The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-10-04
A KINGSTON. N. Y. BANK FAILS.
Nearly Half Million Dollars stolen by
Two Rank Of1cfalS.

Two Bank OmciaiS.
KINGSTON, N. Y, Oct. 3-The Ulster County
Savings institution, which was incorporated by
an act of the Legislature of April IL, 1851, has
closed its doors, and Is in charge OF Bank Super
intendent Preston. The examiners, who have
been at work since Tuesday, have already found
that f463,000 has been stolen by Treas
urer Ostrander, and Matthew I. Trump
boar, assistant treasurer, and it Is feared the
stealings will reach over that amount. At mid
night last night Superintendent Poston swore
to complaint charging Trumpboar with per-
jury in swearing to false statements contained
in the July report OF the bank to the banking
department and Trumpboar was arrested. He
was just preparing TO fee from town. 0strander
was arrested about two weeks ago for
embezzlement of $4,000 and was under
bonds for $4,000. His bondsmen last night
turned him over to Sheriff Dill, and he was also
locked up in jail When he was arrested there
was a run on the bank for three days, but other
banks came TO the rescue of the Ulster county
institution, and the trustees made a
statement showing a surplus of S247,-
Co., As the statement was signed
by number of prominent men OF
the city who were directors OF the bank,
it had q reassuring effect, and the depositors
who drew out their money brought 1t back. The
system adopted By Ostrander and Trumpboar
was most ingenious, and for twenty years they
have bafiled the skill Of expert examiners in
the employ OF the state. In carrying it out de-
ceit and perjury were frequently and
effectively employed. A statement OF the
resources showed s2135.0OO; due depositors,
si,ssS,OOO; surplus, $4,000. 1t is impos-
s1ble 70 tell or even conjecture the
effect the closing of the bank will have on the
people of Ulster county. A majority OF the
depositors were poor people. There are two
other savings banks In the city, the Rondout
and the Kingston, the trustees OF which have
dfnf1 n1
pos1tOrs should there be runs OF any conse.
quence. The feeling against the trustees who
signed the statement OF the Ulster County Saw
fngs Institution, is bitter in the extreme,
and they are characterized as thieves for making
the depositors believe that the bank was solvent
when they should have known its condition.
First Vice-President Brodhead, who had execu-
tive charge OF the bank, also comes in for his
share of censure in signing the statement, and
In allowing people to deposit their money. The
people had great confidence In the institution.
1t Is said that number of the bonds mentioned
In the statement made by the trustees were n.y.
pothecated in New York by 0strander and
Trumpboar. Another method mentioned was
that deposits In many cases were entered on the
bank register for only half and q third of the
amount received, while entries in the deposi.
tors books were for the full amount, the differ
ence being taken by the thieves.
The prisoners were arraigned this afternoon.
Their examination Is set for Monday. It Is
stated on the street today that after fits affairs
are wound up the bank viii pay depositors rs
cents on the dollar
The streets OF Kingston ara filed with people.
and depositors are arriving on every train and
by all manner OF vehicles. Occasionally some
OF the excited farmers threaten to break into
the bank building and get their money,
while Others suggest that lynching party be
formed to hang Ostrander and Trumpboar
Business is virtually suspended. A man who
had 500 on deposit has developed symptoms OF
insa nifty, and it is feared 1t will be necessary to
take him to the asylum. The city officials,
fearing that the threats to burn the jail, where
Ostrander and Trumpboar are confined, would
be executed, summoned the fire department, the
members OF which are now watching the bank
building, courthouse and Jail opposite.
There was heavy run on the Kingston saw
ings bank, which is opposite the closed bank
The trustees of this institution claim that the
bank can pay its depositors in full. Should the
run continue on Monday the bank trustees will
probably compel the giving Of sixty days
notice by depositors.