The record-union., 1899-07-15
Embezz|es Funds Of an Institution
and Sends It to Ruin.
His Shortage Estimated at Over One Hun
dred thousand Dollars.


the Citizens Of Perth Amboy,
N. j., Where It Was Located
The Defaulting Cashier Now
Behind Prison Bars.
NEW YORK, July 14.--George NJ.
Valentine, Cashier of the Middlesex
County Bank of Perth Amboy, N. j.,
which was closed yesterday, has sur
rendered himself. and is now in jail
on account of a shortage in the banks
funds, which has been variously esti-
mated all the way up to $165,OOO. The
affair caused CONSERVATION and dlsmay
among the business men of Perth AM
boy, where the Middlesex County Bank
was considered as strong as the eternal
hills. So anicstricken did the res
idents of Perth Amboy become when 1t
was learned that the Middlesex Bank
had failed to open for business as usual
this morning, that crowds surrounded
the Perth Amboy savings institution.
What made the run on the savings
bank appear all the more serious was
the fact that the officers of the Middle
sex County Bank and the officers of the
Perth Amboy institution are identical,
the business of both banks being trans
acted over the same counter. Though
it became necessary to call for the
aid of the police for the purpose Of
maintaining order, U. B. Watson, the
President of both banks, says the funds
of the Perth Amboy savings institu-
ton were not touched; that $5OO.0OO de-
posted to the account of the savings
institution is absolutely safe, and that
no matter how badly the Middlesex
County Bank has been wrecked the
Savings Bank will be able to meet all
demands made upon it by the depos-
itors. These words of assurance from
the officers of the savings institution
had the effect of checking the run on
this bank during the afternoon.
The notice posted on the door OF the
Middlesex County Bank early in the
morning was as follows:
Bank closed. In the hands of the
Banking Department"
On Monday last Cashier George M.
Valentine evidently concluded that he
could no longer conceal the shortage OF
the Middlesex County Bank. On that
morning he telephoned President Wat
that he would appear at noon. The
bank had then opened for business, and
Mr.. Watson, who was taking the alb
sent cashiers place. discovered that
there should have been some So 800 in
bills on hand to commence operations
that morning. These he could not find
in the vault. Mr.. Watson had been
searching for it when Valentine called
uo11 xx-bn
this money was, and was told it had
been placed in the cashiers private
drawer Mr.. Watson remarked that
that was no place for it, but rang off
on the telephone and went to get it. A
duplicate key to the drawer indicated
was obtained and the drawer opened,
but no money could be found.
Robert N. Valentine, the cashiers
brother, was summoned, and he aided
in the search for the missing money.
It could not be found, and finally the
work of checking was begun. Then it
soon became evident that during the
last few months the accounts of the
bank had been juggled. The other
Trustees were summoned, and the
Banking Department was notified to
send an examiner. Deputy Commits
sioner of Banking Johnson appeared in
response.
On Wednesday Mrs. Valentine, the
wife of the cashier, returned from
Ocean Grove, and called at the bank
and wanted to know where her hus,
band was. This was the first inti-
nation she had that he was not on
duty, and showed the officials that VAL
entine was not at the seashore, as at
first appeared.
On Monday the Park National of
New York charged the Middlesex
County Bank with checks to the
amount of $4,000, which are said to
have been drawn on it against the ac-
count of the Middlesex by Valentine.
A detailed investigation of matters
by PRESIDENT Watson and Robert N.
Valentine showed that the cashiers
checks and stubs did not correspond;
that the checks called for more money
than the stubs recorded. and that while
taking the stubs as the basis of ac-
counting the banks finances would fig,
ure out all right, these checks would
show that the bank had been drawing
heavily on it's New York correspondent,
the Park National. The cashier, in
fact carries the accounts on the stubs.
and from them to the books correctly,
but when the returns from the cashiers
checks came, he pocketed the difference
between the stub and the check. -Four
or five months of this method of f1nan-
ciering depleted the banks reserve
moneys, and brought it to the verge Of
ruin. Then the cashier evidently Sc
cured portion of the ready cash on
bopd aud loft Perth AmbOy
Thursday night the determination to
close the bank was reached and Nr.
Watson notified Chief of Police Bur
ton, and asked him to locate the miss
ing cashier.
Valentine. who had been in New
York City, returned to Perth Amboy
from Woodbridge, accompanied by his
counsel, Edward Savage of Railway.
He declined to go into the details Of the
shortage of the bank, except that he
was very sorry that he got his friends
into trouble, and that he felt very bad
ly about his wife and children
President Watson is of the opinion
that the cashiers defalcation. will
amount to at least $685. 900. Where the
money wents to is not known, as the
cashier is said to have been moderate
in his tastes and habits Of life.
The Middlesex County Bank was
operated under a State charter, and
had been in operation many years.