Middlesex County Bank (Perth Amboy, NJ)

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CRIMINAL NOW IN JAIL

Old Institution Forced to Close Its Doors_ Run on Other Banks - Checks and Stubs Fail to Agree-Wealthy Relatives May Make Good The Deficiency. Ocean Grove and called at the bank New ork, July 14.-George M. Valenand wanted to know where her hustine, cashier of the Middlesex County band was. This was the first intimaBank of Perth Amboy, N. J., which tion she had that he was not on duty, was closed this morning, surrendered and showed the officials that Valentine was not at the seashore, as at first aphimself late today and is now in jail on peared. account of a shortage in the bank's On Monday the Park National Bank funds, which has been estimated as of New York charged the Middlesex high as $16,000. bank with checks, said to amount to over $4000, which are said to have been The affair caused consternation drawn on it against the account of the among the business men of the conserMiddlesex by Valentine. vative old town of Perth Amboy, where A detailed investigation of matters by President Watson and Robert N. the Middlesex County Bank was conValentine, the father of the cashier, sidered as strong as the hills. When it showed that the cashier's plan of operwas learned that the Middlesex County ation was extremely simple. It was discovered that the cashier's checks Bank had failed to open for business, and the stubs did not correspond, that crowds surrounded the Perth Amboy the checks called for more money than savings institution. The officers of the the stub recorded, and that, while takMiddlesex County Bank and the officers ing the stub as the basis of accounting, the bank's finances would figure out of the Perth Amboy Savings Instituall right, the checks would show that tion are identical, the business of both the bank had been drawing heavily on banks having been transacted over the its New York correspondent, the Park same counters. Hence to those not faNational. miliar with banking details the susThe cashier, in fact, carried the acpension at the offices of the one bank counts on the stubs and from them to seemed to presage the downfall of the the books correctly, but when the reother institution. turns from the cashier's checks he It became necessary to call upon the pocketed the difference between the police to maintain order. U. B. Watstub and the check. Four or five months son, the president of both banks, stated of this method of financiering depleted that the funds of the Perth Amboy the bank's reserve monies and brought Savings Institution, were not touched, it to the verge of ruin. Then the cashthat the $300,000 deposited to the acier evidently secured a portion of the count of the savings institution was ready cash on hand and left Perth Amabsolutely safe, and that no matter boy. how badly the Middlesex County Bank Thursday night the determination to had been attacked the savings bank clòse the bank was reached, and Mr. would be able to meet all demands Watson notified Chief of Police Burke made upon it by depositors. These and asked him to locate the missing words of assurance had the effect of cashier. Valentine, who had been in checking the run on the bank during New York city, returned to Perth Amthe afternoon, though all day long boy from Woodbridge, accompanied by crowds in the vicinity of the bank his counsel, Edward Savage of Rahwatched proceedings with the greatest way. He declined to go into details interest. about the shortage of the bank, except The notice posted on the door of the to say that he was very sorry that he Middlesex County Bank this morning had got his friends into trouble, and was as folows: 'Bank closed. In the that he felt very bad about his wife hands of banking department." and children. Monday last, Cashier George M. ValPresident Watson is of the opinion entine evidently concluded that he that the cashier's defalcation will could no longer conceal the shortage amount to at least $125,000. Where the at the Middlesex County bank. Monmoney went to is not known, as the day morning he telephoned President cashier is said to have been moderate Watson that he was detained, but he in his tastes and habits of life. He was explained that he would return at something of a dog fancier and some of noon. The bank had then opened for his prize animals have taken prebusiness and Mr. Watson, who was miums at exhibitions in New York taking the absent cashier's place, discity. but even in this particular his excovered that there should have been penditures are not believed to have some $7900 in bills on hand to combeen extravagant. mence operations that morning. He The Middlesex county bank was could not find this money in the vault. operated under a state charter, and had This was the money carried over from been in operation many years. It had Saturday to commence with on Monday its inception as a savings institution, morning. but the demand for a bank of sufficient Mr. Watson had been searching for scope to take accounts caused the savit when Valentine called up. He asked ings bank people to organize the state Valentine where this money was and band. Except in name and in the acwas told it had been placed in *the counts the two institutions were the cashier's drawer. Mr. Watson resame. marked that that was no place for it, Robert N. Valentine, the cashier's but rang off on the telephone and went father, has long been connected with to get it. A duplicate key to the drawer both the state and the savings bank. indicated was obtained and the drawer He is a member of the firm of N. G. opened, but no money could be found. Valentine & Co., of Woodbridge, fireRobert N. Vaneltine, the cashier's faclay brick dealers. The cashier was for ther. was summoned, and he aided it years a clerk in the Park National hte search for the missing money. It Bank of New York. In 1893 "he was could not be found, and finally the mide cashier of the Middlesex County work of checking was begun. Then it Bank. His band was fixed for $50,000. became evident that during the last His relatives are wealthy, and it is few months the accounts of the bank said they will endeavor to make good had been juggled. The other trustees the shortage. Mrs. Valentine and her children, who were summoned, and the banking department was notified to send an exhad been spending the summer at Ocean Grove, have returned to the aminer. Deputy Commissioner of home of her husband's father at WoodBanking Johnson appeared in esponse. bridge. Mrs. Valentine is said to be completely prostrated because of the On Wednesday Mrs. Valentine, the event. wife of the cashier, returned from

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and had used speculate with Wall street Wallstreet He Henow now saw his mis ake, was very sorry for and had concluded to make the only reparation he could give himself up. When Mr Voor. hees had he the story he dietated a formal complaint and Justice Martin held the voluntary prisoner without bail on a charge of embezzlement A short time afterward Valentine was taken to the county jail by Constables Holman and Grover and locked up He left W word with the the Sheriff that he did not care be interviewed Edhis with he had attorney. until consulted ward M Savage Woodbridge Later in the afternoon a lawyer from Mr Savage office called at the jail and had tong talk with the prisoner one eise called to see him For his age and the length time he was at it. Valentine succee led in making star reputation for himself as an embezzler He was only 33 years old on June 29 last and one the bank examiners told a SUN reporter yesterday afternoon that Valentine defaications did not date back further than Jan and that most the money had been taken within the past two months. He said the largest amount known to have been taken at one time was $10,000 Valentine's method was a simple one and might be yed employed successfully for a time at least cashier any country bank having a city correspondent This was how he did He knew course. just the amount there always was the credit his bank with the Nati National Park Bank Knowing this he simply drew for Bank Park National check cashier amount needed speculate with $500, the need rding or Then instead entering the stub of the had the check for which the check amount been drawn he would enter much smaller amount. $50 $100 or $500 The stubs the checks what the bookk saw and was from them that the entries in the books the bank were made No one knew that the check called fo: A larger sum except Valentine and the respondent alentine ran the check book and he would look after returns from New York and would charge up the returns himself correspond with the original charges This was comparatively easy work for him as would for cashier any country bank since the are these cashiers manbanks usually aging men They do their OWN work and addition m most of the work usually done by the ity banks Presidents Valentine practically ran both the Middlesex County Bank and the savings bank two banks were closely allied st most of the directors one bank being direct in other Both boards had the most implicit confidence in Valentine and the result was that he ran both banks about as he liked. vasily What is quite understood 08 by the ffficers the ked wrecked bank the lenity the Nati National nal Park Bank in the matter the Middlesex erdrafts One of the directors said yesterday that he didn't tk know W mu much about stropolitar banking $30,000 he but and methods more thought wasa large overdraft one bank to allow anthe had that He said Park onal other Bank pressed the overdrafts to payment the defalcation might has been scovered long ago and would not have been SO large as has proved Yesterday morning the National Park Bank secured an ttachme against Middlesex County Bank for $ $31,508 508, to satisfy the claim overdraft statement facts upon which the attachment was as issued, it was asserted that the Middlesex Bank since Jan had drawn checks the am amount unt of $30,205 excess the amount to its credit in the National Park Bank and that since June the National Park Bank had forwarded checks for collection to the Middlesex of Bank to $1,303, amount which no the part had been paid The attorney for the National obtained Park from the order Bank an Court under the nita hment to break open the Middlesex Bank safe deposit box in the National Park Bank vaults examine and attach any securities found there Thebox pened. and in was found $10,000 worth of Chesapeake and Ohio Rallroad percent cent bonds and a lot mining stocks the latter said be of doubtful value The value of the road bonds at the price be $9,725 buld yesterday quoted The Middlesex ounty Bank is a State bank, which was incorporated in Its capital $50 is stock its 000 $50 surplus The fficers of the bank are President Burge Vice James Watson President Watson Uashier. George Valentine Directors. James T Watson. B Watson E Pierce, 'atrick Convery Robert Valentine Kearney and Dr Wilson last annual Statement showed its resources be to be: In loans and discounts, $433 422.89: overdrafts to $921 stock KS and securities to $7,650: bank property $10,000 other real estate. 740 $21,740 bonds and mortgages. $12,325 due from banks and bankers $106. 834.43 United Stat currency. $31,706 coin. $2,980 gold ver and nickels, $504 24 making total of $630 $630,358.47 358.47 The liabilities were Capital stock paid surplus fund, $50,000: undivided profits, $5 $5,103.32 bankers. 38 $38 452.28 unpaid dividends. $2,024 individdeposits $444 513.30 30 demand certificates, $6,600.19 certified checks $1.105 38 bills payable $25,000, and otheriliabilities, $7,500. 358 total a According to the banking law of New Jersey stockholders of a State bank are liable in caso of failure the bank for double amount their holdings As alentine's defaleation appears at present the capital stock surplus plus securities available very pus been out the amount doesn't prove to be greaten than reported vesterday lay and the deposits have not been impaired to a greater extent $50 the amount than 000. assessment which the stock cholders are liable, the If will lose dethe depositors nothing posits have been impaired to greater extent than 50,000. then the loss depositors will depend somewhat on the value and availability the securities held for loans and discounts was said yesterday that many of the stockholders will be severely crippled if they have to put up the full assessment they which the to amount are liable The bank has regularly paid an 8 per cent. dividend. and a semi annual dividend of 4 per cent. WAS declared July alentine had been cashier the Middlesex Bank and Treasurer of the savings bank since 1892, and was said to be the ungest bank eashier in New Jersey He was born Woodbridge where his father owns large clay banks. from which connection with the young man S uncles Mulford and H ward Valentine he manufactures firebrick Young Valentine was educated at Rutgers College and at Pa kard's Business College in this city, and when his business education was completed he became a clerk in the National Park Bank He was an employee latter bank when the Middiese County Bank. in 1892. asked the Na tional Park Bank to recommend a man for cashier take the place William Peterson. who had just who hadjust Hed. Mr Peterson had also beena the National Park Val. Bank clerk Young entine was ree recommended was and was accepted ns cashier lected He was Treasurer then elected the of say bank eashier he received salary of $2,500 a year and as reasurer $1,500 His notary fees amounted about $1 500 a year SO that from his banking bustness nlone he received $5,500 large come fora resid lent nt of town like Perth AmBesides, he was made rece ver for a large el clothing house in Perth Amboy about a year ago. and from that he had already received about $1 000 with no immediate prospect of the receivership ership terminating was Freasur building loan associati on and was also Treasurer the Ramsay Dry Dock and Dredg. But Company Shortly after he went to Perth Ambov he married Miss arrie Anness a daughter of Charles Anness Woodbridge They ha two daughters. aged respectively and 3. About a year ago Valentino built at an estimated cost 10.00 a has Isome house at High street only a block away from the bank He kept a pair of horses and three servants an lived well This spring he bought summer cottage

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FOR SIX VALENTINE SENTENCE WRECKYEARS' IMPRISONMENT ING THE BANK AMBOY PERTH OFTHE TO BANK'S HOLD INCLINED DEPOSITORS THE FOR FICERS DEFALCARESPONSIBLE TO $208,000 TION. WHICH AMOUNTS 18 George (Special). to sentenced New Brunswick, this July afternoon State Prison for M. years' Valentine imprisonment Middlesex was County in the Bank institution at Perth at of wrecking six the the savings into court Amboy and robbing Valentine came by his wife, the same place. He was accompanied Howard Valentine. charges John 3:15 o'clock. his uncle, read the in his father and S. Voorhees J. Kearny Rice, non Edward Prosecutor Valentine, that and the Judge prisoner for pleaded the Valenpleaded against both cases, said S. Savage, counsel to the Court Valentine for vult, tine family. earnestly that since his power arrest to aid the mercy. He everything said in his out their the affairs. extent had done officials in what straightening he could Rice to lessen made no he plea. began is and bank would bank's do loss. was Judge greatly man. affect In as sentencing not my of Judge the remarks Strong to the young Strong said trouble "It that you will his prisoner Judge words in You your are young. you and purpose the to say distress. placed before here with two increase great your temptati amptation you are charged in the you. senhad fielded. Now no vindictif to impose upon to seven crimes. you There I am is about sentence of you the crimes tence is in which power to on each fourteen a years fine in of years' It imprison against you, making well as to is pay that you of six be charged hard labor. as of the law for a term and all at The sentence State Prison inst +itution Middlesex Bank, confined $2,000. to theft the from the savings from the run concur- from term years for six years for your the two thefts terms six years. to and with rently. County making the costs your are troom paid. arm emotion, in arm but that valentine until left the displayed courtro any great of the proceed is what his wife broke Both down during of Judge rumored Strong that found the neither ings. generally The sentence pyedicted line's lication It 18 has been The Perth total was be of more Valentin than $200,000. 18 (Special) a resoluCity treasurer to Perth Amboy, Council July last night to passed issue $10,000 to run in Amboy tion directing the to provide of money the month defal- of anticipation for bonds, the balance necessary Valentine. by the of one the city affairs This was made George M. bonds will will be cation July. of Cashier Bank ected The that they opened Middlesex bonds, County and it is expect National bank to be by the troduction year taken within by the new few were days greatly presented surprised by Alder- on Kroeger, the that here The Aldermen of a resolution of the Commit Street ittee Comof his two man August which instructed directed to expenses. discharge good Kroeger the Streets. missioner order be to reduce attemp to discharge make of After two men, stood in alone of in $116,000 his by than the $2 a had day indiculed men city's who loss are member paid less of the his Board faith without the embar city's the every other and expressed its affairs withdrew Kroeger to on eepishly excellent authority ready of may rassment, ability Kroeger is stated the on new bank need are a resolution that the promo any amount designated the by city Treasurer the Council Garret as to No advance bank was of city money F Hall they are have there at sentence The news Brodhead depository and to cave Collector for the money at Newthis afternoon by the their fore obliged own risk. Valentine's produced news sitement of his again Brunswick only to that street caused corner were discussing com- the second defalcation. groups The of bank's business trouble. men Many James L latest cupied phase by sent of tence the with who that is serving of poacher a term pared the of Perth Amboy, shooting an Italian time. Receiver Tooker, years for warden at the o-day dered the of to cease will be of boker eight was James game Maguire work on the done books toward defalcabank bank. examine and thing amount more of Valentine one else is made a the asce ertaining Mr the Maguir or The some examiners shortage told now tion until recei day that the less than that permanent Tribune reporter $208.00 to It will investigation not be may add known said, is and further missing has Valentine they $20,000 light to the sentence amount the given depo itors to institution. of the bank and the tended The to embitter officers of the asked to bring with Prosecutor against the Voorhees before may the next officers be Grand who Jury are for now the way whole matter of indicting the in public opinion, $208 000 con- out as the far being view held in responsil which Valentine local wiped bank was of some easy of existence, SO possibility that Grand Jury meet, cerned. is more than a wait for the against the at bark the There depositors but may will institute once action in Goldberger the criminal and have to officers of John the H Gregory three Max depositors they who are not Mr courts. Crosby & Hill are and who alone say punished. men consulted to lawye have Valentine Goldberger are business men trading content and Mr Hill are dryg goods & Hill. Gregory Crosby and of Crosby be based upon here. under the firm name charges they tine will had nothing officers to If ditions they make with which say "Valent that the something bank was do directly noon They on Monday they that must affairs have begun was knew by By Monday serious night the state of remained open wrong realize how bank not only Tuesday, WednesThursday to this the also on period business were Despite all day Monday. but During and this deposits must day and carried on as the usual time the officers situation and ited the was Between the bank Gregory depo taken been clear to down Mr. and Crosby & Hill have time they Mr. closed Goldberger $5,000 incensed He decourse $2,000, $4,000. Gregory is particularly Thursday In the have ordinary taken enty-four drawn posited Mr. of the business $2,000 on the hours check to would reach Had the bank it gone in would not have at least York twent on which it course was the money Bank House Clearing the New through the regular credited to the agent Middlese before check Friday had through its Still, on Friday New- morning York bank in Mr. the check Greg at been noon. cashed that by as his soon as to he New- paid York with avoid- it ory messenger claims was sent the counter. and thus getting and it was paid of the over Clearing House of the usual Middng actual the delay cash into declares the possessi that had stopped the the the Bank. He he could have one would diesex course been Friday followed morning and no alone rencheck suffered. on claims that this liable affair to will formal not have Mr Gregory officers of the says ban personal friendship steps therefore ders prosecution the deter and him from he taking be issued the at any time Warrants of may the bank's officer the Perth Amboy belongi Sav the McGuire for The some Institution date for reopening is not Middlesex known. Bank Its and in the Mr of out them get offices are ings all tied is up not in inclined until to he let has anything had a chance to see what it is 18 (Special) -The applica- Kean Washington, approved July of Hamilton Reitmeyer F. a tion has been J.: Amos T. French, A. Nugent F. for with Amboy, Union, I. N Waterbury and National Edward Bank of Perth charter John for the a capital First of $100,000. RESORT WEATHER a on A TOUCH OF SUMMER reputation as a summer resort New-York firmer placed basis her than ever yesterday. The

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SIX YEARS FOR VALENTINE

The Embezzling Perth Amboy, J., Bank Cashier Sentenced. New York, July 18.-George M. Valentine, cashier of the suspended Middlesex county bank at Perth Amboy, N. J., was sentenced to-day in the Middlesex county court by Judge WoodbridgeStorm to six years in the New Jersey state penitentiary at Trenton. He pleaded non-vult to the charge of larceny in connection with his misappropriation of some hundred thousand dollars from the Middlesex county bank. Valentine was pale and haggard with worry and excitement. When his name was called he walked to the bar and pleaded non-vult. Judge Rice made no defense for Valentine, but Edward Savage, the legal adviser of the Valentine family, made an eloquent plea for the mercy of the court. He said that the aged parents of the young man were prostrated. A few years, he said, to some people was more than many years to others. He called the attention of the court to the efforts that Valentine had made to right the wrong that he had done and to the fact that he had voluntarily surrendered himself, and, waiving trial, had saved the county a large sum of money. In leaving the court room after sentence Valentine stopped and embraced and kissed his wife and shook hands with his uncles. The wife broke down.

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Six Years in the Pen

New York, July 18.-George M. Valentine, cashier of the suspended Middlesex county bank at Perth Amboy, N. J., was to-day sentenced in Middlesex county court to six years in the New Jersey state penitentiary at Trenton for the misappropriation of about $130,000 of the funds of the bank.

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QUICK WORK

Bank Wrecker Valentine Gets Six Years in State's Prison. NEW YORK, July 18.-George M. Valentine, cashier of the suspended Middlesex county bank at Perth Amboy, N. J., was sentenced in the Middlesex County Court to-day to six years in the New Jersey State penitentiary at Trenton Valentine pleaded non-vult to the charge of larceny in connection with his misappropriation of about $130,000 from the bank.

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Valentine Gets Six Years.

Perth Amboy, N. J., July 19.-George M. Valentine, cashier of the suspended Middlesex County bank, was sentenced in the Middlesex county court yesterday to six years in the New Jersey state penitentiary at Trenton. Valentine pleaded non vult to the charge of larceny in connection with his misap- propriation of about $130,000 from the bank.

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A SIX-YEAR SENTENCE

NEW YORK, July 18.-George M. Valentine, cashier of the suspended Middlesex County bank, at Perth Amboy, N. J., was sentenced in the Middlesex county court to-day to six years in the New Jersey state penintentiary at Trenton.

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A Receiver For the Middlesex Bank. PERTH AMBOY, N.J. (Special).-Vice Chancellor Pitney has appointed James Maguire, Cashier of the National State Bank at Elizabeth, as receiver for the wrecked Middlesex County Bank of this place. The application for the appointment of a receiver was made on behalf of the Perth Amboy Gaslight Company.

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Wednesday, July 19. Grasshoppers are said to be ruining crops in western Kansas.

The fever situation at Santiago, Cuba, continues to improve.

Mrs. Mary Steger, wife of a Chicago saloon keeper, is dead from the kiss of a kissing bug.

The cup challenger Shamrock run away from the Britannia in a trial race yesterday, beating by a margin of 13 minutes.

The casting plant at the Addison Pipe and Steel foundry at Cincinnati, O., was gutted by fire and the loss is $400,000.

The steamship Stillwater has reached New York from Guatemala. Her papers report everything quiet at Guatemala, and no signs of a revolution.

Mrs. L. W. Holliday, who shot and killed her husband at St. Louis, was exonerated by the coroner's jury, a verdict of justifiable homicide being rendered.

The strike of the Brooklyn street car employes is likely to be prolonged. Both sides are apparently more determined than ever. At Cleveland the situation is not alarming.

Pingree's plan for the municipal ownership of the Detroit street railways is pronounced a failure owing to the refusal of the city council to consider the ordinance.

George M. Valentine, cashier of the suspended Middlesex county bank of Perth Amboy, N. J., was sentenced to six years in the penitentiary for misappropriating about $130,000 of the bank's funds.

Mrs. Helen M. Peyton of Spokane, Wash., who has for years conducted a restaurant at Denver, has sued her husband for $500,000 damages, claiming he secured a divorce from her by and through fraud.

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Appointed Receiver

NEW YORK, July 18.-James Maguire, cashier of the National State bank of Elizabeth, N. J., was Monday appointed receiver of the Middlesex county bank of Perth Amboy, N. J., which Cashier George M. Valentine wrecked.

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Bank Cashier Is Sentenced.

George M. Valentine, cashier of the suspended Middlesex County Bank at Perth Amboy, N. J., has been sentenced in Middlesex County Court to six years in the penitentiary at Trenton. Valentine pleaded not guilty to the charge of larceny in connection with his misappropria-tion of about $130,000 from the bank.

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THE EAST.

Flames in a Brooklyn navy yard building caused a loss of $315,000 in clothing and other supplies.

In Brooklyn, N. Y., striking street railway men blew up with dynamite a building owned by the Rapid Transit company, and surrounding property was badly damaged by the explosion.

In Pittsburgh the Pressed Steel Car company has made a contract with the Carnegie Steel company for the delivery of 1,000 tons of steel plates per day for ten years at a cost of $150,000,000. This is the largest private contract ever made.

The famous writer of boys' stories, Horatio Alger, Jr., died at the home of his sister in Natick, Mass., aged 65 years.

In Perth Amboy, N. J., George M. Valentine, cashier of the suspended Middlesex County bank, was sentenced to six years in the penitentiary for misappropriating $130,000.

It is announced that bicycle manufacturers controlling 56 plants have finally succeeded in forming a combine with a capital of $40,000,000.

At Swampscott, Mass., Abbie Phillips, aged 17 and worth $2,000,000, was married to Bernard B. Kennedy, the family coachman.

The New York trolley men joined the Brooklyn trolley men in their big strike.

Gerald C. Brown, of Pennsylvania, grange lecturer and agricultural editor, was gored to death by a bull at York, Pa.

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Bank Cashier Is Sentenced.

George M. Valentine, cashier of the suspended Middlesex County Bank at Perth Amboy, N. J., has been sentenced in Middlesex County Court to six years in the penitentiary at Trenton. Valentine pleaded not guilty to the charge of larceny in connection with his misappropria-tion of about $130,000 from the bank.

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Receiver For Wrecked Bank

New York, Aug. 1.-Edward S. Campbell, vice president of the Newark Banking company, has been appointed permanent receiver of the Middlesex County bank at Perth Amboy, N. J., which was wrecked by Cashier George M. Valentine. His bond was fixed at $50,000.

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A Receiver For the Middlesex Bank. PERTH AMBOY, N.J. (Special).-Vice Chancellor Pitney has appointed James Maguire, Cashier of the National State Bank at Elizabeth, &S receiver for the wrecked Middlesex County Bank of this place. The application for the appointment of a receiver was made on behalf of the Perth Amboy Gaslight Company.

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VALENTINE'S BANK AGAIN Abram Cole Wants His Firm's De. posit to Offset His Note. "Vice Chancellor Emery, this morning, heard argument in the case of Abram Cole against Edwin Campbell, the receiver of the Middlesex Bank of Perth Amboy, which was wrecked by Valentine. Mr. Cole is a member of the firm of Cole Brothers, lumber merchants, of Tottenville, Staten Island. The firm was a customer of the bank, keeping an account there and often borrowing money. Whenever the firm borrowed money Mr. Abram Cole would make out a note, payable to Cole Brothers, and endorsed by the firm. When the bank failed it held such a note for $1,000 and the firm had on deposit $269.. When the receiver took possession of the assets of the bank he began suit against Abram Cole for the amount of the note. Mr. Cole claimed that the $269 which the firm had on deposit should be offset against the note, which the receive. refused to do. Then Mr. Cole appealed to the Court of Chancery from the receiver's decision, Mr. Whitehead of New York appeared and argued the case for Mr. Cole, He was followed by Sherard Depue, who spoke but a short time when the Vice Chancellor suggested that the matter could speedily be settled if it was ascertained that the making of the Cole note was the bank's usual method of doing business. If it was, the deposit was an offset at law. The case was adjourned until this information can be obtained.

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THE VALENTINE BANK CASE.

Six More Indictments Against the Cashier.

NEW BRUNSWICK, N. J., Dec. 23.—The fact that George M. Valentine, the cashier who wrecked the Middlesex County Bank, at Perth Amboy, gave himself up, pleaded guilty to embezzlement and was hurriedly sentenced to six years in State Prison, is not apparently to end the matter of punishment for him. The manner in which the wrecker's case was disposed of brought a heap of criticism because it was not known to what extent Valentine's peculations had gone, and it appeared to many of the victims of the broken bank that he had gotten off a little too easily.

As a result of the agitation the Middlesex county grand jury began an exhaustive investigation of the bank's affairs, and Valentine will have to answer to six additional indictments which were brought in last night. The report of Edward S. Campbell, the receiver, which was submitted to the grand jury, stated that the stealings of Valentine amounted to $110,000, of which amount $80,000 was the surplus held by the National Park Bank, of New York, as a reserve, and $30,000, the amount of his overdrafts upon that institution.

It was at first supposed that his defalcations amounted to nearly $300,000. The report states that the bank lost considerable upon bad loans to the dredging company in which Valentine was interested. Four of the indictments found against Valentine were for embezzlement and two for making false entries. They were as follows: For embezzling $15,319.98 on December 24, 1898; for embezzling $900 on June 21, 1899; making a false entry on June 23, 1898, for $41,033; making a false entry on a draft for $40,753 on May 15, 1899.

The presentment of the grand jury censures the board of directors of the bank for gross carelessness and negligence in the performance of their duties. The banking department of the State is also censured for its negligence. John S. Voorhees, the county prosecutor, has not determined what course he will pursue regarding the additional indictments against Valentine.

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MORE OF VALENTINE'S BANK.

When the Middlesex County Bank of Perth Amboy, which was wrecked by Valentine went into the hands of a receiver, Frank C. Henry had an account in the bank of $110 against which he had on outstanding check for $53. He filed a claim with the receiver for $57 and the holder of the check filed a claim for $53. The receiver refused to recognize the check and allowed Henry's claim for only $57. Andrew S. Lyon of Perth Amboy, counsel for Henry, applied to Vice Chancellor Stevens this morning for an order compelling the receiver to allow the claim for the amount of the check.

The Vice Chancellor directed him to file a supplemental claim for the $53.

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Bank Directors Are Responsible

The directors of the Middlesex County Bank, of Perth Amboy, which was wrecked by the defalcation of its cashier, George M. Valentine, must make good the greater part of the losses. Such is the decision announced by Vice-Chancellor Pitney. The bank's losses amounted to $300,900. The exact amount for which the directors are liable cannot be stated positively, but it will approximate $220,000. The decision of the ViceChancellorwasgiven in a suit brought. by Edward S. Campbell, of Newark, receiver of the bank, against Uriah B. Watson, James L. Kearny, Edward R. Pierce, Patrick Convery, Robert N. Valentine, James T. Watson and Dr. John G. Wilson, directors. The cashier's peculations, the ViceChancellor holds, were made possible by the negligence of the directors in supervising the affairs of the institution and keeping a watch on those in charge of the details of its business. This was the contention on which the receiver based his action.

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Cashier of the Defunct Bank Tells What He Knows of the Ramsay Notes. OTHERS ON THE STAND. Case Being Heard in Newark Before Vice Chancellor-Some Interesting Evidence Brought Out-Big Dredger was Security-Valued at $125,000-Was Built by Hugh Ramsay-The Bank Agree nent. George M Valentine, cashier of the Middlesex County Bank, which closed its doors July 13, 1899, and was placed in charge of Enward S. Campbeil, as receiver immediately thereafter, was called to the witness chair Wednesday in the suit brought by Receiver Campbell against the Perth Ainboy Shipbuilding and Engineering Company and other [defendants to foreclose a $75,000 mortgage given to the defunct bank by Hugh Ramsay. Valentine was convicted and served four and a half years on the charge of embezzlement. Under direct examination Valentine described the bank's interest in the $24,600 of notes deposited by Mr. Ramsay and drawn by the Mining. Dredging and Power Company, of which: the witness was president. He said the notes were substituted for personal notes of Mr. Ramsay, and tha+ ultimately the bank was forced to take over the steam dredge, which formed the only live asset of the company. Oliver-Ramsay, one of the sons of Hugh Ramany, followed Valentine. He testified that a verbal arrangement had been made between President Wa+son, Valentine and his father to take over the notes of the Mining, Dredging and Power Company to the amount of $24,600, thus reducing the 80-called "Ramasy notes" to $25,000. The witness then testified that it was later agreed that the dredge should be purchased. the notes being used in payment and the title being taken personally by Mr. Valentine. The witness could not recall any portion of these conversations, although he was present, and ViceChancellor Pitney declined to permit him as an interested party to give the substance thereof. Alan H. Strong, who is conducting the examination for the defendants. then asked: "Do you know that there was an agreement made? The agreement was that the bank was to give Hugh Ramsay credit for these notes, amounting to about $25,000." replied the witness. "Did the bank go into the dredging business?" asked the Vice-Chancellor. No. The intention was to secure title to the dredge, which was worth 122,000, and sell it." The witness explained that the dredge was built by his father and that the notes of the Mining, Dredg ing and Power Company were given to him in part payment of the contract price.

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CHANCELLOR IS NOTIFIED OF WET DOCK SALE Chancellor Mahlon Pitney has been officially notified of the action of the Board of Aldermen in adopting a resolution providing for the sale of whatever interest the city may have in the "cove" or "wet dock" property. Adrian Lyon, receiver for the Perth Amboy Shipbuilding and Engineering Company, has applied for several orders in connection with the matter to aid him in clearing up the affairs of the former shipbuilding concern and the former Middlesex County Bank. The bank, now a defunct institution, held a mortgage on the property amounting to approximately $80,000. This amount is to be paid over when Mr. Lyon receives payment for the land from the Roessler & Hasslacher Chemical Company. The former depositors will receive amounts pro rata to the amounts of their deposits at the time of the downfall of the institution. The creditors of the shipbuilding concern will also be paid from the amount received by Mr. Lyon, and the city will receive $10,000 for clearing the title. It will take some weeks, perhaps, before the chancellor confirms the sale. When he has taken this action a movement will have ceased that, it is believed, will benefit the city in several ways.

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RELIEF ASS'N.

HAS MEETING

C. W. Knight Chosen President for Seventeenth Time.

The thirty-fourth annual meeting of the Richmond County Relief Association, of Tottenville, was held in the lecture room of South Baptist church, that place, last night with President C. W. Knight in the chair. The annual reports of the officers of the association were received, and the election of officers took place. In the report of Treasurer Charles N. Lehman it was announced that the sum of $220.68 had been received from the defunct Middlesex County Bank, of Perth Amboy, as the last payment made by the receiver of that institution. By a vote this amount was equally divided among Class A and B of the association.

After the report of the auditors the election took place with the result that all the officers were re-elected to serve again for the ensuing year. President C. W. Knight was elected for the seventeenth consecutive time as the head of the association. The other officers are: Jacob Herrel, first vice president; George W. DuBois, second vice president; Charles T. Van Duesen, secretary; Charles N. Lehman, treasurer; Robert Lee, M. E. Ayers, James Bailey, James W. Bedell, C. A. Marshall and A. C. Cortwright, board of directors; A. B. Marsh, J. L. Bedell and William Manee, auditors.

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ANGRY MOB STORMS SAVINGS BANK AFTER RUMOR OF FAILURE In All-Night Wait Threaten to Wreck Institution at Perth Amboy When Doors Are Thrown Open-Detectives Swept Before Panic-Stricken Throng Trying to Calm Depositors. [From a Staff Correspondent.) street at Smith became jammed from sidewalk to sidewalk. PERTH AMBOY, Oct. 31.-HunFormer Judge Adrian Lyon had dreds of frantic foreigners besleged been sent to New York for currency the Perth Ambov Savings Institution, early in the morning. He brought at Smith and Rector streets, today. back a dress-suit case of bills and a A rumor that the bank had failed satchel of specie, which was smugspread from the foreign section like gled into the bank by a rear deor. wildfire. All night long an angry The directors of the institution mob had surged about the building. claim that it is absolutely sound. The police tried to clear the street, There was a run on the Middlesex but the depositors fought sullenly to County Bank, which occupied the maintain their place. same building, in July, 1898. In that When the doors were thrown open case, however, one of the employees, at 10 o'clock this morning, the rush George M. Valentine, had been robof men and women swept from their feet the detectives who had been bing it of large sums. hired for the day. One-third of the population here is foreign and runs have several times They seemed bent on wrecking a proved serious. Emil Smeth, the bank. The paying teller pleaded with them in their own language. He steamship ticket agent, who carried had a loaded revolver lying within on an illicit banking business, had a run on his office recently. He is easy reach. The police reserves charged into the now serving a long sentence in Trenton. swarm in the street outside, dragged The Morris Rossette banks, in New out the most unruly from the bank. and restored, for a time, some semYork, Jersey City, Jamestown, O.: blance of order. Wilkesbarre, Pa., and Perth Amboy. were thrown into bankruptcy a short Then the paying of deposits began. It went on very slowly, and the crowd time ago by a riotous run that started here. quickly became impatient. Rector