The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1891-05-12
AoEAp ROGUE.
Whose Long Continued Thievcry is just
Discovered


F New YoRK,,April 30.-The Ninth Ma
tional bank is in trouble. There has
been defalcation of nearly $50OOOO
was the startling rnmor that circulated
about the city. 1t proved only too true
on investigation.
died at his home In New Brunswick. N.
j., last month, was discovered to have
been a defaulter for over 100000.
The fact was not known or dreamed
OF until an examination of his own aud
the banks affairs was made after his
death. Ho died honored and respected,
with reputation untarnished. The
revelations of the last few days have as
tonished and shocked his friends and
brought sorrow and disgrace to the
family.
The actual condition Of affairs was
learned when President Hills successor
was elected, in the person OF q. Henry
Garden, who had been the acting vice
president for many years, and upon 60.
ing over Mr.. Hills private papers and
the securities of the bank, which, dur
ing his life, President Hill took almost
sole charge of.
President Hills methods were peculi-
ar and very simple. He was the e,execu.
tor and trustee for several large estates
in New Jersey, were his reputation for
honesty and shrewdnesS as a financieT
was such that he was frequently select
ed for such offices of trust and responsi-
bility. AS executor he had the hand
ling and control of large number o
securities of greater or less value,
which were held as investments. These
for convenience and safety he kept ut
the bank.
His plan in brief was this: When
loans were made to customers of the
bank they deposited collateral In the
shape of bonds or stocks. These were
placed in envelopes and put away in the
strong box of the bank, which was kept
in the vault, and was under immediate
supervision of the president. Subse-
quently when the loans were paid, usu-
ally by certified checks, the collaterals
were returned to the borrower.
President Hill, however, instead of
marking the loan off on the books of the
bank would substitute some of the Sc
curies he held as executor, replace the
envelope in the box, ;and pocket the
check. So far as was shown by the
books of the bank the loans to the Gus
toner was still outstanding. The Gus
toner himself would know nothing of
ohAoJ oho So ldl 30 dppcdlS uouo VI CuS
people in the bank were any wiser. 1t
was an easy matter to arrange for any
interest payments that might become
due.
In time it seems that Hill became
bolder in his operations, or more desper-
ate, for 1t appears that he did not even
go through the formality of substitute
ing his trust securities in the envelopes
when the other securities were received
by the banks customers, for many of
the envelopes have been found to be en-
tirely empty. Hill carried on this form
of business for several years, for so far
as can be learned his first act was com.
mitted some four or five years ago.
His death on March caused the most
profound sorrow. and his widow and
four children had the sympathy Of all
the people Of the city in which they
lived.
The defaulting president had been
connected with the bank ever since its
organization in February, 1864. He was
first paying teller, then cashier, and fin.
ally became president in 1877. He was
man Of unsullied reputation up to the
time OF his death and the discoveries
following. AS business man he was
considered careful, conservative and
very ShCaMd