The daily morning journal and courier., 1904-06-03
HEAVY DEPRECIATION.
TELLER SMITH, oFTRADESMENs
 BANK, SHORT ABOUT $6O, ,OOO.

Speculation Given as the Cause of His
 Downfall After Twenty Years of
 Faithful Work-Achnowledge Guilt
 and is Arrested-Out on Bonds of
 S15,OOO-The Bank Can Easily Stand
 the Loss.
 Early last evening Douglas M. Smith, the paying teller of the Tradesmens national bank secured bonds of $15.0O0, furnished by Charles Bigelow, John Cox and Robert Foote. He had been arrested about three o'clock by Deputy United States Marshal Parmelee on the charge of embedding $6O,0O0 from the bank.
 He was at once taken before United States Commissioner William A. Wright, who fixed the bonds at $15,OOO. Friends of MT. Smith were at once mo- tified and they set out to secure bonds men for him. MT. Bigelow is re- tired medicine manufacturers Mir. Cox is proprietor of the Surf House at Saw in Rock and MT. Foote was until late ly cashier of the Tradesmens bank.
 When Marshal Parnlslee served the warrant upon MT. Smith the latter was in Duncan hall on Chapel street, where he has resided for some time with his wife and one child. He took his arrest in a cool manner and his wife was equally self-contained. She told her husband that she would stand by him to the end.
 The examination of the books of the bank, which had been begun, precipi- tated the disclosure of the defalcations. Tuesday morning Mir. Smith sent word to the bank through a close personal friend that he was short in his ac- counts, but did not intend to flee.
 He offered his aid in going over the accounts to ascertain the amount of the shortage. Tuesday night he kept his promise and appeared at the insti- tuition, and did what he could to aid in the work.
 Speculation in local bucket shop is given as the principal cause of his downfall, and it is also said that he lived beyond his income in other ways. All the shortage, he told the bank off, cials, has occurred since the last time the bank examiners visited the bank, December 15. 1903.
 His method of operation was simple. He drew mostly from large and in active accounts. When the depositors' books of these accounts were written up he would do that work himself, and thus escape detection. For more than twenty years Mir Smith has been em- ployed at the bank, rising to the posi- tion of paying teller from a clerkship. His last advancement came eight years ago.
 June Il is the time set by Conmis- sioner Wright for Mir. Smiths hearing before him.
 The defaulting teller was one of New Haven's best known young men. His father is Carlos Smith, at one time a police commissioner here, and also a county commissioner. He was a genial man, and was well liked by a large number of residents here, and in Wood mont, where he lived for a long time. He is 43 years old
 Ills DQnQ reQulreu Dy ln6 government to secure the bank was for $f5,000, and was furnished by the Aetna Indemnity company of Hartford. This will be col |lected and the shortage reduced by that amount.
 The shortage will not affect the standing of the bank. The institution was capitalized at $S00,000 and has a surplus and profits of $3O2, ,392.5s. The board of directors is: Robert A. Brown, E, Henry Barnes, A. H. Kim berly, William T. Fields, Lynde liar rison, George T. Bradley, Henry Frese- nius, H. w. Thompson, s. B. .Shoning- CT.
 The officers are: William T. Fields president; Robert A. Brown, vice pres ident; H. w. Thompson, cashier. The bank has as legal counsel White Daggett and Tilson. It is stated that the depositors will not be affected al all and that it is not thought that the stockholders will be called upon for as- sessment.