The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-01-29
S ate Superintendent Kraumbnar Took
Charge of Them Yesterday Manner
in Which Cashier Discounted Notes
and Subsequently Used Them.


was when the following notice was
posted on tn" door of the bank yester-
| day morning: The bank is closed
pending examination. BY order of
board of directors. George NJ. Hull,
president"
Speculatiuns were rife and the usually
quiet town was busily engaged in dis
| cussing the causes of the catastrophe
and the probable results.
| The excitement was still further
aroused when it became known that c.
II. kraumbaar, state superintendent Of
| banking was conducting an inVestiga-
tion of the accounts.
About $50 y. m. Mr.. Kraumbaar and
his assistants, j. A. Shaffer and Il. NJ.
Martin, left Olyphant for Scranton, ac-
companed by the directors and officers
Of the bank, and held meeting at the
| office of Attorney $. b. Price, the result
of which was that NJ. j. stone, the cash
ier, was arrested for forgery and en-
bezzling the funds of the bank and was
committed to the jail by Alderman Fitz-
simmons to await his trial at the forth
coming sessions.
Surprise Visit Of Examiners.
1t appears that late on Friday last
the bank examiners paid one of their
surprise visits to the bank, and Mr..
Shaffer, in the course of his eXamina-
ton of the books of the institution,
found an item of $4,000 credited to
Myron j. Stone, the cashier, on stock
subscribed" which, from the entry, ap-
peared to have been paid in discounted
notes.
Mr.. Shaffer requested Cashier Stone
to produce the notes in order to satisfy
himself of the genuineness of the item.
and after some hesitation on Mr..
Stones part he complied with the re-
| quest.
Mr.. Shaffer who is an expert in
handwriting and has had considerable
| experience in banking matters, de-
| clared, it is said, that the notes were
| all signed by the same person and made
a definite charge of forgery against
| Stone. whereupou that gentleman be-
came greatly excited and asked permits
| sion to see the notes in order to give
an explanation. Immediately he
graspcd the notes to tear them into
fragments, but Mr. Shaffer was able
TO recover the pieces and paste them to-
gether SO that they are for the purpose
of evidence practically the same.
The notes were as follows: one in
| the sum of $1,000, purporting to be
signed by c. W. Hale; one for $4,000
with the signature, 81. X. Bennett;
one was alleged to be given by his
| mother, Mrs. Stone, in the sum OF So,Ooo'
and another in the name of his wife for
| "a 600 4 note was also produced for
| e. 600 i'm the name Of &c. A. Baker"
This occurred on Saturday, and the
| state superintendent, who resides at
| philadelphia, was then acquainted with
the circumstances of the case, but not
in time to leave Philadelphia tha'
| evening.
Mr.. Kraumbaar ON the scene.
Mr.. Kraumbaar arrived on the scene
Yesterday morning at an early hour
and forthwith made short work or the
matter, and in the afternoon the dlrec-
tors. officials and his assistants accom-
panied him to Scranton, where an in
formal meeting was held in the Office
of Attorney S. Il. Price, and after con-
siderable discussion move was made
70 the office of Alderman Fitzsimmons,
where George NJ. Hull, president Of the
bank, swore out information against
Mr. Stone upon the charges OF forgery
and defrauding the bank.
The warrant was formally served by
Constable Hennegan and Stone pleaded
guilty District Attorney John r. Jones
4. n. hA
and Attorney John =. Kelly appeared
in the interest of the stockholders.
Mr.. Stone and several of those pres
ent were then closeted for upwards OF
two hours in a private room with the
interested parties. A Tribune reporter
| interviewed Mr.. Kraumbaar and his as
sistants, but they respectfully declined
to discuss the matter District Attor-
ney John r. Jones regretted that he
could not disclose what had been done
and County Detective Leyshon was
equally mute, but from the discussions
in Olyphant it Is stated that Stone ad'
mits that the signatures of G. y. Baker
and l.. r. Bennett were fictitious and
were the creatures of his Imagination
and that the signatures of his mother
and wife were written by him without
their consent.
Stone, 1t is alleged, has credited him.
self with $4,000 on the capital account
and $4,000 on his individual account
Pending a strict investigation of the
books no definite statement can be
made of the actual amount which Mr.
Stone has distracted from the bank
funds. but q considerable sum must
have been received by him in dividends
alone upon the fictitious capital ap.
pearing in his name.
stone Committc cd TO Jail.
After the secret investigations were
concluded in Alderman Fitzslmmons
office about 1890 O'Clock last night
District Attorney John X. Jones asked
that Mr.. Stone be held i'm bail of ST, ,OO(
to appear at court. Every effort was
made to secure bail among prominent
citizens, but without avail. He was
4 thereupon committed to the county Jail
At the suggestion Of the state super.
intendent of banking, the Lackawanna
Trust and Safe Deposit company of thi.
city was appointed the assignee to take
charge of affairs of the Olyphant Trus
company. / is not yet known what the
assets and liabilities are The com
pany did a small business and 1t will
take some weeks to make up the state
ment. It's liabilities, however, are sc
small that 1t will not affect any OF
the enterprises of financial institution.
of this city The bulk OF the indebted
ness Is ITO small deposltors.
The charter of the bank Is dated June
9, 1893, with a capital of $4,000, an6
Cashier Stone recently made an efror,
to increase the capital to s125OOO, which
Is the present nominal capital of the
institution, q considerable part oi
which it will be seen was In the name
lof the defaulting cashier. The direc