Oakes weekly Republican. (Oakes, Dickey County, D.T. [i.e. N.D.]) 1883-1898, 1891-05-08
Singular Developments Touching the
Ninth National Bank
Robbery.
Every Official Appears to Have Been
Hoodwinked BY the Deceased
President.
Total Defalcations $4Os,OOO. Assets
Increased 10 Cover the
Deficit.

AeICO, OkiC otbCC VI LILO uCtbul, 10 Pfoo,s
600, rs shown by Bank Examiner
Hepburn. If the Wall street pessi.
mists who claim to have knowledge
of the magnitude OF Hills speculations
are right, the defalcations will reach
up 100000 as soon as a thorough
examination of the banks books and
securities are completed.
Hypocrisy was John T. Hills pass
key to crime. His suave, gentlemanly
manner deceived his business and per-
sonal friends. Ever since he was in
stalled in the presidents chair, the
Ninth National bank has been going
down a hill that was literally creased
by himself. He had not been in the
chair a month before he impressed
every one under him favorably. His
cashier was q piece OF putty IN his
hands; his loan clerk was loan clerk in
name only. Mr.. c Henry Garden, the
present president OF the bank, had the
most implicit faith in the man. He
even made him executor OF his estate.
Mr.. Garden said few days ago: "It
is fortunate for my heirs that l did
not die first"
There is no danger OF run on the
bank now. Everything is quiet, in
fact more money WAS taken In tnan
was paid out. But the bank officials
have been tenter hooks ever since the
truth OF the defalcatlon was made
public. President Garden reached the
bank about 8 g.. m. HIS face was
haggard and he looked as if he had
passed sieepless night. When asked
Tor an explanation of the defalcation,
he whispered: "Mr. Hill was the
Ninth National bank"
What have Cashier Nazlo and Loan
Clerk Hill, who. by the way, was a
brother OF the dead defaulter, to add
to it? The facts connected with the
building up OF the banks capital at
the meeting of the clearing house COM
mittee were learned only few
days ago. 1t seems that they
decided to advance the valua-
ton of the Broadway building
from $4,000 to $45O,OCO. The
members OF the committee also decid-
ed to put in as the banks assets the
Southern Boulevard real estate which
they valued at $41O,OOO, subject to
$4,000 mortgage. Hills defalca-
ton amounted toS4O8,OOO. AS will
be seen, the arrangement would even
things up. AS has been explained, the
placing OF this real estate on the asset
side of the banks ledger is contrary
to law. When one OF the directors
was asked about this, he said that he
thought it was excusable in an ex-
treme case of this kind. The directors
have agreed to buy in this real estate
at the valuation price at the end of q
year, if necessary.
Did Hill have an accomplice? That
question was asked thousand times
il it was asked once. Practical bank
officials holding subordinate positions
are unanimous in the expression of
opinion that such crookedness could
not exist without the cashier and the
clerk knowing OF it. They pronounce
Nazro and Joseph Hill either fools or
knaves.
De Witt G. Hayes, president OF the
Manhattan Company bank said:
"The story of j. T. Hills defalcation
in connection with the Ninth National
bank is incomprehensible to me. l
cannot understand how such crook
edness could exist without the direc-
tors or cashier being cognizant of it.
The only explanation 1 can offer for
their short-sightedness is that Hill
had verything in his own hands. He
must have acted as president, cashier,
paying teller and Office boy"
John T. Knox, president OF the Ma
tional Bank OF the Republic, said:
"How the president of any national
bank could gain such control of the
affairs OF his bank as to substitute pri-
vate securities for alleged securities on
matured loans, before the eyes of his
cashier and the board of directors, l
can't understand. Our methods OF
examination preclude any possibility
OF such g. thing on the part of the
president or cashier. A committee is
appointed four times g. year to look
oyer the accounts and securities of
the bank. If it's securities have been
taken up, or if new ones have been
substituted for old ones, the directors
are apprlsed OF it. The examining
committee is generally composed Of
the directors. I have nothing to do
with this detail work as president.
My cashier is responsible to the direc.
tors for all securities.