Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1884-09-09

NEW BRUNSWICK, n. j., Sept. s.
Director Stoddard of the National Bank of
New Jersey, said last night that the shortage
of the late Cashier Hill amounted to Sl96, $50
when he quit work. Saturday. Hills opera.
tions were very simple He borrowed what
ever sums he wanted at the bank, giving good
collateral at first, then he stole the collateral
and disposed of it, filling its place in the
vault with worthless paper. Between times
he borrowed little money of himself on his
name. The bank directors, who it was
| supposed made thorough examination Of
| the banks affairs once last year, did not in
! fact make anything like a thorough examna-
| ton. IT was of a most curious kind The
securities were brought into the directors $
room by Hill who showed them cut in a neat
package tied loose, MS they might be, and as
one of the directors checked them off, Hill
would say, ''IIere is the security" and the
bundle would be put away again. Not for an
instant did any one of the board think of
questioning Hills word as to the contents of
the packages or in the taking of any of the
collaterals. This method of examination had
been going on for nearly two years. The
total deficiency discovered up to last night
reached the sum of S235, $50.
The deficiency, amounting to S629, 100 is
the amount due from President Runyan and
Z
endorsed by Hill. The balance is on securi-
ties which have disappeared. and it is not
thought that all of Mr.. Runyan's property,
which is understood is heavily mortgaged,
will begin to meet the loss.
1t is not at all improbable that when the
examination is finished, the amount of the
whole deficiency will be much larger, while e
it is feared that the report of the examiners
will show a still worse state of affairs. The
directors, none of them being expert account
ants, have not been able to arrive definitely
at many points and have been compelled to
estimate as square in some cases where losses
will no doubt be found when the facts are
known exactly. The box where Hill kept his
own securities was empty. The notes in
President Runyan's box were left with the
bonds and the negotiable securities were
gone.
Mahlon Runyan, president of the National
Bank of New Jersey, cut his thr Dat in the
closet of the bank with small knife. The
act is supposed to show his implication in the
operations of Cashier Hill. who committed
suicide last week.
The excitement over the double suicide of
the president and cashier of the National
Bank of New jersey has become intense
The statement furnished by thes officials IN
June of the current year showed the paid up
capital to be $3.50 900; surplus Sl25, 900 and
undivided profits S7S, ,lS0. There has been
nothing in the public history of the bank
since that date to cause any uneasiness to
stockholders. The suicide of the president,
while strengthening the testimony of great
frauds in the management, causes unlimited
astonishment to the general public.
The National Bank is in chaos. Over
81 ZOO, 900 was stolen by HILL Runyan was
implicated in the thefts of Hill and expected
to be arrested when he took his life. The
city was wild with excitement. Crowds
blockade the street where the bank stands.
Acting Cashier Campbell it is expected will
be arrested for completely in the crime.
Walter Carroll, depositor. has cut his
throat. The mob threatens to burst open
the bank and is only subdued by the police.