New-York tribune., 1899-12-23
SIX MORE INDICTMENTS.
THE GRAND JURY FINDS BILLS AGAINST
VALENTINE.
IT ALSO MAKES PREsENTMENT AGAINsr THE
PRESIDENT AND DIRECTORS OF THE
MIppLEsEX COUNTY BANK.

MIDDLEsEX COUNTY BANK
New -Brunsvick. Dec. % (speciaD.-The Middle.
sex County Grand Jury. which has been in session
since December ~, came into court this AFTERNOON
and discharged by Justice Gilbert Collins. inc
fury found forty-four indictments out Of l3 cases
considered The Jury considered thoroughly the
matter OF tho wrecking OF the Middesex County
Bank and the defalcaton OF George NJ. Valentine,
its cashier. and returned six indictments against
Valentine. four for embeZzlemen' and TWO TOT
falshcatlon OF the banks books and made pre-
sentiment against the president and directors OF the
bank for gross carelessness and negligence In tho
performance Of their duties. The presentrent also
suggests a thorough examination OF state
banks by the Department OF Banking and Insur-
The indictments against Valentine are as foi-
lows: For overdrawnS his account with the Md
dlesex County Bank for his own private use and
benefit by drawing out si53l9 9s on December "a
1888, when he had no such deposit in the bank;
for falsifying the books June o. 1899. by enter
ing on the stubs IN the book OF drafts drawn
the National Park Bank Of NewYork, the sum
Of 500 and making the draft for 5000; for en-
bezzling 1910, which had come into his possession
as cashier on June p. 1893: FOR embezzllng S SeS
13 1899: FOR fasifying the books on May l5. 1899 by
entering on the stubs In the book OF drafts drawn
on the National Park Bank. of New York. the sum
Of $l2 81 and making the draft for $500
Valentine. as cashier was able TO carry on em-
bezzlement systematically for several years until
S9 n2f sSaas af W @ M m Of s any f sse
ment Of the banks funds or had such criminal
Indictment but we do find that they were guilty OF
such gross carelessness and negligence In the per-
iormance OF their duties as rendered sucn en-
bezzlement by him comparatively easy, and that
they failed to adopt such ordinary precautions to
detect or prevent dishonesty on the part or tho
cashier as calls for the seyerest censure by this
The public looked to the president and directors
TO see that the bank was honestly managed and
trusted the bank because its affairs were in their
care. yet the president and directors made no ex,
animation OF its condition other than an occasional
comparison OF the statement book with the other
books OF the bank. and wholly neglected to verify
these books by actually ascertainng whether they
truly stated the amount Of assets OF the bank. .
with the of NE ank o @
serve agent. The truth OF this was not verified oY
Drafts were systematically drawn by Valentine
upon the Park Bank for a much larger amount
journal and ledger Of the bank. so that the books
continuously showed for at least two years prior
70 the banks failure much larger deposit IN the
Park Bank than was really there simple IN
amount S y on e deposit 4tf or Of the monthly
statements rendered by the Park Pank with their
own books II made at any time during the last two
sfsiT AFFAIRS. "0U'u ''''0 is's1'1 '''s 49, '''''
Valentine seems have examined them or checked
them off Had they been properly, checked the
were drawn to Valentines own order or for MS
personal debts.
upward of $1,000 and the bank was carrying his
unpaid check for 5000 as a cash item These were
to the knowledge OF the president and Board OK
Directors for many months.
On April 5, 1899, L. B. Watson, the president IN
conjunction with Valentine as cashier. made
sworn report the Department OF Banking and
Insurance Of the State at Trenton. OF the resources
/ and liabilities OF the bank and reported that the
bank then had deposit with National. state and
/ private banks bankers and trust companies the
/ sum OF :l05 337 o. when he knew fact that no
examination had been made by himself or the di-
| rectors to verify such item.
We would further present that in our opinion 80
large defalcation would not have occurred had
the Department Of Banking and Insurance done its
full duty in examining the affairs or the pahk
The last regular examination OF the banks anaire
made by that Department was on June y, lSi.
More than years elapsed before the banks
failure during which time no thorough eNamlne-
/ tion was made by the Banking Department 70 as
certain that the banks resources remained intact
| A martial examination made on December II,
1898 but the assets OF the bank were not at thas
time Investigated nor the amount OF It's assets as
certained. , .x-...s
In our opinion frequent and more thorough
examinations OF State banks should be made by the
Department.