The sun., 1900-10-25
HOW ALVoRl DID IT.
Stnatsnfent by the Acting Comptrol-
Ter of the Currency.

Washington, Oct. 24-Mr. T. l.. Kane
the acting comptroller Of the ctrrent s..
gives out the following statement regard.
ing the dcfalcation in the First National
Bank Of New York:
during the progress of the exnmira-
tiuM by Bank Examiner iIanna Oct. l..
Of the First National bank ASSistg nj
Cashier Backus discovered that the nunt
and exchange teller. ..Alvnrd, was short
i'll his cash to an anlount which has SjNoc
been found to hr Slln.GUD.
Ills theftS have been going on for n
long time. The plan Of cuncealng them
Hnsl making the cash On hand agree with
the amount for which No was accountable
Us shown hS The books WAS 10 take oui uf
the morning mail. ri which lie was III
CHARGE, i sufficient niRAlpH Of cash items
~ cover ia" "lggrcgate.anaunt Of his atl5
ai"n iou and add thpiH "a the eXchantss
for The clearing hull4 received dnfin.
thc preceding ,Ey. Tho examination al
The exchanges II The iina IL cNaniiu
tiGr showed tllp t"ta anotnt caY45a
ltli sl,}9.NtH u1 lig itclas had hcea tabrl5
iii'l ~" tioruin4 re4iiis ana !i-iua
Wilii lhc piI'ymlS daE'S r&cham&ps. 4h.
amount 4f m41ins atstlitaus h0ng is
dMHt4t that lHeh. ~ thtIl lllm sum Ut ltr
tW@ a%gle@ilted The cnraei amount.
''5 @hanse II titp sHf ry AyWa l#ia
~ lh' city tnnsed iliplir AMI t0niRifjs1i.
II l,e nl;llc ii tic eiearin4 house. Wa
il w4e discovered thHt tllg tAvo tem, q
'presiuus lay'@ cNchaH.e, and .nerni,Ie
additions lid MI correspond with ihp
list checked by Tho examiner. itnd /;
corn' II the current DAYS cash ANA
cherk+ IN the han,i> III tie third trllrI
revcag,N II shortage of &ti9O.06l ThnI
shortage seems IL have been about S1N0.-
600 two years ago and has brcn inerras-
cd gradually since that inic. the teller
cOnrealinG the same in t4r morning adj
ditionS- which always amount to much
more than the amount of his shortage
and newer titer into the count of the
preceding DAYS cash.
There il no way to haze ii check on |
the morning additions to the exchanges
except by counting the note tcllcr's cash |
and checks twice or to begin cxaminn- |
tions of cash IN the evening" which is |
otherwise objectionable
The bank hat charged out 4tu amount
of the shortage without impniring its
surplus or undivided profits account.
~ further examination Of Alvords
accounts by the officers Of tbR bank
shows that his StealingS have beoh going
on for several Years. Fourteen months
ago he took twu weeks vacation. and I'm
of his tickcts preccdlNg his
going and afier his return shows that
be- covered his siurta.c willie ahseMa hy
making Il number of changes to or1 Of
town accounts uld credited back Tho
amounts on his rtt;lpn before the monthly
statements were SpNt 0ut. Tho alnnuhi
II his shortage at yiotl-; periods III ia,
past seems - have @onr Mi aud Il iW9,
lnd il il prohahl" thiS Is ij, 10 The fa,i
hat whenever liz had re;a,n til eNpqvt
my invest ti~atinn of lis caSr ur il Icli II.
c:il Visit from the eN0Mmer hc WAll'
lpetpr il hY means of these falSe ehtrges
against large accounts. IN 1h1 present
Instance he examiner went inla tile panE
month ahead Of le usual sis months
lerieni, the last preceding examination
laying been made May Is last. ANA
his unexpected visit prevented manip
llatinn Of the figures by Alvord and Id
o II discovery OF the drfalcati0n
This theft could probably have been
prevented by q rotation of the clrlica
orce of the bank. thus placing each de-
,artment under the supervision of differ ;
mt persons successiyely.
There is no way to accurately check
he accounts of an employee if he has
cccSs to the succeeding days cash from t
Fhich to make good his shortage of the
urrent day (and this is what Alvord ha,
lways had) and has also the opportunity
D hold back credits for n longer time
han the day on which the letters en-
losing items are received" Il
I