New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-15
LOCAL MISCELLANY.
THE MERCHANTS EXCHANGE BANK DEFAL-
CATION.


CATION.
THE UNITED STATES AUTHORITIES ORDER THE
ARREST OF OAKLEY, THE DEFAULTING CASH
TER.
Considerable excitement was created some
weeks by the discovery and announcement that Ed
ward Oakley, cashier Of the Merchants Exchange Ma
tonal Bank at No Broadway, had been engaged for
three past In embezzngthe funds OF the insttu
ton to the amount of than 100000. There was
nothing particularly extraordinary In this but the public
surprised to learn that the managers OF the Bank
instead of causing the and prosecution Of their
unworthy officer, had employed him 10 unravel
the affairs which his misconduct had
thrown into confusion, and apparently had no
intention of calling him to account for his malfeasanee
supponng this to be the CASE Mr. A. ii. Purdy. one OF
DstrictAttorney lPierreponts assistants, hunted mp
law under which he thought the United States author
tiles might bring Oakley to justice and then wrote let
ter Of Inquiry the subject to Solicitor Banfed OF the
United States Treasury This signed and forwarded
by Judge Perrepont and ELECTED the following reply:
TREASURY DEPARTMENT sOLICITORs OFFICE, Jan. L. 1870
SIR have To acknowledge tho receipt Of your letter OF
the Sd inst calling my attention to the alleged violation
OF the 55th section of the Act OF June 1864 by the
cashier OF the Merchants Exchange Bank of New York
reply to say That in this case as well as any like
t1re You vii please institute ermna, .I
Gent evidence be produced to warrant the expecta
ton OF CONVICTION Very respectfully
&. BAYFIELD,, Solicitor OF the Treasury,
Hon. EDWARDS PIERREPoNT, United Estates Attorf6y,
New York.
Armed with this authority Mr. Purdy Immediately pro
ceeded to draw up the following affidavit:
United States Circuit Court, Southern District Of Nep-
York, A. ii. Purdy being duly says that lie Is
Assistant District for the Southern District
ton and belief Edward J. oakley, late cashier Of the
Merchants Exchange National Bank in the City of New
York. did various times in the years 1867. 1863, and
1862 enbezzlc abstract and wilfply misappy large
amount OF the money! funds and credits OF d SanR
said bank. Depouent further says that at the
time and place aforesaid said Edward j.. Oakley,
books OF said bank with intent to deceive the ofic-
Of said bank and TO njnre and defraud said bank
and its creditors in violation Of the 55th section Of
the Act OF Congress- approved June 1861 ana enttea
pledge OF United states bonds and provide the cir
culaOn and redemption thereof" DepOnent further says
from certain statements made TO deponent by VIM II:
Thompson VcePresident and Director Of said bank and
| not A. II. PuRDY.
JOHN A. SHIELDS United States Commissioner.
for Oakey's arrest was promptly issued by
the Commissioner and placed last Saturday in the hands
Of Deputy Marshal Chryste who proceeded TO the bank
without delay expecting to arrest his man at once, but
was Informed that Oakley had finished his work there al
II o'clock the previous night and might probably be
| found at his house Thirtyfourthst. Proceeding
thither the Deputy Marshal told that Oakley hal
gone into country day two OF rest and reaxa
uon after and unrcmttiug labor at the Bank
Not knowing whether TO believe This or not and having
himself with calling in the aid Of an assistant
| and keeping the premises under strict surveillance
! ON Tuesday Oakley came home, as chrystle
| confidently believes, but Mrs. Oakley, who - as
/ sharp az brer," made innunerablc plausible
| excuses, and with the AID Of the maid servant
| and cOachman effectually prevented the Deputy
! MarshalffrOm scrving his warrant Ia the meantime.
frit ndly negotiations opened with view to Oak
lcys voluntary surrender provided moderate bail would
be accepted and after considerable parley point was
finally reached which made IL probable yesterday
afternoon that Oakley VIII be produced in Court to-day
and admitted TO bail the OF $4,000 IL y stated on
| n !
friend in this city, and has no Intention whatever OF AZ
tempting escape the legal consequences OF his acts
which. in fact hls peunics condition would eheonaly
| prevent, even II he felt disposed 10 run away
il may worth while TO add, the best authority, that
tho Bank authorities did not intend 10 let HIN escape
without prosecution, and only delayed his arrest IN order
avail themselves of his services by OF which the
task of strengthening the Banks affairs accomplished
In lees than three weeks, whereas without hls ad II
| would nave taken three months az least. The gross
! amount of the loss sustained by the Bank through
Oakleys REGULATIONS Is estimated at $4,000, but pOr
ton OF tins Will be made good from the proceeds OF
large quantity Of tobacco purchased by Oaheys brother
with the eInbezzlcd funds This has been seized by the
Bank but as various OF money had been advanced
upon IT, no tell at present what part OF the loss
will covered by IT, In any event hs the whole amount
embezzled only part OF the Banks surplus, the los
cannot iufct permanent injury upon the Institution, 81
! shake its credit IN any way.