New-York tribune., 1900-10-25
ALTORD NOT UNDER BOND
MUCH SURPRISE EXPRESSED THAT
HE SHOULD HAVE SUCH A
FREE HAND.

Vice-Presdent Hine of the First National
Bank said yesterday, in answer to a question,
that Alvord was not under bond and that the
bonding system had never obtained in the First
National Rank. officers of other banks said that
this was far from being the usual practice. as in
almost every institution all the clerks were
heavily Bonded. Many officers of surety and
bonding companies also expressed surprise that
AlveFd had not been required to give a bond
II was astonishing they said, that a bank Of
hceF in a position to steal ST0000Q in a few
yearssaand drawing a salary said not to exceed
$4,000 a year, should not have been required
TO give bond to protect the bank against loss
by his dishonesty. One of the officials of
large bonding company said to a Tribune re-
porter:
believe that if Alvord had been required to give
bond, and had obtained his bond from any one of
the large security companies, he would have been
his bond would have been cancelled long ago We
have means of ascertaining the mode OF living and
cashier teller of bank is found to be living too
ee we g9a nose e Re bank ba 4f Rs b bon Ma u
to be cancelled within thirty days We do that for
man for much lighter provooation. Only few
place as cashier in business house was spendins
money lavishly Of small salary and W. insisted
nation showed that he was short $1,000 in his
We do not have a spy system that will permit
the Matchmaking OF any person for whom the com.
hV
which reports are obtained when there is reason
TO suspect bonded man. We also have informo
ton about each person which would ena bic the
from his employers and away Bonds are fur
nished only after Investigations are made and the
Investigations furnish information as to the famiIv
and social connections of each person.
C. w. Haskins, of Haskins & Sells, account
ants, also was Of opinion that great thefts like
Alvord's were largely the result of overcond-
dence of bank directors in the belief that they
knew just how their affairs stood lust how IN
keep them we'll in hand ana that their employees
could not get ahead Of them; and he added that
the certified public accountants, if examining
banks condition. could always detect wrong
doing which might exist on the part of en-
ployes of the bank
A great deal of criticism of the National Bank
examiners is heard at this time, as on the occa-
sion of previous defalcations, it being asked
word in the course of the FIVE years he had been
taking the banks funds and fasifying it's ae
counts. A prominent bank officer says on this
point:
There seems to be a misconception in the mind of
the public regarding the duties of these officers
sons blame the Bank Examiners for not doing their
outy, they are not detectives. II would he a
physlca! lmpossbtlity for them TO go over ali the
transactions of bank for any length of time IND
pick out each account and investgate il separstei.
and II a oetalcation can be concealed from the Off
hardly be expected that the Bank Examiners ~
the course of occasional examinations will uneartb
II nile II Is true that It is their business to look
after such things, stil they cannot be eXpacted ~
do impossibties The officers and direciors Ns ~
oank are responsible for its detail ma ne gernent
must rest '--0 ''"iiie