The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-10-04
EMBEZZLEMENT
AND PERJURY.
Banks Wrecked by Dishonest
Officers.
Nearly Half Million Stolen by a Treasurer
and His Assistant - The ChrlSmal
and CIeaTf6ld Suspensions.
Special TO THE MORNING CALI.

KINGSTON On. ". Oct. 3.-The Ulster
County Savings Institution closed its doors
to-day, and is in charge of Bank Superintend
ent Preston. The examiners, who have been
at work since Tuesday, have found already
that S463, coo have been stolen by Treasurer
Ostrander and Matthew Trumpbour. Assist
ant Treasurer, and it is feared the stealings
will reach over that amount. At midnight
last night Superintendent Preston swore to
a complaint charging Trumpbour with per-
jury in swearing TO false statements con-
tanned in the July report of the bank to the
Banking Department, and Trumpbour YVES
arrested. He was just preparing to flee
from town.
Ostrander was arrested about two weeks
ago for embezzling $4,000. and was under
bonds for $4,000. His Dondsmen last night
turned him over to Sheriff Dill and he was
also locked up in jail.
When Ostrander was arrested there was a
run on the bank for three days, but the
other banks came to the rescue and the
Ulster County Savings Institution and
Trustees made a statement showing a sur
plus of S2470O0. AS the statement was
signed by a number of prominent men who
were Directors in the bank, it lad a reasSur-
ing effect and depositOrs who drew out their
money brought it back.
The system adopted by OstIander and
Trumpbour was most ingenious and for
twenty years has baffled the skill of expert
examiners in the employ of the State. In
carrying it out deceit and perjury were fire.
quently and effectively employed. The
statement showed the resources to be 81, 1885,.
600; due depositors, S1,SSS,000; surplus,
S247, 900.
1t is impossible to tell, or even conjecture,
the effect the closing of the bank will have
ON the people of Ulster County. The ma
iority of the deposit0rs are poor people.
There are two other savings banks in the
city OF ROndout and Kingston, the Trustees
of which have decided to demand sixty
days notice from depostors should there be
a run of any consequence. The feeling
against the Trustees who signed the state
ment Is bit er in the extreme and they are
characterized as thieves for making the de-
positors believe the bank solvent, when they
should have known its condition.
First Nice-President BrOdhead, who had
executive charge of the bank, also comes in
for his share Of censure in signing the state
ment and in allowing the people to deposit
their money.
act of the Legislature April II, 1851.
The people had great confidence in the in
stitutiOn. 1t is said number OF bonds men-
toned as being in the sale By the Trustees
were hypOthrcated in New York by OS-
tTander and Trumpb0ur Another method
mentioned was That deposits in many cases
were entered on the bank register for only
half and Une-third Of the amount received,
while the entries in the depositors' books
were for the fell amount, the difference be-
ing taken by the thieves.
The streets OF Kingston are filed with
people and deposto.s are arriving on every
train and by all manner of vehicles. Occa-
sonally some of the excited farmers threat
ened to break into the bank building and get
their money, while others suggested lynch
ing party be formed to hang Ostrander and
TTumpbUur. Business is virtually sus-
pended.
man who has $1,000 on deposit devel-
Oped symptom of insanity, and 1t IS feared
1t will be necessary to take him to the asy-
lum.
The city officials, fearing the threats to
burn the Jail where OstEander and Trump
bGur are confined, summoned the fire de-
partment, the members Of which are now
watching the bank building, the courthouse
and the Jail opposite.
The prisoners were arraigned this after
noon. Their examination is set for Monday
morning.
1t is stated on the street to-day that after
its affairs are wound up the bank will pay
depositors seventy-fve cents on the dollar.
There was quite a heavy run on the King
ston Savings Bank, which is opposite the
closed bank. The trustees of this institu-
tion claim tie bank can pay its deDOsItOrs IN
full. Should the run continue Monday the
bank trustees will probably compel the CIV
ing OF sixty days notice by depositors.