Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-09-12
BANK PRESIDENT
STEALS 100000
Late Head of Chemical National
Accused of Embezzlement
and Forgery.
WILLIAMS MAKES CHARGE
Comptroller of Currency Says J.
B. Martindale Manipulated Ac-
count of Big Depositor.

WASHINGTON. September Ill. B.
Martindale. late president of the Chem
ical National Bank. of New York City.
who died in July last, was an cmbezzler
s300,j00.
This startling information was OBJ
tanned to-day at the Office of John Skel- |
ton Williams, Comptroller of the Cur
rency. following a series Of. invcstiga-
tions made by the government. Mr..
Martindalc had been president of the
bank since December. 1910. and prior
TO that was vice-president OF the in
stitution for MANY years.
In making the announcement. the
comptroller declared that the loss will
not impair in the slightest degree the
capital and surplus Of the Chemical
National Bank, which amounts at this
time to s10.o0o,ooO. 1t will be charged
out of its undivided profits account,
which at the present amount to more
than sl.5oo.o0o after chs rging OF, the
100000
SUSPICIONS AROUSED
JUST BEFORE HIS DEATH
Suspicious of the banks officers. 1t
vas explained by the comptroller. were
aroused while Martindale was absent
from the bank, i'll in a hospital, Just
before his death. The embezzlement
was discovered as the result of an
inquiry Instituted by Mt. Twitchell,
vice-presidcnt of the bank. who re-
Gently was elected president to sue
ceed Mr.. Martindale.
According TO the information obtain
able here. the money was not stolen
directly from the bank, but was pro-
cured by manipulating the deposit
account of wealthy dcpositor. for
whom Mr.. Martindale acted as finan-
ciai adviser and trusted agent. Under
Mr.. Martindaic's instructions. the state
ments of this depositor's account were
rendered periodically by the bank to,
Mr. Atartindale, instead Of direct to
the deposition. Mr.. Martindal le then
manipulated and changed them before
submitting them to tSe depositor.
The method by which Mr.. Martin
dale obtained most of the 100000, tho
comptroller further explained. was by
Withdrawing from the depositor's ac-
count. either through a forged check
or by a debit slip signed by himself
as president. He would present these
checks for $4,000 or $4,000. or what
ever the amount might be, to the
bank teller personally, explaining that
the depositor had asked him to draw
the money from the account for a
donation to some hospital. so that the
name Of the donor might not be
known.
At other times he would explain that
the depositor desired the matter
handled in this manner for some other
plausible reason. The cash so with
drawn then would be appropriated to
his own use.
EXPLANATION MADE TO
UNsUsPECTING DEPosIroR
I'm explaining these Withdrawals to
the dcpositor at the end of each
month" the comptroller explained, Mr..
Martindale's plan was to inform the
unsuspcctinG dcpositor that he had
placed the sums so withdrawn from
the Chemical Bank to the dcpositor,s
credit in certain trust company in
New York City. one of whose depositor
passbooks 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 National Bank through the
means Of the forged checks or debit
slips.
He also forged the depositor's name
to certain demand notes to the extent
of about $4,000, which amount he also
got from the Chemical National Bank
and personally appropriated.
The aggregate amount of the forged
notes placed in the Chemical National
Bank and the false credits shown on
the depositor passbook of the trust
company was about 100000
Such cmbezzlcments and forseries
would have been impossible practically
had they not been perpetrated by an
omcer or the bank. in whom the dircc-
tors and junior officers reposed implicit
confidence. The Chemical National
Sank has arranged to mako good to
the depositor the entire amount en-
bezzled.
The examiner reports the condition
OF the bank as excellent. and that the
amount involved is small compared
with the banks capital and surplus.
The examiner also says that he finds
no indication whatsoever OF further
misappropriations. Mr.. MartindaIe's
forgeries and embezzlements, as far as
nave oeen c-acertained, being confined
10 the accounts of the one dcpositor.
Mr. MaFtindale's embezzlements. it
is salo' began aboEt sixteen years ago.
For years he had made it q practice
to be on hand at the bank at the closo
Of each month so that he might per.
sonally look after and manipulate the
statements rendered this particular de-
positor.
Interned German Dies.