Evening star., 1926-09-05
MORE PROJECTIONS FOR BANKS
AGAINST FRAUDS ARE NEEDED
Even Close Espionage and Bonding Com
panies Are Frequently Proved made
ouate to Check Crooks-Examples.

that the woman had just presented
another 5000 forged check.
She was detained and the police
were notified. She was then exam
ined, but showed no evidence of fear
or recognition that she had done any
thing wrong. She was plainly doped,
almost stupid, and was being used
by the payee of the original $40 cnecK.
The matter is in the hands OF the
law, but the bank may charge the
loss to itself.
Not Under Bond.
If a man can obtain banks money
on his own check on the bank when
his account does not warrant 1t, the
bonding company is not Responsible
Some customers go wrong after many
years of doing a regular upright busl'
ness, through various circumstances
Checks have been promptly credited
to their accounts when deposited and
they are permitted to use them as
cash, If returned mot sufficient
funds" the bank is not protected by
bond.
Rates of insurance against hold-ups
have become very heavy recently and
a few of the larger banks are protect
ing themselves in this respect.
All checks and moneys in transit.
securities, etc, are intrusted either to
the registered mail or express, heavily
insured.
A receiving teller in the savings de-
partment of a local bank put over
tough fraud some time ago. one that
left suspicion on himself and an inno-
cent bookkeeper. This teller was not
ambitious, but was satisfied to steal
I'll fnF q l.
tuition.
He did it this way, receiving the
deposit slip with the amount of the
savings, following the usual habit OF
entering the sums deposited on the
bank book and initiating each record
in the pass book, so as to indicate
that he personally had received the
Instead of following the regular
order and putting the deposit slips
on the spindle where they Wouio
reach the bookkeeping department
the teller simply tore them up as 1ast
as they came In.
The pass book when left for bal
ance disclosed the fact that the client
had very little to his credlt. lheh
came the climax.
THO nresident was called in and
the teller closely questioned. He ad-
mitted that he had received the de'
posits. as his initials established. es'
he remembered a number OF tnehi.
but could give no reason why thes
had not followed the usual course
70 the bookkeeper and been credlteu
on the records. soe-
The bookkeeper handling their spe-
cial account was utterly In the carr !,
as to why the slips of deposits nau
not reached him, but averrlhs poS''
lively that they had not.
~ would have been an injustice TO
hove made a charge against elther'
az il could not be substantlateu.
The bonding company was cailed III
made it's investigation but mace IL.
nroeress with the matter Inc ioS.ss 80
were raid. but further bonding OF .he
recejyine teller in the case was relus-
ed so that despite his cleVerness'
i,s+;ce in a measure, found it's mark
Making a Profit.
Washington is again in the New
York stock market heaVl'!, aaiu q
eoodlv mart of it does not originals
=, tha brokers and investment bank
kers' Offices direct. .
There are many investors VINO pre-
eer tn have the banks relieve them
Of all responsibility by assuming
themselves. Hence they give theli
orders to their bankers, who IN turr
nhone it to the broker who Will 1or
ward It to New York. buy the STOCK
and make the delivery.
The banker then sends 1T or mas
II sent to the transfer office. regis
tered and insured. has it transferred
as requested by the buyer. and re
turned to the bank. where it is con
signed to a safe deposit box.
II is not the habit of the bank te
charge a commission for this service
which would be against the rule OF
the New York Stock Echange. but
service charge is made plus expenses