The Washington herald., 1907-08-26


ants were busy al Sunday in the Of
fees OF the Chemical National Bank, in
lower Broadway. and it was reported
that large defalcation had been dis
covered in the big institution. which has
been known for years as Hetty Green's
bank
Detective sergt McCaTerty. head Of
the bureau at headquarters. and several
Of his aids were out tonight searching
for one Of the men in the cashiers de-
partment. who Is declared to have disap-
peared with a large amount OF money.
The reports as to the extent Of the en-
bezzlement vary frem $4,000 to 100000,
but no authoritative statement could be
obtained upon the exact amount, because
those of the officers who remained in the
city absolutely refused to discuss the
matter
Vice President J. D. Martindale and
Cashier Martin Halpin put off their usual
trips 10 The country, and were in and
out OF the Chemical building al during
the day.
President william H. Porter. of the
bank. who lives at No. So East Sixty
second street. was in town Saturday,
and after discussing the affairs of the
institution with his Heutenants, conclud-
ed that his presence was not necessary
and went down on Long Island.
Private detectives guarded those at
work in the bank from Intrusion. No
inkling Of what results the men going
over the books had obtained was allow
ed to escape.
Great secrecy had also been enjoined
upon headquarters. It was admitted
there that some miner official of the bank
was badly wanted, but SPECIFIC details
OF the charge against him were kept
secret.
AT o'clock in the evening McCafferty
received information that the man for
whom he was searching might be in
Brooklyn, but he met no success I'm this
quest, and returned to New York at
midnight.
Books Badly Involved.
Vice President Martindale lives at the
St. George Hotel in Brooklyn. He had
his dinner there last night after busy
afternoon at the bank. and then returned
10 the Chemical Building, where he and
Halpin had a consultation with the ac-
cOuntants. He refused however, 20 be
seen or To make any statement concern /
ing the banks alleged loss. So involved
have the books been left by the defaultcr
that the examination was kept up by
three expert accountants all night and
the extraordinary scene was visible from
the sidewalk at midnight OF three men
nd
fully adding up columns Of figures. COM
pairing the entries and striking balances
as they went along
II is said that the arrest may be made
Monday of another employe Of the bank
who has been under suspicion.
OLD SwfndIe Recalled.
The reported looting of the Chemical
Bank recalls 10 New York dnanciers the
one previous occasion when the famous
institution suffered loss Of almost
$400.0 900 because its cashier. William c.
Quinlan, was hypnOtized by two notorious
wildcat promoters, Gable and Silver.
That was in the days Of 1897. ten years
ago. Quinlan, the oldest and most trust
ed cashier in New York fell under the
influence Of John c Silver and Francis
Gable.
Before that he had lent Sl000000O0 of
the banks money without a hitch or one
cents depreciation IN the security.
Silver and Gable wOrmed their way
into his confidence with small loans he
said, raised them. got credit. defaulted,
put up security. paid up, and worked
their scheme so cleverly that by the end
of 1897 Quinlan had given them S3s3,C00 OF
the banks money on collateral that
wasn't worth the paper
Quinlan resigned, declaring that he
could not continue in his position after
deceiving the directors. George G. VII /
liams, president of the bank. lresigned |
later himself. Silver and Gable ran away
with the plumber.
The bank put the $4,000 TO the account |
Of profit and loss. Investigation developed |
that the 'hypnotiZed" cashier had lent |
the great amount to the two adventurers. !
knowing the securities they offered him I
were worthless.
The Caribou Mining Company. which /
was TO have made good the whole loan; 1
a dozen Western railway companies that /
never existed outside the promoters
heads. and half a hundred other com !
panies Of similar state. still figure in the /
loss account of the Chemicals safe The /
whole financial world was shocked on 1
the morning that Quinlan told the story 4
Of the loot 70 the directors Of the Chem /
ical. in his frank resignation