The Jeffersonian. [volume] (Stroudsburg, Pa.) 1853-1911, 1877-02-08
THE MONTROSE DEFAULTER.

ASTONlSHMENT OF HIS TRUSTING FELLOW
CITIZENS-THE AMOUNT OF HIS PECU- |
LATIoN $4,000.
From the Scranton PENN Republican, Feb. 8
The news of Nathan L. Lenheim's enor-
nous defalcations fell upon our neighbors
of Montrose. Susquehanna County, the
other day, like clap of thunder from a
clear sky. He was young man who moved
in the best society in the place, apparently
devoted member of Church, beloved and
esteemed by all who knew him, the Cashier
of bank in which the wealthiest men of
the town were interested, besides being
well-to-do himself-all this at the age of
"a With such brilliant prospects before
him he dashed them all to the ground in a
single day, confounded the community in
which he lived, and left the people of the
place almost panic-stricken.
But few days since he left Montrose
without stating a word of his affairs to any
one. and week ago to-day he was arrested
in New Y ork for presenting forged note
for the sum of $4,000, to be discounted
at the Importers and Traders Bank in that
City. The forged note was alleged to have
been drawn by B. T. Stevens, and indorsed
by Mr.. s. Kessler, of Easton. who is known
to be worth at least S1000,000. For
tunately, however, the bold trick was de-
tected. and the forger taken in charge by
the authorities The receipt of the start
ling news completely shocked the people Of
Montrose, and especially the stockholders
of the First National Bank, of which Mr..
Lenheim was Cashier Accordinly an in
vesti@ation was made, and it was discovered
that his bank defalcations reached the enor-
nous sum of 100000 of money he had
squandered in various ways. All efforts
to ascertain how he had invested this plum
der, or into what channels he could have
directed it, have so far proved fruitless, and
this portion of the transaction must remain
mystery until the dark sequel of the bold
crime is revealed OF this amount $50, 600
had been forged on the bank, and the rest
rs taken in various ways, for Mr.. Lenheim
had full control to discount notes and trans
act other business of the bank at will and
apparently without consulting any Of the
officers of the institution.
We have ascertained, however, that the
defauting Cashiers bond is good for the
greater part Of the money stolen, and that
the most the bank will lose will be about
! S24,0 The confidence of the people in
its stability is still mistaken, and up to
Thursday noon there was double the amount
of money deposited that was drawn out.
On Wednesday last the bank was closed
for an investigation, and for the adjustment
of matters that had been deranged by the
sudden disappearance Of the Cashier, but
it was opened yesterday, transactin2 busi-
ness as usual The stockholders have given
their note for $4,000 to replenish the de-
pleted treasury and meet present emergen-
cies. They are all men Of sound financial
standing and no extraordinary run is anti
cipated. In fact, one party, to show his
faith in the stable character of the concern,
deposited 5000 in it on Tuesday, and
others have testified their confidence in it
in similar substantial manner The liabiIi-
ties are secured by sound notes, and no
such thing as failure is expected.
The First National Bank Of MOntrose
came into existence about two years ago,
and ever since its inception Mr.. Nathan l..
Lenheim, the forger has been it's Cashier.
At the close cf tho first years business Mr..
D. D. Searle tn Vice President, expressed
good deal of dissatisfaction over the fact
that the original plan Of referring all loans
to committee before being negotiated was
not carried out, and that Mr.. Lcnheim was
negotiating paper without the instructions
of any one. This gave rise to such state
of feeling that Mr.. Searle said he would
either sell his stock or buy out Mr..
Leuheim's. The consequence was that Mr..
Scarle sold out his $4,000 worth for a
margin Of 20 per cent. and retired from the
bank, receiving $4,000 in cash, and the
stock (which he still holds) as security.
Mr.. George v Bently was chosen Vice
President in his stead, and Mr.. William j.
Turrel is President. The First National
is the only national bank in town. There
is another banking house there, that of
William II. Cooper & Co., which has been
in existence for 20 years, and is above re-
proach.
New YORK, February On, L..
Lenheim. cashier Of the First National
Bank, of Montrose, Pennsylvania, who is
detained on two charges, was brought up
at the Toombs to-day and stated that he
| intended to waive further examination.
Complainant, A. Lathrop, alleges that
Lenheim forged his signature to promis-
sorry note on the First National Bank of
New York, at four months, for $500,
while he was depositor in the First Ma
Bank of Montrose. Bail was fixed at Sl0,-
600. The prisoner was also held in $4,000
bail to await requisition from the Cover
nor of Pennsylvania, on a charge of misap-
preparation of $4,000 Of the Montrose
! Banks funds.