The San Francisco call., 1908-12-08

years, were IN sums ranging from one
to several thousand dollars at time
and were carried on in full view of
every. officer and employe of the sank
The mode of operating was not only
unusual but one that should have been
discovered by the officers of the bank
when Rowland first began to appro-
pirate its funds.
Expert on Securities
When a customer of the bank would
make application for a loan Rowland
would be the man assigned to the task of
examining the security offered. Should
the security be in the form OF. collateral
and be of a larger market value than
the loan, Rowland would recommend
that the loan be made.
The recommends tions of Rowland
were not depended upon. His task con-
sisted only of examining the security.
If the loan was accepted by the direc-
tors and the necessary notes signed,
Rowland would then place the security
in the vaults. but he would credit the
and not with the loan.
In this way he would be able to
loan $4,000 on collateral worth $4,000
The collateral would be credited and
he would have the difference between
the actual loan and the value of the
collateral for his peculations.
Was Never Suspected
No suspicion of any irregularity in
the accounts of Rowland was ever en-
tertained by the directors Of the bank
until Watson. during the course of his
regular examination, discovered the de-
falcations and reported them to the
president, John Favour. Even after
first hearing of it the directors were
cautious about accusing their cashier
It took but short time to convince
the directors that Watson was right,
and a few minutes after the expose,
Watson had a confession from Row
land. In the directors room of the
bank the embezzling cashier told how
for five years he had gambled unsuc-
cessfully in mining stocks; how he had
begun to steal small amounts, and
how he later took thousands.
He confessed to taking $4,000 in
ALL" said Judge Garoutte, president
OF the bank commission, yesterday.
Strong Institution
The Bank of Healdsburg has al
ways had the reputation of being one
of the strongest financial institutions in
that district. Only recently 1t formed
an agreement whereby 1t consolidated
with the Farmers and Mechanics Bank
of Healdsburg. Rowland has been
one OF the most prominent men in
Healdsburg and was a member of the
city council His father is very well
to do, and 1 heard before 1 left that en-
deavors were being made to have his
father make good the shortage"
The Bank of Healdsburg is incor
porated for 100000 and has for its
directors some of the most prominent
men in the Sonoma valley. It's loans
which amount to more than $500, 900
are all well secured, and it has al
ways paid ample dividends, despite
the defalcations of its cashier.
No warrant has yet been sworn to
for the arrest of Rowland.
The directors of the bank are: John
Favour, George P. McNear. William
Rowland. N B. Coffman. NJ Raabe. j.
w Rose and A. D. Passalacqua.
Depositors Protected
Especial Dispatch to The Call
HEALDsBURG. Dec. THE directors
of the Healdsburg bank said today that
the depositors would not lose a cent
through the embezzlement> of e. S.
Rowland, cashier of the institution. who
,ae copfessed m a shorfa oa of e7oo aoo