Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-08-30
SHORTAGE NOW FROM
100000 TO$350,000.
Depositors in the York County Savings
Bank Astounded at Bank Examiner
Sketon's Report which Shows
II per cent. Shortage.

! Biddeford, Me, Aug. ga sensation
was caused by State Bank Examiner
w. b. Skeletons statement that the
shortage in the accounts of the York
| County Savings Bank, whose doors
were closed by him on Aug IL, would
not be less than 5000, 600 and not more
than $35o,OoO when it appeared tonight
in the evening papers.
Hundreds of the $500 depositors are
| mill operatives, whose savings of a
| lifetime of labor were behind the
| banks doors, had lived in hopes that
| they would lose only part of their
| dividends and had trusted that the es-
| innate that the shortage woul not ex-
| coed 100000 would prove correct. When
they read that the State banking de-
partment's report figured that the de-
| felt would be at least II per cent, and
probably more, they were shocked and
discouraged.
This estimate was based on a dis
| crepancy between the trial balance
drawn on Aug. 6 by Richmond II. In
| gersoil, the aged and deposed treasurer,
| which showed deposits of 81, 1914 290,
| whereas the amount should have been
| $l,544, 290, and book value of assets of
$l,2S7.1I. This showed a discrepancy Of
| $35O,000 in the depositors' accounts or
a shortage of s256,573 through the diff
| ference between the book value of as
sets ana actual deposits.
The shortage as given in tOday'S
statement was approximated with sub
stantial accuracy and based on the
| comparison Of large percentage of
| the naSsbOckS. A full and accurate
statement will be issued by Examiner
! SHELTON when these are all in.
Thus far the examination has not
shown any of the shortage to have
been due to recent irregularities, eX-
cept by the compromising semi-annual-
ly of the true interest on passbooks
but not on the banks ledger. 1t was
learned that the classifying of the ac-
| counts has been going on the last 80 of
| the 80 years Mr.. Ingersoll was treas
| urer.
No explanation has been made BIZ
Mr.. SHELTON Of the origin of the short
age. although the bank officials have
| explained it was due to bad invest
ments in Western securities by the
bank quarter of a century ago. The
trustees held meeting Immediately
after the statement was issued with
President Charles H. Prescott and al
though II was in session an hour moth
| ing was given out.
Former Treasurer Ingersoll had an IT.
| turn TODAY and physician was hastily
| summoned. His mind and the trouble
III, tr to Lob L
| with his age. which is II years, were
the cause of the Ill turn He was rest
ing comfortably tonight but was un-
| able to see Mossrs. Shelton and Pres
colt. who had planned to interview him
again.
The official statement by Bank Ex-
aminer SHELTON was as follows:
"A special examination of the deposit
accounts Of the York County Savings
Bank was begun Aug. TO- This work
followed. and in the first instance had
| to be based largely upon preliminary
work that had been done under the di
rection of the president and trustees Of
the bank preparatory to complete
audit by publication of all the individ-
ual deposits. without going into all
the details which will be done in a
complete statement after the pass
books have been verified. it NAV be
proper at this time to state briefly
what had been done by the trustees and
later by the department in following
up this work.
Immediately after the banking de-
partment mailed to the presidents OF
the banks it's circular Letter of Marcel
q, 1910. outlining a plan for the audit
of depositors individual accounts re-
ulv was received from the president OF
this hank saying that the suggestions
would he adopted and the work prompt
Ilv followed up It was decided that the
audit sholld be made by publicatlor
of tne entire list of deposits by numne'
and amount shown on given oate
and Harold B. Staples, who was at
hat time employed as a clerk IN the
hank. was Immediately instructed nN
the trustees to devote all of his avail
ahle time to preparation for this form
| of audit.
.rhis work involved the balancing o.
every individual deposit in the Dang
tho correction of any errors that ni.sh'
appnar in posting or from, any o.n.i
carce that would come to ms at'eh.'o'''
md the transfer of every account " 9
new ledger was being prepared lor Wv
nurpose Of facilitating, such an aoo,' -
tho future. The work was carried VI,
hv Mr. staples until the transfers anu ~
corrections so far as he was ape ,aa
make them from sources ne naa a, nav ~
, CONNECTED. 1t then renamed u
49, ~ the results of this work, eeri,
g., tho items as far as possioie 81
n.n,,,are with the treasurer's general
| ledger. aware
."rhc department had been cen, a soins
,,,.t .,e preparations had been go n,s
tnat o .i1 When the work reached TINS
on. ana o. VIZ" r,ork done by Mr. STAPLES
stage taken up and carried on ny it. ane
YVES ,.a showed substantial discrepai