The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-07-15


Their MOney-Were Finally Con-
Vfnced There Was No Danger for
DepOsitOrs In Savings Institution
and Dispersed.
NEW YORK, July 14.-George NJ Val
entine, cashier of the Middlesex County
Bank of Perth Amboy, N. j., which was
closed today, has surrendered himself,
and is now in Jail on account of short
age in the banks funds, which has been
variously estimated, all the way to $685.
900. The affair caused CONSERVATION and
dismay among the business men of Perth
Amboy, where the Middlesex County
bank was considered as strong as the
eternal hills. So panic-striken did the
residents of Perth Amboy become when
1t was learned that the Middlesex County
bank had failed to open for business as
usual this morning that crowds surround
ed 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 County
bank and the officers Of the Perth Am
boy savings institution are identical, the
business of both banks being transacted
over the same counters
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 that the
funds Of the Perth Amboy Savings insti-
tuition were not touched; that the $500, 900
deposited to the account of the savings
institution is absolutely safe, and that no
matter how badly the Mddlesex County
bank had been wrecked the savings bank
would be able to meet all the demands
made upon 1t by depositors. These words
of assurance from the officers of the saw
ings institution had the effect of checking
the run on this bank this afternoon.
The notice posted on the door of the
Middlesex county bank early this morn
ing was as follows:
Bank closed. In the hands of the bank
ing department"
CLIMAX REACHED.
On Monday last Cashier George M. Val
entine evidently concluded that he could
no longer conceal the shortage at the
Middlesex County bank. On that morning
he telephOned President Watson that he
was detained, but he said he would ap-
pear at noon. The bank had been opened
for business, and Mr.. Watson, who was
taking the absent cashiers place had
discovered that while there should have
been some $1,000 in bills to commence
operations on, these could not be found in
the vault. Mr.. Watson was searching for
them when Valentine called up. He ask
ed Valentine where this money was, and
was told 1t had been placed in the cash
ri 10 n
marked that that was no place for It, but
rang off the telephone and went to get
1t. A duplicate key Of the drawer indicat-
ed was obtained, and the drawer open
ed, but no money could be found
Robert N. Valentine, the cashiers
FATHER was summoned, and he aided in
the search for the missing money. Ii
could not be found, and finally tie work
OF checking was begun. Then 1t 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. Dep
appeared in response.
On Wednesday Mrs. Valentine, the wife
of the cashier, returned from Ocean
Grove, called at the bank and wanted to
know where her husband was This was
the first intimation she had that he was
that Valentine was not at the seashore
as at first supposed.
On Monday the Park National, of New
York, charged the Middlesex bank with
checks to the amount of $4,000, which are
said to have been drawn on it to the ac-
count of the Middlesex by Valentine.
HOW 1T WAS DONE.
A detailed investigation of matters by
President Watson and Robert N Valen-
tine showed that the cashiers checks and
stubs did not correspondence the checks
called for more money than the stubs re-
corded, and while taking. the stubs as a
basis of accounting the banks finances
would figure out all right, the checks
would show that the bank had been
drawing heavily on it's New York cor
respondent, the Park National bank
The cashier, In fact, carried the account
on the stubs and from them to the books
correctly, but when the returns from the
cashiers checks came In he pocketed the
difference between the stub and the
check.
Four. or five months of this methN of
financiering depleted the banks reserve
moneys and brought it to the verge of
ruin. Then the cashier evidently Sc
cured 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-
he'd 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, of Railway. He declined
to go into details about the shortage of
the bank, except to say that he was very
sorry he had got his friends into trouble,
and that he felt very bad about his wife
and children.
President Watson is of the opinion that
the cashiers defalcation will amount to
at least $125, 900. Where the money went
to is not known, as the cashier is said to
have been moderate in his tastes and
habits of living.
The Middlesex County bank was oper-
ated under a state charter, and had been
In operation many years. Cashier Val
entine was for years a clerk in the Park
National bank, of New York In 1888 he
was made cashier of the Middlesex Coun-
ty bank. His bond was fixed at $4,000
His relatives are wealthy, and 1t is said
they will endeavor to make good the