The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-18
FINANCIAL CROOKS
HOW TRAINED ACCOUNTANTS IN
RAVEL TIE EMBEZZLER's
MESHES
ARE VERY CLEVER DETECTIVES
Some Instances of How wealthy
Criminals Have Been TraiIed
by SIeuths Who Make
Figures Confess.
Special to The Globe.

CHICAGO, March 1.-THE modes ac-
countant is the terror of the crooked
hnancier as much as the Vidocqs are Of
the lower grade criminal" said a we'll
known authority lately.
Perhaps it never occurred to you"
he said, that in the course of their ex-
periences men Of my profession come to
develop the detective faculty in a mark
ed degree" The speaker was w. Fitz-
gerald Smith, the wizard of figures and
well known chartered accountant of New
York, who has Strengthened out some of
Wall streets knottiest tangles.
The fact is, however, that they do
so. My experience has covered a num-
Der of years in all parts of the world, and
1 never yet was mistaken in my first
impressions of a man.
Dealing with large defaulters before
an atom Of proof has been secured
against them, is delicate operation.
1 THE auditor is placed in much the Same
position as prosecuting attorney when
he Is set TO work to investigate the ac-
counts which it is supposed Will demon
@strate the crookedneSS of the suspected
individual.
I'm his operations he must be cautious
as well as bold. The auditing of the
accounts of any big concern is a neces-
sary and expedient thing to do, and are
we not constantly examining the ac-
counts Of the most scrupously honest
persons to see If there are errors or de-
ticiencies, and are there not frequently
large deficiencies noted which create
Consideration in a firm and are inexpl-
cable until the expert has located the
leak or the clerical error. After all the
excitement and lot of false suppositiOn
it often turns out that the shortage is
merely a clerical erHGr, due to a debit or
credit having been placed in the wrong
column. But there IS a singular fact
about these examinations. / never start
ed out to audit the books Of a person
who had been guilty of Justification, that
is after 1 had become thoroughly ac-
quainted with my business, that l did
not instinctively feel embezzlement or
not.
There is something in the criminal
which almost unconsciously betrays it
self by some nearly Unacceptable sign
which sounds the note of warning. OF
course for the auditor to betray cog
nizance of this would be to place the de-
faulter on his guard. That must in no
case be done. He must be sedulously lull-
ed into a belief in the observation-disclosures OF
the net Of deceit which ne has woven
around himself by means of false figures
until the moment has come for the police
to step in and take him off our hands
Work of this sort requires tact of no or
binary kind, as of course while we are
working constant contact with the sus-
pected person is often necessary, and the
acuteness Of his feelings under the cir
cumstances may be clearly ina gineu.
Our part is to remain in passive, au-
tomaton-like shell and plod along through
cur figures as If we were utterly devoid
of human sensations.
Zone of the most interesting cases that
1 call to mind occurred when I was sent
al F..x.. L
India to go over the accounts of a large
concern there, capitalized at several hun
dreds of millions of rupees.
THE partner who had to be Investigated
was a Parsee He was a member of the
finest clubs in Madras, and we were en-
ployed for nine months in going over the
accounts, to discover that his defalcations
amounted to about half million dollars.
by careful manipulation of the affairs
of the concern, he had come to assume
the financial management.
1.-THE caste feeling was so strong that
although he spoke good English it was
hard to approach him. But as the work
progressed it became more and more nee
eseary to ask questions Of him.
He was a young dark, swarthy-hued,
handsome fellow, with quiet soft, pussy
cat ways. He eyed me very keenly when
! put out my first feelers, for Of course
he was under suspicion.
THE first few questions that 1 put to
him made him extremely nervous, and
his answers were very eYasiYe.
Il asked for a special book wherein
it was known he had recorded enormous
receipts of numerous departments under
his financial control. The book was re-
luctantly produced, and his manner i'm
mediately confirmed my first impressions,
TO the effect that our Investigations were
not to be futile. 1t was the desire Of the
firm if possible to stop the investigation
upon the slightest excuse, as his partners
thought it was impossible for him to be
crooked.
Subsequent to the interview the Par
see took long trip up the country to his
bungalow.
1T took many months to unravel the
tangled skein into which he had drawn
the accounts of the firm, but eventually
everything came out. He was finally
charged with the offense. 1t was found
that under an assumed name he had been
keeping fast race horses and otherwise
spending large sums Of money.
1T may be imagined that ] had to feel
my way into the case most carefully,
while my trained staff worked purely like
autOmatOnS.
Il found that the Parsee had always
been found porting over d certain book
which proved the key to his secret. lie
had kept a private account Of his own
in the bank"