The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1906-08-16
TELLERLOOTS BANK
Birmingham, AIa,, Institu-
ton Touched for Big Sum.
RESERVE FUND REDUCED
Paying Teller Chisholm SWiped the
Cash for Speculation Purposes.
Two Bucket Shop Men Ar
rested as Accessories.

Within a few hours Monday, Alex
ander R. Chisolm, paying teller of the
First National Bank at Birmingham
Ala, was arrested charged with the
embezzlement Of S97, 1000 of the banks
funds, given preliminary hearing be-
fore United States Commissioner R
B. Watts, put under bonds OF $4,000
ano, failing to make it, he was placed
In the custody of the United States
officials at once Of the hotels in the
city.
During the afternoon w. l.. Sims
and C. NJ. Hayes, manager and as
sistant manager of one of the chief
stock and cotton brokerage houses
in the city, were arrested charged
with aiding and abetting the embez-
element of national bank funds. They
were also given preliminary hearing
and Sims bond was fixed at $50,O0O
and Hayes at $4,000. Both made
bonds and were liberated.
The shortage was discovered while
Chisholm was on his annual vacation.
The bank keeps large reserve fund
on hand, and it was from this that
the amount was taken. There was no
regular time for counting the cash
in the reserve fund, which accounts
for the fact that the shortage was
not discovered sooner.
w. P. G. Harding, president OF the
bank, made a statement to the effect
that the bank would not lose the
whole amount, and that it would not
affect the institution. The bank has
a capital of s1,0O0,000 and a surplus
of 100000.
When Chisholm was arrested $4,000
was taken from his suit case. He
was bonded by one of the large
bond companies for $4,000. The DIFF
ference between these amounts and
the shortage has already been taken
from the univided profits account Of
the bank and charged to profit and
loss.
Young Chisholm was one OF the
most popular young men socially and
personally in Birmingham. He comes
from one of the best families in the
south and numbered his friends by
the hundreds. It is said that prac-
tically all of the money embezzled
by Chisholm has been used in spec
ulation in cotton futures and that
his losses have extended over period
of several months.
Two warrants were issued against
Chisholm, one against Sims, one
against Hays, and one against P. G..
Smith. who also operates an exchange
Immediately in the rear Of the bank.
The first warrant, in which Chisholm
and Smith are named, alleges that
Chisholm aided, abetted, procured and
melted by Smith, did willfuly en-
bezzle various sums of the banks
funds.
The method of procedure was a
simple one, Smith merely went to
the teller's window, drawing a check
for whatecer amount might have been
agreed upon, and in exchange for
the worthless check Chisholm would
pass over the money.
According to the warrant the
amounts secured, with the dates, were
as follows:
May 10, $4,000; May %, $1,000; May
%, $4,000; May 20, $4,000; May 80,
$4,000; May &c, $4,000; July 2, s1o,'
600: July ;, $4,000; total, $71,500
The second warrant make the
same charges with the names of Sims
and Hays substituted for that of
Smith. The sum paid to these par
ties, according to the warrant, were
as follows:
May II, $4,000; May 81, $4,000,
June 1, $4,000; June 10, $4,000; June
19, $4,000; June %, $4,000; June 26,
$1,000; total, $4,000.
Smith, Sims and Hays have no
funds in the bank to cover the checks,
It is alleged.