Delaware gazette and state journal., 1884-06-12
BANK FUNDS ABsrRA oTEO.
Cashier Hail's steaIiBgs Nearly
$4,000 - His PIunderings Con-
ceAIed by FaisiHed Accounts.

Suho AOs-htuGA aObu
yesterday rumors relative TO the Citizens'
National Bank Of this town were dis
cussed by groups Of men on each street
corner and In all places Of business. The
accounts were different In almost ov ~
case, thus putting everyone in' Il
qusndary, Your correspondent, mot know
ing the facts In the case, refused to report
anything at all, and last evening learned
from the officers OF the bank the true
situation, which In brief is as follows :
Certain funds belonging to the bank
have been abstrsoted by j. r. Hall, late
cashier. Mr.. Hall has transferred to the
bank real estate sufficient to cover more
than half the loss. His securities are
sood and besides II would not require
half the surplus reserved by the bank
for such emergencies to make up the
balance Of the loss. TIE directors have
issued notice to their dspositOrs and
customers, stating that they will be- indi-
vidually responsible for the money on
deposit. So there ia not the slightest
cause for any apprehension ss to the
soundness OF the bank.
Mr.. Hall has resigned and a new
cashier will be appointed in short time.
The deficiency was discovered on Fri
day last, bnt did not transpire generally
until yesterday morning Every state
ment made by J. Z. Hall concerning the
defaloation has tbuA Ear proven correct.
He at once acknowledged his wrong and
offered his property to the bank. Reading
railroad margins was what the bulk Of
the money was invested in, which of
course WAS certain loss.
When this report fire. started no one
would believe it simply because 80
mnch confidence WAS reposed In Mr. Hall,
he holding high position in society aud
being strict member of the Presbyterian
church.
1t is useless to mention to the effect on
the bank, since the directors make
themselves individually responsible, and
three Of these gentlemen can be named
who are to day worth over $500, ,000
The report that "Buck Hill" valuable
farm owned by J.R. Hall in Cecil county,
Ia incumbered By mortgages ia not true,
as the land records of that county show
IL to be clear. This farm alone is valued
at s17, 600.
]. r. Hall had been in the bank for
the past 20 years, having sucoeded Mr..
Mcdowell.
The affair has greatly shocked the
community.
ANOTHER ACCOUNT.
J. R, Hall, cashier Of the Citi.
zsns' National Bank OF MIddletown,
is heavy deisul,er and has resigned his
position. The exact amount Of his de-
faloation has not yet been learned by the
directors, but Is authoritatively stated
that It will not exceed $39, 900. tits also
highly probable that It will
nearly reach that figure. Cashier
Hall has confessed his defalcations to the
board of directors and has made state
ment setting forth the time and amounts
OF the stealings. This statement has
been Investigated and compared with the
books of the corporation and has proved
to be correct, and there Ia no reason to
believe that there are any other sums
tax n that are not stated by the csshi n.
the discovery of the defalostiou WAS
10 sense accidental, as 1t cropped ont
in q transaction between the Citz ns
Bank aod a Philadelphia bank, VIII. re
the former kept q large deposit. The
discovery WAS made on Thurs6 sy
OF last week and conferences OF the
directors " 8 at onoe held. The board
toak the matter in hand, ard made a
thorough investigation with the results
as stated: that about e39, 900 of the
banks money had been stolen by the
cashier. The thefts CT the monsy h Rd
been committed in a systematio manner,
covering period of many years.
The stealing was rather ingeniously
done which made It's detection In mea-
sure accidental. The money was drawn
from the banks deposit In Philadelphia,
by the cashier, and was not entered on
the books of the Citizens Bank. The
quarterly statements made by Hall and
sworn to were falsified to correspond with
the books, and TO add to the crime OF
theft ia that of perjury, also an indiotable
offsnse. The defsulter, 1t 10 ststed,
covered up his tracks most effeotually
through manipulation of the accounts,
aud through this means was able TO avoid
detection and continue his thievish work
for several ye,rs. After Halls state
ment was given the board some of the
directors examined the deposit in Pbils.
delphia and verified the chief items OF
the confessed theft.
Hall stated In vindication OF his defal-
cation that he had been dealing in stocks
on a margin and had lost all the money
taken from the bank. He, however,
owned real estate valued at about hall
transfer ed to tho bank. He has
also good sureties on his bond
and It Is not likely that
the bank will be ont by the defsloation
1t has, however, a surplus double in
amount to the entire defalcstion and tn,
directors have personally pledged
themselves to protect all deposi
tors, so the alarm that the news of tb,
defalostion at first created immediately
| subsided and the business has continued
as usual. Hall has not bsen arrested
aud it ia not yet determined whs. dispo
sitiou will BIS made OF him by his suretiss
as sthe greatest sympathy is felt for hi
family.
]. R. Hall, the defaulting cashier II
about so yearG old and has been connected
with the bank for many year5 filling tn
position which he hiss thus abused abou
20 years Hs was member of the Presby
terian church and was esteemed as al
honorable and strictly upright man
Socially he was quite prominent and hsC
large circle OF warm friends. There wa
never the slightest suspicion attached
TO his ministration of the banks affairs
bat on the contrary he enjoyed tn
COT fideuoe of the directors and the publ
in the fullest sense.
THR AMOUNT OF THB DBFALCATIoN.
MIDDLRT. WIN, June 10-rhe tota
amouat OF the detaloation ia abou
$38, 900 real estate transferred reduce
actual shortage to nearly $4,000 whiol
is made good by surities and directors
The directors are In session and all
quiet. The deposi,ors are not alarmed
none are drawing money through fright
No one Is named for Halls successor.
He Escapes From MiddletOwn &
Avoid Government Prosecution.
j. r. Hall, the defaulting cashier OF tb
Citizens' National Bank of Middletowr
made his escape from that place on Nor
day morning, before the public ha
awakened TO the fact Of his embezzl'
ment. While boarding the train at Mic
dletovn he WAS asksd by sever,
citizens where he was going and replied
81 am going to my farm in Cecil county.
What arrangement Hall made with th
directors for refunding the balance of ii
S2l, 200 is not known. His object
leaving the town was to escape govern
ment prosecution. It is stated on goc
| Al tl,a disnataro anpoantad