The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-01-08
REPORT OF RECEIVERS,
SHOWS HOW HARDING
SECURED $13,461.72

The charges against Harding were
made public last night, when Judge
William n. Moncure, Of the Chancery
court, entered an order fling the re-
port of the receivers of the Common
wealth Bank. and referring 1t to a
commissioners in Chancery. II was ac-
Compan.@d by the special report of
the American Audit Company on the
item marked discrepancy between the
individual ledger balances and the
general ledger control OF $1,000 >"
as shown In report No 2, which the
receivers filed in December
Yesterday afternoon. before Judge
Moncure entered the report to the re-
cords, he called Police Chief Werner
and Commonwealth Attorney Folkes,
laid the charges made in the report
before them and instructed them to
begin criminal action against young
Harding. Major Werner at once ap-
pcared before Magistrate ]. A. Purdie
and swore out three warrants for
Harding's arrest, each charging the
bookkeeper with a separate grand lar
ceny
The American Audit Company in
reporting to James ". Gordon and
John h Tiehtfoot Ir., receivers of
the Commonwealth Bank. states that
of the discrepancy between the two
secounts-s134S2SA --there has been
traced 10 John n Harding sI3.4s1.T2.
leaving s2t.1T vet to be located. The
report IL signed by Thomas =. How
ard resident manager.
In order Ia cover the shortages
Ter which John Fl Harding was re-
sponsihle." the report of the AUDIT
Company charges. he forced the foot
~ q
which the statements for the daily
cIearine housc checks were made. so
as 10 include In the total charge
against the control account checks
settled for with the clearing house
banks by the Comm onwealth Bank.
hut not charged to anv accounts on
the individual ledgers
Harding Confesse@.
eve found that majority Of these
checks were drawn on the Comm on
wealth Bank and deposited by Hard
ing in other banks. When asked Tor
an explanation, he acknowledged hav-
ing drawn checks on the Common
wealth Bank, in which he kept no
account. He acknowledged having
destroyed the checks included in the
clearing house list presented TO tho
Commonwealth Bank for payment
and he also acknowledged having
forced the foot!ngs Of the machine
lists,
THE tracing of this shortage in
yofvea the review OF the details OF the
daily work, including the checking OF
the footings of the daily checks ana
deposits to the individual 1edgers rom
October /, 1912, to August 20. 1918
I'VE found that, with the above eS-
ception, the accounts were kept IN an
orderly and systematic manner
The receivers report No. 10, pre-
senting the report of the audit com
pany, refers to the audit company :
report as Exhibit Rtoort NO. :, an q
states that IT is TO be read as par'
of the receivers report, as IL "fit-
ten out herein at length
The receivers report presents tna'
the American Audit Companys re-
wort .'shows that John FL Harding,
who was one of the bookkeepers az
| the main office of the Commonwealth
Bank. Inc, by manipulation OF .le
| booka and records, Is Responsible TOT
! a ahrinkage In the assets OF the pahk
10 the amount Of sl3,4s17z.
showed Discrepancy.
"The former report say the re,
relyers. showed q discrepancy o.
s9a Anf 80 but to This should be add
"a $500. which had not been Veri-
aas nv the American Audit Company
ava was treated as a proft ana ioss
/ item . eco m a
| ;r,,,,daa N, the amount traced TO JONI
| n Harding, and the balance OF fzil
ia the difference which has not oeoi
located. ,aa Afr John
| II. Harding and his la,het' va. -,
| r. Harding. to meet AT the o,a.e w.
| ~ commonwealth Bank, when thes
ala n the presence of Messre. Inofnas
| 70 howard Allan Talbot and II. u
| proctor. At this conference your
1 caivers stated TO Mr.. John III. mar u'ils
! that the shortage existed ana tha' 81
rors in the adding machine iists ap'
peared in his work. .s 1T.
sTIe then and there admitted ma
responsibility for tho errors ~ =,
machine lists, and for the shortage Ne
| the assets Of the bank, but stated ina
ha did not think that the amount u
his shortage would exceed s9.ooo'
i, "subseuuentIy he came to the onlcs
I Of the bank "A number OF ttstfes 49,"
| checked out a large number OF th'
,taoo. with Mr.. Talbot to an amour
! greatly in excess Of his estimate. ne
/ further examination of the DOCKS o.s
closed the forced ADDITIONS ny ~
! Iobn II Harding to the total amouh'
- st9 4s172. as shown by the sale
,repnrt No. o of the American Audl'
company, ,.a,,,
! AT the said conference between your
receivers and Messrs. John H.. an,
/ Iohp u Harding the latter expressed
MS desire to make good TO your re-
rofvera any amount for which ms sol
| might be liable. and severai oas
thereafter. Mr. John II. Harding stated
| Ia your receivers that he was either
the legal or equitable owner OF various
| items of real or personal property
most If not all OF which represented
purchases made by him Win iuhos
| taken from the bank.
surrenders Title Deed.
| "Irpon demand by your receivers tha'
| ,hts property be turned over TO them
| tha said John II. Harding surrehoereo
| ia your receivers the title DEEDS uhuei
which the real estate was held, anc
a memoranda Of certain personal prop
| srtv and chooses In action. for the pur
| nose of having your receivers orA"
the proper pap, for the transfer OF
| ali OF said prop 81 TO them.
"Your receivers prepared the propel
papers for that purpose and requested
| Mr.. John IL Harding to execute th'
same. but they were informed by Mr.
! Iohn f.. Harding that he wished u
t defer their execution until the ent'r'
! amount OF the shortage was ascer
! tained and adjusted and that IN TN
/ meantime no disposition should %