen from the interest
account TO the credit Of the depositor made the
account appear 10 be straight so far as the depos'
itor concerned. ., a. .
II also would havc prevented the discovery that
the depositor had been robbed. had no happened 70
send In his passbook. because the account Wouio
have balanced. In the process OF winding UP inc
affairs OF the defunct bank. Smiths stealing came
10 light through the writing up OF the passpook OF
one OF these sleeping accounts Tho depositor
was charged with having drawn four.een chrSxs. h"
which he disputed saying he had drawn oniy tnr..
checks against his account In ten year. Inn, mn,
started the inrcstiga on which led TO the discover!
Of the embezzement and Smiths arrest In an
other instance Smith charged up l42 cnecks "ea's'
q sleeping account. amounting 10 ss-. .
Last night when Smith confessed, ne sain IN,
ne knew he would be found out and INTENDED max
ing statement to the receivers. but deferred IL 20
MS not TO spoil Christmas for his family ne pro
duced n psper containing memoranda or his steal
ings which agreed with the discoveries mace Dy
The receivers The embezz.ement, so far as ois-
covered amounts TO %.SSs u.