The Indianapolis journal., 1899-07-15
Defnlcation Detected by the Presi-
dent, Who Found No Money When
the Cashier Failed to Appear.
LATTER IS NOW In PRISON
SORRY FOR WIFE AND FRIENDS,
But DECLINES TO TALK.
Run on an Allied Savings Institution,
Order-Shortage to BE Made Good

NEW YORK. July A.-George NJ. Valen-
tine cashier of the Middlesex County Bank
of Perth Amboy, n. j., which was closed
to-day, has surrendered himself and is now
in jail on account of shortage in the
banks funds, which has been variously es-
timated all the way to sl65.0Oo The affair
caused CONSERVATION among the business
men of Perth Amboy, where the Middlesex
Bank was considered as strong as the eter-
nal hills. So panic-stricken did the resi-
dents of Perth Amboy become when it was
learned the Middlesex Bank had failed 10
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
Middlesex Bank and the officers of the
Perth Amboy Savings Institution are iden-
tical, the business of both banks being
transacted over the same counter. Though
1t 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 Institution were not touched, that
the $500 600 deposited to the account of the
savings institution is absolutely safe. and
that no matter how badly the Middlesex
Bank has been wrecked, the savings bank
will be able to meet all demands made on
II by the depositors. These words of assur-
ance from the officers of the savings bank
had the effect of checking the run on this
bank during the afternoon.
The notice on the door of the Middlesex
County Bank this morning was as follows:
Bank closed. In the hands of the bank
ing department" On Monday last Cashier
George NJ. Valentine evidently concluded
that he could no longer conceal the shortage
at the Mddlesex Bank. On that morning
he telephoned President Watson he was de-
tained, but said he would appear at noon.
The bank had then opened for business,
and Mr.. Watson. who was taking the alb
sent cashiers place, discovered there should
have been some $500 in bills on hand to
commence operations that morning. These
he could not find in the vault. Mr.. Watson
had been searching for 1t when Valentine
called up. He asked Valentine where this
money was, and was told 1t had been
placed in the cashiers private drawer. Mr..
Watson remarked that was no place for it,
but rang off on the phone and went to get
ii. A duplicate key to the drawer was OBJ
tanned and the drawer opened. but no
money could be found. Robert N. Valen-
tine, the cashiers father, was summoned,
and he aided in the search for the missing
money. 1t 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 sum-
moned and the banking department was
notified to send an examiner Deputy Com
missioner of Banking Johnson appeared in
response
On Wednesday Mrs. Valentine, wife OF
the cashier, returned from Ocean Grove and
called at the bank and wanted TO know
where her husband was. This was the first
intimation she had that he was not on duty
and showed the officials that Valentine was
not at the seashore, as at first appeared.
On Monday the Park National Bank, of
New York. charged the Middlesex Bank
with checks to the amount of $1,000, which
are said to have been drawn on it against
the account of the Middlesex by Valen-
tine.
A detailed investigation of matters by
President Watson and Robert n. Valen-
tine showed the cashiers accounts and
stubs did not corresponds: that the checks
called for more money than the stubs re-
corded and that while taking the stub as
the basis of accounting the banks finances
would figure out all right the checks would
show the bank had been drawing heavily
on its New York correspondent, the Park
National Bank. The cashier. in fact, car
ried 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 financiering depleted the banks
reserve money and brought it to the verge
OF ruin. Then the cashier evidently secured
a portion of the ready cash on hand and left
Perth Amboy.
Thursday night the determination to close
the bank was reached and Mr.. Watson noti-
fed Chief of Police Burke and asked him to
locate the missing cashier. Valentine, who
had been in New York city, returned to Perth
Amboy from Woodbridge. accompanied by
his counsel. Edward Savage. He declined to
go into details about the shortage except
TO say he was very sorry that he had got
his friends into trouble and felt very bad
about his wife and children. President Wat
son Is OF the opinion the cashiers defalca-
ton will amount TO at least s125O 900. Where
the money went Is unknown. as the cashier
is said 20 have been moderate in taste and
napltS OF Ale. Inc Miuuiesex county bann
was operated under a state charter and had
been in business many years.
Cashier Valentine WIS for years a clerk
in the Park National Bank of New York.
In 1898 he was made cashier OF the Middle
sex Bank. His bond was fixed for $4,000. His
relatives are wealthy and IL is said they
will try 10 make good the shortage
The National Park Bank. OF this city. has
obtained an attachment in the Supreme
Court for $si.5os against the Middlesex
County Bank Of Perth Amboy. n. j.. $50. .2O5