The Washington times., 1912-08-02
JOHNE. HUMPHREYS,
$4,000 F!O.RGIER, IS
| OUT ON SMALL. BAIL
Former Teller Secretly Ar
raigned Wednesday, But
News Is Suppressed.
1continued from First Page,

CONTINUED from First Page.)
will not investigate the case before
September.
The operations of Humphries are said
to extend over a period of three years,
beginning when he was employed at the
National City Bank, which was merged
with the Commercial National Bank in
April, 1911. Forged commercial notes,
which, are alleged to have been cleverly
concealed among the collateral of the
National City Bank, were transferred
to the Commercial National Bank, es-
Gaping the careful examination Of the
committee which examined the trans
Clever forging was used by Humphries
in executing the spurious notes by which
he is alleged to have embezzled about
$25, 900. So perfect was the signature of
A. @. Clapham, president of the Conn
mercial Bank. as forged by Humphries,
that not even the experts IN the bank
said that this bogus signature was
never even questioned.
In putting theforged notes among the
collateral Of the bank, and preventing
their discovery by the other employees,
much cleverness. He took the forged
notes out OF the vault just before they
were due to mature, replacing them
with other worthless notes. He used
about whose credit there could be no
possible doubt. ..~
Forged Notes Get 20. K" e.
When the Commercial National Bank
took over, the resources Of the Nation
al City Bank a year ago last April.
forged promissory notes for the total
amount of the admitted losses were pass
ed by the committee examining the as
sets, receiving. the 20. K" Of the su-
pervisors
During the intervening time, the claim
is made, that the note teller has simply
continued to care for these forgeries,
by repeated operations as an exper'
penman-that he did not take the cash
from the Commercial National Bank
and that the latter was therefore In no
way loser through the series of oper-
ations ehd therefore has no recourse on
the bondsmen:
The speculations carried on through
a local broker were accredited by the
note teller to speculative operations fol
my uncle in Florida. who is very rich.
Starting in a small way, these opera
tions in the aggregate were large, bu'
the teller was in the employ Of the
National City Bank. The bonding com
pany insists that the recourse of thu
Commercial National Bank Is on the
former shareholders Of the Nationa
Sits, hot oh thc"
Reports His Discovery.
Samuel NJ. Ham. national bank ex
aminer for the District of Columbia ant
the city of Baltimore, made immediate
report to the Comptroller of the Cur
sency, the Department of Justice an,
che District Attorney coincident will
the discovery of nearly $4,000 forge,
pronissory notes In the securities o
1t is part Of the written instructions I,
bank examiners that they at once pre-
pare three reports. of any irregularities
criminal or otherwise! in connection
inc. Mr.. Ham prepared the usual form
letters. which In time went through
the office of the Comptroller Of the Cur
rency and the other two as indicated.
This was several weeks ago. Having
the office of the Comptroller OF tn,
Currency had nothing more to do will
It is understood that Bank Examin
er Ham took the actual forged note
over to the Treasury Department
where the officials were given an op
portunity to see the documents.
The Department of Justice has re
department. for the special care, in
yestigation, and prosecution Of in
fractions Of the law committed II
national banks, In the city of Wash
ington, the department In common
with the Comptroller of the Currenc.
has charge of the examination of al
banks, trust companies, etc, and til
prosecution Of Offenders.
Will Refuse to Pay Claim.
1t is more than likely that the Ma
tional Surety Company. one Of tn
bondsmen Of the young banker. will re
fuse to pay the claim of the Commercia
National Bank.
Fine legal points will be involved Il
the contention OF the surety company
1t was stated by a representative Of tn
company today that they only bonde
Humphries after he went to the Com
meEcial; that the surety company Is nc
responsible for the errors made: whe
in the employ OF the bank that sold out
They say that had the forgeries bee
committed directly against the CONNER
cial that there would be no hesitanc
in paying the loss, but that the forger
les were committed on the other 'bani
that the Commercial took over thos
forged notes, and. therefore, the bond
ing company should not not be mad
to pay.
Will go. 1t cannot be stated today. Th
nothing; that the surety companie
must make good the losS Should tn
question go to the local courts, 1t n
doubt would excite more legal interes
than any case that has come befoI
the public in years
Nns~sA GsxxoS g.. Es~sk