Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-14
EXPERT REVEALS METHODS
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words, as Field alleges, supposing
that Mr.. Jones had an account of
$4,000 at the savings company,
Chong was in the habit of forging Mr..
Jones name to withdrawal receipt
and then taking Mr.. Jones' money
out of the bank without the knowl
edge of Mr.. Jones. This transaction
would be entered on the lepositor's
cash book, as Field outlined the plan,
alleged embezzler had drawn the
Just as though Mr.. Jones and not the
money. IT,. b.. +
In place OF making seventy-seyen
separate entries on the ledger, how
ever, to make that book agree with
the cash book, Chong would then,
Field said, plug the ledger by TAX
ing off large amounts from non active
accounts. That is, If SChong had re-
allied $4,000 on thirty forged with
Grawal receipts, to follow the reason
ing Of Mr.. Field, he would. to make
the ledger balance, take perhaps $780,
600 from the account of Mr.. Smith In
the ledger and thus make up the de-
ficieney IN lump sum or in half a
Dozen such sums. And thus there
were only about score of false en-
tries in the ledger, whereas in the
cash book there were over a hundred.
Amounts Are Dropped.
Mr.. Field further testified that
Chong would drop amounts arbitrarily
from his trial balance taken from the
ledger. Thus by taking $4,000 or
$4,000 from the cash book, he could
make up the deficiency by knocking
off an equal amount from the trial
balance. In this way, the cash books
balance always tailed with the bal
ante Of the ledger In addition to
this, stated Mr.. Field, Chong was in
the habit of taking money from de-
positor, entering the amount in the
Gepositor's pass book, retaining from
entering the transaction upon the
Looks of record at the bank and put
Ting the money without further ado
into. his own pocket Again, as the
expert testified, Chong was in the
habit of withdrawing money from the
bank without even making out forg-
ed withdrawal slip. Thirteen thou
sand dollars, for which no withdrawal
slips were issued, had been, accord
ing to Field, taken out in this way.
From January 1, 1909, to the last of
August, 1912, Field testified, the al
legged embeZzler had kept the amounts
distracted clearly in mind and had in
every case plugged" the books or
10 1,, -.
way the cash on hand as shown by
the cash book always agreed with the
trial balance of the ledger. For the
month of September, however, as
Field stated, the alleged embezzler
lost account of the amount taken and
was not able to make his cash book
and trial balance agree. Flight was
then, according to Field, the only re-
course. H.. -....:.@- r.. ~. .'a
1t was only after giving testimony
as to the length Of time spert upon the
books and as to the thoroughness of
the examination that Field was al
lowed TO testify as to the condition
Of the books. He explained that with
magnifying glass he had examined
the signature of every withdrawal re-
ceipt since 1909 and had compared it
with the depositor's signature in the
register. As great number of the
characters are Chinese it is all the
more remarkable, say the bank off.
cials, that not one of the receipts de:
clared by Field to be forgeries have
been found to be otherwise upon
questioning depositcrs. Field has
been at work upon the books since
November. 1912 A number who have
followed the case closely state that
his work in ferreting out the innum-
cradle deficiencies said to exist, and
in detecting what is alleged to be a
scheme of embezzlement that escaped
the. eyes of bank examiners for over
three years, is as rmarkable as any
thing that has ever been done in that
line in Hawaii