The sun., 1917-09-12
Money Obtained by Manipu-
lating Account Of Rich
DepOsitOr.
BANKER HIS ADVISER
Forged Checks Used and
Constant Deception
Practised.
THEFTS FOR rs YEARS
Directors Make Good the Loss,
Says Comptroller
Williams.
THEFTS FOR rs YEARS
Special Despatch to The Srx.

WASHINGTON, Sept. ll,-Disclosure
that the late J. B. Martindale during
the last sixteen years when he was a
subordinate officer and then president Of
the Chemical National Bank of New
York. stole 5000. 900 by forged notes and
false entries was made to-day in a state
ment by John Skelton Williams, Comp
troller Of the Currency.
Martindale died only two months ago.
He was III In hospital when Vice
president Twitcnell. who succeeded
20 the presidency OF the bank. began
the Investigation that disclosed the
thehs, The story Of Martindale's pecu-
lstons in the formal words of the
Comptroller. follows:
Investigations recently made show
that J. b. Martindale, the late president
OF the Chemical National Bank Of New
York city. who died in July. 1917, was
an embezzler and forger to the extent
Of about 100000. He had been presi-
dent OF the bank since December. 1910.
and prior to that had been for a num-
Der Of years its vice-president
The loss will not impair in the slight
-, degree the capital and surplus Of the
Chemical bank. which amounts at this
time to $4,000. 900. but will be charged
out Of it's undivided profits which at
the present time amount to over $500
ono. after charging of the 100000.
Method of Embcxsleme
The suspicious If the bank officers
were aroused while Martindaie was abb
nj kHA k
shortly before his death: and the EN-.
bezzement was discovered as a result
Of an inquiry instituted by Vice-presi-
dent Twitchell. who was recently elected
president Of the bank to succeed Mr..
Martindale. The money was not stolen
Directly from the bank but was OBJ
tained BY manipulating the deposit ac-
count OF a wealthy deposition for whom
Martindale acted as financial adviser
and trusted agent.
Under President Martindale's in
sructions the statements Of this deposit
tors account were rendered by the bank
periodically to Martindale. instead OF
direct to the deposition. and Martindale
then manipulated and changed these
before submitting them to the depositor.
The method by which Martindale OBJ
tanned most Of the money was by with.
drawing money from this depositor's ac-
count, either through forged check or
f' debit slip signed by himself as
president He would present these
checks for $4,000 or 10000, or whatever
'he amount might he. to the bank teller
porsonally, explaining that the depositor
had asked him to draw this money from
the account for donation to some
hospi'al SO that the name OF the donor
ght not be known, or that the depos.
hon taH in
manner for some other plausible reason
snd ne would then appropriate the cash
90 withdrawn 10 his own uses.
Deception Practisch.
I'm explaining TO the depositor at the
'nd OF each month these withdrawal
|Arttndale's plan was to inform the un-
Inspecting depositor that he had placed
'he sums so withdrawn from the Chemi-
cal Bank to the depositor's credit in a
"Fttain trust company in New York city
one OF whose depositor pass books he
'ad obtained and in which book ht
Would enter up in his own handwriting
- deposits with the trust company the
amounts OF money which he had with
Drawn from the Chemical National Ba nj
through the means OF the forged checks
O. debit slips.
He also forged the depositors nam.
10 certain demand notes to the extent Of
about $4,000, which amount he also GO
from the Chemical Bank and personally
appropriated.
The aggregate amount OF the forged
notes placed in the Chemical Bank ant
the false credits shown OIL the deposito,
pass book Of the trust company wal
about 100000.
Such entertainments and forgerie.
would have heen practically impossible
nad they not been perpetrated by an Of
hcer OF the bank in whom the director!
and junior officers reposed implicit con
fdence.
The Chemical National Bank has ar
ranged to make good to the deposition
me entire amount thus cmbczzled.
Bank In Fine Condition..
The national bank examiner o
"HD York has practically completed hi
leaular scmi-annual examination of tn,
chemical National Bank and has re
ported 10 the comptrollcr's Office tina
~" bank is in fine condition. Th'
amount involved is small as compare,
WIN the banks capital and surplus
mo examiner also states that he find
u" Indication whatsoever OF further mis-
appropriation by Martindale's forgerie
ana enlb"zzlemcnts. As far as ha
n"en ascertained they were confined 4
Inc accounts of this one depositor.
This experience should serve as
warming to national banks that no irreg
hariies liberties or unbusinesslik k
methods or practices should be counte
hanced or permitted on the part OF an
o'''cer or employee Of a bank. howeve
h'gh his ofIiclal position. and shoul
serve as warning also against laxit
n the use Of cashiers checks or charg
slips.
1t appears that Martindale's EN-
0szzlements began about sixteen year
aso. and that for years past he ha
made It practice to be on hand at tn
nank at the close Of each month
orher that he might personally loo
A'ter and manipulate the statements rer
dered this particular depositor,
More than a year ago the ComI
uoller's ONCE In calling upon nations
tanks to furnish a list OF employees VIII