The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-09-12
Discovery Made After Death
of J.B. Martindale. President
of Chemical National
MANIPULATED ACCOUNT
OF WEALTHY DEPOSITOR
Loss Will Be Made Up From
Undivided Profits of lnsti-
tuition. Whose Solvency Is
Unaffected

Washington. Sept. Ill. p. Mar
tindaie. late president of the Chemical
NATIONAL bank. Of New York city, who
died in July last. was an erbezzler
and forger to the extent OF about
1900, 900.
This startling information was OBJ
tanned today at the Office OF John
Ekelton williams. controller OF the
currency, following a series OF inves-
legations made by the government.
Mr.. Marttndale had been president OF
the bank since December. 1910, and
prior to that was vice-president OF
the institution for many years.
In making the announcement. the
controller declared that the loss Will
not impair In the slightest degree the
capital and surplus OF the Chemical
National bank. whsrh amounts at this
time to $4,000. ooo. n Will be charg-
ed out of its undivided profits" ac-
count. which at the present amounts
to- more than $4,000 after charg-
Ing off the $4,000
Suspicious of the banks officers. II
was explained nv the controller. were
aroused while Martfndsie was absent
from the hanlr III tn hospital. tusi
before his death The embezxlement
was discovered an the result of an In
qptrv Instituted by Mr.. Twttchell. vice
president Of the bank. who recently
was elected president TO succeed Mr.
Aartindaie.
According 20 the Information OBJ
taina HE here the money was not
stolan directly from the bank. but was
procured by manipulating the deposit
account ~ wealthy depositor for
whom Mr. Marttndale acted as fnan-
raE ND n
Mr.. Marttndaies instructions tbs
statements Of this depoeitor'- ac'
i,-s>ssr1t were rendered rttft,ffcs'iv 6,
the hank to Mr. Martindaie. instea
Of direct TO the depositor, Mr. Mar
tin6ate then manipulated and changed
them before submitting them TO ths
denesitor.
The method by which Mr.. Martin
dale obtained most OF the $500, ooa
tho controller further explained. WAS
by Withdrawing from the depositor' I
account. either through forged
check ar fsv debit Slip signed by
himself as president He would pre-
sent these checks for $4,000 or $40
900 or whatever the amount might
he to the bank teller personally, ex-
planning that the depcsitor had asked
him to draw the money from the &C
count for donation TO some hos
pttal. 40 that the name of the donor
might not be known.
At other times he would explain
that the depoeftor desired the matter
handled In this manner for some other
riausrhle reason. The cash 20 with
drawn then would be appropriated tc
his own use.
'In explaining these Withdrawals tc
the d~posrtor at the end Of each
month" the controller explained
MFR. Nartindale's plan was 10 inform
the ursuerecttng depositor that h
had placed the sums so withdraw
from the Chemical bank to the de.
positcr's credit in a certain trust com.
many in New York city, one Of whose
depositor pass books he had Obtain
ed and In which book he would enter
Nm In his OWN handwriting as dennaits
with the trust company the amounts
Of money which he had withdrawn
from the Chemical National bank
checks or debit slips.
'eHe also forged the depository
name TO certain demand notes to the
extent OF about $50. 900. which amour,
he also got from the hank from tin
Chemical National bank ana person
ally appropriated.
The aggregate amount OF the fcrg-
ed notes placed IN the Chemical Ma.
t,onal bank and the false credits
shown on tho depositor pas-book oi
the trust company was about $780,
900
"Euch entertainments and forgeries