The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-03-25
RUINED BY IT'S TREASURER.
4 MASSACHUSETTS, SdTINGS BANK
ROBBED OF SSO,OOO.
Nathan y. Pratrs Many Method. OF SWIM
dlinR DcposItors-He and Iis SOU Arrested
with About $4,000 III their Possession.

ding Deposit ors-Uc and His Sou Arrestcd
with About 100000 III their Possession.
BosToN, Mass, March a. On Saturday
morning last the village OF Reading was the
scene Of no little excitement when II was nm
nounced that the Reading Savings Bank had
closed it's doors in consequence Of the d"fnlca-
ton Of its treasurer. Nathan +. Pratt. Mr.. Pratt
has been connected with the bank ever since its
organization in 1870. lie is man some Go
years Of age. and has wife and three children
two boys and n eirl-nll grown persons. Ono
Of his sons Ia Sidney p. Pratt of Paige straw
bail notoriety. lie has always born an excellent
reputation. and has boon considered by his
townsmen MS n model Christian gentleman.
Most Of the depositors in the bank are farm
ora md lRboring men OF email means. Tho
first intimation which the directors received
that matters had gone wrong in tho affairs OF
the bank was on Friday last. when n gentleman
while examining titles in the Office OF the Reg
lister OF Deeds. in East Cambridge. discovered
that certain mortgages formerly held by tho
Reading Savings Bank MS security for loans.
had been transferred to other parties one
Of these. in particular. being mortgage
of $1,000 upon property OF woman
living in Reading. This gentleman ut
once went to tho onlcc Of the President Of the
bank. Mr. Francis o. Dewey. doing business at
30 Merrmac street. and % Canal street, in this
city. and made inquiry M 20 whthcr tho ank
was selling many Of its securities. Mr.. Dewey.
greatly surprised. replied that such transfer
had not been authorized. and at once requested
the attorney Of the bank. G, r Judd, who II
also one OF tho trustees ~ the bank, To 20 to
the Registry 81 Deeds In Enst Cambridge. and
ascertain what transfers had been made. He
discovered that some SluUun or 81 OpO ui the
mortgages held by the bank had been trans
ferrrd in this way. most Of the transfers being
of quite recent date. One. Of the amount OF
$4,000. WIS Of AS recent date ms last "Wednesday.
AZ
some hestancy Mr.. Pratt admitted that hc had
been financially embarrassed. AMI that he had
used the securities OF the bunk. lle was very
reticcnt but II might be that 100000 had been
converted In this way. he said.
He Was then asked about the other securities
Of the bank. and he admitted having converted
u 81 600 bond OF the city of Portland. Me- which
WIS held 10y the bank, An examination by
A daughter Of Mr.. Pratt. who had assisted her
| father in the bank for several years, admitted
that lac had for n long time been in the habit Of
| receiving deposits which he noted properly
upon the pnss books Of the dopositors. but did
! not credit them upon the books Of the bank.
| She give the Commissioner list OF accounts
| which will aggregate some $4,000, which he
has cmhczzled in this manner.
| 1t also appears that Pratt has been In tho
| habit ~ receiving payments on the mortgages.
| which lie did not enter upon tho books: but 10
what amount is not yet known. The deposit
| account was kept with the Blackstone National
! Bank. in this city, and when Pratt surrendered
il TO the President, IL bore u the credit of the
| bank Sll29 which the officials took meas ures
| to secure but upon visiting the bank they
! found that ii had all been drawn except $3.50.
| The daughter also indicated notes to the
| amount Of about $40 900. which. she said, she
| had been told wcra torgerias. OF the bank
| stock disappeared $ll GOO was pledged with the
! New England Trust Company, part of which
| only WAS authorized. The present estimate OF
the amount OF Praus embczzIcment is about
| 10000
The bank has but 1900 In cash left. At the
| November meeting Of the trustees n thorough
| examinat ion WIS made Of the securities Of the
| bank. and at this time. as well rs by the annual
| examination OF the Savings Bank Commits
| sioner. no errors or fraudulent transactions
| We're discovered.
In tho course Of the examination on Saturday
II was discovered that. in addition TO the other
/ measures which the Treasurer had devised %
deplete the bank OF its securities was that Of
replacing some OF the securities which he had
appropriated. by forged notes. but To- what extent
il not known. The furgeries OF Pratt are
without doubt. much more than suficien
20 drive the bank into liquidation. and II Is nlsS
probable that II will entail n loss among the de
positors. There were about $50 dcpositors, ant
the amount OF the deposits at tho time OF the
annual report to the Savings Bank Commits
sioners was s14s 1921
| large proportion OF the transfers OF mort
Cages made ny Pratt were made 10 the names
OF John +. Kimball. n lawyer OF Lowell and
| lawyer AT Hayerhill 10y the name Of Merrill.
At ~ o'clock this afternoon. Pratt and hi
| son Nathan b. were arrested in the BOstu'
and Albany depot 10y detectives OF this ciiy
| Just "a the unhappy pair We're about TO take IA
train for the West. Upon the person OF the So
were found power OF attorney from his father
authorizing him 20 settle his affairs. and MS
cash. stocks. and securities. valued AZ abot
$4,000. which We're taken possession OF by "a
| on GERS. The fruits Of this capture and tn
bond Of the Treasurer for $4,000 will reduc
the actual loss 10 the bank and depositors