The Democratic advocate., 1922-06-02
CASHIER A DEFAULTER
EDW. F. OLMSTEAD, CONFESSES OF
USING UNION BRIDGE BANK FUNDS
TO SPeCULATE-SHORTAGE ABOUT
$5O,OOO.

f. F. Clmstead, cashier of the First
National Bank of Union Bridge, has
confessed to the board of directors
that he is a defaulter to an unknown
amount. He admits that he has used
the money in speculation. He is at his
home under close surveillance.
! Neither the bank officials nor the
Federal Treasury officials who are
working on the accounts, will approx
| innate the shortage, which is in the
savings department, but they say it
may reach $4,000.
| +. o. Cash, this city, who is the
heaviest stakeholder in the bank, be-
came suspicious some time ago that
all was not well with the institution.
About three months ago he was elect
ed president in place of Jacob 5.
Gladhill. who resigned and took the
place of vice-president, and at once
,.gan to look into the banks affairs.
Investigation showed that there
was something wrong, but the short
age at first seemed to be only about
$4. 600. Friday, the directors closed the
Dd0h DeIullS lui IItl anu
requested the Comptroller of the Cur
rency to take charge. Thomas Kane, Il
national bank examiner, was sent to
Union Bridge and is now in charge,
although Mr.. Cash and other bank
officials are assisting him.
1t is said that individuals in the
community may sustain considerable
losses through the disappearance of
bonds which they had intrusted to Mr..
Olmstead. for safekeeping. These were
not deposited in the bank and no re-
ceipts were given, and it is said that
in such case there is no liability on
the part of the bank.
1t is believed that the bank will be
reorganized and that the depositors
will lose nothing The bank has a cap
| ital stock of $4,000, with surplus of
$22, 500 and undivided profits of $S,-
| 500 1t has been paying annual divi-
dpnds of 10 per cent and the last sale
of the stock was at $197.50 share.
Olmstead was a teller in the Nation
al Exchange Bank of Baltimore and
was employed at Union Bridge
Bank when the bank was organized
eleven wears ago, and has been Its
cashier ever since. 1t is said that un-
/ til Mr.. Cash became president, it was
what is known among financiers as
| I one man bank, Olmstead assuming
almost full charge Mr.. Gladhill, the
1 former president, is an elderly man.
Union Bridge is a prosperous town
and the de s~sits of the bank run well
over 100000. The Tidewater Cement
Companv's plant and the Western
Maryland Railroad shops are located
there, making heavy weekly payrolls.
The directors, in addition to the
president vice-president and cashier.
are John II. Repp, l.. f. Stauffer, S. f.
Nusbaum and Frank Harbaugh All
are residents of Union Bridge except
Mr.. Cash.
/ Olmstead has wife and several
children. He received 81, 800 a year as
cashier and it is said that his scale
of living. which seemed beyond his
modest salary. fastened suspicion up
on him. 1t is thought that some of the
money which he admits having taken
may be recovered from brokers
through whom he dealt.
Several years ago the bank was in
Il financial straight and the stockhOld-
! RS were compelled to make up $25,-
GOO to straighten out its affairs. AT
that time II directors consisted the
board but soon afterwards several re-
signed and placed their deposits in
mother institution.
MANY rumors are in circulation in re-
gard to the loose and underhand way
! Olmstead carried on the affairs of the
bank.
/ 1t is said that one citizen in Union
Bridge besides losing his deposits,
missed bonds amounting to $4,000.
An investigation is expected to be
started by the United States Grand
| Jury in the next two weeks into the
affairs of the bank.
The institution is now in the hands
of national bank examiners who are
expected to report their findings to
the Treasury Department in Washing
ton and then to the Department of
Justice before the information is sent
to District Attorney Carman, of Bal
timore. District Attorney Carman
saws that so far he has received no
official information about the condi-
tions at the bank.