New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-12
Controller Williams Says
Martindale Long Robbed
the Chemical National
100000 Theft
In l6 Years Charged
Taken From Rich Deposi-
tor by Forgery and Decep-
ton, the Accusation
Ls,ar rnrrcsnondencel

of the Currency Williams tonight
made the remarkable statement. for.
mal,y. that j. B. Martindale. the late
presidcrt OF the Chemical National
Bank. Of New York City, who died in
Julv. 1871. was an embezzler and forger
70 the extent Of about 100000.
The Tribune correspondent put this
question 10 Mr.. Williams:
why 90 you now make public this
story about man who is dead, since
the accoun, has been made good and
the bank is solvent
Ny. Williams answered:
- think I make clear in my state
nsrt the reason for making the matter
public. that is, as a warning to other
banks against the careless use Of
cashiers checks or charge slips; also
The advissbilitv of bank officers taking
sn annual vacation.
To Guard Public Morality
oWhen a bookkeeper in q small bank
steals $1,000 the country hears all
sbou, il. Why cover up this because
il involved a high official Of great
hank? I don't think that cheap SEN
,nertal!tv ought TO cover over mis-
deeds Of this kind. I made the matter
pvbrc in the interests Of public NOR
atty"
The full statement Of the COntOller
follows.
Investigations recently made show
that J. 3. Nartirdale, the late president
NJ the Chemical National Bank Of New
York City. who died in July, 1917, was
sn embezzlcr and forger 20 the extent
Of sbou, 100000. He had been presi-
dent of tho bank since December, 1910,
and prior to that had been for num-
ber Of years its vice-president.
"The loss will not impair in the
slightest degree the capital and sur
plus Of the Chemical Bank, which
amounts a, this time to s1O00O,000, but
will be charged out of its undivided
profits, which at the present time
smOunt to over Sl,5OO.OOO after charg-
ing of the 100000.
"The suspicious Of the banks officers
were aroused while Martindale was alb
sent from the bank, i'll in a hospital,
shortly before his death, and the en-
bezzIement was discovered as a result
Of an inquiry instituted by Vice-Prssi-
dent Twi.cheIl, who was recently
elected president Of the bank to sue
eeed Martindale.
Charges Theft from Deposition
"The money was not stolen directly
from the bank, but was obtained by
manipulating the deposit account Of a
wealthy depositor, for whom Martin
dale acted as financial adviser and
trusted agent.
"Under President Msrtindale's IN
structions the statements OF this de-
positOr's accounts were rendered by
the bank periodically TO Martindale. in
stead Of direct 70 the depOsitor, ana
Msrtindale then manipulated and
changed them before submitting them
to the dcposItor.
"The method by which Martindale OBJ
tanned most Of the money was by with
drawing money from this depositor 3
account. either through a forged check
OF by 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 TINS
money from the account for donation
10 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 70
his own uses.
Played Both Ends
an explaining to the dcpositor at
the end Of each month these withdraw
ais, Martiudale's plan was TO INFORM
the unsuspcCting depOsltOr that he had
the Chemical Bank 20 the depositor :
credit Iu a certain trust company IN
New York City, one of whose deposit
or pass books he had obtained, and IN
which book he would enter up IN ms
own handwriting as deposits with the
Trust company the amounts of money
which he mad withdrawn from the
Chemical National Bank through The
means Of the forged checks or debit
slips.
"He also forged the depOsitor's name
10 certain demand notes to the extent
Of about $4,000, which amount he also
got from the Chemical Bank and per-
sonally appropriated.
The aggregate amount Of the forged
notes placed IN the Chemical Bank and
the false credits shown on the deposit
CT pass book Of the trust company was
about 100000.
Such Cmbezzlements and forgeries
would have been practically impossible
mad they not been perpetrated by an
onIcer Of IN" bank in whom the direc-
tCrs and junior officers reposed i'm
plicIt confidence.
Bank 10 Make Good
THE Chemical National Bank has
arranged to make good TO the depos-
ltor the entire amount thus embezzled.
=, The National Bank Examiner AZ
New York has practically completed
MS regular semi-annual examination
OF the Chemical National Bank, and has
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