The midland journal., 1910-09-23
|TREFIS OF s28,O0O,OOO
N FIVE YEARS
Most Of 1t Stolen to Gamb'e In
Wall Street.
TRUST COMPANIES ALSO BIG LOSERS.
In Majority Of Cases the Money
Stolen From Banks Is Lost In
Stock Gambling In Wall Street
To Avoid Publicity, Banks FIRE.
quently Take Their Losses Without
Reporting Them.

New York Especially .-Thefts from
two New York banks made known re-
Gently have compelled the attention of
the American Bankers Association to
this class of crime. That it is on the
increase is shown by perusal of. the
records for the last Ave years, during
which time more than $28,0O0,OO0 has
been embezzled from the banks and trust
companies in the United States.
In the Federal Prison in Leavenworth,
Kan, where prisoners are received from
all over the country, the banker convicts
exceed every other class of prisoners ex-
cept burglars and mail robbers. There
are l3 former officials of banks doing
time" in the Riverside Prison, Pittsburg.
The number of banker convicts in Sing
Sing could not be ascertained, as the
records are not available.
The number of bank officials and the
total amount of thefts of record do not
tell the complete story of bank thefts.
To avoid publicity, banks frequently take
their losses without reporting to the au-
thorities or prosecuting the offending
employees.
In a majority Of cases the money
stolen from banks is lost in stock gamb-
ling in Wall Street. Thus went the
100000 which John H. Lowery said he
took from the Utica City National Bank.
It was said recently by the president
of surety company that there are many
thefts committed in banks in this city
and elsewhere throughout the country
that never reach the ears of the public.
Bankers aud heads of trust companies, it
was asserted, frequently minimize the
amount of stealings when the secret of
the losses comes out In illustration of
this it was recalled that when announce
ment was made very lately of the dis
appearance of Walter Hall, paying teller
in the Herald Square branch of the
Greenwich Bank, an official of the bank
said the amount missing from the bank
was "too trivial + to mention" The
amount proved to be between $35, 900 and
$50, 900.
1t was first announced following the
disappearance of Cashier Erwin Wider,
that the Russo Chinese Bank of 81 Pine
street, was out about $4,000. The value
of the missing securities is now placed
at 100000.
But more important than the sup
pressing of the news of defalcations, it
was held, was the revelation of the temp
GaClOuS TO gamble IN SLOckS Uildb dI Z
laid before employees in banks and other
financial institutions, and the fact that
this temptation is yielded to far more
widely than suspected anywhere outside
of brokers' offices.
The example of the millionaire heads
of the institutions who frequently win
fortunes in day in the stock market
has its effect on the wretchedly under
paid employees. Then come the letters
of advice from brokers of repute and al
legged respectability These are scattered
broadcast in banks and trust companies
for the purpose of melting to gamble
those who read them.
In addition to tips on stocks, especial
" those Securities" in which the broker
himself is personally interested, these
letters not infrequently contain such
hints as the following:
Men starting with few hundred dol
lars and observing the rules which guide
leading spectators have by boldness and
skillful manipulation become the pos
SCISSORS Of millions"
The effect of these suggestions can be
seen by glance at the defalcations in
banks in the last five years.