New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-06-03
ADMITS TAKING $4,000,
SPECULATION HIS BUN.
Teller of Nesc-HGuen Bank Refuses
to Run AtUGy.

New-Haven, Conn. June "A loss OF from
$4,000 to 100000 through the embezzlement of
It's funds by trusted employee. Douglass NJ
Smith. is admitted by the officers Of the Ma
donaI Tradesmen's Bank Of this city The
act amount of money lost Will not be known
until careful and far-reaching examination
that is now being made is finished. Smith, who
was paying and receiving teller Of the bank. has
acknowledged voluntarily that he has embezzled
about $4,000. and the greater part OF it, if not
ALL within the last eight nine months
A statement given out by H w. Thompson,
cashier of the bank, summarized all that
known OF the situation tonight. It is as fol-
lows:
The national bank examiners VISIT each year is
TeatnT c by private examination by the d.
uonal examiner was held last December and that
any discrepancy in tIe aojnts Of Nj SmiIb Gs
covered But he knew that another exa mination
would shortly be held by the directors committee
anu wnen II was decided to have the examination
begin on Tuesday last Mr.. Smith did not come
down to tho bank; During the morning he sent
from the bank and that nc was not able to cover
make good the loss he would not run Ia avay but
moQ 1 meet whatever punishment the courts might
thus aq g4 rs we we can 5e @se tS Sg b. the
$4,000 That is the sum which he himself esti-
mates He was under bonds for $4,000 given by an
indemnity company. AS Mr. Smith saysde has not
make good the loss. we shall have to stand the
bon bonds Mr. Smith says he has been speculating
ara thaL ne took the money for that purpose He
OF Boston by whose failure he was caught like
sound. as we have a surplus Of about s30o 90
There IS no danger to either our depostors or ouj
slochhoiqerS. MI. Smith has been with the bank
twenty-five 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. Parmelee on a
bench warrant issued by United States Com
missioner W. A. Wright. Smith awaited the ON
GERS coming at his rooms in Duncan Hail. where
he has lived recently with his wife and young
son. Mrs. Smith had steeled herself for the
trouble, and bore UP well. She assisted her hus-
band in getting together what necessities he
might be expected to require II he had to go
to jail President William T. Fields of the bank
was with Smith when the officer came and
left the house with bag full of papers, some
OF which are believed to be papers showing
where Smith has speculated and in what securi-
ties.
Smith was brought before Commissioner
Wright late to-day, and his case was continued
until June IL, in bonds OF $4,000. In the even
ing hours Frank L Bigelow. John Cox and Rob
ert toote gave security as bOndsmen. and Smith
returned 10 his wife and child IN Duncan Hall.
Great surprise was felt over the embezzlement
Business men at first were somewhat appre-
henslve, but when the full facts became known
the excitement subsidized the bank is now
known to be strong and its securities excellent.
statement Of The condition Of the bank at
the close OF business on March % shows re-
sources as follows: Loans and discounts. 81 210,-
so 81; United states ard other bonds S21g.2O
banking house. SO 600; due from banks S353-
I39 %; cash on hand SlS49S 81. The liza bill
ties were; CAPITAL stock, 100000: surplus and
10000; due to banks $JS.36G So; deposits. ST.
232. 635 63.