The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1886-07-02
BANK EMBEzzLER LANE.
He Is Given Hearing and Bail Fixed
at $50, 1000.
Intense Excitement at Abingdon ov-
er the News of Lanes Alleged
PecuIations.

BOSTON, July 1.-Mr. Richard j. Lane
President of the Abingdon National Bank
arrived in Boston from Portland at 6 O'Clock
this morning, and on the opening of the Uni
ted States Commissioners Court was ar
raigned before Commissioner Hallett. The
Government was represented by United
States District Attorney Stearns, the defend
ant by B. F. Brooks, Esq, and Hon. Asa
French appeared for the Abingdon National
Bank.
The question to be considered was to the
amount of bail, and Hon. Jeremiah Gatchell,
| National Bank Examiner, was called to tes-
| tify on that point. He spoke of the exami-
nation which he was making into the c0ndi-
| tion of the bank, and said that the complaint
| against Mr.. Lane had been brought at this
| time because his departure from Boston was
regarded as direct indication OF his 1nten-
tion to leave the country. The examination
of the bank was not completed, but the Ex-
aminer was of the opinion that the funds
| fraudulently obtained would amount to $135,-
OO0 OF this sum $4,000 is represented by
| notes in different names to cover drafts on
the redemption agent OF the DanK, anu ABOUT
$4,000 represents Overdrafts.
The District Attorney asked that bail be
| fixed at $4,000.
MI. Brooks said that Mr.. Lane went to
Portland at his request and that of Judge
French, to investigate the leather board en-
terprise of George E. Davis, in which the
bank was interested. 1t was thought that
the bank would recover a large percentage OF
its loan of $4,000 to Davis by putting Lane
in charge of the assets. An investigation OF
the affairs of the leather board factory had
been in progress about four weeks, and he
did not believe that the bank would lose any
thing on the Saccarappa property.
Judge French said that he was not pre-
pared to express an opinion whether or not
the assets of the Saccarappa property would
equal the liabilities.
The District Attorney said that the govern
ment claimed that Mr.. Lane got large sums
of money on notes, and that the other names
on the notes were straw names.
Mr.. Lane, said that he went to his room at
the hotel there and was aroused at a. M by
the clerk, who informed him that Mr.. Lane
had gone to Boston under arrest.
The District Attorney asked for a post
quired Of Judge French whether or not the
bank wanted to keep Mr.. Lane under ar
rest. To this Judge French replied, mot
exactly"
The District Attorney said that he wanted
the case to take usual course.
Mr. Lane-You will find me at home when
ever | am wanted.
District Attorney-The law requires other
security than that
Lie OUulllloolUuCl QcCluCQ w Ia bhO Ddll
at $4,000, and up to noon Mr.. Lane had not
secured bondsmen.
Mr.. Lane could not get bail and was COM
mitted to Jail.
ARLINGTON, July 1.-The news regarding
the alleged peculations of Richmond j. Lane
created intense excitement and soon large
number of depositors were on hand. Thus
far all the checks presented at the national
bank have been honored, but it is stated that
the cashier has said he will be obliged to
stop payment soon.
The savings bank is recorded as perfectly
safe and but few depositors have withdrawn
their funds. The Abingdon Savings Bank
had about $25, 600 on deposit with the Ma
tional Bank, but it is said to be regarded as
perfectly safe. In Rockland there has been
no run on the saving bank of which Lane
is president, but a larger amount of business
has been transacted than usual. Lewis
Reed, co-executor of the Washington Reed
estate left Rockland for Boston this morn
ing to look after the interests Of the estate.
1t is expected a rigid examination OF the al
fairs of the estate will follow.
A meeting of the directors of the Abing-
ton National bank was held this evening.
There were present Judge Asa French, at
torney for the bank, Examiner Getchell, and
Directors Martin S. Stetson of Whitman,
Jos. Vaughan, Henry Noyes and q. N.
Whitmarsh of Abinton. The object of the
meeting was to determine the future action
os the bank and its course ats the present
crisis in affairs. A searching lnyestlgatlon
has been commenced and the directors state
that the condition if far better than 1t was
at first anticipated.
H. A. Noyes, a director of the institution,
says "a meeting was held for the purpose OF
ascertaining the future action of the bank,
and it is at the present time undetermined
when we shall open. The affair was being
settled in a quiet manner, and would in the
course of few days be adjusted in salts
factory manner. The Saccarappa property
11fa do
preciate if allowed to lie idle any length OF
time The bank was, in measure, interest
ed in these works as well as Lane.
NJ. S. Stetson of Whitman, said: "The
publication of the affair of course had ten
dency to impair the credit of the bank, but
as regards its sovency it is perfectly safe. In
regard to the Saccarappa property there
seems to be misunderstanding for it was by
no means failure
1t could hardly be called a brilliant sue
cess, but we were in hopes that by Friday
it would be in such condition that outside
capital would be interested in it.
AS nearly as can be traced, Mr.. Lanes llie-
gal transactions began about year and
half ago. About that time George G. Davis,
who was at the head of a leather board man.
ufacturing enterprise at Saccarappa, Maine,
failed, while owing the Arlington,
bank about $4,000. In order TO save as
much as possible the bank made Mr.. Lane
trustee of the concern. Instead of saving
has been dragged in deeper and deeper until
its losses by its connection with the leather
board enterprise foot up many thousands of
dollars. The business has since been con-
Quoted under the designation, "R. j. Lane,
Trustee" Mr.. Lane has taken a great in
terest in the enterprise, and very recently he
has been endeavoring to interest fresh capi-
tai in the business. With him, however, it
has been a case of throwing good money af-
ter bad. He claimed he was on his way to
Saccarappa on business when arrested
RoCKLAND, Mass, July1 Richmond j.
Lane, who was arrested yesterday for embez-
Element from the Abingdon National Bank
and held today in $4,000 bonds for his APP
pearance July 12 has obtained bail and ar
rived home this afternoon. He states that
although he has done wrong, he did only
what was known and sanctioned by the di-
rectors of the bank and can see no reason
why he should be arrested. There has been
no embezzlement and Mr.. Lane was in Port
land with the full knowledge of the direc-
tors. He lad no idea of leaving the state.
Lewis Reed one of the trustees of the Reed
estates, the funds of which are said to have
been misappropriated, states that large
amount has been used illegally by Lane, put
as collateral, in the business which he and
Geo. G. Davis:were engaged at Saccarappa.
A meeting of the heirs will be held tomorrow
with their attorneys, when proper means
will be taken to recover the funds.