The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-04-25
WOULD TO GOO THAT, rHlD
Been DISCOvEREDWHEAMY
THIEv|NGS WERE SMALL
HENRY NJ. DEARING.
"Now I'm Utterly Ruined"
Walls Albion Bank Wrecker,
Starting For Prison
EXAMINERS WERE EASY
Says Government Should APP
point Competent Men Who
Can Detect Crookedness
HENRY M. DEARING.


4 OF Albion, before leaving Detroit, We'd
nesday morning. In company with his
son. Palmer, for the federal peniten'
tiary in Leavenworth, Kas., TO which
they were sentenced for five years
by Judge Angel, gave out a statement
TO The Times in which he analyzed
the cause CT his. downfall, the wreck
Of the bank and the loss OF approx
niately $4,000 to depositors.
Not overlooking his own RESPONSE
bilfty IN the affair, the elder Dearing
held the lax system OF the govern
ment In conducting examinations OF
the smaller banks to blame Tor the
fact that the bank was completely
ruined before detection came. me
Installations extended over period
Of nearly IL years and examinations
were supposed to have been made
twice yearly, but the government ex-
aminers did not learn the true condi-
ton OF affairs until the elder bearing
confessed everything.
would to God" he cried, that |
had been discovered when my thiev-
ings were small / would have sur
fered, know, but not as have sur
fered. and I could have made amends.
Now | have lost everything, all my
friends, all my money am utterly
ruined, and, as though that were not
enough burden, have always before
me the knowledge that took my son
down with me, my son. for whom l
should have set better example"
The old mans slight frame trem-
bled. he leaned against the bars OF
his cell for support, mist came be-
fore his pale, blue eyes. His thin,
white hair and furrowed forehead
added TO the picture OF age and
despair. y - .e1.
Points 20 q Lesson.
There Il one lesson / would like
to draw for the world In my failure,
he continued, and the reporter expect
ed to hear the old, threadbare moral,
Don't begin" But the lesson was
more practical. bearing went on:
"The first necessary step for stop
ping such a theft as the one which l
am guilty is the elimination OF politi-
cal considerations In the appointment
OF our national bank examiners. Men
should be appointed who have long
practical experience In bank AFFAIRS,
(. men who understand the running OF
banks and who caa be depended on at
all time to take pains and make con
scientious examinations. ,...-... /.
Take my case as an example
had no trouble, whatever, In covering
tip my shortages as cashier of the Al
bion National bank. 1t was simple
matter and could have been exposed
in a simple way IL the examiners had
gone about Ii right. I don't think II
would be good policy to give the de
tails OF just how I covered up the
shortages for SO long a period; II Is
best that such things should not be
commonly known. Neither do l wish
to criticize my superinrs in the bank,
bu- I will say that IL the smaller
banks OF our country had such thor
ough-going business men for directors
as have the larger banks In Detroit
failures like that of the Albion bank
woald seldom occur.
II consider the present national
bank examiner, III. Z. Johnson. thor
oughly efficient He made one exam
nation Of the bank prior to tie exam
nation made in January. when / con-
fessed to having stolen the bank
money. But when he made the for.
mer examination he was comparative
ly new at the business. AS for the
3 assistant examiners 1t was a very
easy matter to throw them of the
track. They would take too much for
granted.
Should Pass on Notes.
Another point want to make Is
that the examiners should meet with
the directors and pass on all notes
The national bank examining depart.
ment should take more interest in the
personnel Of the boards Of directors
and the latter should not be mere
fgureheads. II is that condition to
day which IL causing 80 many bank
smashes In this country. II the sys
tenn were changed the shortages
would be detected as soon as they be
gan and the banks could not get hope
z lessly involved. The government has
a moral duty to perform In this mat
ter In safeguarding the public, II moi
In keeping a banker who starts to gC
wrong from ruin.
Have you ever had secret In your
heart that you felt you could not give
I'D and yeti tortured you so that yor
almost prayed that IL might be re
vealed3 That is the way I felt FOL
years, until 1t got to point where
was glad when the examiner got sus
picious and closed the bank. I nigh
have held of. I might, even, have
attempted TO allay his suspicion, pos
ably, thrown him entirely OF tn,
scent, but Il had come to such a pas
Hhat I felt sense OF relief whel
caught. even told the examiner hi
euspicions were well-founded and cor
fessed everything"
Study for Psychologists.
Bearings case Is a study for psy
Biologists. Going back to It's lncer
tom the story concerns an ambition
promoter, how he got the bearings In
ferested In a gasoline engine enter
prise and how, TO use the language o
the son, I'VE built too much on on
hopes"
The elder bearing went to Albio
An 1856, and conducted a store Their
for about IL years. He wanted to z
to war I'm 1861 but he was PHYSICAL
nnft. He joined the National ban
stan IN 1877. His first wife died !
1883. and no now has wife about 4
, years Of age, who IS left TO shift 10
herself with their youngest son. age
four years. His wife had about $50
on deposit In the bank and she wi
receive her proportion OF what is lief
the receiver having estimated tina
The depositors will receive about
| 1919. ~. tl.a dollar vyhiCh faaana tha