New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-12-23
ARRESTED FOR EMBEZZLING.
ST. NICHOLAS BANK THE LOSER
LOUIS A. HILL. PAYING TELLER. CHARGED
WITH TAKING $4,000.

THE DEFALCATION DISCOVERED BY THE EX-
AMINERs-pETECTIvEs FIND THE ACCUSED
OFFICIAL IN NEwARK-sUPEuNTEND-
ENT PRESTON SAYS THE EVIDENCE
AGAINST HIN IS CONCLUSIVE
DELAY IN APPOINTING
RECEIVER.
The sensation yesterday in the affairs OF the
! st. Nicholas Bank the doors Of which were
closed on Thursday morning by Charles NJ. Pres
| ton the State Superintendent Of Banking. was
! the arrest of Louis A. Hill. the paying teller
charged with the embezzIement of $4,000.
! Charles NJ Preston, State Superintendent Of
| banking and Bank Examiner JudsOn. who have
! been examining the books Of the st. Nicholas
Bank declared that. up to noon. evidences OF "A
defalcation Of s42 Oc0 on the part of Louis A. Hll
the paying teller had been discovered. Upon in
| formation furnished by these men, Judge Mar
| tine OF the Court Of General Sessions, yesterday
afternoon issued bench warrant for the arrest
! Of Hill. It placed by Inspector Mclaughlin
in the hands Of Detective-Sergeant Won Gerich-
| ten who at once went to Newark, ~ j., where
| the paying teller then
HOW THE ARREST WAS MADE
The arrest Of Hill was made quietly and quickly
at $50 o'clock yesterday afternoon. Chief of
| Police Hopper first went TO the Mansion House,
| No $50 Broad-st.. where 1t had been learned
| that IIil was. Hill apparently much sur
| prised but accompanied Hopper to headquar-
ters His manner indicated he had been drink
ing When confronted by the detective and
made acquainted with the charge he was greatly
| agitated. He had come to headquarters, be-
| .ieving that he would make 1t all right with
the superintendent. and when told he would
be sent TO Jail II bail not forthcoming. he
pleaded with Superintendent Brown to be re-
leased
In the mean time Hs wife had arrived. and
a messenger was sent to Mrs. Isabella Hlll. his
mother. living at No. II Murray-st Mrs. Hill
arrived at 7:30 and said she would give bonds
for her son. Judge Kalisch. In the First Crimi-
nal Court. fixed the amount OF the bonds at
500 600 The bonds stipulated that the accused
must report TO the Police Superintendent every
day for thirty days pending the arrival Of requi-
stion papers from Governor Flower. As soon
as he was released Hlll and his wife and mother
left the court Mrs IIill said that she owned
the Mansion House property, worth $4,000. and
mortgaged for $4,000 She also owns other
Newark property.
Hill Is forty-thrce years old He Is of medium
height and slender build. with iron-gray hair.
His wife was plainly but richly dressed. His
son. nineteen years old came TO headquarters
while his father being detained and seemed
stunned. Nothing is known in Newark Of HllPs
habits and associations. and he was little known
personally II was noticed at headquarters that
Hill had been drinking. but he did not have the
appearance Of an Incorporate man.
LOAN TO THE COMPANY IN DIFFICULTY.
II was rumored yesterday that there was a
probability that the troubles OF the 81. Nicholas
Bank may have been caused In a measure by
the failure of the American Casualty and Sc
curity Insurance Company Of Baltimore. This
company went into the hands OF a receiver sew
eral weeks ago. IL was managed by Beecher.
Schcnck a. Co. members OF which firm were the
officers Of the American Steam Boiler Insurance
Company. which preceded the first named COM
pany into receivers hands by a few days only.
II was learned late yesterday afternoon on the
authority of the State Superintendent of Banks
that the American Casualty and Security In
surance Company had received favors from the
81. Nicholas Bank The extent 10 which these
favors were obtained by the officers Of the com
pany is not known. but Mr.. Preston said yester-
day that he knew of one loan which had been
made to the insurance company by the bank.
This was a loan Of s2S. 900. secured. however by
300 shares OF the st. Nicholas Bank stock: 100
shares Of the stock OF the Southern National
Bank and a paid up life insurance policy for
$40 900 on the life OF man eighty-five years old.
Ten shares OF the Southern National Bank
sold yesterday for 800 n share.
Mr. Preston said that he had not got far
enough along into the books OF the bank To
learn what further accommodations. If any. the
insurance company had obtained from the ST.
Nicholas II was reported moreover In Wall
Street that insurance companies held in the
neghborhood OF 100000 Of the banks stock
collateral for money borrowed recently. one
insurance company It said held $1,000 Of
the banks stock TO "A loan made To the
bank IL has been known for some time that
the relations OF the American Casualty and
Security Insurance Company with the bank
were friendly Arthur B. Graves. the presi-
dent Of the ST. Nicholas Bank. n director
Of the insurance company. and according to the
reports filed by the company. December II
last the company had s2i5.OOO deposit at the
bank
MIR. PRESTON DECLARES HE GAVE WARNING.
The Bank Superintendent denied yesterday
that he closed the ST. Nicholas Bank without
giving the officials OF 1t any warning of his in
tcntion to do so.
Some time ago. he said, "I wrote to Mr.
Graves. the president Of the bank and told him
that was not altogether satisfied with some
Of the securities which his bank holding as
collateral for outstanding loans. I told him In
this letter that It would be better for all con-
cerned to have an investigation made. He con-
sented To the examination. and welcomed the
examiner cheerfuy and aided him in every
possible way In his examination of the banks
books The closing Of the bank was the re-
suit OF that Investigation"
How do you find the affairs OF the bank as
far you have gomez" he was asked.
The books are in excellent shape and the
cash supply was well up
Have you an idea as to the extent Of the i'm
pairment of the capital"'
''Of course / cannot say what the actual I'M
M is nj nff he of the