Omaha daily bee., 1909-04-24
STEALING WITH PEN AND INK
Embezzlers and Defaulters Make
Away with Large Roll.
KNOWN TOTAL CONSIDERED Low
PecuIiarities of the Business of Burn
ing IN the Money of Others-
Bond Companies SqueaI
and Grow wealthy.

Bond Companies Squeal
and Grow wealthy.
The vast army OF professional thieves
who rob by force or otherwise steal but a
1.-THE of the millions of dollars that are
taken unlawfully throughout the length and
breadth of America each year. 1t is the
well-educated carefully dressed gentlemen
who hold positions of trust and whose
only tools are pen and ink, who loot most
OF the treasure chests of corporations and
individuals. They rarely are called thieves
but generally are referred to-when dis
covered-as embezzlers or defaulters. They
stole last year. so far as records show,
nearly SIC, OO0,O 600. The year before they
got aw az with nearly 100000. II the en-
bezzlements during 1903 keep up to the
record of January, this year will be another
record-breaker for dishonesty and loss. The
report of defalcations for the first month
] OF 1909 shows that the enormous total of
81, 25, 499 was taken during its thirty-one
days. This is at the rate of more than
SIS, 600, 600 a year, Burglaries and other
thefts amount to but about $,0OO,OW
annually.
The amount OF embezzlements only can
be guessed at, after all, and it is more
/ lltt1 hktlg tndN Ait u 6ANNA ~ "a
below the actual. They are complied by
one of the big New York fidelity com
panies from official reports that come in
from agents all over the country. from
newspaper clippings and other available
sources of m Yet it is acknowl-
edged by every one familiar with the sub
iect that not more than half of the EN-
bezzlements that occur ever are heard of
except by those directly interested. Thy are
hushed up for fear they will injure the
standing of the concern that has been
robbed.
Caught in the Act.
Sometimes the embezzler is caught red
handed and is forced to disgorge most of
the money he has stolen. This generally
is before he has had a chance to spend 1t
and usually follows a theft that is COM
mitted under sudden and empowering
temptation. In many other cases, however,
it is discovered Unexpectedly that a trusted
employees defalcations have extended over
a period of many months or years. 1t he
eDnfesses and his family and friends are
able to make up even the major portion
of the loss he frequently is allowed to 80
free and unwhlpped of justice. But there
are others whose cases are SO fragrant they
cannot be hid. The bonding company
] p91 ~ 1DA1A9 oBNd NAA~AA NA@
punishment is severe and certain.
II could stand on the roof of almost
any of the tall buildings below Fulton
street" said an employee of one Of the big
private detective agencies the other day,
"and toss a stone on the roof Of one or
score of places where l personally know
that heavy defalcations have occurred that
never have been reported to the police or
even limited at in the NEWSPAPERS. In some
Of the cases the embezzlers have been
caught, in others they are being hunted
for in various parts of the earth. Their
pursuit never will end until death of cap
ture gets the thief. The known statistics
of loss indicating S12,O0O,O 600 stolen last year
are accurate so far as they go. But the
actual amount of entertainments might
reach four times that amount.
The Principal Victims.
, Banks and trust companies are the
heaviest losers, according to the published
reports. Last year there was stolen from
such corporations the sum of $5,933, 81,
which was 1891 so more than in 1907,
Last January the defalcations from banks
and trust companies amounted to 1874. $50.
If the embezzlements continue at the same
rate during 1909 it will bring the total of
losses for such institutions alone up to
1888, 400, which is more than the total
losses in all lines of business reported in
1907.
General business, which term includes
commercial houses of all descriptions, lost
81, 402. 9S2 through defalters in 190S-S39O, 600
more than the year previous. During the
first month of 1909 the total Of the losses
; that came to light was 1851, 2O.
Public service corporations were the next
heaviest losers, their total being $1,OA, al in
B 1908. No one knows why it is, but this
E was nearly $4,000 below the previous years
5 record.
E The smallest losers in 1907 were the in
surance companies, who had ss1 $40 taken
] from them surreptitiously. Last year,
I though, their losses amounted TO 1851, 233. an
increase OF about 600 per cent. Beneficial
], associations lost less than usual in 1908,
/ only s2s1.5l1. which was about half what
4 they did in 1907. Court trust funds were
embezzled TO the extent OF $A,526 last
year. an increase of nearly $3.50. 600. Trans
portation companies, by which is meant
the steam railroads and water lines, cut
down their losses by Sill, IT'S, their 1908 de-
: falcations being only the trifle of $2i2,6OS
This is especially remarkable, considering
the billions OF money that the railroads
, employees handle every year.
''There isn't a safe made that a burglar
can't get into with a little time and ade-
quate opportunity to work without inter
ruption.' said the superintendent of one
OF the big bonding companies recently.
. but safe-cracklng isn't half so easy as
: robbing with pen and ink. There is a new
i system of accounting devised every few
: days, but I never heard Of one that was
> embezzlerhent-proof
v Funny side ON Bonding Business.
d There is a funny side to the bonding
5 business if one knows where to look for
o IT," he continued. "One of the clerks in
J the office the other day called my atten-
ton to a telegram from a bank, saying
that one Of their tellers was missing, and
e was 5000 short. He very justly remarked
d that il wasn't the teller that was short, but
u either the bank or ourselves. We learned
y later that he had lost part of the money on
Z fast horses. The whole trouble, though
n was that the horses were slow"
II is that great bond which keeps me
IL ., aa Macbeth once observed which