New-York tribune., 1900-10-25
HOW ALV0RD DID 1T.
INGENIOUS SCHEME or THE
-M4N WHO STOLE $500. 900.
FRUSTRATED BY AN ACCIDENT AFTER
WORKING WELL FOR YEARS-NO
TRACE OF THE DEFAULTER YET.

WORKING WELL FOR YEARS-NO
TRACE OF THE DEFArLTER YET.
No trace OF Cornelius l. AIvord ir the d..
faulting note teller Of the First National Bank.
has yet been found. as far as could be learned
from inquiry at the bank and at the offices Of
Pinkertons National Detective Agency and The
Detective Bureau Of the local Police Depart
ment; but the method by which he was enabled
to effect his gigantic stealinSs. nearly $500 OOO
developed through the publication in Washing
ton by T. P. Kane. Acting Controller Of the Cur
rency. of the substance Of the report on the
case made to him by National Bank Examiner
Hanna OF this city; and the issuance Of a sun
Elemental statement by the First National Bank.
The Acting Controllers statement is as follows:
During the progress OF the examination by
BANK examiner Hanna October Ii of the
FIRST National Bank. Assistant Cashier Backus
discovered that the note and exchange teller
AIvord, was short in his cash 10 an amount
which has since been found 10 be $500 600
His thefts have been going on for a long time.
The plan Of concealing them end making the
cash hand agree with the amount FOR which
ne was accountable, as shown by the books was
10 take out of the morning mail, OF which he
was in charge, sufficient number OF cash items
10 cover the aggregate amount OF his defalcation
3nu aou them 70 the exchanges Tor the Clearing
House received during the preceding day. The
examination OF the exchanges at the time OF ex-
amlnaIlon showed the total amount correct. but
SS9O,OOO Of the items had been taken frona the
morning receipts and listed with the previous
days exchanges, the amount Of the morning ad-
ditions being reduced that much so that the sum
of the two aggregated the correct amount
A change in the slip by Alvord later in the
day caused inquiry and comparison to be ulads
at the Clearing House, when it was discovered
that the two items OF previous days
changes" and morning ad iltions' did not cor
respond with the list checked by the examiner.
and a count of the current days cash and
shortage of $500 The shortage seems 70
have been about 100000 two years ago and has
been increased gradually since that time. the
teller concealtng the same in the morning add
ticns, which always amount TO much more than
the amount of his shortage and never enter into
the count of the preceding days cash
STEALINGS COVER YEARS
There is no way to have check on the morn
] Ing additions TO the exchanges except by count
! ing the note teller's cash and checks twice, or
/ to begin examinations OF cash in the evening.
which is otherwise Objectionable
| The bank has charged out the amount OF the
| shortage without impairins its surplus or un-
divided profits account.
A further examination Of AIvord's accounts
by the officers of the bank shows that his steal
tngs have beer going on for several years. Four
/ teen months ago he took two weeks vacation.
and an examination OF his tickets preceding his
going and after his return shows that he covered
I his shortage while absent by making number
OF charges to out OF town accounts. and credited
back the amounts his return before the
monthly statements were sent out. The amount
| of his shortage at various periods in the past
| seems to have gone up and down. and it is
| probable this is dae to the fact that whenever
he had ssreason To expect any investigation OF
his cash or a periodicsI visit from the Examiner
he would doctor il by means Of these false
charges against large accounts. In the present
instance the examiner went into the bank a
| the last preceding examination having been
1 made May 10. 1900. and this unexpected visit
| prevented manipulation Of the figures by Al
word and led to a discovery of the detalcatton-
| This theft could probably have been prevented
| by rotation of the clerical force Of the bank
thus placing each department under the super
x-i-i of n roT1tT -4rcp =iy-a'y-
| There is no way to check accurately the ac-
counts Of employe if he has access to the
| his shortage on the current day tand TINS IS
| what Alvord has always hadl, and has also the
! opportunity TO hold back credits for longer
/ time than the day on which the letters en-
| closing items are received
| BANK OFFICERS STATEMENT
The statement of the bank officials was issued
| late in the afternoon, and says
| Alvord's false entries appear to have com
/ menced about five years ago. one Of his duties
\ was to collect drafts and notes not payable
/ through the Clearing House, a considerable part
of them usually being paid IN cash He ap-
propriated a portion OF this cash from time 70
time opportunity offered, before any OF IL
was turned over 70 the money clerk The dis-
crepancy was concealed by adding 20 the item
| of Exchanges for the Clearing House" on the
note teller'S balance book an amount equal 10
the sum of abstraction.
not been absent from the bank one business day
Z
last summer, requesting that instead he might
take a month next winter for trip 10 Call
fOTnia.
THIEF'S PLAN WAS NOVEL
Alvords system Of manipulating his accounts.
vice-President Hne said yesterday afternoon.
was absolutely novel in the history OF the banks
here. ard II its very simplicity that had
made 1t so difficult of detection
The officers OF another bank, after reading the
explanation from Washington of Alverd's meth
od said that it would probably work like this:
AIvords balance book as note teller. kept for the
use of the bookkeepers. would read for given
day. say:
To Clearing House
Receiving teHer----. sSt,tvv'vv1
Note teller -stVosvNo
Morning additions
Note teller $780, IooS
Tozal Clearing House 81 $50 OaO
The first two items however, were already en-
tered in the books by the evening or say. Tues
day, and therein lay the opportunity OF which
Alvord had taken advantage He gave onsy