The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1886-12-10
HOW BANK WAS BROKEN.
The Recent Failure at ellen Rock.

William Herbst, ex-president of The
First National Bank of Glen Rock, York
county, his two sons, Jacob S. and W.
II. Herbst, and Henry Seiiz, the last
named of whom was cashier of the
bank. were arrested on Saturday charged
with swindling it out Of about $50, 600
of it's S75, 600 capital. II Was learned
some days ago that tb- bank was in
bad fix, as the two yoTI ger Herbs.s,
who conducted country store in Glen
RCcS. and had unlimited credit at the
bank, beCs me insolvent, and this caused
a run on that institution. This aroused
the board of directors, who began at
once to investigate the finances If the
business, and found that about SJi n0U
of the capital stock had practically
taken TO itself wings and flown away.
The way in which this was managed
was that paper was made by the elder
HeIbst and his two sons and money ad-
vauced on it by the bank without ade-
quate security. One of the notes is even
said to have been signed with The name
of a firm which had been out of busi-
ness for five years, and il is claimed
that the cashier knew this was the case.
Herbst has been president of the bank
since its formation in 1868, and SeitZ
cashier almost as IoEg as that, and 1t
was thought to be one of the soundest
financial institutions in that part of the
State. Many poor pers 0ns went some
distance to deposit :heir money there,
because they believed it to be entirely
safe.
The first inkling the people had of
any difficulty was shortly over week
ago, and IL came in jhe very astOnish-
= = IL, Ct oF ha
younger Herbsts, who carried OF store
at Glen Rock. This directed attention
10 the bank, and aD immediate exami-
nation showed that the practices above
referred to had been carried on until
over $50 600 was gone. The President
and cashier were both compelled to re-
sign and their places filled by others.
large surplus being on hand, an assess
ment Of 35 per cent. Oh the stockholders
has enabled il to live through its
troubles.
Seitz went to Philadelphia, being left
penniless, to make his home with his
son-in-lsw, Christian L. Nanmeister, OF
22lO North Seventh street, where he
was arrested and his bail ixed 1t $4,000,
which he could not raise. Herbst was
arrested at the same time in Glen Rock
and bis two sons in Baltimore, where
they vent to escape the storm of lndiR-
nation among the Glen Rock people.
The elder HeTbst WAS taken to Philad.l-
phia on Saturday and given a bearing,
but was unable to raise the $50. 600 bail
demanded, so he had to go to Jail. He
saws shat he is left without cent.
Hearing the Accused.
William Herbst, ex-president of tie
First National Bank, Of Glen Rock,
York cOun', trd the former cashier.
Henry SeiIz, charged with emheZzle-
ment of the funds of the bank, were
given hearing on Monday afternoon
before United StateS Commissioner Ed
muuds, at United States District At
torney Valentines office. The first wit
ness examined was Nathaniel L. SeitZ,
Of Washington, D. O.. who testified
that aC the request of President Disc,
he examined the affairs of the bank.
The first OveTdTaft of VIM. Eerbst &
Son. as shown by the books, was SILL
6S9.05, May 26. 1885. Three notes
were given, one of "A, 600 by Herbst "
Seitz one of $1,000 by william Herbst
Il Son, and another Of $500 by J. S.
HeTbst s Co.. and balance of S67. %
ib cash. These notes were renewed
from time TO time and are still in ex-
istence. The witness further testified
as to subsequent changes being made in
some - the notes, and also as to ad-
ditiOuAi OverdT IS The total amount
OF the ;verd -att, r. S33, ,245, 80. Other
witnesses were examined, including
Joseph S. Disc, present president of lhs
bsvk K, and Directors Noah X. Sei,z, Z.
K. BOllingeT and William II. Gerbrick,
whose testimony related principally to
the drafts and notes in question. CON-
missioner Edmunds though 10 evil
dencs sufficient to hold the defendants,
who we're asked to give $1,000 bail for
their appearance at court. Elk presi-
dent Herbst obtained bail, Eli r. Nil
Ter, E. I. Eyster and L. n. Shriver,
residents of Glen Rock, berOming his
security. Ex-cashier Seitz was unable
to obtain security, and was committed.