Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1891-05-01
ROBBER PRESIDENT
THg STORY OF THs FICaING OF TAG NINTH
NATIONAL BANK
BY It's Late Prssiien;-Ovsr Four Hundred Thou
sand Dollars Lost IN SpsculahOn-Ihs Di-
rsciors Were Negligent Of Their Duties.
Bank Crippled to Some Extent
But Still II the Ring.

Il. Hill, President of the Ninth National
Bank, began the defalcatiOnS which day
before yesterday for the first time are
made public several years ago. He
systematically lined his pockets from
the banks treasury, and squandered the
money in stock gambling.
II is and Will probably always remain
something of mystery how the aStute
Swindler was enabled SO successfully to
operate for so long q time.
But he did il, and 20 the tune Of $500,
600, taken in inStalmentS from time TO
time, as the fluctuations of the stock,
grain and real estate markets demanded
tribute
The methods employed by President
Hill i'm his quiet little game of robbery
were neither especially new nor partic-
ularly deep. IL is very evident that
this man violated his trust in the most
fragrant manner, relying upon little else
save the chance of successful Specula-
tion TO make good his defalcationS.
In fact the story of President Hills
methods Of operation is in itself rather
commonplace one, but in the light of
his long and actively prominent fnan-
cial career 10 is invested with peculiar
interest. Hill was not only bank
president but the trustee OF substantial
estates in and around New Brunswick,
\. J. The power given him by one Of
these positions of trust he employed to
conceal his depredatiOnS upon the
ether.
The manner OF HIPS work was as fol-
OwS:-A loan would De negotiated at the
10 70 fsfaI
lateral. When this loan matured the
borrower, in the usual course of bust
ness, would pay into the President an
amount equivalent 60 the loan and accru-
ed interest and would carry away with
him the collateral which he had left
with the bank as security. This repaid
money President Hill would pocket in
stead of returning 10 TO the bank. In
order to cover this theft Till would then
promptly substitute collateral in his
personal charge as trustee of the New
Brunswick estates for the securities de-
iiyered TO the borrower upon the liQui-
dation of the debt
BY this Swindle the books Of the bank
were preserved from apparent irregu-
larity. The various loans collected in
this fashion by the president Of the
bank were left as open accounts upon
the books OF the bank.
In other words, the books were
Straight-tO the satisfaction of the
banks direCtOrS-year after year
While the guilty president played at
speculation with the funds of the inSti-
tuition, twelve directors were supposed
20 be in constant and intimate aSSOcia-
ton with the affairs of this bank, yet
they failed 70 detect the slightest irreg
ularity for the simple reason that they
failed in their duties and never took
the trouble 20 overhaul the important
loan department securities in the banks
vaults. One such examination would
have exposed the fraud at once.
How long, In view of this singular
blindness on the part of his directors,
President Hill might have successfully
continued his defalcationS no one can
venture an intelligent opinion. But he
died few weeks ago and then followed
the discovery of his crime.
This discovery was not due to any
quickening of perception on the part of
the bank directors, but grew out of the
Investigation vigorously instituted by
estate, who discovered after Mr.. Hills
death that the securities of the estate
were 10 very large degree missing.
The cO-truStee prosecuted his search
and had no difficulty i'm locating the Sc
curities at the Ninth National Bank,
where ne found they were held as col
lateral upon many loans long since paid.
A demand was made upon the bank
for the immediate surrender of the
stolen securities Conferences with tho
bank directors followed and a searching
investigation of the banks accounts
was made. The result was a clear I'M
fielding Of President Hills guilt and 4
surrender of the unlawfully held securi-
ties.
This surrender meant the loss Of over
S4OO. 600 TO the bauk-a loss cOnSUm-
mated i'm an hour; taken out in one big
lump. Ii was blow that staggered
the reputable old institution, and for a
short time threatened the SoIyency Of
the bank.
The surplus of the bank was rated At
$500. 500. This, as a matter of course,
was literally wiped out by the sudden
compulsory restitution of stolen Securi-
ties. But the bank owned a nice slice
of city eighty city lots on the
Southern Bouievard-and this property
was its anchor 20 windward' in this
emergency.
The law says that national bank
shall not hold real estate, rs the prov
ince Of such an institution is to circu-
late, not lock up, money. But, all the
same, the bank owned this valuable prop
erty and had so held it for many years.
But il was impossible 10 reorganize
their capital without official sanction, so
few days ago the Clearing House au-
thOritieS were notified Of the sad fix 10
which the bank found itself The clear
ing House committee at once commenced
very quiet investigation throughout
the current week.
On Saturday last the Clearing House
sheet of the Ninth National Bank shows
the following details:
Capital ..S 10000 Specie ......-.s $1,000
Surplu>........ 10000 Legal tender. 4l9 50O
Loans ........ Al20 100 Deposits ...-.. A7ii ;NJ
Since this report the Clearing House
Committee have very thoroughly over
hauled the affairs of the bank.
On Monday National Bank Examiner
A b. Hepburn was called in 10 make
an examination. This examination was
continued all day Tueday, terminal
ing at o'clock in q conference
N,sf,v,1 Dorr- L'xo.,fr.r