The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-08

or this amount there Inns been traced
TO j. II. Harding SI3.401.72, leaving N
total difference not located of SPLIT.
"In order to cover the shortage for
which }. III. Harding was responsible
he forced the rootinss of the machine
lists, on which the settlements for the
daily clearinghouse checks were made,
SO ns TO include In the total churEc
against the control account checks set
tied for with the clearinghouse banks
by the Commonwealth Bank. hut not
changed on the Individual IcdEers.
eve found that majority of these
checks were drawn on the Common
wealth bank and deposited by Harding
in other banks. When asked for m
exclamation. he acknowledged having
drawn checks OH the Commonwealth
t,..n>, in which he kept no account. He
acknowledged having destroyed the
checks included In the clearinghouse
list presented so the Commonwealth
Hank for payments snd he also ac-
knOwledgcd having forced the foot
ings OF the machine lists.
'E'Ihc tracing OF this shortage in
yolyed the review OF the details of the
daily work, including the checking of
the footings of tho daily checks and
deposits to tho individual lcdEcrs from
October /, 1917 to August 20. 1913.
eve found 'hat. with tho above ex-
ception. the accounts were kept in mn
orderly and sYstemntic manner.
"fhe mnkinE of the total shortngcn
above referred TO. nre shown In Sched-
ules No. and No. ..
.'Respcctfully submitted,
''THE AMERICAN AUDIT CO.,
"By THOMAS r. HOWARD
Report Of Receivers.
In declaring that John Fl. Harding
was responsible for tho shortage dis
covered by the American Audit
~.
filed yesterday have the following to
say:
'The said report OF the American
Audit Company. herewith filed. shows
that John II. Harding. who was one OF
the bookkeepers ut tho main office of
the Commonwealth Bank. Incorporated
by manipulation OF the banks records.
is responsible for the shrinkage in the
essets OF the bank to the amount OF
s13.461.72
THE former report showed dis
crepancy OF S13.40o.S9. but to this
should be added $50. which had not
been verified by the American Audit
Comnany. and was treated by II as 4
profit and loss Item. The sum of S60 SO
Of this $50 is included in the amount
which has been traced to John III Hard
ing. and the balance OF S21.17 is the
difference which has not been located
, Further the report says:
Harding's Confession.
''Your receivers requested J. Fl
Harding and his father, John T. Hard
ing. TO meet them at the office of the
Commonwealth Bank. which they did
in the presence OF Mcssrs. Thomas p
Howard, Allan Talbot and II. q. Proc
tor. At this conference your receivers
stated to John II. Harding that tho
shortage existed and that the errors
! IN the adding machine lists appeared
! In his work. He then and there adj
United the responsibility for tho err
! rors in the machine lists and for the
/ shortage In tho assets of the bank but
stated that lie did not think that the
amount of his shortage would exceed
/ s5 ono. subsequently lie came to the
! Office OF the bank number OF time:
and checked out large number OF
items with Mr.. Talbot to an amount
greatly In excess OF his estimate The
further checking OF tho books disclosed
| forced additions by John IT. Harding
! to the total amount Of s13.461.72 IS
shown by the said report No. . OF the
| American Auditing Company
J sat the said conference between your
receivers and Mcssrs. John II. and