The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-05-20
FALCAT|ON HELD
LARGEST RECORDED
IN STATES HISTORY
Exchange National Bank, Pro-
nounCed Solvent by Examin-
erS, Continuing Business
Under Same Officials

Montgomery, May 19.-The detail
cation of Randolph Gambler, book
keeper for the Exchange National
bank of this city, who committed sui
eide on May 7, was officially an
nounced by the directors of TIE bank
to be $23s,54O.72, the largest defal-
cation by bank attache ever record
ed in Alabama.
Officers of n security company
ON blanket bond paid over. to the
bank this afternoon the sum OF
100000, the total amount of their
liability. Directors of the bank
paid in $4,000 to increase the sur
plus and undivided profit account
to $4,000. The bank has deposits
OF $f,100,OO0. and before the defal-
cation had n surplus and undivided
profit OF more thnn $15O,000.
The bank, pronounced solvent by
examiners and auditors, is proceeding
to do business under the same officials.
with an excess of $4,000 over all
possible obligations.
BODY FOUND IN RIVER
Randolph Gambler on May Z walked
bank examiner on the individual led
gers which he kept himself and which
were afterwards found to be irregular
He introduced himself to the examiner,
asked to be excused while he tele-
phoned a friend to break an engage
ment so that he could help the exam
ner. Instead of telephoning, he went
direct to the Alabama river. Embossed
a motor boat which he maintained On
tho river, and sped down to Reese's
ferry, He anchored his boat there
tied his feet with a rope to the boat
and sent bullet through his head
His body in the water and hanging to
the boat, was found by a boatman
who had been sent by the officials to
follow him.
Gambler, the examiners say, was
plunger. He played high at cards and
dice, and went extensively into the
advancing business. He is said to have
lost large sums last year in advancing
to farmers. He operated under sys-
tenn whereby he doctored the individ-
ual ledgers in the bank, drew checks
through the other banks which were
paid by the local clearing house.
When the eheeAs arrived e'arsilar
ltore item TIP AMI Tfalsified the indi-
vidual ledgers.
BEGAN IN 1917
Gambler obtained the first money
from the bank in 1917 and since that
time and until his suicide had carried
on extensive operations with the
banlSs money. Examiners found thas
Gambler would issue checks to himself
and would present them for payment
at other banks in Montgomery. When
the checks reached the Exchange
National bank they would go to him
in the natural course of business. He
would destroy the checks and alter
other accounts in order to show daily
balances which would not lead to n
discovery of his speculations. Gambler
owned a large plantation in Gilmore
county and would issue checks to his
employees which likewise were de-
stroyed- Investigators also found he
lost heavily gambling and always paid
in checks.
The defalcation of s2Ss.549.70 prac-
ticaily wiped out the banks surplus.
which had been created through many
years business, but the directors and
stockholders added 100000 to their in
vestment in the bank and created an
other surplus With the 100000 OBJ
tanned from the bonding company, the
hanks actual loss is only little more
than s10S,000. Officers Of the bank
announced that it would continue its
operations under the same policy and
that, present officers would be re-
tanned.
Examiners have been unable to find
any indication that any person aided
Gambler in his operations which brought
one of the greatest losses suffered by a
southern bank in many years.
The mystery in Montgomery after the
official announcement of the shortage
was made late tonight was how Gambler
could obtain such a great amount OF
money without being caught and what
he did with it after he obtained 1t. While
he had been regarded as a plunger in
business, no one suspected his operations
to be on such scale as has been de-
veloped since he killed himself nor did
any person suspect that his operations
were not legitimate. He had been con-
nected with the bank throughout his
business life and had gained the confi-
danca of ire officials