Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-08-13
Clever BANK SN|NDLE
Chicago Financial Institution
Duped Out Of $4,000 BY .
New Trick.
Man Deposits $4,000 and Draws
Two Checks. Each For the
Same Amount.
Bank President Induced to Ger.
tify One Check-..Both
We're Cashed.

were dashed.
Chicago, Aug. ia bank worker"
swindled Chicago financial institution
out of $4,000 in cash the other day. He
1 escaped with the money.
| An effort is being made to keep the
matter secret and not even the name of
the bank is given.
The story of the loss of the 100000
leaked out in New York yesterday when
John larson of the house of Farson,
Leach & Co., of that city, showed to a
friend a letter from W. d. Sheahan, one
of his clerks in his Chicago bank. telling
of the affair. This letter reads as fol-
lows:
Chicago, Aug. TO- 1so1-Dear Mr..
F'arson: learned last night of very
clever game which had been worked on
one of the banks here recently.
1t seems a man kept an account at
one of the institutions-which did not
care to ask. but the story may be relied
upon-for several years. One day he APP
peared in the presidents office with
draft on London for $4,000, which was
perfectly good and which the president
knew to be good. The customer in
formed the latter that he desired to de-
post his London draft, and at the same
time to check against it, presenting his
check for 10000 for the president to o.
X. The latter put his initials on it and
thought nothing more of it. 1t seems,
however, that the customer went into
the bank and deposited his London draft
and the following day presented his
check for $50, 900. which was paid to him,
the teller knowing that that amount was
to his credit on the books Later in the
day he again appeared at the window
and presented his check for $4,000,
which had been initiated by the presi-
dent. The teller paid this check and no
more was seen of our friend
This trick apparently could have
been worked an day since the banks
were first started, tho the writer never
heard of its being worked before. Word
was passed down the line that no more
checks be initiated by any of the Off
GERS. Very truly yours,
WILLIAM D. SEEAHAN."
When seen last night at his home, No.
$50 Superior street, Mr.. Sheahan said
that the source of his information was
such that it was absolutely impossible
for him to give the name of his inform
ant, but that there was no doubt as to
the swindle having been perpetrated.
A prominent banker of this city ex-
pressed himself last night regarding the
theft as follows:
The trick by means Of which the
bank in this case was swindled is one
OF the prettiest. most ingenious, and at
the same time the simplest ever perpe-
trated to my knowledge on bank of
this or any other city. When one con-
templates all the safeguards that have
been instituted for banking houses as
the result of years of experience, and
the benefit each derives from know
ledge of the swindling tricks played in
the past upon every other bank in the
country, as we'll as upon itself. one can
only gasp when one realizes how all this
acquired shrewdness was set at naught
by means of a trick which might have
been devised by schoolboy.
Il have no hesitancy in saying that
would have acted under the circumstan-
ces exactly as did the president or teller
in this case, wholly without suspicion.
No one in the bank was to blame for
the successful execution OF the trick 1t
Was just one of those things for which
bankers have made no provisions in the
formulation of banking system which
we have been pleased TO consider in the
past as well-nigh perfect. A brief de-
scription of the manner in which banks
conduct their business. with reference to
the case under consideration, will ex-
plain how the presentation of either of
the checks for 100000 aroused no suspi-
cion:
Ordinarily, when check for such
sum is presented for payment it is the
business of the paying teller to ascer-
tain whether the amount in question is
at that time on deposit to the credit of
the person drawing the check. Refer
ence to the balance sheet furnished him
that morning might convince him that
such was the case but IL smaller sum
than the one mentioned in the check
was recorded on the sheet, he would
then refer to the receiving teller or CASH
Ter for information regarding any de-
posts that might have been made to the
credit Of the person presenting the
check, after the balance sheet was is
sued. If the cashier or receiving teller
stated that currency, certified checks,
drafts or any good collateral had been
deposited since the sheet was issued,
sufficient to cover the amount which
the check then presented called for, the
check would be cashed without further
delay. All this, indeed, is evidently just
what happened when the swindler III
this case presented his first check for
$50, 000-the one which was not endorsed
by the president.
There is. however, one instance in
which such precautions are considered
unnecessary. That is when check is
presented bearing the signature or the
initials of any officer of the bank quail
fled to authorize its payment. In this
case 1t is required of the paying teller
only to assure himself that the endorse
ment Of the check by this officer is gen
uine. Ways Of endorsing a check differ
in different banks, but have never
heard of one that permitted of success
full forgery. You see. therefore, that
once the paying teller was convinced
that the endorsement OF the president,
as in this case, was genuine, 1t was no
business Of his under Whist circum-
stances the endorsement was given. So