The New York herald., 1921-08-29
STATEN ISLAND BANK
IS CLOSED BY THEFTS
Mariners Harbor National An
nounces Loss Will Exceed
$150,000 First Estimate.
DEPOSITORS REASSURED
Officials Hope That Invest
ments Made by Bedell
Will Pay.


at Mariners Harbor, Staten Island
involved in June by alleged defalca-
ton OF its cashier, Sylvanus Bedell,
will not open it's doors to-day, 1t was
announced last night by its president
George Egbert. Disclosures that the
shortage in the bank funds amounts to
more than the s150,0oo announced at
the time Bedell was arrested and that
there is uncertainty as to how much
they do amount to were given as the
cause Of the suspension.
The closing is only temporary, in
the opinion of President Egbert, who
declared his belief that depositors
would be paid in full IL they would be
patient The decision TO close fol-
lowed conference OF the directors
and the national bank examiners re-
Gently, at which, it is said. the exam
iners made known that the shortage
was greater than the report of the
banks own accountants made it.
President Egbert issued the following
statement:
Some months ago II was disclosed
that the assets of the Mariners Harbor
National Bank had been depleted by the
criminal Irregularities of its cashier.
Sylvanus Bedell. Expert accountants
employed by the bank made complete
disclosure OF loss of $f50.00O. The
directors out OF their own private funds
appropriated $4,000 and were prepar-
ing to make good the balance OF the
deficiency, when additional disclosures
showed that the deficiency would amount
to more than the first report showed.
"As a result OF these additional dis
closures the directors had conference
with the national banking department
al which II was finally decided that the
hank should close its doors until such
time as further investigation on the part
Of the examiners was made and would
show th. total deficiency of the bank.
ct is hoped and believed that the de-
positors will wait patiently for the com
rletion OF this further investigation. and
they can rest assured that they will he
raid in full the deposits they had with
the bank.
signed) GEORGE EGBERr.
president"
Mr. Erbert declined TO discuss the
amount of the additional shortage dis
covered and no estimate OF the amount
could be obtained from other sources.
II was said the investigation, which is
being conducted by w. Stern. national
bank examiner, will take some time be-
fore IL Is finished.
Mr.. Egbert declared that the alleged
defaulting cashier had made certain In
vestments with the banks funds which
it was hoped eventually would return
much or most OF the shortage. What
these investments were he declined to
say.
United States Attorney Leroy Ross OF
RrookIyn. who has since died. said at
the time OF Bedell's arrest that the
shortage would amount TO almost
$500 900. Mr.. Ross also said that Bedell
had made restitution Of about $4,000.
The misuse OF funds, Mr.. Ross said,
dated back five years. In 1917. 1t was
alleged, Bedell bought ten shares OF
stock or tho shipyards company, in
which Magruder. personal friend,
held subordinate position. During the
war tho company secured 5000 900 worth
or Government contracts. Bedell. 1t IL al
legged became treasurer OF the company,
with Magruder's influence. on the under
standing that ne wovid see that the COM
aany's checks were honored. Bedell's
salary, at first s25 a week. was later
advanced to $4,000 year as the ship
Yards treasurer, while the checks of the
corporation for large amounts were
cashed at the bank by transference OF
funds from other depositors. 1t IS
charged
Magruder and Bedell are both under
Indictment and awaiting trial.
The Mariners Harbor National Bank
was established ten years ago with n
capital OF S150.000. Its depositors in
clude most OF the business men on the
north shore OF the island. and It's bust
ress was regarded as thriving mp to It's
present difficulty. Its deposits are about
81 100000
AS stockholders are liable for an as
sessment OF si50.o0O in addition to ahe
capital OF the hank. the shortage would
have to exceed 100000 before the de-
positora could he affected. under the
national banking laws.