The Farmville herald. [volume] (Farmville, Va.) 1890-1934, 1906-11-30
To STOP EMBEzzLING

Pierre Jay, Commissioner OF banA-
ing of Massachusetts,, says that al
least one new case of bank embezzle-
ment is discovered in the United
states. every day in the year. suggeS-
ting strcter legislation, he says
81 believe that legislation should he
enacted i'm every state similar To lie
law recently passed bon New loih'
which would compel the directors oil
every hank and trust company 10
make at least two examinations eac"
,ear of IFS condition through the me
dunn ofan examining cOmltleee, winch
should not contain any officer OF mem
her of its executive committee, Nuch
committee tO make sworn report IT'D
duplicate. one copy 90 ne presented al
the nevt directors and next stock
holders meetings and the other 10 pe
filed with the state Banking Depart
ment: the report. BOO addition To- a VEN
fed statement OF the bank = condition,
to contain "a list of 10, assets, win lhe
committees valuation of them, SHOW
ing which of them they consider
worthless or doubtful and which OF
the securities held as investments or
as collateral are not readily market
able: also in which loans and invest
ments the directors or officers are IN
terested. giving the names OF Inc dl-
rectors OF officers i'm each case.
"PerhapS as feasible way as any
other of awakening the responsibility
of the directors, of increasing their IN
terest and of familiarizing them WIN
the method and conditions of their IN
stitution would be to allow each Ill
rector i'm turn to serve as regular
member of the executive committee
for one ormore months each year '
While it may be impossibleto devise
any system that is proof against en-
bezzlement, every effort should be
made to have a system as nearly per
feet a. possible. Laws Furnishing
embezzlers should be sticter Bank
examiners should either be abolished
or made something more than the
present force. such carelessuess as
was exhibited in the Nipple affair in
Philadelphia was criminal.
one thing that should be stopped is
the soft manner i'm which bank presi-
dents and cashiers are treated by the
courts, by governors. and 10y Presi-
dents ofthe United states. Stensland,
who wrecked a Chicago bank few
months ago, and admitted stealing
over S4OO, 900, was given am indeteml-
nate sentence Of from one TO ten years
which means that he may be releas
ed at the end Of one year. This bank
that was wrecked had all the saving
of a large number Of working people
Several Of the depositors who were
ruined by this wreck committed sui
eide from sheer grief and despair. One
year in the penitentiary, with the soft
lob of sorting brooms 10 ~tenslanc
had been poor man aud had broker
into house and stolen money, he
would have been sent up for twenty
wears or more. II he had stolen I
horse, or couple Of pigs, he would
have gotten from five totem years. Blu
as he was in a position Of trust anC
took advantage Of his trust, and stol'
hundreds of thousands of dollars, h'
was put TO sorting brooms for ont
, year.
Even if bank thief gets good, stiff
sentence-which Is rare-he stands
good chance fleeing pardoned. Presi
dent Mckinley had notorious recor'
in this respect. All this ought TO b.
stopped. The pardoning power SHOULD
be taken from the hands Of the execu
tive and placed in the hands Of par
doning board.
The lOoseness observed and allowed
in the United States in bank wreck
ing and embezzling and in making
loans on worthless collateral, woul'
not be tolerated in Scotland, England
OF Germany. 1t ought not TO be tole
! rated here