New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-10-04
COLOSSAL THEFTS EXPOSED.
NEARLY HALF A MILLION STOLEN FROM AN
ULSTER COUNTY BANK

HIS ASSISTANT AMOUNT TO si63,o0o AND
PROBABLY MoRE-KINGsToN FULL OF
ANGRY DEroIToRs-THE THIEVES
UNDER LOCK AND KEY.
| Kingston, ~ Y, Oct. 3-The Ulster County
| Savings Institution has closed its doors and is
in charge of Bank Superintendent Charles NJ.
! Preston. Expert examiners have been at work
| since Tuesday, and have found already that the
enormous sum of S4e3, 900 has been stolen by
Treasurer Ostrander and Matthew T. Trumpbour,
assistant treasurer and it is feared that the steal
ings will reach over that amount At midnight
Superintendent Preston swore TO a complaint
charging Trumpbour with perjury in swearing to
false statements contained in the July report
Of the bank TO the Banking Department, and
Trumpbour was arrested at his house by Chief of
| Police Hood lie had his clothes all packed up
and was preparing to fee from town. He was
locked up in iaik Ostrander was arrested about
two weeks ago for embezzling $7j, 900, and was
under bonds of 100000, and his bondsmen last
night turned him over to Sheriff Dill, and he
was also locked up in Jail. When Ostrander was
arrested there a great run on the bank for
three days, but the other banks came TO the
rescue of the Ulster County Savings Institution
and the trustees made statement showing that
there surplus of S243,00O The statement
! being signed by such well-lmown men as Judge
Alton B. Parker, General George H. Sharpe, Judge
William S. Kenyon, Postmaster Noah Wolven,
John w. Soaring, of The Kingston Leader" and
other reputable citizens. had reassurng effect,
and the depostOrs who drew out their money
brought it back
The system adopted by James f. Os:rander and
! Matthew 4. TrumpbOur. the latter being fully
cognizant of the steal. and assisting in conceal
| Al t1o
and hiding the theft, which grew by degrees, was
most ingenious, and for twenty years has Datfed
the skill of expert examiners in the employ of the
State In carrying it out deceit and perjury have
been frequently and effectively employed The
statement which was given ont on September 10,
after thanking the other banks for the assistance
rendered, said TO the depositors
We know that we cannot deceive You. Our assets
intact and open TO your inspection. We nave 10
| night, at the close of business: o 20
| ResOurceS-Bonds and mortgages, 81 259,o94 4o
Securities as follows: United states Governments;
$4,000 Ulster County bonds Tnf T1SGo0S bonds ISS G
shandaken bonds $1,000 Saratosa bonds S50o @ Roy R05
Of Parish bonds 5000; Mount Vernon bonds. $23,-
600 City of New York bonds. 10000; Poughkeepsle
Ciy Of Kingston bonds. $500 City Of Kingston Ger
tcates S35, 1876 "a Buffalo bonds, $4,000; Ballston
S474 ss5 "a market Value s5i4s35 d Real estate
sl245s3 o. loans on collateral S1o's00i iao aer5' rs
W.
Total, s2,13tas5 o. Due depositors, Slee''13l 20
accrued On the mortgages and the securities
since July l is not Included in the resources above
| stated. ,,.,-- -. 49,.
diminished has been paid from our own funds, without
and accrued advantage to the bnnk in interest from
which IL Is now released II there "a any safer place
IN e 81 nsss SsS WITH assobd security We do
net know It,. We are indelnniied against g9od part
the loss can In no way arect our depositors. In times
past VIC have been able to assist you IN giving accom-
that restored confidence will enable us to pursue this
course so important to the industrial interests in on tne
county, without mpeTilling our deposltors whch so
| far has never been the case.
It is impossible TO tell or even conjecture the
effect that the closing of the bank will have on
| the people Of Ulster County. The majority of the
depositors are poor people. many of them old men
| and women dependent on the interest on the few
thousands Of dollars they had in the bank and
such men and women with tears in their eyes
can be seen everywhere about the city, they fearing
the loss of their savings. The feeling against the
trstueeS who signed the statement is bitter In
the extreme and Parker Sharpe and the others
are characterized harshly for making the depOsltors
believe the bank was solvent when they should
have known its condition. That they were guilty
OF criminal negligence there is no question. First
Vice President y. +. Brodhead, who was in eX
share of the censure in signing the statement, and
in allowing the people to re-deposit their money
Brodhead was one Of the most popular young men
in the county, being elected County Treasurer last
fall. which office he now holds. and every one is
the county had the most implicite faith in his
trnstworthiness all Of which is now shattered by
the unfortunate turn Of affairs in the bank.
There are two other savings banks in the city,
the Rondout and the Kingston, and the trustees
of these after consultation, decided to demand the
sixtv davs notice from depositOrs should there be
run of any consequence
The Ulster County Savings Institution was in
cornorated by an act of the Legislature April
70 1861. The first officers chosen were: Archi.
baId Russell, president; Cornelius Bruyn, first
vicc-president Jonathan II. HasbroucI. second
vice-nresident: g. w. Buddington, secretary;
Jocob X Trumpbour, treasurer. Jacob X.
Trumpbour the treasurer, served until his death,
Ilv 10 1868 Edwin w Buddington then be
came its treasurer, and remained such until April
1s. 1887. James Z. Ostrander was then APP
pointed and held the office from that time until
his defalcation became known, about two weeks
ago. when he dismissed, and is now in jail
Matthew T. TrumpbOur son OF the first treasurer
of the bank was made assistant treasurer about
the came time Mr. Ostrander made treasurer.
lie continued in that place until his arrest last
night For number of years the bank did its
business in a modest little building on Maln-st.,
then on Fair-st, in the building purchased by the
county, end upon which is now erected the exten-
sion of the County Clerks and SurogateS build
ing. but along about 1870 it erected the large
banking building in Wall-st, which is now one OF
the finest buildings in the city. The people had
great confidence IN the institution and the de-
posits from S54G,s73 IA in 1s47 ran up TO
s2I0G,O7O 33 in 1878. No matter what the state
of the money market might he, it was always con
ceted by every one that the Ulster County Saw
ings Institution sound.
IL is said that n number of the bonds which
the trustees mentioned In their statement were
Xor hv Cat n1pr nd