Evening journal., 1891-04-29
He DEFAULTE AND DIED
Another Big Bank Steal at
New York. -,
JT. HILL GOT AWAY WITH 100000.

He Was President Of tho ninth NatIonaf
Bank and Died About Month Ago.
He Stole the surplus of the Institu-
tion-The Capital Unimpaired.
NEW York April 29.-Another big bank
steal has just come TO light here. About
month ago President j. T. Hill, Of the
Ninth National, OF 400 Broadway, died
When his accounts and the affairs of the
bank were investigated last evening by
Bank Examiner Hepburn tho startling
discovery was made that Hill had stolen
the surplus of the institution, amounting
to 100000
Its Capital unimpaired.
II is said that the bank will not lose the
entire amount, as it is secured in part by
real estate It is reported that the solvency
Of the bank is in no way impaired. The
banks capital is x750,000
The Dead DefauIter.
The dead defanlter entered the bank in
a subordinate capacity, and rose from one
place TO another until he was at the head
Of the institution. His promotions were
due TO his business ability and his reputa-
tion for integrity. He was church mem
Der, and a man who was looked up to in
the community in which he lived so great
was the trust reposed in him that he was
made executor for several estates. and no
one thought Of asking for an accounting
from him. He was known far and wide
for his devotion 20 Horticulture. At his
home at New Brunswick, N. j., he had ex-
tensive gardens and greenhouses
He was particularly devoted to the rails
ing OF orchids. He had a keen face, but at
the same time a frank one For years
/ death had confronted him.
with Death Before Him.
He was victim Of consumption. Yet
with the knowledge that his end was sure
| ly approaching and that he must soon am
swer for his misdeeds, he continued sys-
tenn Of deialcations that, except for his
| death, would probably in the end have
wrecked the bank entirely and perhaps
brought ruin 20 hundreds. AS president
Of the bank Mr. Hin had control Of the
| loans made to the bank
The plan by which he robbed the bank
was a simple one aud likewise the safest
one that he could devise. The loans made
by the bank to individuals and concerns
were secured by collateral, consisting Of
stocks and bonds.
The fact that the collateral and the
estates for which Mr. Hill was executor
were largely made up Of the same character
Of securities enabled him to carry on his
operations without detection. When a
loan was paid the collateral for it had to-
be surrendered.
How He Robbed the Bank.
Mr.. Hill would receive the amount OF
the loan In cash or a certified check, as the
case might be. Instead of turning ia the
money 70 the bank be would convert 1t to
his own use. To cover up the conversion
he would not report the loan as paid, but
continue IL as an "open loan"
He would take the bonds and stock from
the estates Of which he was executor and
place them in the envelopes that had con-
; tained the surrendered collateral Thus
II would look as if the loan were con-
tinned II the loan committee Of the bank
asked any questions he could say that
when the loan fell due il was extended and
the collateral changed. MIR. Hin was COM
PEELED to pay the interest himself on thu
loan in order to hide the deception.
A Bull at the Wrong Time.
The plundering Of the bank is said to
have been the outgrowth Of Mr.. HIPS pri-
vate speculati0ns ia Wall street and else
where. He is reported to have been a bull
on stocks and wheat ever since the panic
Of May, 1884 Except for two or three ad-
vances Of short duration both stocks and
wheat for the past seven years until within
the past few months have tended down
ward.
Examiner Hepburn's Statement.
Mr.. Hepburn's report read as follows;
The examination Of the Ninth National bank
reveals the defalcatiou Of about S400OO0 charge
able 20 its former president While the loss -
serious, Il does not impair the bank's 5 solvency,
nor It's ability to take care OF its customers Its
assets, aside from the loss mentioned, are Of
good character, its discounts Of exceptionally
good character
The hank has owned for the period OF fifteen
years eighty-five acres OF land ia the Twenty
third and Twenty fourth wards Of this city As
national banks are not allowed to own real es~
tate for other than banking purposes, and when
taken for debt not longer than five years,
this real estate was charged or, and has not
appeared in the assets Of the bank for many
years, during which period II has largely ap.
+ preciated in value. That is now restored AZ q
valuation Of S00,0O0 Competent appraisers
value II much higher AS evidence that the
banks valuation ii fully warranted and within
limits, the directors have executed an agreo-
ment TO the bank to take this property at said
valuation. This bank has been unfortunate
but 1t is perfectly solvent and is entitled 70 and
should receive tho support OF its depositors and
the public.
A. B. HEPBURN, Bank Examiner