The New York herald., 1921-08-30
SAYS BANK IS GOOD
FOR 100000 LOSS
Mariners Harbor Shortage
May Pass That Sum. Though
Report Will BE Delayed.

The shortage In the funds OF the
Meainers IIarbor National Bank at
Mariners Farbor. Staten lsIard, due to
the alleged pecu,ations OF Sylvanus Be
dell, former cashier, and Robert Ma
gfrder, an official OF the Johnson Ship
yard Corporation. viii exceed $500 900.
i was announced yesterday BY Albert
G. zach, tha banks attorney.
r.. Wiley Stearrs. acting chief ma
toned hanl: examiner. formally took
over the bank In the morning and deposi-
tors who sopgnt to withdraw funds were
turned away by detail Of police from
the West Brighton precint, under Capt
John Langtry A crowd OF nearly 100
gethered outside the Institution before
the usual hour For orening. After learn
irg that the Federal authorities were in
charge. they dispersed without disorder.
In the afternoon. Bcdell. accom-
ranied By Mr.. FGch. appeared al the Of
flee OF Wallace T.. Collins, acting United
States Attorney. in Brooklyn, and sur
rendpd. Although lie and Magruder
wore indicted on June IS. Bsdell was not
arrested Urtil yeaterdsy. Ha Is suffer
ing from tuberculosis. according 10
ste temenis by his physician. and the Ia tc
Leroy w. Ross. former United States
Attorney lad decided not 70 arrest him
Intl just before he Was 10 come I'm for
trial. There was no chance that he
could not be found when wanted, M.
Ross had felt
ia'm@dia ~ after he was taken into
custody. rsdpll was arrGisned before
Itdee III .mas in the District Court In
Brooklyn. fhe indictment against him
ana Magrlder specifically charges the
Misrepresentation Of sac. 200 o. the bank :
e,'nds B-.,ell pleaded not guilty and
was held IN $3.50 hail for a hearing
tober 5. The same action was taken
In Ma grude.'s caaa lpon his arraisn-
mtnt last june a surety company fur
nished bonds or he former cashier who
wss released.
Mr. S,earas said that. pordina his eA-
anina ton of the books ha could make
no statement regarding the size ot the
dssicit ur whether or net the loss would
eventually be sustained by tia deposit
tors Wher his rapport WAS ready hA
ssid it Would b6 forwarded TO the Comp
trollcr or thA Treasury IN Washington.
and thet any statement would be made
public there.
'vona OF the capital, surplus or profits
of The ban't will BE paid to the stock
holders until all OF the depositors have
been taken core or" said Mr.. Stearna
Tt 70 the belief or George T.. EsDert Or
a. Van Pelt svenue, The banks prasi-
NGnft tflnJ the uepOsitotH VIII ~ 49,
tested fully BY the liability imposed by
Ire Federal banSlng laws upon the
atocLh olders for twice the amount or
.heir holdings. The capital stock -
$3.50. 900 so that ample protection Is a.
forded IN e 100000. How much IL sSr
,ess of this sum the loss will be cannot
he told until after the examination Of
thc books.
The entire shortage. Mr.. Egbert sails.
has bccn traced to the savings depart
ment ledsc-, which has about 1000 ac-
counts. lie issued o call during the day
o. savings bank dspositors to turn u
| thsir bank hooks in order 70 aid the bank
/ ex rliGgrs IN checking up.
I When the shortage was first dlscov-
cred IN June. Bedel! is alleged to have
told Mr.. Each that 1t would amount TO
only $4,000. and the directors already
have made good for this amount. IL
was found later that the deficit was
much greater. and on Saturday the
totol was discovered to have reached
such m amount that meeting of the
directors was called FOR Sunday morn
Ing An announcement that the bani
would not open its doors for business
yesterday followed.