The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-05-12
MANAGEMENT bad
REPORTS FALSE,
ACCOUNTANT SAYS

I'LL OIllU IthQLj
ACCOUNTANT SAYS
Continued From First Page
the extent OF 81 900; he reported this amount
In excess OF what WAS actually earned as IN
terest and discount. and increasing the loans
and discounts to like amount 10 affect the
efedi, TO interes. and discount
exhibit Al VIII show that by these trans
attions the bank assets have poeI useu os
.hn cashier 10 the amount Of sSo,e55.9l. ms
amount viii be offset by any collections from
the parties named therein.
"Qn April 26. 1907. bloiter foil9 90. me
debts on tho general scratcher. amounting
- t946.o7. were added sl.aiSo1. sou TOO
much. and in making trial balance April ~
1907. bills payable were put down AS credit
of s10,aoh.3s. when the ledger shows SILL
2o5.s2; thus affecting the above addition.
This $500 item wasya draft Of tho kcrshaw
Manufacturing Company. dated January 20,
1907, and 1t was no. posted TO bills pay
able was intended. but should have been
charged 10 loans and discounts. This addi-
ton affects every trial balance since April
60, 1907.
shows Oycrdrnft.
exhibit Al shows an overdraft of c. Has.
eons administration OF C.. Haskins. Of ST.
195.ss; this account has attached to It a
check OF Mrs. y. b. Haskins. signed N
blank, dated October rs, 1907, TO be hlied
out on account OF deposit TO her account tsee
ledger folio af5l; which has credit balance
OF sl.77s.ss. The check was never filed out
o. the transfer made; In THIS exhibit q 81 ~ Is
THE was a check dated January s. 1903.
which was carried In the cash items until
Arm IL, 1908, when 1t was substituted by
Mr. Haskins with two notes. one of W. P.
Wallace. dated March 20. 1901 for $500. and
one OF Mary ". and w. r Wallace. dated
December 20. 1904, for 81 900 said notes be-
ing secured by deed of trust. which has
nc; been recorded on the date the substitution
took place. No interest has been paid on
the check. There Is also embraced In this
exhibit an item of the Chase City Manufac-
turing Company for $4,000; this note is the
property of Mrs. y. s. Haskins. and was not
discounted by the board, but simply suhst-
tuted for various notes of Mr., c. Haskns or
his personal obligations which he was car
rying in his cash items. You will note that
n. the bottom OF this schedule"I credit the
. sum ci-ses0.94: this Ia for items which Mr.
Jiaskins had carried in his cash items until
March -. 1905, was in order that the ex-
penses OF the branch bank should show as
little as possible, he substituted his note on
that rate for $1,000. which also took up
SS3s.06 ot hts personal ticket IN cash items.
] have made entry charging these items,
S660.a4, to expense, where they properly be
long. and have given Mr. Haskins credit for
them.
In the substitution OF the notes OF. ths
Kershaw Manufacturing Company the cash
ley entered upon his Offering register. folio
s December H.. 1906 the amount Of st+,-
4.b.S4 and on the same book folio 81, Feb
ruary IT, 1908, the amount of S12,I66.3l.
making a total of S27.193,15. You Will note
mat ENhiDtt A. SHOWS. the amount OF our
standing notes of the Kershaw Manufacture
lnE Company. not passed on by the board. is
jatosd.o6 the difference OF $1,000 being ac-
counted for by Mr.. sHaskins taking this
. much out oi the loans and discounts when he
substituted his notes for cash items
Other Items.
There are many entries embraced In Ex-
hibit 40, all of which would affc.t any trial
srlance. made subsequent, TO the date of the
transaction. and OF which the cashier had
tuli knowledge. but which he failed TO make
,Ixi,, ~ L.
The item taken up in Danvilc August "a,
1906 $4,000: this affected the loans and dis
counts and also the Boydton Bank.
1.-THE item of b. Z. Cosbil, May 81. 1907,
o: $1,000. was draft given by Mr.. Cogbill.
which was returned by the National Bank
81 Commerce and never charged back to Mr..
Gcebill or credited TO the bank. thereby az
tecting both the depositors and Bank of
Commerce Accounts.
Item OF r. r Thorp. attorney, June IS.
1906. s222 also affects the expense and the
Eoydton Bank.
item OF c. H. Saunders. Fune IL. 1907.
sl7T.6o, Was a note which was not paid and
returned by the Virginia National Bank Pc
tcrsburG. Va which was not credited TO the
bank or charged to Mr.. Saunders.
''In both the cases of Messrs. Cogoill and
Eaunders had the entries been made. their
respective accounts would have shown an
sveldraft instead of q credit balance.
I'm the overdraft OF II. G. Hudson OF So,
eacl5. Mr.. Haskins claims that the board
Z wa:. cognizant of the fact that he was $1,000
overdrawn, which has subsequently, verified,
50 in Exhibit, Al ! only >, charged him with Z,
this ansaction.
THE overdraft OF c. T. Reekes. commits
tloner was accustomed by Mr. Haskins In
Ettpctlng Mr. Reekes to draw check on
the bank for sS34.53. and that he tIaskins)
would place that amount to Reckless credit.
Haskins failed to credit Reekes and CHARGED
sonal. obligation of Haatins and should have
beer charged to his account
Were Overlrnwn.
49,
cash items, which, If charged TO their &C
counts would have made them overdrawn in
stead OF having credit balance as shown
BY the ledger:
The .Kershaw Manufacturing Company.
balance on ledger. credit, sioS.a6; cash item,
si2s.5l: overdraft, SSS5.iS.
Mrs. a. Il. Oliver. balance on ledger.
$3.50
'Jenreys & Wallace. balance on ledger.
sa2iS5.
&C. Haskins balance on ledger credit,
s4.sS lscash item Sls;ss: oyerdratt sl427
on2ledE er, credit sl4S.46; cash item. $223,66;
o,erdraft. s75.ao
ID. j. Thompson. balance on ledger cred-
4, 80 cents; cash Item, s+: overdraft. s3.o1.
Thus. instead Of having s:65.3s to their
3redit, these parties were overdrawn 81 ,3s47S
making difference in the accounts of
show how very loosely the affairs of the bank
were conducted. and how very erroneous
any statements made from them were
I'm no instance was the Kershaw Manu-.
racturing Company charged discount on any
paper not passed on by the board and on
prly piece of paper ts26s32) upon which
ihe board did pass.
No Dating.
There was dating the cash items
carried for this firm, and could not call
rIlate the interest due by them. but as there
was Sli,i26.si in cash items on December
e 1906. and s12.7s6.3l on February Is 1908,
besides the notes of $4,000. upon which the
board passed, there should have been large
amount of interest chargeable 10 them.
There are cash credits for interest from this
arm as follows: January 81, 1907. s6s6.10:
tnme date, SIZES; July 81 $3.50; January
Bl, 1905, s2e5, making a total of Sl.l7T.34,
but the cashier stated that they owed con-
s!derahly more.
The affairs OF the bank at Boydton are
IN much worse condition than those of II
branch ut Chase CITY: Cashier e ". Over