Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-01-05
TRUSTED TOO MUCH,
George I. Mcconnell Is Now
in Jail. a Self-COnfessed
EmbeZzler of Funds.
A SECOND D0ERFLINGER.
The Model Building and Loan AsSo-
citation the Chief Sufferer. Il
OVER $4,000 HAS DISAPPEARED,
As Near as Can Ee Ascertained Without an
Expert Examination.
A SECOND D0ERFLINGER.
OVER $4,000 HAS DISAPPEARED,
THE EXCITEMENT AMONG THE VICTIMS

news oi the arrest OF george L. 1.McIOnnell.d "a
prominent real estate dealer, and treasurer
OF the Model Building and Loan Associa-
ton on two charges of embezzlement, pre-
ferred bv Dr. Il. NJ Sands, a life
long friend of the accused. AT the same
time it became known that Mcconnell
had not only embezzled the money of his
friends. but also that of the association, Just
how much is not known and will not be un-
til the books have been audited by an e1-
pert accountant This is TO be done at once.
The accused confesseS 10 having embezzlcd
$1,000 of the associations money, and this,
with notes and other papers on which he
has raised money, makes his shortage foot
up over $4,000
Coming on the heels of Doerflinger's de-
falcation of the funds of the Modern Build
ing and Loan Association the intelligence
probably caused more excitement than it
would otherwise have .done, although there
is no probability that McConnell's opera
tions will prove so extensive or so far
reaching as Doerhinger's. The officers of
the Model say their loss, all told, will not
exceed a couple of thousand dollars, or
more than six months interest on the COM
pany's stock.
Rents Not Turned Over on Time.
The first suit was entered against McCon-
nell by DR.. Sands or Saturday night. He
had been in charge of several pieces of prop
ertv of the doctors, and for six or seven
months had been irregular in turning over
the rents collected. Afew weeks ago the doc
tor learned that for sale notice had been
posted on house and lot of his on
Liberty avenue, Bloomfield. As he
had no desire to sell the property,
he called on the agent whose name appeared
on the notice and learned that Mcconnell
had placed the sale in his hands, for what
purpose could only be surmised.
Mcconnell was taken to task and, amid
profuse apologies, acknowledge that he
had been misusing money placed in bis care,
had gotten into serious diffic1ltirs and
asked the doctor to help him out. This the
doctor agreed to do, and loaned Mcconnell
$500, taking his note fo- the amount.
When it fell due Mcconnell paid $50 on it
and renewed the note, which again falls due
on the 18th inst.
In the meantime DR.. San5s investigated
NcConnell's affairs and finding that he was
hopelessly involved, decided to save him.
self bv entering suit The first suit was
entered on Saturday night on a sum of So
rent collected by Mcconnell some time ago
and not paid over. Captain Dick Brophy
was given the Warrant Sunday night and
arrested Mcconnell at his home on Forty
third street
Taken to Jail in Default of Bail.
~, ~ soi1
morning was taken out and given hearing
before Alderman Kerr, another suit for en-
bezzling SD in the same wav being entered
against him. No evidence was necessary.
Mcconnell confessed his guilt and was COM
mitted in default of $4,000 bail for court
DR.. Sands secured judgment against the
prisoners effects and will not lose much
But the building ard loan associations
officers had not been asleep. Through some
irreguiaritv in McConnell's business thev
discovered early last week that his accounts
were not straight. He was called before
the Board of Directors on SATURDAY. night
and asked to explain. He confessed at
'Once. He said he had beeh specializing in
property and became embarrassed so
that he had to use the associa-
tion's money, but thought his stock
in the association, with his property,
consisting of two houses ard lots in the
Sixteenth ward, and $50 he had in build
ing and loan association at Elizabeth would
straighten him up If not, the Guaranty
Company of North America, a Canadian in
stitution, that is bondsman for his position,
would be good for 5000, the amount OF
lsbaR1~The officers say Mcconnell then
turned over>to them ali his property to
make good his 0lefalcation, and they saw it
is available to them whenever they need it.
They agreed moth TO prosecute him on this
representation of his affairs.
A Meeting Of the Victims.
The association met last night in the
Metropolitan Bank building, corner Fortv-
third and Butler streets, to receive the BIZ
monthly instalIments of the shareholders
The latter are generally working men and
women, and when they went to the hall last
night were in "a highly excited state of
mind. They thronged up the starways and
in the Railways discussing the situation and
wondering how much they would lose.
Several of the directors were IN McCon-
nell's Office on the second floor, the usual
meeting place, and were deluged with CUES
tions from the anxious shareholders. To
all the directors replied that the association
would lose but little, and there was no
danger Of losing any money they
had paid in. The character Of the
directors is such that this statement re-
assured many who had come to withdraw,
though about dozen served notice of with
drawal A few more decided not to paw in
any more money until they learned more
about the extent of the defaIcation. Under
the rules, those who withdraw cannot collect
all their money without four weeks notice.
After the shareholders had paid their
money in, James Scott, president of the
Board of Directors, announced to those
present that any who desired to withdraw
could get part of their money as soon as the
board could have meeting and count it,
but they only allowed them to pay out one
half of what had been received
at this meeting Judging from
the piles of gold, silver and
greenbacks stacked up on the table this
would be a considerable sum. Mr. Scott
stated further that the defaulting treasurer
had turned over ali his property to the
association, and that with his bond would
leave but small loss, if any, as far as the
officers could tell at present. OF course, he
said they could not tell how far the loss
would run, but they had good reason 10
believe it would not be heavy.
Eight Persons Draw Out Their Money.
The room was then cleared and the di-
rectors went into executive session. Eight
persons, the majority being women, waited
to draw their money At midnight the ses-
sion was still in progress.
George Mcconnell was born and raised
In Lawrenceville, and his family was one of
A. ,,os3 racnsrta1 i'm fhat eao,iop Sipoa