The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1922-07-07
SHORTAGE $4,000
EDWARD F. OLMSTEAD, UNION BRIDGE,
SENTENCED TO ATLANTA PRISON FOR
AZ YeARS-PLEADED GUILTY AND
SPECULATION BLAMED FOR DOWNFALL.

Edward +. OlmSIedu, CASHIER VI I'M
First National Bank of Union BRIDGE
was sentenced TO four years ana SIX
months in Atlanta Prison by Judge
Rose in the United States Court Friday
last upon entering a plea of guilty.
Olmstead was taken to Atlanta we'd
nesday to start his time.
Assistant States Attorney George Il.
Kieffner created a stir with the an
nouncement that his defalcatlons
would amount to $4,000 with the Ma
tional Bank examiner not yet hnlsheu
his Investigations.
There were six counts in the indlct-
ments, with total of $4S,146 IN the
items, and while he was given four
wears and six months on each count,
the terms are to run cOncurrently-
The maximum sentence is 30 years.
The maximum penalty is five years
Losses on deposit are said to aSgre-
gate $40, 900, and the depositors rave
already agreed to pay $4,000. First re-
ports were that they would not sutfe"
in the crash which came few weeks
ago and before the arrest of Olmstead.
Speculation was blamed for the
downfall OF the cashier, who is mar
ried aaG who has been on bail since
his arrest. In passing sentence Judge
Rose rointed out the responsibilities
OF men chosen to operate such instl-
tutions as that at Union Bridge. These
men, the Court pointed cut, are select
ed because of their good reputation
and high respectfully.
And | suppose | am doing this man
no injustice when | presume that he
believed $500 year was not SUM-
cient for the work he was doing. He
believed he possessed as much ability
as men with incomes of hundreds OF
thousands of dollars. He believed if he
had sufficient capital he would become
rich and nobody would be the loser.
He perhaps believed he would be in
position to make good after he became
very rich" said Judge Rose.
Such action, according to the court,
tended to undo for many the teachings
of thrift. caution and prudence, and in
these times the young are already too
prone to spend their money upon en-
joyment when they should be asserting
a spirit of saving.
The counts in the indictment charg-
ed embeZzlement as follows:
February rs, 1921, $72SO; Novem
ber 7, 1921, $4,000; May II, 1921, $4400;
December s, 1919, $6466; May Is, 1921;
$1,000 and January 25, 1921, $4,000.
Assistant District Attorney Kieff-
ner announced that there were no fur
ther counts because these were con-
sidered sufficient for the purpose of
the law. The District Attorney told
that the bank was organized in 1908.
at which time Olmstead was appointed
cashier. He was man OF experience
and considered a most reliable person
to have charge of a one-man bank.
Previous to his engagement at Union
Bridge he had been associated with
the Old Town National Bank and the
National Exchange Bank, both of Bal
timore.
For 10 years, according to the in
formation, the cashier had been ma
nipulating funds of the institution. He
suffered a loss of $4,000 of bank
funds in the failure of the Shenandoah
Milling Company, of which his broth
er, Harry S. Olmstead. was an officer.
The hank had assets of $55,O00 and
deposits of .$502.000 OF the shortage
$4,000 has been recovered from the
credit of the cashier with a stock
brokerage firm. Assistant District At
tOrney Kieffner went on to relate that
much of the manipulation consisted of
forgery of the names of depositors in
withdra walls, while he obtained loans
from others on promise to nay more
than 4 ner cent. which was the allot-
ment through the bank.
The deDositors of the bank met on
Iune "a in the hall in Union Bridge to
consider of raising the shortage. The
directors are askino each depositor for
contribution of II per cent Of their
| deposits.