The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-03-25
ANOTHER GREAT crime.
TIE Trusted Treasurer CT a Massachusetts, Saw.
lnss Bank Steals The Assets.
NINETY THOUSAND DOLLARS TAKEN,
After Running the institution the De-
fauIter Takes Flight

Boston. Mass. March "a. 1879.
The greatest CONSERVATION has been caused In
Reading. Mass., by the discovery that Nathan p.
Pratt, treasurer of savings bank in that town. is
defaulter to large amount, and that. while enjoy
ing thefullest confidence of the community he has
for years been engaged In systematic robbery of
the bank. Tho bank incorporated July IA.
1862 Pratt elected treasurer and has continued
TO hold that office since. He has been held in
the highest estacm of probity. He had
some $4,000 left him by his father. and when the
question OF giving bonds discussed 1t
sidered sufficient security 10 accept the individual
bond of Mr.. Pratt, secured by . mortgage his
farm in Reading. The bond was for $4,000 which
the bank still holds. Since the depreciation of real
estate the question Of decreasing the security has
been considered by the trustees. ct whose request
Pratt placed In their hands 200 in government
bonds. which the bank now h0l1ns. Pratt owned .
large landed property. other Asntnss m6rtgaged to
the bank. but it is covered VIA sttachmeatsto such
an extent that tho bank will not recover anything
from that source. The first ntimation which tho
directors received that matters bad gone wrong in
the affairs Of the bank Friday last. when
gentleman. while examining titles in, the Office
of the Register of Deeds, at East Cambridge,
discovered that certain mortgages formerly held by
the Reading Savings Bank security for loans, had
transferred to other parties Of those par
tcular being mortgage of $1,000 upon the property
Of woman living In Reading He speedily discov-
cred that some $4,000 $1,000 of mortgages held
by the bank had been transferred in this way, most
of the transfers being Of quite recent date; one OF
$4,000 being of as recent date us last Wednesday,
PRATT coSFEssEs GUILT
When confronted with the facts Pratt admitted that
he had been financially embarrassed and that he had
used the securities OF the bank for the purpose Of
meeting his personal ends. He very reticent and
when pressed Tor particulars stated that it might be
that $20000 had been converted in this way. He was
alNp thnv Snffb no rrnE
and he admitted having converted $1,000 bond Of
tho city OF Portland. Me-. which was held by the
bank and with some reluctance Pratt surrendered
them. When questioned as to what had led him to
answers, and stated that he had done it to save
tue bank; that there had been something wrong
. good while. ago. &c. but refused to mako
commissioners proceeded to examine tho affairs of
the bank. It was found that all quick assets of the
bank had been taken. including the city OF Portland
bond for 81 900 mentioned before, aud bank stock,
of which the bank held $13,sO0 OF this amount
$1,000 had been legitnately pledged to provide for
q dividend and the balance Of $6,sOJ had been con-
verified to the personal use OF the treasurer. These
matters were admitted by pratts daughter to whom
OF somc of his misdeeds. 1t was upon her admis-
sion also that discovered that tho father had
noted properly upon the pass books depostors but
he did credit them upon the books Of the bank.
nature which will aggregate some $4,000 which no
has bezTed in this manner. 1t also appears that
Pratt has been il the habit OF receiving payments ON
mortgages which he did not enter upon tho books
but what amount this had been done the trustees
have yet been unable to ascertain. The deposit
account OF tho bank was kept with the Blackstone
National Bank In this CITY, and when Pratt surrcn-
dcred It president It bore to the credit of the
bank sl.l29. which tho officials took measures to
secure, but upon visiting tho bank they found
1t had all been drawn except t2S3 - Is
$4,000, and they cover. the treasurer admitted,
period OF three years. 1t il presumed that great
part of the money taken has been invested in thu
~ Vail. hoa
been loaned to tho treasurers son, Sidney p Pratt.
who has been concerned in several Irregularities.
years Of age and for number Of years he has held
the office of sclcctman and other minor town Offices.
besides representing the town in tho Legislature.
DEFAuL1ER LEAVES READING.
ON sunday night warrant obtained. but Pratt
had disappeared. He seen to leave Reading for
Boston ON Sunday evening" and since that time the
ofhcers have NO trace of him. though telegrnms
have boen sent to New York and elsewhere
to head him OF and his arrest II he left tho
city upon any of the ordinary lines Of Sunday night
travel and the police generally are the alert tor
his arrest The bank has only 500 in cash lcss; AZ
examination made OF the securities OF the bank.
and at this time rs well Is by the annual
NO errors or fraudulent transactions discovered.
In the course Of the examination Saturday it
also discovered thet In addition to the other meas
urcs which the treasurer had devised dcrletc the
bank OF its securities replacing some OF the Sc
Su, az WAT eItent r. not Known The forreries Of
Pratt without doubt much moro than sufiicicnt
to drive the bank into liquidation, and II is also
probable that il Will entail loss upon the deposit
ors, most Of whom people Of small mcans.
There shout six hundrcd and ninety de-
positors. and tho smount OF the deposits
vt the time of the annual report 70 the
Savings Bank Commissioners was $l4S, 459 ~.
Il il probable that the treasurer has defraudcd the
bank of quito fifty per cent Of this amount and to
meet this deficiency is property held as his bond.
which it is thought is worth only the full value Of
$4,000. large portion Of the transfers of mort
cages made by Pratt made TO the names OF John
I. Kimbail. lawyer of Lowell, and . lawyer as
Hayerhiil by the name OF Merrill.