The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-14

or fraud being passed over. The en-
bezzier must take his chance on the
negligence Of the auditor; the thefts Of
So. 100000 lost are striking testimony OF
the success which attends them. An up
to-date institution ought 10 make provi-
sion for audits at regular periods by the
best firms. with perhaps an extra exam
ination besides. To be sure, even then
an employee may borrow between the
auditings, but the likelihood Of his risk
ing so much is very small. and certainly
ders or Affords can happen
The temptations which come in the path
OF the bank empioye are great. In a
majority Of cases the money which the
defaulter makes away with IS not used
outright upon living expenses, bat I'm at
tempts 10 get something for nothing by
speculation in Wall street Brokers Of
none too good reputation send out glow
ing circulars and market letters which
are incentives to trying the risks of stock
trading; and II bank clerk. with a sal
airy Of $500 year, opens an account
which his means plainly not carry, such
brokers are not over squeamish OF
course, reputable firms investigate their
customers financial standing. and many,
after refusing an account have given
warning to banks. and so perhaps have
prevented peculation. II is reported that
one firm warned the officers of Wider's
transactions. but that no good came Of IT,
Partial List of Recent DefauIters
wealth and plenty 10 overcome the
promptngs OF honesty is understood when
one learns that the banker convicts In
the federal penitentiary at Leavenworth,
kans.. outnumber every other class OF
prisoners. except burglars and mal-rob-
bers. Seven bank presidents, eighteen
cashiers. and thirteen cashiers and tallers
-thirty-eight in all-are serving sentence
for violation OF the national banking
laws There are other men in the State
prison for like oftenses In State institu-
lions. A list OF a dozen or more Of the
largest defaulters in the last five years
will recall to the reader the famous cases
now almost forgotten. For instance. IN
1908. f. II. Palmer. cashier OF State Bank
Peconic. Long Island, $4,000: Frank c.
Bigelow. Milwaukee. 81 10000; officers Of
Denver Savings Bank, $4,000; T. Lee
Clarke. cashier OF Enterprise Pa, Bank
81, 10000; in 1906. Paul O. Stensland, Chi
cago banker, amount of thefts. $3.50 900;
Joseph a. Turney. teller National Bank
OF North America. New York City. $4,000;
Frank X. Nipple. president OF Real Es-
tate Trust Company. Philadelphia. 5000
900; Chester Runyon. teller Of Windsor
Trust Company. New York City, $4,000:
oliver NJ Douglas. bookkeeper, Trust
Company OF America. $4,000; In 1905
Henry Richer, paying teller. and John
Young. auditor. Farmers National Bank
Pittsburg Sl.l05.00O: W. L. Ammon. sec
rotary Of Standard Loan Association
York. Pa. $4,000: in 1910. George W
Coleman. bookkeeper. National City Bank.
Cambridge. Mass. $4,000: John +. John
son. president State National Bank
LOgansport. H.. $4,000; John r Walsh
Chicago (misapplication Of funds. 5000
coo: Walter Hall. teller Greenwich Bank.
New York. $4,000; August Ropke Fidel-
ity Trust Company. Louisville. HJD.OO0.
and J. II. Lowery. cashier Of Utica
National Bank. $4,000
This list Is sufficient 70 alarm a reader
II not bank president or director Most
Of the officers OF the leading banks keep
always IN a state OF suspicious care.
which is their safety. Besides seeing 20
it that their auditing system Is infaI-
lible, they guard against temptation. and
make a point OF bringing their personal
element more and more into the work
ing stan OF their institution. One presi-
dent, who most people would think. has
not time for any such thing. says the
he keeps in fairly close touch with the
personal life OF every employee. OF course,
the banks detectives and It's espionage
look out for any danger symptoms. but
the president says that. with his own
knowledge Of the men. and with his con-
hdence in his auditing. there is no chance
FOR theft