The sun., 1879-06-22

i "
flod do not know. There Is reason, however.
TO believe that the bank before 1862 became
involved IN @ @sgeenations which proved disas-
ness for the bank. He sent circulars to banks
and bankers all over the country Offering them
special inducements to do business with tho
Ocean National Bank. In the trial of the case
OF the First National Bank OF Lyons Iowa,
against the Ocean National Bank. the substance
OF this circular was drawn from Stevenson on
cross examination:
o-Do you remember the sending OF circular to
panss at e West prior to July 1868 by your oahk A.
Q-Yes sir A--some time in the year Isss sent cir.
enaIsto bankers sent them generally tn nearly all the
Western banks They printed circulars prepared
lie Contents (" oy 1C Sai ciTcaaPP"nssrly P So ,'"
oTw gog be- Mnd enough to STATE tho @ content. % Of ~
onal hank solicited the account Of ne benE ha, was
70 them they decided TO send their account to ~ INA.
cash items uiesnns cheeks on Boston r6iiadeiih.S,
Albany New York and one or two other places 70 the
without ehsrse that we boggh, and sold Goyernwent
happy TO have their account That's the substance Of IL
These were attractive offers Four per cent.
on daily balances was fair rate OF interest for
money on call, and the proposltion 70 buy and
| OF one-quarter OF one per cent. brokerage was
very grent inducement TO banks and bankers
| who wished TO speculate In Wal street Tor them
| selves or their customers, The solicitations
| drew many thousands Of dollars 20 the vault OF
| the Ocean National Bank. The First National
Bank of Lyons, Iowa, the Second National 81
! Erie. Pa. the First National Of kingwood. w.
Va, the Lafayette Branch Bank OF Indiana.
and many others sent bonds to be sold, money
| 70 be loaned. and coupons TO be collected.
Those. were in the nature Of special deposits
| and. after tho robbery. the Ocean National Bank
! officers claimed that under tho national bank
| ing laws their bank could not be held liable for
special deposits. and the Court OF Appeals OF
| bank escaped responsibility for hundreds OF
thousands OF dollars stolen.
| The bank was laboring under heavy load OF
| bad debts. the result OF mismRnagement or
something worse; To prevent the discovery ot
| its unsound condition. II was necessary not only
| TO draw funds by the device already described
| from other banks. but TO continue to make
advances upon doubtful securities. Among
| other bad investments were largo loans upon
| or purchases Of the bonds OF the Portage Like
and Lake Superior Snip Canal Company. This
| concern had its office in the Ocean National
Bank building. Chas. Calender. the National
| Bank Examiner was Interested In or employed
| by this concern. He could be very service
| able agent in securing loans from national
banks. The Ocean National Bank had. preyi-
| Gus to the robbery. invested largely in tho
Ship Canal Company Mr. Martin says the
bank los, 100000 OF them by the robbery. and
IN Rs TSpG TSpo
the Comptroller Of the Currency on the robbery.
gives the value OF these bonds at 90 cents on the
dollar. but IL IS certain that their market value
then was much less. There were other ques,
tonable transacttons. The Tweed Ring had
relations with the bank and the New York
Printing Company had obtained loans OF large
| sums Of money on security which was worth
the case OF smith. Randolph y Co. against the
Ocean National Bank. testified that many Of the
securities held as collateral were worthless.
X.
That there was cupable negligence on the
part OF the bank officers In not guarding the
bank. In not listening 70 the warnings repent
edly given by divers persons, and especially by
the persistent Mr.. Holly. has been amply proved
heretofore. IL was proved to the satisfaction OF
Jury in Pennsylvania as we'll as to one in New
York. Smith. Randolph 4 co. recovered Iudg-
ment against the Ocean National Bank on the
a Of tn 4 NI u ID
courts. and the supreme Court Of that state
sustained it, The First National Bank OF Ly-
ons. Iowa recovered Judgment on the same
ground in tho courts Of this city. but the Courl
OF Appeals finally decided that the bank could
eS sGa aSs eases io did Pt6s dare
go further than 10 prove negligence on the part
OF the bank officers. II would have been fata
To their claims to have proved that the officers
were privy TO the robbery.
The President kept his account at another
bank. The wife otthe Cashier. who had property
in her own right, did likewise. The day before
the robbery the President drew $4,000 in cash
and IS 900 in Government bonds belonging "a
his mother-in-law. The Cashier also drew
$4,000. But their conduct after the robbery was
SUI more suspicious. Tgey offered a reward
return Of the stolen bonds. but they made no ef-
fort whatever to secure the arrest of the thieves
They placed the case in the hands OF Theodore
VI. Davis who boldly declared that the bank
did not want the thieves arrested. The Cashier
pubIshed over MS own slEnhture an oHei
70 pay twenty-five per cent Qi ~. iull value
Of tho Government bonds stolen u they were
returned. The robbers carried on their plum
der early Monday morning and late Tuesday
night returned almost publicly portion o
IT, Whoever heard OF bank burglars doing
such thing before or since2 The statements
OF the bank officers and Bank Examiner about
the loss To the bank are contradictory. but AL
agree that the loss OF tho ,depos,tors was nearly
a half million dollars. How did II happen thai
the robbers selected the securities of the de-
posiiors and left gold and gold certificates, banL
notes. and securities belonging TO the bank
| They attempted TO arrange things in the base
ment so MS to create the impression that they
| had been hurried away-but they locked the
door behind them when they went outl
XI.
Who the robbers were and every detail o.
their crime was perfectly familiar to the po
| lice detectives within twenty-four hours after
the robbery There have not been hal
score OF burglnries or sneak theits commit
ted in the Eastern States during the last NJ
teen or twenty years out Of which the detectives
Of this city did not receive from the criminals
percentage. Not intrequeutly police on l.er'
and detectives compel men who might have re-
formed 10 continue criminals. The officers
OF the police force sometimes beat the do
| tectves in this business OF shaking " thieves
Charles Ulrich. a noted counterleiter VIII,
outfit. including an expensive transtor press
nt the corner Of Nassau and Ann streets
and eiterward in Maiden lane. was kept poo
detectives, and finally Oilcer Haloran Of tn,
Twelfth Ward set him up IN the house OF Ser
geant Abel Wares. in Harlem. and the Sergean
and KOundsman Day assisted in printing IA,
counterfeit money. Urich. subsequently, intro
| uuctu jim 0tlpeIls n NOTORIOUS touhlfIlHttI, u
tho detectives at headquarters. Colbert WIS
capitalist and paid Ulrlch for the plates rs h'
produced them. and made Things square
with the detectives. Sergeant Wares used {,
| carry the plates to Colberts house. Sergeanu
| Walsh and McCrom had. previous To this mr.
rested Ulrich and released him upon the re-
ceipt Of So 600. Haoran found this ont nnt
went after Ulrich himself. After the arrange
ment was made with Colbert. Urich says:
| Chef Detective YOUNG used 10 send word 20 Jim Col
bert And McCor ami Elder also used to send word the
whenever they wanted TO me. when there Na
any hing wrong. when they wanted 20 tell me to uu
the way, when Jim COlhcrts place was going Go h
overhauled jim Colbert had always DAYS nauce cd .t
sometimes only couple of hours notice but he nityHy
his place going 10 be oycrhauied unc duc jan rO
bert's place watched By Government detective
and detective from headquarters came right by th
| private way and Informed US We knew everything II
that way,
In a few years Ulrlch says he alone paid DO
| licemOn and detectives in New York tl9 600. in
| dependent OF the contributions Of Colbert. IL
addition to this. Ulrch reengraved stolen watch
es. FURNISHED out the makers name and mum
bers and cut new names and numbers for IN,
detectives.
From 1868 to 1875 there we're several organ
| ized gangs OF thieves operating in and from
New York. Every man Of tho different gang
was known TO the detectives Their habits nnt
manner OF working were we'll known
One OF the most dangerous OF these organ IA
tiOns furnished the men to rob the Ocean Ma