Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-06-03
MAKES CONFESSION.
New Haven Teller Admits He
Is DefauIter.
Arrest Of Douglass N. Smith, Trusted
Bank Employee.
u,,sv Lost Through Speculations in
"eucket Shops"

rr,,-ar Conn.,. June "A loss of
.o.,.o ~ ss0 900 through the embeZZle-
go NJ its funds by Il trusted employe,
IIa,,oIos VI. Smith, is admitted by the
E,. If the National Tradesmen's
,'l,k III this city. The exact amount of
l.,..y lost will not be known until
a,ofrI and far-reaching examination
.obt &c now being made, is finished.
nth. who was paying and receiving
,.u,r Of tn bank, has acknowledged
,.o,uit;iriiy that he has embeZZled
,bout S3p,0GO and the greater part OF it,
II not all, within the past eight or nine
months.
A statement given out by Cashier Fl.
W. Thompson of the bank. summarized
AM tli.t is known of the situation, to-
uIt. 1t is rs follows:
THO national bank examiners visit
each year is supplemented by a private
examination by the directors commit
foe The examination by the national
examiner was held, last December, ana
that given by the committee Of the di-
rectors was held shortly afterward. In
neither examination WAS any discrep-
ancics in the accounts OF Mr.. Smlth
discovered. But he knew that another
examination would shortly be held by
the directors, committee and when it
was decided to have the examination
begin, Tuesday last, Mr.. Smith did not
come down to the bank. During the
morning he sent message saying that
he had been taking money from the
bank and that he was not able to cover
it up He also said that as he could not
hope to make good the loss he WOULD
not run away, but would meet what
ever punishment the courts might mcte
out to him.
"As near as we can make out by the
examination thus far given, we be-
Iicyc That he has taken about $j0,OOo.
That is the sum which he himself estl-
mat.s. He was under bonds for S1o,-
900, given by an indemnity company
As Mr.. Smith says he has not saved
penny during his life time, and cannot
make good the loss, we shall have to
stand the balance of the defalcation
above the $l5, 900 in the bond.
MT. smith says ne has been specu-
IaiinE ana that he took the money for
that purpose. He speculated at the To-
cal agents Of Bucklyn q 60. of Boston,
nv whose failure he was caught like
some other customers. The bank is safe
and sound. as we have Il surplus of
more that 5000, 900. There is no danger
to either our depositors or our stock
holders. q,
Mr.. Smith has been with the bank
% years. and during the last eight years
of that period has been teller,
Smith was arrested. this afternoon.
by United states Deputy Marshal w. L..
Parmrlee, on 4 bench warrant issued
iflit,d states Commissioner w. A.
Wti"ht Smith awaited the officer 8
cornin': at his home in Duncan Hall,
wh,rr he has lived recently with his
Wit and young son. Mrs. Smith had
St.rld herself for the ordeal and bore
M we'll She assisted her husband i'll
getting together what necessities II"
might be expected to require if he had
to ~ to iai!. President William I.
Fields Of the bank, was with Smith
when the officers came, and left with g
bag fun Of papers, some of which are
believed 10 be papers showing Wncre
Smith has spcculatcd and in what Sc
curiticS.
Smith was brought before Commits
eioncr Wright late today. and his case
was c"utinucd until June IL, in bonds
of $1IonO During the early evening
hours Frank l.. Iicclow. John Cox and
Enhort Footc gave securities rs bonds
mcu smith returned to his Wife and
child in duncan Han.
Great surprise was felt over the en-
hcZzlcmcnt. business men at first were
somewhat aprrehCnSive, but when the
fun facts became known the excitement
subsidized as the bank is known to be
strong and it's securities excellent.
\ settlement of the condition of the
hanI; at the close of business, March
-. shows resources rs follows: Loans
and discounts. sI.21O. tG1.31: United
states ana other bonds. $219,e0o: bank
ink mouse. $4,000: due from banks
$@.:, 135o7: cash en- hand $1Si,?S1.51
The liabilities were: Capital stock
s300.oOO: surplus and profits. $500. 392. IS:
currency in circulation. 100000. due to
banks. SIS. 366.5G; deposits. S1.232 ,635. SO
William r. Fields is president. Rob
crt A. Brown vice president and II. w
Thompson cashier. The warrant on
which Smith was arrested places the
amount alleged to have been taken III
$50 COO
1t is understood that Smiths Specu-
iation was through local brokerag 60
firms. He was under n bond of $500.
To the bank.
Attorneys for the National Trades
mems I:ank. tonight. brought suit foI
M".0h0 against Yeomans and Dill, stock
brokers. whom il is alleged We're in col
fusion with Smith in many transactions
conducted in their Office. 1t is claimed
that the firm of stock brokers had 4
large amount Of hypothccated property
given for money borrowed by Smith
ana that it is possible for the bank tc
rcrnNpr NJ, ft;S