The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-05-01
BANK Quilted.
a Post Norton Exaraination OF the
Presidentc Accounts.
He DIED WITH 100000 SHORT.
An Effort TO Keep the Bank on Its Legs
It Owns a Valuable Piece OF Real
Estate Contrary to
law.

NEW YORK, April 29.-Rumors were
afioat In Wall street yesterday after
noon of a defalcation In the Ninth ma
Eional bank, which does business at 400
broadway II was said that the sur
plus Of $500, 600 had entirely disappeared
and that the discovery was made through
the death of some one who had held a
position of trust.
a visit to the bank found the directors
in session Soon after Bank Examiner
Hepburn arrived and was closeted with
them. The directors were still in ses-
sion at a late hour yesterday afternoon
and nothing official could be learned,
but it was said that the loss was
through the operations of J. T. Hill,
the late president of the bank, who died
about a month ago 1t was alleged that
the amount was about $500, O0O, but that
the bank would not lose it all, being
secured in part by real estate. 1t was
reported that the solvency of the bank
was in no way impaired. The banks
capital is $3.50, 900.
Late last night National Bank Ex-
auniner Hepburn reported: ''An ex-
animation of the Ninth national bank
reveals a defalcation of $500, 900 charge
able to its former president While the
loss is serious it does not impair the
banks sOlvency or it's ability to take
care of its customers. Its assets besides
the loss mentioned are of good charac-
ter, its discounts of exceptionally good
character. The bank has owned for a
period of fifteen years eighty-five acres
OF land in the Twenty-third and
Tyventy-forth wards of this city. AS
national banks are not allowed to
own real estate for other than bank
ing purposes, and when taken
for debt not longer than five
years, this real estate was charged off
and has not appeared in the assets of
the bank for many years, during which
period it has largely appreciated in
value. That is now restored at valua-
ton of $500. OGO, and competent ap-
Fraisers value 1t much higher As evil
dence that the bank valuation is fully
warranted and within the limits, the
directors have executed an agreement
to take the property at said valuation.
This bank has been unfortunate but it
is perfectly sound and is entitled to and
should receive the support of its depOs-
itors and the public.
The clearing house committee made
the following report at the same time:
An examination made by the national bank
examiner. A. p Hepburn, of the resources
and liabilities OF the Ninth national bank
show that "a loss of about $400,OOl has been
made by fnisappropriation of its funds by its
late president, extending over period of
several years. We have examined the
sets and have compared them with the state
ment or the examiner, and we find the capt.
tai of the bank Is unimpaired and we believe
st to be worthy of the cOnfide nee of deposit
ors and the public.
The bank was organized in 1864 with
81, 600, O0G capital This was reduced
four years ago to S7OO. 600.
The late president referred to was
John T. Hin, who died in March of
consumption, aged 55 years.
1t was only few days ago that the
directors suspected anything wrong and
began an examination of the accounts,
revealing this loss, which a further ex-
animation by Bank Examiner Hepburn
and a clearing house committee fully
confirmed.