Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-06-04
SHORTAGE ABOUT $4,000.
New Haven Defauiting Bank Teller
Stole from Large Dspositors.

| New Haven, Conn.,, June 3.-The ap-
proximate amount of cash embezzled
by Douglas M. Smith, teller of the
National Tradsmen's Bank of New
Haven, since about Dec. Is last, is
slightly I'm excess Of $4,000, according
to a statement by President VIM. l..
Fields of the bank, today. Mr.. Fields
said there was no truth in the report
that Smith had distracted securities
from the bank and given them to q
brokerage firm as collateral for specu-
lative ventures. He added that the ex-
| animation of the securities of the bank
| has been completed and every paper
| found in it's proper place. All that re-
| mains to be done now is to determine
the exact amount of cash missing by
| examination Of the depositors' books.
President Field said the easiest way
to explain how Smith took the money
is to say that he kept back n part of
| the deposits Of customers having large
accounts and increased figures on his
daily cash balance sheet.
The reason that discrepancies did not
quickly appear was that Smith did not
touch small accounts. President Fields
said that $4,000 of the surplus was
| charged off, today, to profit and loss,
| leaving n net surplus of over $3.50, 900,
| which will be increased by $4,000 when
Smiths bond Is paid.
He said that Smiths accounts were
all right in December when the COM
mittee of the bank made an examina-
ton and this was borne out by an ex-
animation two days later by the fed
eral bank examiner.
1t was said, today, that some time ago
the directors of the bank had an init
nation that Smith was specializing and
called him before them. He made alb
solute denial of the charge and pro-
tested that he had too high a regard for
the trust imposed in him as a bank
employee and too much for his family
to do anything wrong. He made so
strong n plea in his own behalf that he
was cleared of all suspicion. Attorneys
for the bank have attached money
standing to the credit Of Yeomans and
Dill in the Southington Bank and prop
erty in a safe deposit vault in one Of the
local banks.
Tho Tradesmen's Bank alleges that
for more than two years past Smith
with the aid and assistance Of the de-
PENDANTS specialized in stocks and the
lost money in these speculations, that
with the aid and COLLISION with some
of the defendants wrongfully and in
tentionally obtained false and fraudu-
lent credits at the National Trades
mems Bank and had obtained credits
without depositing or otherwise fur
nishing any money or equivalent for
such credits. 1t is further alleged that
the defendants wrongfully withdrew
money from the bank to the amount
of $4,000 and that they converted this
money to their own use.
The firm has issued statement DENYING
the allegations of the bank. saying among
other things that Smith had done no sbec-
ating with the firm since last November
and that If he had lost the money since
December. rs the hank officers say. the
money could not have been lost through
the defendants office.
The firm says it is ready to make public
the figures of Smiths dealings with 1T
and show that up to the time he stopped |
trading the balance was in his favor
through good ventures. The firm denies
the report that Smith hyp6thecated |
through the securities of the bank Pres
ident Cleeds. this afternoon. admitted the |
shortage would be over Sc. 600. He also |
said that Investigations made. today. in
dicated that Smith had been taking mon
cy for the past two years.