Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1917-09-19
n. Y. NKER ENiBEZZL.ED
Many Thousands-Iseport by Exami-
ner Advises Vacations.

clOSGu tnat the late j. Is. MartlnQale,
president OF the Chemical National
Bank, of New York, was an embez-
zler and forger to the extent Of
about 100000. The amount was
taken, the comptroller announced, :,
from the account OF wealthy de-
positor, and the bank has arranged
to make good the entire sum.
Capital and surplus of the bank,
Mr.. Williams announced, we're not
impaired in the slightest degree by
the alleged operations of flMartindale.
The statement says:
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 $780,
900. He had been president of the
bank since December. 1910, and
prior to that had been for a number
Of years its vice president.
Bank Not Hurt.
''The loss will not impair in the
slightest degree the capital and sur
plus OF the Chemical National Bank,
which amounts at this time to ten
million dollars, but will be charged
| out OF it's undivided profits which, at
the present time, amount to over
| $l,50O. 900. after charging off the
100000.
"The suspicious of the banks OFF,
GERS were aroused while Martindale
was absent from the bank, i'll in a
hospital, shortly before his death;
and the cmbezzlement was discover
! cd as the result Of an inquiry insti-
| tutcd by Vice President Twitchell
who was recently elected by the
bank to succeed Martindale The
money was not stolen directly from
the bank, but was obtained by ma
nipulating the deposit account OF a
wealthy depositor. for whom Martin-
dale acted as financial adviser and
trusted agent. Under President Mar
| tindale's instructions the sta tement
Of this depositor's account was rem
dered by the bank periodically to
Martindale, instead Of direct to the
depositor, and Martindale then ma.
nipulated and changed them before
submitting them to the dcpositor.
Martindnle's Methods.
''The method by which Martindale
obtained most OF the money vas by
withdrawing money from the dep os-
itor's account, either through forg-
ed check or by a debit slip signed by
himself as president. He would pre-
sent these checks TO the bank teller
personally, explaining that the de-
position had asked him to draw this
money from the account for dona-
ton to some hospital so that the
| name OF the donor might not be
known, or that the depositor desired
! the matter handled in this manner
for some other plausible reason, and
he would then appropriate the cash
so Withdrawn to his own uses.
'In explaining to the dep0sitor at
the end Of each month the withdraw
ais. Martindale's plan was to inform
the unsuspecting depositor that he
had placed the sums so withd rawn
from the Chemical Bank to the de-
positor's credit in certain trust
company in New York city, one Of
whose depositor's pass books he had
obtained and in which book he would
enter up in his own handwriting as
deposits with the trust company the
amounts Of money which he had
withdrawn from the Chemical Ma
tional Bank through the means Of
the forged checks or debit slips.
ole also forged the despos tor S
name to certain demand notes to the
extent OF about $4,000. which
amount he also got from the Chemi-
cal Bank and personally applied.
"Such embcZzlement and forgcries
would have been practically impossi-
bic had they not been perpetrated BY
an officer Of the bank
Makes Good Losses.
"The Chemical National Bank has
arranged to make good to the dcposi-
tor the entire amount thus embez-
zlcd.
1.-The national bank examiner OF
New YORK has practically completed
his examination OF the Chemical Ma
tional Bank and has reported to the
cOmptroller's office that the bank Is
| in fine condition. More than a year