The Barre daily times. (Barre, Vt.) 1897-1959, 1917-09-12
EMBEZZLEMENT ALLEGED.
By J. B. Martindale, Now Dead, Former
ly of New York Bank.

Washington, d. c., Sept. l2.-Comp
troller Williams issued statement yes
lterday asserting investigation had dis
closed that the late j. Il. Martindale
president of the Chemical National banl
of New York. who died in July 1917
was a embezzler and forger to the ex
| tent Of about S300,000 The amount wa.
taken, the comptroller announced from
the account of wealthy depositor, and
the bank has arranged to make good the
entire sum.
| Capital and surplus of the bank, Mr.
Williams said, were not impaired in the
| slightest degree by the alleged operations
of Martindale. The statement follows;
investigations recently made show
| that j. b. Martindale, the late president
of the Chemical National bank, who died
in July, 1917, was an embezzler and forg-
er to the extent of about 100000. He
had been president of the bank since De-
cember, 1910, and prior to that had been
for number of years its vice e-president.
THE loss will not impair in the slight
est degree the capital and surplus of the
Chemical bank, which amounts at this
time to $l0,000,000; but will be charged
out of its undivided profits, which at the
present time amount to over 81, 5000
after charging off the 100000.
"The suspicious of the banks officers
were aroused while Martindale was alb
sent from the bank, i'll in hospital,
shortly before his death, and the EN-
bezzlement was discovered as a result of
an inquiry instituted by Vice President
Twitchell who was recently elected pres
ident of the bank to succeed Martindale.
The money was not stolen directly from
the bank, but was obtained by manipu.
lating the deposit account of wealthy
depositor, for whom Martindale acted as
financial adviser and trusted agent. I'm
der President Martindale's instructions,
the statements of this depositor's ac-
count were rendered by the bank periodi.
cally to Martindale, instead of direct to
the depositor, and Martindale then ma
nipulated and changed them before sub
mitting them to the depositor.
"The method by which Martindale OBJ
tanned most of the money was by with
drawing most of the money from this |
depositor's account either through a
forged check or by debit slip signed |
by himself as president. He would pre-
sent these checks for $1,000 or $4,000, |
Or whatever the amount might be to the |
bank teller personally explaining that |
The depositor had asked him to draw this /
money from the account for a donation I
10 some hospital so that the name of the /
lonor might not be known, or that the
iepositor desired the matter handled in
his manner for some other plausible rea-
son; and he then would appropriate the
ash so withdrawn to his own uses.
"In explaining TO the depositor at the
md of each month these Withdrawals,
plab was to inform the un.
depositor that he had placed
he sums so withdrawn from the Chem
cal bank to the depositor's credit in
ertain trust company in New York CITY,
me of whose depositor passbooks he had
'btained and in which book he would en-
er in his own handwriting, as deposits
With the trust company, the amounts of
money which he had withdrawn from the
'hemical National bank through the
means of the forged checks or debit slips.
HE also forged the depositor's name
o coin demand notes to the extent of
bout 10000, which amount he also got
rom the Chemical bank and personally :
ppropriated.