Evening journal., 1899-04-28
OVER TEN THOUSAND.
MacNair's Shortage is Larger
Than at First Supposed.
THE SAVINGS FUND WILL LOSE

THE DEpAULTER's PROPERTY
WILL FALL SEVERAL THOUSANDS
SHORT OF MEETING HIS LIADILI-
TY-PRps1DENT cANBY's STATE
MENT.
The Evenig Journal yesterday print.
ed an exclusive story telling Of the defal-
cation Of Ernest b. MacNair, receiving
clerk for the wilmington Savings Fund
Society.
Yesterday morning President Candy re-
fused to make a statement. but after he
found that the Evening Journal had
given the story to the world he became
more communicative yesterday afternoon.
lie said that the shortage was discov-
cred by Joseph A. Richardson, the audi
tor Of the society, on April r. and Mac
Nair confessed to Mr.. Richardson on the
same evening and later to Mr.. Candy on
the advice Of Mr.. Richardson. MacNair
has been in the employ Of the society for
fifteen years and the peculations have
been going on for ten years. The largest
amount taken in one year was g, 600. and
in one year Of the time but 500 was
taken. At no time were larger amounts
taken. The total amount Of the short
age so far as the society has been able
to ascertain. Is $l01OO The society has
received from him an Of his property on
which there are mortgages of $4,000. lie
is bonded by the Guarantee Company OF
North America for $1,000. From the bond
and the property which has been turned
over to 1t the society will realize about
s. OO0 leaving an actual loss to the So
cety Of from 81 600 to $100.
The plan pursued by Mr.. MacNair In
abstractlng the funds Of the bank was
this: Suppose a depositor should deposit
SiiO. on the slip which McNair kept OF
the deposits he would mark $40. He would
then take out the 800 and keep It. The
amount which was received from the de.
positor would be correctly marked on the
deposit book of the deposltor and also
upon the ledger OF the society. The books
would therefore appear correct and the
amount on the slip Of all deposits Cor tn,
day would correspond with the casf
which he turned over.
In addition to the one large slip Mac
Naie kept a small slip Of deposits which
went to Joseph A. Richardson. the audi
tor Of the society. who keeps separat,
set Of books. In order to deceive Mr.
Richardson MacNair would withhold
enough deposit slips altogether from
those sent over to make the amount o.
cash on hand correct. The slips woult
be counted and the amounts shown to bl
correct. but the number Of slips was no
taken into consideration until the audito
was caused to suspect that something
was wrong by his books repeatedly fail
ing to agree with the books Of the instl
tuition itself He therefore counted tn
slips, which are numbered, and found tw
of them missing.
The books of the society were, o
course, correct, and so were the books o
the depositors. At the end Of the year
when the society makes out its report,
would be necessary for MacNair to ad
/ just the cash. II the books of the insu
tuition We're allowed to go as they wer
they would, Of course. show the shortag
in cash. At this time the accrued inter
est due the society from its investment
is due. and from this he would substraC
/ the amount OF his shortage, and thu
make the books balance. 1t was there
fore impossible for the society to find ou
the shortage in any other way than tina
in which it was found out.
While the loss to the bank will be 81
900, the depositors will lose nothing. b
taking the amounts Of his shortage eac
/ year from THE accrued interest due tn
society. MacNalr reduced the surplus b
that amount. and thus the reports OF III
society for ten years are correct, and tn
figures given show exactly the amount {
money and the value Of other securiuC
which the society had on hand. Had
not taken the money the surplus woul
Of course have been that much large
The society has thousands Of dollars
bank. and In case people wanted the
money It has a million dollars worth
securities which could be placed on Il
market, and in twenty-four hours so
for more than was paid for them. Thel
} is. therefore, no danger to the depositor
The judgments in favor of the Ag'
! Woman's Home were taken on mortgage
on the property. which were turned ov
to the Savings Fund Society. The pro
critics are not worth more than the NOR
cages, and # is probable that the socie
will deed them to the home.
Mr.. Candy added in conclusion that
= was sorry that the story had becon
e. public. No action had been taken
e ward prosecution, and the officers h'
q decided to allow him to turn over D
. property, and to go on in any busine
] in which he might engage. lie only ma
the statement for the benefit Of the pu
. lie, and to allow the 1900 depositors
the institution to understand exact
how the matter stands.
1t is said that unless the society pros
cutes MaoNair it will be unable to cole
| the 5000 surety bond