Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-10-25
HOW IT WAS DONE.
Comptroller of the Currency Tell
the Methods Pursued by Alvord.

the Methods Pursued by A1vord.
WASHINGTON, October 24.--Mr T.
P. Kane, the acting comptroller Of the
currency. to-day gave out the following
statement regarding the defalcation in
the First National bank, of New York:
During the progress of the exanin-
alton by Bank Examiner Hanna, Octo-
Der Is, of the First National bank, AS
slstant Cashier Backus discovered a
note, and that the note and exchange
; teller, Alvord, was short in his cash
to an amount which has since been
found to be $500, 900.
"Ffis theft had been going on for a
long time. The plan of concealing and
making the cash on hand agree with
the amount for which he was accounted,
as shown by the books, was to take
out OF the morning mall, OF which he
was In charge, a sufficient number of
cash items to cover the aggregate
amount of his defalcation and add them
to the exchanges for the clearing house
recorded during the preceding day. The
examination of the exchanges at the
time of examination showed the total
amount correct. but $500, 900 of the items
had been taken from the morning re-
,,ceipts and listed with the previous days
exchanges the amount of morning ad-
i,ditions being reduced that much so that
the sum of the two aggregated the cor
rect amount. a change in the slips by
Aivord later in the day caused inquiry
and comparisons to be made at the
clearing house, when it was discovered
that two items of the previous day s
exchanges and morning additions did
not correspond with the hist checked
by the examiner, and a count of the
current days cash and checks in hands
OF the third teller revealed a short
age of 100000. The shortage seems to
have been about S10O 900 two years ago
and has been increased gradually since
that time, the teller concealing the
same in the morning additions, which
always amount to much more than the
amount of his shortage, and never enter
into the account of the preceding days
cash.
There is no way to have check on the
morning additions to the exchanges ex-
cept by counting the note tellers cash and
checks twice or to begin examinations Of
cash in the evening, which is otherwise
Objectionable.
',rhe bank has charged out the amount
of the shortage without impairing the sur
plus or undivided profits account.
"A further examination of Alvords ac-
counts by the officers of the bank shows
that his stealings have been going on for
several years. Fourteen months ago he
took a two weeks vacation and an exami-
nation of his tickets preceding his going
and after his return shows that he cover
ed his shortage while absent by making a
number of charges to out-of-town ac-
counts and credited back the amounts on
his return before the monthly statements
were sent out. The amount of his short
age at various periods in the past seems
to have gone tip and down and II is prob
able this is due to the fact that whenever
he had reason to expect any investigation
of his cash or periodical visit of the ex-
amner he would doctor 1t by means of
these false charges against large accounts.
In the present instance the examiner went
into the bank a month ahead of the usual
six months period, the last preceding ex-
animation having been made May Is, 1900,
and this unexpected visit prevented a
manipulation of the figures Of Alvord and
led TO a discovery of the defalcation.
This THEFT couid proDdply nave peei
prevented by rotation of the clerical
force of the bank. thus placing each de-
partment under the supervision of differ
ent persons successfully.
There is no way to accurately check the
accounts of an employee If he had access
to the succeeding days cash from which
to make good his shortage of the current
DAYS land this is what Alvord has always
had. and has also the opportunity to hold
back credits for longer time than the
day on which the letters enclosing items
"a 70 I"