New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-10-10
BOOKKEEPER A DEFAULTER
STEALS BETWEEN $4,000 AND 100000
AND GOES ON VACATION.
UNITED STATES SENATOR KEAN AND
OTHER DIRECTORS WILL MAKE
THE DEFALCATION GOOD.

Elizabeth, n. J., Oct. Q CSpeciaD-The defaIca-
ton of William Schneider. formerly bookkeeper
for the Eliza bethport Banking Company and
who left this city last July. made known to-
day by President Hedritter and the other di-
rectors of the bank.
Schreiber's defalcation. as was reliably stated
tonight. exceeds 100000 and is placed as high
as S1OS,O00. The bank officials admitted this af-
ternoon that it would probably reach $4,000
and might be
Schneider. who is twenty-six years old. had
been for ten years connected with the bank first
errand boy, and then as a clerk, from
which place he had risen to be the bookkeeper of
the bank He gained by apparent good conduct
the full confidence of the bank officials Last
July he went vacation to Saratoga. He
overstayed his time. and his employers became
suspicious and began investigation Of his
books. Rumors current then that his ac-
counts were wrong, but when the president of
the bank was questioned by reporters he de
clared that there was no truth to the reports
An investigation however. was in progress. and
it is said that the reason why the defalcation
was kept quiet so long was because it was hoped
by the bank officials that Schneider would be
caught. as they had detectives looking for him.
He is now believed to be in London or Paris
On October , there was a secret meeting of
the bank directors held at President Heidrit
ter's office. and the result of the examination
into the banks affairs was then made known
to them. They decided to make good the entire
shortage. whatever it might be- out of their
own pockets United States Senator Kean. who
is the principal director, made the motion to
this effect and it is said contributed the largest
amount toward carrying it out. Mayor Mack,
Judge GiIhooly, former Sheriff Hicks and other
prominent citizens are directors. There is no
as the eleven directors have the entire confidence
of the community.
This afternoon an attachment for $4,000
against the property Of the absconding book
keeper was taken out in the Union County Court
by. Judge Gilhooly. attorney for the bank. but
it is said that Schneider does not own any prop
erty in this city. and that in 1898 he disposed
of all his property here, consisting Of a house
and three lots, valued at S4,5OO.
So cleverIy had Schneider covered up his tracks
in his systematic robbery Of the banks funds
that when its affairs were investigated last
February by the State bank examiners the
defalcatiOn was not detected THE examiners,
as we'll as ourselves. We're completely fooled by
Schreiber," remarked President Heidritter this
afternoon.
posits and part of his scheme was, when making
his returns TO the cashier, to deduct from the
total amount of these deposits whatever he had
stolen from the bank For example; II the de
posits footed up S25O.OOO. and the bOokkeeper's
populations amounted 10 S0OOOU, ne would make
a return of 100000 TO the cashier the total
of the individual deposits He had access 10
the banks vault. where a large surplus was
always carried in order to meet urgent demands
for money by manufacturers at izabethpOrt.>
While apparently he was model young man
in Elijah beth. the defaulter led entirely diff
ferent life it has been learned by the detectives
in New-York, where he had a fiat rented in
Forty -second-st, and pretended that he was
married He played the races, specuated in
Wall Street and had for his associates well
known sporting men and women Of questionable
reputation He unmarried and belonged
70 an old and respectable man-American
family of EIizabethpOrt.
The EIizabethpOrt Banking Company was
chartered in 1889 and has been a prosperous in
sittution. 1t Is largely an annex OF the National
State Bank of Elizabeth. Of which Senator Kean
is president. The Elizabethport bank IS capital
lied for $4,000 with a surplus Of $4,000 a
few months ago the banking company took pos
session of its new building. which cost $4,000
and which with the ground IL stands on is
worth nearly $4,000.