New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-14
ACCUSING AN EX-CASHIER.
ALLEGED IRREGULARITIES OF ZEBULON
RUDD AT POUGHKEEPSIE
A CONTROVERSY IN THE FIRST NATIONAL BANS

A CONTROVERSY IN THE FIRST NATIONAL BANx
WHICH cULMrNATEs IN PUBLIC CIIARGDsl
IBr TELEGRAPH TO THE TKIBosE.l
Poughkeepsie, n. Y, July 13.-The city ws4
startled tonight by published charge Of dis
honesty against Zebulon Rudd, until recently
cashier of the First National Bank For weeks
il has been an open secret that Robert Slee,
president of the bank, made the charges. When
Mr. Rudd resigned it was understood that 10
because nc was doing business. while an
officer Of the bank, ON lbs own account, selling
securities and pocleting the commissions. and tho
president of the bank held that all OF his business
transactions should accrue to the banks interest.
When the directors met on July an election
occurred for n cashier John p Adriance. vice.
president Of The bank and brother-in-law Of
Mr. Rudd, nominated him for reelection but he
was beaten, whereupon Mr.. Adriance and his
son. j. l. Adriance, withdrew from tho board
and took their deposits away from the bank.
Mr. Slice says:
1t came TO the knowledge OF the president
Of the bank, who reported it to the Board Of Di+
rectors, that the customers OF the bank, Wild
came there with their securities to be sold foe
their own account, were not credited with tba
amounts received for those securities. The sales
of securities by the cashier of bank do not
come under the supervision of the president on
the Board of Directors. 1t came to my knowls
edge one day in the sale of securities for an aged
woman who ordered the proceeds TO be placed
to her credit in the bank She was credited
about 81 80 short | ordered the account to be
rectifed, and it was. This proved 10 be only
one of numerous cases OF a similar characterl
Rudd confessed and made restitution. These
facts came to hight some time in January. But these
transactions had been going on for years. We have
taken counsel with prominent criminal lawyer
and he tells US that in all his experience of
twenty five years he never clearer case Tho
usual committee of examination has Just completed
its work. and it reports the affairs OF the bank in
perfect condition We have declared the usual
dividend, and we carry one-and-a-haf per cent
additional to the surplus
Mr. Rudd was shown the charges made by Mr..
Slee and simply said They not true" He
did not give any explanation. The documents
in the hands of the bank officers include Mr..
Rudd's correspondence with Wiley & Co., News
York, in which he negotiated and sold twenty
railroad shares for woman named Nichols, seyen+
ty four years of age. His advices from the brokers
were that the shares had been sold for 81 IA, and
he made the returns to Mrs Nichols on tho basis
of 60 IA, and took his commission out Of the
latter, so that Mrs. Nichols lost over 81 go. Tho
bank officers cite other of similar character.
Mr.. Rudd was the largest stockholder of the bank
and was its cashier for twenty-five years. Since
his resignation he has started an office in Mains
ST. for the sale of securities John L. Adr1ance,
the brother.in-law of Mr.. Rudd, is at the head
Of the Buckeye Mower Works.