New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-19
MENT.

LAXITY THE STATE
BANKING DEPART
MENT.
The State Banking Department has discovered
a defalcation Of between $4,000 and 10000 in the
Harlem River Bank, which closed by order
OF the department April 26, and a warrant
was issued yesterday afternoon by Police Justice
Ryan for the arrest of ]. ]. Kean who was the
bookkeeper at the time the banks doors were
closed. The warrant was applied for by Superin-
tendent Preston and Bank Examiner Judson, OF
the State Banking Department, and Senator
Lexow, counsel for the receiver Of the bank
The following statement given out last night
by Mr.. Preston through William Trenholm, OF
No. II Wal-st:
The Harlem River Bank was closed by order Of
last, and an examination by the Department was
commenced and continued until the receiver entered
into possession. since which time the examination
Of the books has been continued at the suggestion OF
civer ,'J for he Of ali pass-books
he'd by customers Of the bank and out OF over !9o
In balancing the pass-books number Of discrepan-
cies developed, which disclosed an apparent
The Superintendent Of Banks and his assistants
have been for some time engaged with the receiver
the purpose of ascertaining the exact facts.
The Harlem River Bank has been examined three
times during the past year twice by the State Bank
ing Department and once by the National Bank Ex
warrant mas been issued for the arrest OF J. J.
Kean, the bookkeepsr
Superintendent Preston. Of the State Banking
Department, was seen a the Park Avenue Hotel
early this morning He said: THE arrest Of
Kean is the only move contemplated for the
present. That other arrests will be made seems
quite probable. The technical charge against
Kean is that Of Justification Of the banks books
Whether that Justification made to cover up
somebody else's rascaty / do not know. but
think that some one will get into trouble as soon
the examination Of the books now in progress
is completed The evidence 1 think. will con-
meet others wtE the shortage" Mr. Preston de.
clined TO go into particulars
From the evident reluctance TO speak on tbs
part Of all those who are apt to know much
OF the inside facts OF the case, the rumor gained
ground that not only was there warrant issued
for Kean. but IL was also stated that warrants
were out for others connected with the bank.
The receiver OF the bank. David Il. SickelS
seen late last night in his home in Harlem
He stated that the rumor that arrests Of other
persons connected with the bank were con-
tempated had foundation in fact Mr.. Sickels
said: That this defalcation will result in bring
ing others into the in bad light there can
be doubt. AS soon as the experts now at
work the banks books get further along in
their work it will develop that Kean had
accOmpces. The total defalcation will foot
fully $4,000, and not $4,000. as at first thought
The discovery OF the shortage was first made
when the expert bookkeepers were looking over
the passbooks OF the bank four days ago
Mr.. Sckels said thar Mr. Kean had been with
tho bank since It organized and received Q
salary OF $1,000 year.
ARREST OF KEAN.
Kean had not been arrested up to .
late hour From all accounts he appeared
10 be a young man Of good habits. and
full confidence placed in him by the
banks officers. He had been head bookkeeper
for two years and was known steady and
hard-workng man. He is thrty-two years old
and unmarried. 1t is not known how he stole the
money as he never handled the cash.
George Herold, one OF the directors Of the
bank. said last night that Kean had never been
suspected Of doing anything wrong and that he
was highly recommended by his superiors. He
said that Kean was at a meeting Of the directors
Of the bank held two weeks ago and that he had
spoken earnestly the question Of getting the
bank back on it's feet again. He even offered"
said Mr. Harold, ito raise $4,000 toward making
good the impairment tc the banks capital. He
never drank or played the races. He was quite
a musician and member of several musical
societies He was always reticent about his
affairs and little was known of his family"
on May . David B. Sckels appointed
temporary receiver OF the bank and the state
ment then given out showed that the capital
had been impaired to the extent Of Sl7OB The
assets Of the bank at that time were s34s.42o.
and the liabilities. 1865. 469 The capital was
900 When the bank closed on April 70
the officers Of the bank made great fuss on
account Of the State Banking Departments
action They said there was no good reason why
the bank should be crushed out OF existence. The
only trouble they said. that the bank was
short In its cash reserve on account OF loans
made on real estate security. Reports or the
bank showed that heavy loans had been mace
to directors and previous TO the action or the
State Banking Department in cioslnS It's doors
the Garfield Bank had refused 10 clear for H.
The bank had been examined one month be-
fore IL was closed and Mr. Judson tnen said that
its affairs were in good condition. Inc etate
the 81 Nicholas Bank just previous 10 It's going
into the hands OF the Department. Ii was not
discovered until after II had closed It's doors
that Louis J. HILL the teller. had been taxing
money from the institution for over year.
IS THE DEPARTMENT REMIss?
II seems. as far as can be learned. that the de-
faulttng bookkeeper of the Harlem River Bank
had been taking money previous to the last ex-
animation yet the Banking Department has just
discovered the defacation. The Banking Depart
ment is supposed TO be able TO discover any trou-
hle in a bank II 4 exists at the time II examines
it In the case Of the St. Nicholas Bank and
the Harlem River Bank IL seeHs 10 nave iaheu
10 make the discovery.
The rumor that a large bank defalcation had
occurred caused considerable excitement In wall
Street Yesterday, and bank officers made many
complaints because Mr.. Judson and Mr. Preston
would not give the facts then. In the minds OF
most bankers 1t seemed that the Banking De-
partment was keeping an unnecessary silence.
The State Banking Department had promised TO
keen the Clearing House Committee posted in're-
gard to its actions and its failure In this instance
was considered yesterday as breach OF iaitn-