12724. Perth Amboy Savings Institution (Perth Amboy, NJ)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
savings bank
Start Date
July 14, 1899
Location
Perth Amboy, New Jersey (40.507, -74.265)

Metadata

Model
gpt-5-mini
Short Digest
2f45e1a38e5fcfce

Response Measures

None

Description

The Perth Amboy Savings Institution experienced a brief depositor run on July 14, 1899 after the Middlesex County Bank (same officers) failed due to cashier George M. Valentine's defalcation. The savings institution suspended on July 14 (placed in hands of the State Banking Department/examiners) and later reopened on Sept 5, 1899 under new managers, paying depositors. Cause of the run was adverse bank-specific information (cashier's embezzlement and the failure of the linked Middlesex County Bank).

Events (3)
1. July 14, 1899 Run
Cause
Bank Specific Adverse Info
Cause Details
Run triggered by the closing/failure of the Middlesex County Bank after cashier George M. Valentine's large defalcation; officers of both banks were identical, causing panic.
Measures
President U. B. Watson publicly assured depositors funds were safe; police were called to maintain order; assurances checked the run.
Newspaper Excerpt
When it was learned that the Middlesex County Bank had failed to open for business, crowds surrounded the Perth Amboy Savings Institution.
Source
newspapers
2. July 14, 1899 Suspension
Cause
Government Action
Cause Details
Savings institution suspended business the same day the Middlesex County Bank closed; state examiners/Banking Department took charge pending examination.
Newspaper Excerpt
Bank closed. In the hands of Banking Department.
Source
newspapers
3. September 5, 1899 Reopening
Newspaper Excerpt
The Perth Amboy Savings Institution ... which suspended business on July 14 last ... reopened its doors today. The cashier paid dollar for dollar to all those who wanted to withdraw their deposits.
Source
newspapers

Newspaper Articles (20)
1. July 15, 1899 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, July 15, 1899

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Defalcation Estimated As High As $165,000. Failure Here Had Nothing To Do With Matter. New York, July 14.-George M. Valentine, cashier of the Middlesex County Bank of Perth Amboy, N. J, which was closed this morning, surrendered himself lats today and is now in jall on account of a shortage in the bank's funds which has been estimated as high as $165,003 When it was learned that the Middlesex County bank had "failed to open for tusiness, crowds surfounded the Perth Amtoy Favings institution. The officers of the Middlesex County Bank and the officers of the Perth Ambey Savings Institution are identical, the business of both banks Laving been transacted over the same counters. Hence, to those not familiar with banking details, the suspension at the offices of the one bank seemed to presage the dow full of the other institution. It because necessary to call upon the police to maintain order. U. B. Watson, the president of both banks,Estated that the funds of the Perth Amtoy Savings institution were not touched, that the $300,000 deposited to the account of the savings institution was absolutely safe, and that no matter how badly the Middlesex County Pank had been wrookel, the savings bank would be able to meet all demanda made upon it by the depositors. Thesa words of assurance had the effect of checking the run on the tank. President Watson Iste tonight gave ent 2% statement in which he says that the Ferth Amtoy Huvings Institution was in a perfectly Founa condition and had lost about $7000 which is fully covered by the surplus of $90,030. The total loss by reason of the defalcations has not been fully computed, bnt the estimate given tonight by the examiner places it at about 8123 000. The securities of the sarints part of the bank were found intact in the safe deposit vaulta of the Park National bank to which the cashier had access.

2. July 15, 1899 The News & Observer Raleigh, NC
Article from The News & Observer, July 15, 1899

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TO THE TUNE OF $150,000. Perth Amboy Cashier Robs the Bank and Surrenders Himself. New York, July 14.-George M. Valentine, cashier of the Middlesex County bank of Perth Amboy, N. J., which was closed today, has surrendered himself and is now in jail on account of a shortage in the bank's funds which has been variously estimated all the way to $165.000. The affair caused consternation and dismay among the business men of Perth Amboy, where the Middlesex County bank was considered as strong as the eternal hills. So panic stricken did the residents of Perth Amboy become when it was learned that the Middlesex County bank had failed to open for business as usual, this morning that crowds surrounded the Perth Amboy Savings Institution, but the run was of brief duration. On Monday last Cashier Valentine evidently concluded that he could no longer conceal the shortage at the Middlesex County bank. On that morning he telephoned President Watson that be was detained, but he said that be would appear at noon. The bank had then opened for business and Mr. Watson, who was taking the absent cashier's place discovered that there should have been some $7,900 in bills on hand to commence operations that morning. These he could not find. An investigation of the bank's accounts indicated immediately that they had been juggled for months. It was developed that Valentine had checked heavily against the Park National Bank of this city, a correspondent of the Middlesex bank, but the figures on the stubs of his check book did not correspond to those on the checks themselves, the checks calling for more than the stubs recorded. This method of financiering ruined the bank. Cashier Valentine returned to Perth Amboy from a brief absence, and was arrested. President Watson is of the opinion that the cashier's defalcation will amount to at least $125,000. Where the money went to is not known, as the cashier is said to have been moderate in his habits of life. Valentine's bond was fixed for $50,000. His relatives are wealthy, and it is said they will endeavor to make good the shortage.

3. July 15, 1899 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, July 15, 1899

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LARGE SHORTAGE. The Middlesex County Bank Loses About $125,000. Cashier E. M. Valentine Charged With Appropriating Bank's Money. Returns and Gives Himself Up-Deficit Will Be Made Up. New York, July 14.-George M. Valentine, cashier of the Middlesex County Bank of Perth Amboy, N. J., which was closed, this morning, surrendered himself, late today, and is now in jail on account of the shortage in the bank's funds which has been estimated as high as $165,000. When it was learned that the Middlesex County Bank had failed to open for business, crowds surrounded the Perth Amboy Savings Institution. The officers of the Middlesex County Bank and the officers of the Perth Amboy Savings Institution are identical, the business of both banks having been tran-

4. July 15, 1899 The Sun New York, NY
Article from The Sun, July 15, 1899

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CASHIER ROBS HIS BANK. GROUGH VALENTINE GETS $110,000 an MISSKIH SHAIDMoney Taken in Six Months and in Bank in Perth Amboy-Called the Youngest Cashier in Jersey-Drew Large Checks eq: no Amounts Ilvms "d pus Because of the defalcation of its cashier. George M. Valentine. the Middlesex County Bank of Perth Amboy. N.J., closed its doors yesterday morning. and the institution is now in the hands of the Commissioner of Banking and Insurance for the State of New Jersey. The Perth Amboy Savings Institution. which Bank reseipping our SB buidling emes eq: up si and of which Valentine was the Treasurer. also suspended business yesterday morning. pending an examination into its affairs. The State examiners worked on the books of both institutions all day yesterday. and at 5 o'elock yesterday afternoon they stated that their examination up to that time showed that Valentine had taken from the Middlesex Bank $1 10,000 and they were not prepared to say that the defalcation would not exceed that amount They were very emphatic in the statement, however. that the savings bank -1snq etunsed could " that puu The 11" SUM ness to-day. were it not for the fact that it is in the same building with the other bank and that there is only one entrance to both banks. The extent of the defalcation was not known -sns SEM 11 no and mun pected that there was n short ge in Valentine's accounts. He left the bank on Saturday afternoon at the close of business, and it was Grower 07 0003 pey 04 that pesoddns where his family is staying for the summer. to spend Sunday He did not return to Perth Amboy on Monday morning. but telephoned to the bank that he would be a his desk in the afternoon. He did not return at all on Monday. and he had not returned on Tuesday morning Then the President of the bank, U. Burge Watson. communicated with Ocean Grove to flnd out what was the matter with Valentine and why he was not at the bank. Mr. Watson was informed that Valentine was not at his cottage. and that Mrs. Valentine thought he was in New York on business for the bank Mr. Watson knew of no business that Valentine had to transact for the bank in New York. and so he went back to the bank and ordered a hasty examination of the cashier's accounts. eq 01 shis 18 punoj 0.10M show short a small amount. Mr. Watson concluded that. if Valentine was short a little. the shortage might be found to be larger after a more careful examination. and he hastily called шоцм Buotue directors, our 10 U was Robert N. Valentine of Woodbridge. 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5. July 15, 1899 The Salt Lake Herald Salt Lake City, UT
Article from The Salt Lake Herald, July 15, 1899

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HE BROKE THE BANK Cashier Is Short In His Accounts Over $100,000. HE GIVES HIMSELF UP PECULATIONS HAVE BEEN GOING ON FOR YEARS. Middlesex Count Bank of Perth Amboy, N. J., Sompelled to Suspend Business 1 ecause George M. Valentine Got Away With All the Money-Was Steady Young Man. New York, July 14.-George M. Valentine, cashier of the Middlesex County bank of Perth Amboy, N. J., which was closed today, has surrendered himself, and now is in jail on account of a shortage in the bank's funds, which has been variously estimated all the way up to $165,000. The affair caused consternation and dismay among the business men of Perth Amboy, where the Middlesex County bank was considered as strong as the "eternal hills." So panic-stricken did the residents of Perth Amboy become when it was learned that the bank had failed to open for business as usual this morning, that crowds surrounded the Perth Amboy Savings Institution. What made the run on the savings bank appear all the more serious was the fact that the officers of the Middlesex County bank and the officers of the Perth Amboy Institution are identical, the business of both banks being transacted over the same counter. Though it became necessary to call for the aid of the police for the purpose of maintaining order, U. B. Watson, the president of both banks, says the funds of the Perth Amboy Savings Institution were not touched; that $500,000 deposited to the account of the Savings Institution is absolutely safe, and that no matter how badly the Middlesex County bank has been wrecked, the savings bank will be able to meet all demands made upon it by the depositors. These words of assurance from the officers of the Savings Institution had the effect of checking the run on this bank during the afternoon. Bank Forced to Close. The notice posted on the door of the Middlesex County bank early in the morning was as follows:

6. July 15, 1899 The Providence News Providence, RI
Article from The Providence News, July 15, 1899

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VALENTINE SURRENDERS. Defaulting Cashier of Middlesex Bank Gives Himself Up. SHORTAGE MAY REACH $165,000 Great Excitement Followed the Closing of the Doors of the Bank. POLICE CALLED TO MAINTAIN ORDER. Discovery of Crooked Work Was Made Last Monday Morning When the Cashier Failed to Appear at the Bank. New York, July 15.-George M. Valentine, cashier of the Middlesex County bank of Perth Amboy, N. J., which was closed yesterday, surrendered himself and is now in jail on account of a shortage in the bank's funds which has been estimated as high as $165,000. The affair caused consternation among the business men and the conservative men of Perth Amboy, where the Middlesex County bank was considered as strong as the hills. When it was learned that the Middlesex County bank had failed to open for business crowds surrounded the Perth Amboy Savings institution. The officers of the Middlesex County bank and the officers of the Perth Amboy Savings institution are identical, the business of both banks having been transacted over the same counters. Hence to those not familiar with banking details the suspension at the offices of the bank seemed to presage the downfall of the other institution. It became necessary to call upon the police to maintain order. U. B. Watson, the president of the banks, stated that the funds of the o Perth Amboy Savings institution were not touched, that the $300,000 deposited t to the account of the savings institution were absolutely safe, and that no matter how badly the Middlesex County bank had been wrecked, the savings o bank would be able to meet all demands made upon it by the depositors. These words of assurance had the effect of checking the run on the bank, N *though all day long crowds in the vib cinity of the bank watched proceedings with the greatest interest. h The notice posted on the door of the a Middlesex County bank was as follows: t "Bank closed. In the hands of h Banking Department."

7. July 17, 1899 New-York Tribune New York, NY
Article from New-York Tribune, July 17, 1899

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MONEY FOR DEPOSITORS, THOSE OF THE MIDDLESEX COUNTY BANK, OF PERTH AMBOY, ARE EXPECTED TO RECEIVE 90 PER CENT. New-Brunswick, N. J., July 16 (Special).Quiet, though not lonely, was the first Sunday George M. Valentine spent in the Middlesex County Jall. He was visited by his wife and his parents. who spent the greater part of the day with him. This was due largely to the wish of the mother to give her son such consolation as she could. Neither parent would say anything after the interview. It is the opinion of the Valentine family that the young man made his first false step in attempting with others to carry out a contract for dredging on the coast of Maine. It is said that he lost $50,000 in this scheme, and that to regain the money he ventured into Wall Street with disastrous results. It is probable that he will make application for an immediate trial. A large stockholder of the Middlesex County Bank, of Perth Amboy, when seen to-day said he believed the depositors, whose claims aggregate about $440,000. will receive at least 90 per cent. A receiver will be appointed at once. An application for permission to form a National bank was granted yesterday by the Controller of the Currency. The Perth Amboy Savings Institution will be opened again in a few days.

8. July 17, 1899 The Sun New York, NY
Article from The Sun, July 17, 1899

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VALENTINE NOT TO STAND TRIAL. Perth Amboy Defaulter to Take His Sentence Without Contest. NEW BRUNSWICK. N. J., July 16.-Mr. and Mrs. Robert N. Valentine of Woodbridge. the parents of Cashier George M. Valentine. who has wrecked the Middlesex County Bank at Perth Amboy. called on him at the County Jail here to-day. It is understood that Valentine will not wait for the September Grand Jury to consider his case, but will plead nou vult and take his sentence from the court as soon as Prosecutor John S. Voorhees and Valentine's counsel. J. Kearny Rice. agree on a plan of action. A large stockholder of the Perth Amboy bank said to-day that he believed the depositors, whose claims. according to the last report. aggregate about $444,000. will receive not over 90 per cent. They will have no claim against the stockholders. Only in national banks are the stockholders liable for double the amount of their holdings. The loss of the stockholders is represented by more than the par value of their stock. because the shares have sold above par for many years. the last quotation being in the neighborhood of 200. It is understood that the next move will be to take the affairs of the Middlesex Bank into the Chancery Court and have a receiver appointed. An application for a national bank at Perth Amboy was granted yesterday by the Comptroller of the Currency. It is expected that the Perth Amboy Savings Institution. of which the defaulting cashier was Treasurer. will be reopened for business during the week. Its defleit of about $7,000 is well covered by Valentine's bond of $15,000. One of Valentine's bondsmen told THE SUN reporter to-night at Perth Amboy that the National Park Bank would not be allowed to hold the Chesapeake and Ohio bonds. amounting to $10,000. which it attached in the Middlesex Bank's safe deposit box in New York. without a contest. Valentine was pretty low in funds when he arrived at the jail here and went through the formality of being searched. He had just 48 cents. and he told the jailer that his uncle. Mr. Savage. had paid his fare from New York. Valentine sent for Sheriff George Litterstand said: Mr. Litterst. there is a man in Perth Amboy who owes me $15. I wish you would send word to him and let him know that I would like to have the money." Mr. Litterst sent word. but the money has not yet arrived. Valentine wanted the money to pay for things that are not included on the jail's bill of fare. He has smoked excessively since his arrival. and so far the Sheriff has kept him in cigarettes. The Sheriff became acquainted with his prisoner several months ago when he went to Perth Amboy to collect a judgment of $15,000 against the cashier. which was sent to him from a city outside of the State. Valentine did not have the money. but to avoid publicity he raised it. PERTH AMBOY. N.J., July 16.-Reference was made in every church in this vicinity to-day to the George M. Valentine defalcation. All of the churches were largely attended. There will be a special meeting of the City Council to-morrow night to issue anticipation bonds for $2,000 to meet the immediate running expenses of the town and tide over the difficulty caused by Valentine's misdeeds.

9. July 18, 1899 New-York Tribune New York, NY
Article from New-York Tribune, July 18, 1899

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NEW JERSEY NEWS. RECEIVER APPOINTED. JAMES MAGUIRE TAKES CHARGE OF THE WRECKED PERTH AMBOY BANK. New-Brunswick N. J., July 17 (Special).-James Maguire, cashier of the First National Bank of Elizabeth was to-day appointed receiver for the wrecked Middlesex County Bank, at Perth Amboy, application having been made to the Chancelior, and Mr. Maguire took charge at once Edward S. Savage, counsel for the Valentine family, and United States District Attorney J. Kearney Rice, who represents George M. Valentine in his present difficulty, have not made public whether the cashier will plead guilty on an allegation or allow his case to go before the September Grand Jury. Valentine's wife again visited him at jail in New-Brunswick to-day and had a long interview. Perth Amboy. July 17 Special).-Receiver Maguire, of the Middlesex County Bank, came to Perth Amboy, and is in charge of the bank's affairs, pending the report of the State examiners. Mr. Maguire is cashier of the National State Bank, of Elizabeth, of which United States Senator Kean is president. Upon the arrival of Mr. Maguire the rumor that Perth Amboy is to have a National bank was promptly confirmed. It will be known as the First National Bank of Perth Amboy, and it will probably begin business this week in the building of the Middlesex Bank. The principal signer of the petition filed Friday with the Controller of the Currency was Hamilton Fish Kean, a brother of Senator Kean, and the head of the banking firm of Kean, Van Cortland & Co., of No. 26 Nassau-st. The presence of the Keans in Perth Amboy banking circles will be welcomed by the business community. They are the largest stockholders in the Perth Amboy Gaslight Company Associated with them are W. B. Watson, president of the wrecked bank, and Secretary J. L. Kearny and Patrick Convery, of the Board of Directors. The new bank will start with a capital of $100,000. President E. R. Pierce, of the Perth Amboy Savings Institution, told a Tribune reporter to-day that his bank expects to resume business within a few days. Advantage will be taken, he said, of the right to a sixty day notice from persons desiring to withdraw their deposits. If necessary the securities held by the institution will be converted into cash to meet the expected run. Perth Amboy's City Council will meet to-night in regular session. It is expected that Alderman O'Hara, chairman of the Finance Committee, will report a resolution in favor of issuing temporary bonds to provide money for current expenses, Work has just been begun on a high school building to cost $35,000. The bonds were sold and the money is in the wrecked bank. Mayor Compton is opposed to issuing bonds for any improvements, and he may veto any resolution for more than current expenses. There is due the city $114,000, according to Collector C. F. Hall's books, for taxes and assessments. Controller Voorhees reported $49,000 in the Sinking Fund on July 1. There will fall due next week $7,000 worth of bonds which would have been paid from this fund, and which must be otherwise provided for. Edward S. Savage, Judge J. T. Kearney Rice and Prosecutor John S. Voorhees had a consultation this evening in Judge Rice's office in NewBrunswick. Prosecutor Voorhees declined to result of the said that course Rice make was public reticent, the but conference. the Judge which would be pursued in regard to Valentine's case was not fully decided upon.

10. July 19, 1899 The Star Reynoldsville, PA
Article from The Star, July 19, 1899

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BUSINESS HOUSES IN JEOPARDY. CASHIER'S CRIME. Funds of the Middlesex County Bank to the Amount of $165,000 Missing.-Relatives May Make Shortage Good. George M. Valentine, eashier of the Middlesex County bank of Perth Amboy, N. J., which was closed last week, has surrendered himself and is now in jail on account of a shortage in the bank's funds, which has been variously estimated all the way to $165,000. The affair caused consternation and dismay among the business men of Perth Amboy, where the Middlesex County bank was considered as strong as the eternal hills. So panic stricken did the residents of Perth Amboy become when it was learned that the Middlesex County bank had failed to open for business that crowds surrounded the Perth Amboy Savings Institution. What made the run on the savings bank appear all the more serious was the fact that the officers of the Middlesex County bank and the officers of the Perth Amboy Savings Institution are identical, the business of both banks being transacted over the same counters. Though it became necessary to call for the aid of police for the purpose of maintaining order, U. B. Watson, the president of both banks, says that the funds of the Perth Amboy Savings Institution were not touched, that the $300,000 deposited to the account of the Savings Institution is absolutely safe and that no matter how badly the Middlesex County bank has been wrecked the Savings bank will be able to meet all demands made upon it by the depositors. These words of assurance from the officers of the Savings institution had the effect of checking the run on this bank during the afternoon. The notice posted on the door of the Middlesex County bank was as follows: "Bank closed. In the hands of banking department." The Middlesex County bank was operated under a state charter and had been in operation many years. Cashier Valentine was for many years in the Park National bank of New York. In 1893 he was made cashier of the Middlesex County bank. His bond was fixed for $50,000. His relatives are wealthy and tt is said they will endeavor to make good the shortage. The Park National bank of New York has obtained an attachment in the supreme court for $31,508 against the Middlesex County bank of Perth Amboy, N. J.; $30,205 on overdrafts and $1,302 due on collections. The attachment was granted by Justice Stover of the supreme court. Deputy Sheriff McGuire attached mining stocks and bonds belonging to the bank at the office of the Park National bank. George M. Valentine has made a full confession to his father, wife, uncle and counsel. He said: "My ruin dates back to when I was given a gilt-edged tip on gas stock by a man who said he was in a position to who not that 11 was going

11. July 21, 1899 New-York Tribune New York, NY
Article from New-York Tribune, July 21, 1899

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PERTH AMBOY'S WRECKED BANK. VALENTINE TO BE TAKEN TO STATE PRISON TO-DAY. New-Brunswick, N. J., July 20 (Special).-Receiver James McGuire, of the Middlesex County Bank, of Perth Amboy, to-day filed two mortgages held by the bank at the County Clerk's office in New-Brunswick. One is given by James L. Kearney and wife for $25,000 upon 690 acres of land in Sayreville Township. It is dated November 28, 1892. and was given to secure seven promissory notes of different dates in the years 1891 and 1892. The other mortgage, given by the same persons on property in Perth Amboy for $900. is dated May 1, 1890. Several members of George M. Valentine's family visited him at the jall in New-Brunswick to-day. He will probably be taken to the State Prison tomorrow. Perth Amboy, N. J., July 20 (Special).-There has been a steady run of depositors all day to-day to the Perth Amboy Savings Institution, caused by the call issued yesterday for the presentation at the bank of all account books. At times there were nearly a hundred in the line waiting to get to the windows. where clerks took the books, checked them with the bank's books, noted all differences and returned them to the owners.

12. August 2, 1899 The Sun New York, NY
Article from The Sun, August 2, 1899

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SHILL FROM 000% ALENTINE GOT MORE THAN THREE TIMES WHAT WAS THOUGHT. nk Commissioner Bettle Makes Known the Extent of the Perth Amboy Savings Institution's Losses-The Bank Is Solvent. However, and May Be Continued. Villiam Bettle. Commissioner of Banking : Insurance for the State of New Jersey. nounced vesterday that the funds of the the Amboy Savings Institution had been nd to he short $25,000. Of this bank George Valentine, the defaulting cashier of the Idlesex County Bank. was the Treasurer general manager. When it became known . Valentine had stolen a large amount of ner from the Middlesex Bank. an official tement was made to the effect that the out word 006'2$ Ajuo uojoss puy uvin au ings bank. and that this amount was ared by his bond as Treasurer. which was ,000, with four sureties. he depositors of the bank. many of them signers. with little knowledge of English. of whose savings were deposited there. beed that this statement was true. A little : was announced that Valentine's bondshad made good the shortage of $7,900 that the savings bank would open in a few - It did not open. Yesterday one of the rest depositors called upon Mr. Bettle and him that it was believed in Perth Amboy the savings bank was seriously embarand and that a truthful statement as to the is condition was demanded. Thereupon . ommissioner of Banking told the deposthe extent of the bank's shortage. vadded. however. that the bank was sol1. and that it would be foolish to place it in hands of a receiver. He said that the reder due on Valentine's bond would be mided from his bondsmen and he hoped to more money from the interest due on the k's securities. If he could not realize ush from these two sources to make good directors the ask pmont 04 plus 04 +: Brous ie bank to put up the balance. cording tothe bank examiners the savings k deposit book tallied with the individual lits in the pass books of the depositers. but e was a discrepancy in the totals of the ous pages added. The totals, it was Trom pueq U us 010M per of Valentine, or else in a hand adopted by T reasurer for the purpose of deception. of the examiners visited Valentine in sig se explain. 04 min passond puu no nsel said he would when he pleaded court for mercy Valentine would not give information. however. and referred the miner to his counsel. J. K Rice of this city announced vesterday that the receiver H wreeked Middlesex bank will make a deid shortly upon Henry T. Chapman. one of entine's brokers. who has refused to tell of Valentine business, for a statement of transactions that he carried on for his cus-qo eyL our 10 if the demand will be to determine whethalentine made or lost money in his specuSUM II owner sur ed vesterday that there is law and precet for the contention that brokers who exte commissions for customers employed in ciary capacities must assure themselves those customers are speculating with in own money. or. failing in this. they must se to execute the commissions. else they AQUOUI 10 our JOJ 919811 P199 ag UH our All case decided by Justice Pharswood several 11 su perio SUM 11: ONE SA +++ lent. In that case a man occupying a ition of trust speculated with stolen money ough a firm of brokers. The institution h which the man was connected failed was brought by the institution against brokers to recover the full amount lost by decision siy uI up ueu tice Pharswood laid down the principle a broker may not shut his eyes to this, ther his client is sane or insane non this decision and two or three others. by a New York court and another by a rt in Ohio, the attorneys for the receiver e their belief that if Valentine lost any of -0.1 eq una 11 111 хацош S queq ered from the broker who carried through transactions If hapman's books show t Valentine closed out at a profit, of course action can lie against the broker 1 speaking of his dealings with Mr. ChapGeerge perjej Rueg ховоприк 041 should u here. our JOJ cureus you 11 1 esterday: Thus far Mr. Chapman has eq that execut 180m sn per GARD ey which 103 spuoq our dn PAIN 01 DE OM чечм rung em 01 die 5180 JO 1119 1: 9A83 ou which JOJ "strupined the bank. they were not all at his house. se that were not were immediately afterselected puy 9.M place out 01 miy AO seturn p. storing the pictures."

13. August 3, 1899 The Sun New York, NY
Article from The Sun, August 3, 1899

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PERTH AMBOY'S LOOTED BANKS. Savings Bank Trustees Trying to Make Up Its Deficiency. PERTH AMBOY. Aug. 2.-The trustees of the Perth Amboy Savings Institution will hold a meeting to-night to determine whether they can raise the amount necessary to make good the deficiency caused by Cashier Valentine's defalcation. Valentine confessed to having stolen $7,900. which his bondsmen. members of the Valentine family. made good. The bondsmen have since paid over $7.100. which completes the amount of the $15,000 bond. According to a generally accepted report. there 18 still a deficiency in the bank's books of $10.000. Small as this sum is. it will probably be hard for the trustees to raise it. All of them who were in good circumstances were practieally ruined by the wrecking of the Middlesex County Bank. It is said that Harry Conard of this city will be cashier of the new national bank which is shortly to open itsdoors. NEW BRUNSWICK, N.J., Aug. 2.-Edward S. Campbell. receiver of the Middlesex County Bank. to-day sent out a call for passbooks. He said that he would declare a dividend as soon as he could get together a reasonable amount of the assets.

14. August 3, 1899 The Times Richmond, VA
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CASHIER'S THEFTS INCREASE. Valentine Stole $23,000 From Savings Institution. NEW BRUNSWICK, August 1.-It was learned here to-day that the Perth Amboy Savings Institution, of which George M. Valentine was the treasurer, is a severe sufferer from the peculations of Valentine. The report is, that instead of there being a shortage of $7,900, it will exceed $23,000. Color to this report is given by the fact that the bank has not resumed business, as well, as the fact that the bondsmen of Valentine were in such haste to settle the apparent deficiency. To-day a large depositor of the Savings Institution called to see William Bettle, the State Banking Commissioner. He asked regarding the rumor that the shortage was $25,000 and Mr. Bettle admitted that it would be about $23,000. Asked what he intended to do about it, Mr. Bettle said that no doubt the full amount of Valentine's bond of $35,000 would be collected from his bondsmen. It is contended that if the bank is opened at present, there will be a heavy run on it, which would cripple it, if not result in shutting it up entirely. The exact condition of affairs has been withheld because of trouble feared from the depositors, many of whom are foreigners. When Valentine was visited in State prison by one of the bank examiners he declined to give any information, but referred his interrogator to his counsel, J. K. Rice, of this city, Some anxiety has been caused among the shareholders of the Mutual Loan and Building Association, of which Valentine was the treasurer. To him were entrusted the bonds of the Chesapeake and Ohio, Hocking Valley and Lehigh Valley railroads. These bonds were supposed to be in the vaults of the bank. Upon a search being made they were not found. Instead a receipt for them has been discovered signed by Henry T. Chapman, the broker in New York city, who acted for Valentine and borrowed liberally from the wrecked bank with the sanction of Valentine. The receipt given by Chapman is for $410.000 Chesapeake and Ohio bonds. $6,000 Hocking Valley bonds and $6,000 Lehigh Valley bonds.-Phila. delphia Press.

15. August 4, 1899 New-York Tribune New York, NY
Article from New-York Tribune, August 4, 1899

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NOT LOST IN DREDGING. THE STORY THAT VALENTINE SANK MONEY IN PROFITLESS CONTRACTS DENIED. Perth Amboy, N. J., Aug. 3 (Special).-Hugh Ramsay, a Perth Amboy boat builder. disputes the story that George W. Valentine, late cashier of the Middlesex County Bank, lost $150,000 in the dredging business. Ramsay built the dredge with which Valentine started in business. The persons who first owned it were unable to pay for it, and Ramsay held a mortgage against it for $25,000. Valentine bought it for $10,000, but he never put $80,000 worth of repairs on it, as stated in the stories printed by some papers to-day. He never paid Ramsay's mortgage, and failed to keep the interest paid, although he regularly gave Ramsay receipts for the interest, signed by himself as cashier of the Middlesex County Bank. Ramsay held none of the stock in the George M. Valentine Dredging Company, as Valentine styled his concern. His son, Oliver Ramsay, was engaged by Valentine. shortly after he secured the contract at Portland Me., to manage the business. His compensation was to have been a quarter of the profits of the company, but he held no stock. According to Ramsay's story Michael Fenton, of New-York, was to receive a percentage of the profits for securing the bond of $200,000 which the company was obliged to furnish to the Government. About two years ago work was begun, and less than a year later, Valentine, who saw large profits ahead, paid young Ramsay and Fenton large sums to release him from his agreement with them. Ramsay's share is reported to have been $15,000. After disposing of Ramsay and Fenton, Valentine found himself unable to carry on the business alone and sold out. To U. B. Watson. president of the bank, Valentine always declared that he would not lose a single dollar of the money he had invested. Mr. Watson says that none of the bank directors had any interest in Valentine's concern except the cashier's father. His interest was represented simply by his indorsement of a note of his son's for $15,000. The proceeds of this note were used in the dredging company. It has been discovered by the investigation at the Middlesex bank that last September Valentine paid an execution against the company with his check as cashier on the Park National Bank of NewYork for $15,600. On the stub of the check he made the figures $100. E. S. Campbell has opened his office as receiver of the Middlesex County Bank at Newark. This morning he relieved from duty President U. B. Watson and his clerks. R. H. Barnes. Walter Snow and John Watson. I. T. Golding was placed in charge of the bank as Mr. Campbell's representative. and R. H. Barnes was appointed the bank's notary. John Ten Broeck. of the clerical force, is with Mr. Campbell in Newark. The managers of the Perth Amboy Savings Institution met last night and presented a plan to provide for the net deficiency in its funds. as found by the bank examiners. Mr. Johnstone, Deputy Commissioner of Banking and Insurance, was present. The plans agreed upon will be presented to the Attorney General. If he approves of them the bank will proceed to convert enough of its securities into cash to meet the probable demands and will open its doors for business. President E. R. Pierce said to-day that he does not expect the withdrawals to exceed $100,000. The bank's deposits are $585,000. Robert and Howard Valentine, father and uncle of the defaulting treasurer. resigned their places on the Board of Managers No attempt will be made to fill the vacancies at present. It is intimated that the next treasurer will be required to give a bond of $50,000. The amount has heretofore been $15,000. The payments to depositors will probably be greatly cut down by the application of an act of the Legislature passed last year, under which all depositors owing the bank money may hold their debt as a setoff against their deposit.

16. August 17, 1899 New-York Tribune New York, NY
Article from New-York Tribune, August 17, 1899

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BANK MANAGERS ORGANIZE. Perth Amboy, Aug. 16.-A temporary organization of the Board of Managers of the Perth Amboy Savings Institution was effected last night. Adrian Lyon was chosen president, the Rev. S. Szymanowski vice-president, Charles K. Seaman treasurer and J. Lawrence Boggs secretary. It was necessary to take this step in order to have officers with authority to receive and care for the assets of the bank. The cash of the bank and some securities are in the safes of the Middlesex County Bank, which have been sold by Receiver Campbell to the new First National Bank. William King, jr., resigned as one of the managers of the institution last night, so that George H. Tice and James Growney are the only remaining representatives of the old Board. Bloomfield J. Miller, actuary of the Mutual Benefit Life Insurance Society of Newark, was elected in Mr. King's place.

17. September 5, 1899 Evening Star Washington, DC
Article from Evening Star, September 5, 1899

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Bank Reopens Its Doors. NEW YORK, September 5.-The Perth Amboy Savings Institution of Perth Amboy, N. J., which suspended business on July 14 last, at the time of the failure of the Middlesex County Bank, caused by the defalcation of Cashier George M. Valentine, reopened its doors today.

18. September 5, 1899 The Jersey City News Jersey City, NJ
Article from The Jersey City News, September 5, 1899

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PERTH AMBOY BANK RESUMES [Special to "The Jersey City News."] PERTH AMBOY, Sept. 5, 1899.-The Perth Amboy Savings Institution of Perth Amboy, N. J., which suspended business on July 14 last, at the time of the failure of the Middlesex County Bank, caused by the defalcation of Cashier George M. Valentine, reopened its doors today. There were about 100 depositors in line who were mostly anxious to draw out their money. The cashier paid dollar for dollar to all those who wanted to withdraw their deposits. When it became generally known that the bank was paying the deposits in full quite a number of the depositors went away apparently well satisfied to leave their money in the bank. The new officers in charge of the bank are:-Adrain Lyon, president; the Rev. S. Szymanowski, vice president: C. K. Seaman, treasurer, and J. L. Boggs, secretary.

19. September 6, 1899 The Evening Times Washington, DC
Article from The Evening Times, September 6, 1899

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Savings Bank Reopened. PERTH AMBOY, N. J., Sept. 6.-The Perth Amboy Savings Institution, which suspended business on July 14 last, at the time of the failure of the Middlesex County Bank, caused by the defalcation of Cashier George M. Valentine, reopened its doors yesterday. There were about 100 depositors in line who were anxious to draw out their money. The cashier paid dollar for dollar to all those who wanted to withdraw their deposits. When it became generally known that the bank was paying the deposits in full quite a number of the depositors went away apparently satisfied to leave their money in the bank.

20. September 6, 1899 Barre Evening Telegram Barre, VT
Article from Barre Evening Telegram, September 6, 1899

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An Echo of Valentine's Crime. Perth Amboy, N. J., Sept. 6.-The Perth Amboy Savings institution of Perth Amboy, which suspended business on July 14 last, at the time of the failure of the Middlesex County bank, caused by the defalcation of Cashier George M. Valentine, has reopened its doors. There were about 100 depositors in line, who were mostly anxious to draw out their money. The cashier paid dollor for dollar to all those who wanted to withdraw their deposits. When it became generally known that the bank was paying the deposits in full, quite a number of the depositors went away, apparently well satisfied to leave their money in the bank.