The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-23
STOLE TO SHINE IN SOCIETY.
CROOKEDNESS CONFESSED BY AN
ATLANTA CAHSIER.

Shortages Footing Up $1,000 to $4,000
Already Brought to Light and the
Investigation Not Finished Yet.
Cashier otis o. smith of the GeOr-
gin Security and Banking Com
pany the CuIprit-Iis Father
Professor of mathematics in the
University of Alabama.
Atlanta, Ga, Feb. 22.-The defalcation
of Lewis Redwine, the young society man
who wrecked the Gate City National Bank
four years ago, while occupying the posi-
tion of assistant cashier, created hardly
more sensation than the arrest of Otis 0.
Smith, cashier of the Georgia Security
and Banking Company, to-day, upon the
charge of embezzlement.
As a society man. Smith has for several
years been leader in the SWEETEST set. He
was an intimate friend of Redwine's, and
at the time of the downfall of that unfort-
unate young man, from the disclosures
made to-day, it appears that he was just
beginning his populations According to
his own confession he has been taking
funds that did not belong to him for sew
eral years in order to keep up with the
society set into which his tastes and am
bition had gained him an entrance.
Smith was a clerk in the office of the
banking company which caused his arrest
at the time he set out on his social career.
He received the usual compensation paid
to clerks in like positions, and he soon
found that this was totally insufficient to
pay for the flowers, the box parties. the
carriages and the club suppers expected
of those who court the daughters of those
of wealth. He had either to abandon his
career in society or draw upon his en-
| ployers' cash drawer to meet the bills, and
he chose the latter.
Like hels wnu have gone >he same
road, it is reported that young Smith hop
| ed to marry wealth and thus meet his de-
| flcit in time to save him from exposure
! but the exposure came before that end
| was reached, although it has been rumor-
! cd for some time lately that he had been
accepted by one of the Wealthlest helr-
/ esses in the city.
Every effort has been made to straight
| en- Smiths affairs out Wlthout pupnc eX-
| posure. and since mis- arrest these eIIortS
| have continued. A warrant was sworn
| out for Smith this afternoon by the pres
! ident of the Georgia Loan and Security
| Company before Justice BloodWorth. II
! was not served Immediately however, the
officials of the banking company request
| ing that it be held up in order to give
! the young mans father an opportunity
/
| relief from prosecution. He was allowed
| to remain under guard tonight without a
preliminary trial or going to jail, pending
plans for a compromise. Ii these Iall ne
! win be given a hearing tomorrow.
Suspicion that Smith was crooked IN MS
! accounts was aroused two weeks ago, ana
| an Investigation was Instituted by the Of
| flcers OF the companies at interest. 30
| carefully were his tracks covered, now
ever, that they did not ind any positive
| evidence, although the suspicious were
| not allaVed. An expert accountant was
| then employed to so over the BOOKS, ana
| last Saturday this examination had pro-
| gressed so far as to warrant action
| James w. English, Jr., one OF the los-
| ers, sent for detectives, and then called
! Smith into his private office, where others
| of the losing company We're assembled.
! There he faced him with the statement
| of the expert. Smith at hrst denied MS
| defalcations and claimed that he could
| explain the apparent shortages. Later he
| confessed everything, and signed writ
| ten schedule of his stealings as far as he
Smith. Who is a veritable dandy in per
| sonal experience took the situation with
the utmost coolness. He preserved a con-
| tident air and appeared to be careless OF
| the whole affair for a while. Finally,
however, he decided to do the dramatic,
| and, making a clean breast OF the mat
| ter, threw himself upon the mercy of the
| officers of the company. Pending more
| complete investigation, upon the adnis-
sion that his shortage covered a period
of several years, Smith was placed lis
charge of the detectives, and under their
| guide was kept in a private room in the
English building on Broad street Satur-
day night, all day yesterday and last
night. E1e declared that he would settle
up and with this in view telegraphed for
has hther, VINO IS professor OF mathe-
matics in the Alabama University at Au-
burn.
Prof. Smith arrived here this morning
and was in conference with the officers OF
the defrauded companies all day, hoping
to effect a settlement. Young Smith him.
self turned over to the companies all his
own property and effects, but these cover
only a small part of the losses.
AS far as the investigation has gone
Smiths shortage is in the neighDorhood is
in the neighborhood of $1,000 or SS,0OO OF
this amount he got about $1,000 from the
Georgia Security and Banking Company
$1,000 or more from the firm of Harry L.
English a. Co., and 81 800 or more from
James W. English, Jr., he having business
connections with these and other firms
which have not yet been heard from.
He was formerly cashier for the Riley
Grant Company, and was interested in
other companies which may add to the
amount of his populations when full in
VestigatiOn is had.
Smith was a fine accountant and office
man, and his qualifications in this line
gave him his connection with those com
panies. His method Of stealing was sc
e. clever that il was only after the most
searching examination of his books thai
his crooSedness was discovered, false en-.
| tries being used to cover up his tracks
| With the security company he issued false
certificates of stock and pocketed the pro
ceeds. How much of this bad stock Is
out is not known.
Smith would make no statement for thS
public, although confessing his stealngs
TO those directly interested. All he coulC
be Induced to say in extenuation of his
| conduct was that he had been tempted q
| take the money In order TO keep up his
end I'm society. He told the directors o
: the security company that he had beguI
{ to steal five years ago, when employed by
| the traction company, then managed by
+ w English, Jr., one of those who losel
? by him now. and was 50 successful II
% GOVERNS 60 1,s deener The directors IN he se
curitv Company are largely young men n
/ society. Harry l.. English & Co. do a gen
eral fire insurance ana loan business.