New-York tribune., 1907-04-30
BIGGER THEFT PLANNED
CLERK after 81, 300 900.
Douglass Had Pile of S5OO,OOO in
Bonds Ready to Take.

IN addition to the 100000 of securities OF the
Trust Company of America actually taken by
w. o. Douglass, the assistant loan clerk. it was
learned yesterday that he had hidden away in
the offices of the company some $50O000 more
which he had evidently planned to carry away
with. him. He apparently intended to return
when he left the Offices in the middle of that
Saturday morning at the close of banking hours
to take away the additional bundle of half
million. placed where they would be readily
accessible. Just what kept him from coming
back has not been learned but he probably
would have got safely away with the entire haul
of $1,300,000 securities If he had waited until
the usual hour to depart
Since the revelations of the Douglass robbery
have become known there has been considerable
uneasiness among other financial institutions as
to whether they could have been so easily
robbed. Several of them have applied to the
State Banking Department for special examina-
tions. One big trust company which
amined only last February. wants to be exam
ined again. It's application made yesterday will
probably be granted.
Charles Hallam Keep. Superintendent Of the
State Banking Department. went to the offices
Of the Trust Company of America yesterday
morning to learn how the examination being
made by private auditing company get
ting on. He learned that it was completed, and
port. well copy of the report of the ex-
aminng committee of the board of directors,
which goes into detail regarding the operations
of the dishonest assistant loan clerk and the
losses caused by him. Examiners of the State
Banking Department will begin work the
books of the company to-day.
EXAMINATION OF ALL SECURITIES.
Regarding the general examination of securi-
ties soon to be started by the department, Su-
perintendent Keep said yesterday: I'VE shall
begin at once the examination and inspection
of the securities of all trust companies. not only
those securities held as collateral and trust
/ funds but all Of them no matter how held.
'The custom has been growing for New York
banks to borrow large sums for Western banks
on securities in any way, but shall do so in
on securities forwarded here In the past
have not examined such securities in any way
but shall do so in the future. The pur-
pose of this is to prevent substitution. For
instance. a bank might take securities sent
on by other banks and transfer them 10
/ loan securities during period of ex-
animation. Later they would he returned I
do not know that such thing has been DONE
but it could easily have been practised. The
trust companies all seem anxious for US to ex-
tend the scope of our Investigations"
Bearing on Superintendent Keeps statement
about money borrowed by Western banks by
sending collateral here. It learned that
certain New York institution. with a capital of
only 100000 had borrowed more than 81 OOO-
600 on bonds sent TO them from the West II
a Douglass should operate in such an institution
there would be large capital surplus on
which to fall back. as there was in the case OF
the Trust Company Of America.
The directors Of the Trust Company Of Amer
| and oF tho Colonial Trust COTonaDv which
has been merged with it. met in the offices Of the
former yesterday afternoon. The primary pur-
pose Of the meeting was to perfect the reorgani-
zation. but a consideration of the bond robbery
occupied a large part OF the meeting, which
lasted from until 1 o'clock
SEEKING MAN BEHIND PLAN.
The report Of the examining committee of the
board, consisting of John f. Bourne, H B. Hollins
and L. Clifford Potter. read. were the
statements made to the District Attorney by
| Douglass and Oliver NJ bennett. the broker
who hypothecated the securities. There was
| some informal discussion regarding men who
| might have been back Of the two now under
arrest 1t was the general opinion that. although
| some shrewd mind might have been behind the
conspiracy, his work had been done with such
skill as to foil any attempts to reach him in
] criminal proceedings. II generally
| ceded that Douglass the only IN the
| trust company who had any knowledge Of his
/ operations
| A resolution of confidence in Oakleigh Thorne.
president OF the institution was offered by John
! D. Crimmins and unanimously passed. He was
highly praised for the sagacty shown in pre-
venting the escape OF Douglass bennett and
the recovery of such large part of the'loot
In a statement 10 the newspapers after the
| meeting the story as TO the amount Of securi-
/ ties actually taken told in The Tribune yester-
| day. confirmed 1t says that securities Of
| the market value of $57OOOO" were taken by
| Douglass AS the market value Of the securl-
| ties is now less than 70 per cent of the par
| value, it may he figured that the face value
| of the securities taken was about $SOOO00. The
maximum net loss Of the company is given as
| $4,000, as was explained yesterday. This loss
! has been charged off the books the state
| ment says. although it is hoped that it may be
reduced through actions that will be instituted
| against those with whom the securities were
! pledged collateral"
One Of the directors asked after the meet
! ing regarding the bundle of $500000 securities
which Douglass had taken out Of the vaults and
hidden away IN the Offices. where he could get at
| them easily. but which he did not come back for.
''The amount Of securities mentioned in the
statement having been abstracted by Doug
| lass does not include other securities which had
| not actually passed out Of our physical posses
| sion" he said. but which had been placed
! aside by Douglass evidently with the intention
OF taking them away. l cannot tell you just
what the value of these securities was.
| / tell you where they were hidden"
District Attorney Jerome will not return to
l.