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Show DEATH REVEALS GOTHAM BANKER AS EMBEZZLER J. B. Martindale, President of Chemical National Bank, Also Forger, Comptroller Says. SECURED $300,000 BY MANIPULATIONS Depositors to Lose Nothing, as Losses Will Be Charged Against Undivided Profits. WASHINGTON, Sept. 11. Comptroller Williams issued a statement tonight asserting as-serting investigation had disclosed that the late J. B. Martindale, president of the Chemical National bank of New York, who died Jn July, 1917, was an embezzler and forger to the extent of about $300,-000. $300,-000. The amount -was taken, the comptroller comp-troller announced, - from the .account of a wealthy depositor, and the bank has arranged to make good the entire sum. Capital and surplus of the bank, amounting to $10,000,000, Mr. Williams said, were not impaired in the slightest degree by the alleged operations of Martindale. Mar-tindale. The statement said Martindale had been president of the bank since December, 1910, and prior to that had been for a number of years its vice president. pres-ident. Bank to Charge Off Loss. "The loss," says the statement, "will be charged out of the bank's undivided profits, which at the present time amount to more than $1,500,000, after charging off the 5300,000." The statement continues: The suspicions of the bank's officers offi-cers were aroused while Martindale was abse n t f ro m the ba n k , ill in a hospital, shortly before his death. The money was not stolen directly from the bank, but was obtained by manipulating the deposit account of a wealthy, depositor, for whom Martindale Martin-dale acted as financial adviser and trusted agent. Under President Martindale's instruction, in-struction, the statements of this depositor's de-positor's account were rendered by the bank periodically lo Martindale and he then manipulated them before submitting them to the depositor. The method by which Martindale obtained most of the money was by withdrawing money from this depositor's deposi-tor's account either through a forged check or by a "debit slip" signed by himself as president. Manipulated by Martindale. In explaining to the depositor at the end of each month these withdrawals, with-drawals, Martindale's plan was to Inform In-form the unsuspecting depositor that he had placed the sums so with-j with-j drawn from the Chemical bank to the I depositor's credit in a certain trust company in New York City, one of ' whose depositor passbooks he had obtained and in which he would enter i up in his own handwriting ,as de-! de-! posits with the trust company the ; amounts of money which he had with-i with-i drawn from the Chemical National bank. Forgeries $300,000. 1 The aggregate amount of the forged notes placed in the Chemical Chemi-cal bank and the false credits shown on the depositor passbook of the trust company was about $300,000. &uch embezzlements and forgeries would have heen practically impossible impossi-ble had they not been perpetrated by an officer of the bank in whom the directors and junior officers reposed implicit confidence. The Chemical National bank has arranged ar-ranged to make good to tiie depositor the entire amount thus embezzled. The national bank examiner of New York has practically completed his regular semi-annual examination of the Chemical National bank and has reported to the comptroller's office of-fice that the bank is in fine condition. condi-tion. The examiner also slates that he finds no indications whatsoever of further misappropriations. Should Be Warning. ! This experience should srve as a warning to national banks that no Ir- , regularities, liberties or unbusinesslike unbusiness-like methods or practices should be countenanced or permitted on the part of any officer or employee of a bank, however high his official position, and should serve as a warning also acainst laxity in the use of cashiers' ciiecks or charge slips. It appenrs that Martindale's embezzlements em-bezzlements began about sixteen years ago. More than a year ago the comptroller's comp-troller's office, in calling upon na -tVn,il banks to furnish a list of employees em-ployees who had been allowed no vacations va-cations in five years, said: "Because most men are physically and mentally in shape to perform their duties most efficiently whf n thev have the benefit of a yearly vacation, vaca-tion, and because of the better on-poriimity on-poriimity afforded of having an impartial im-partial check made of the books ann" accounts, the comptroller comments the izrantint.- of a vacation period to all bank employees each year." The experience of the Chemical Na-tlon.il Na-tlon.il bank lends fresh emphasis to this recommendation and It is hoped it will be heeded by the hanks. |