The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1895-04-13
1nTLESTOwN BANK LOSES HEAVILY.
BY Exiting" Transactions the Surplus is
Wiped Out and Capital Stock is
Impaired.
From lhe GeItr.hnrg pn.. \ sentincI


By the transactions of Ferdinand Rahier q
former resident of LittleStOwn and now living
IN Baltimore. the l.ittleStown Savings InStitu-
non. at which James Lefevre Is cashier aud
Nalter.Letevre. his son. Is assistant. has Suf-
tered a'considerable loss. The condition of
lhr bank was discovered by Examiner Shatier.
VINO found thar the Institution was CARRYING
along large amount of discounted notes.
protested checks and drafts aS cash assets
which We're utterly worthless. 4 these bore.
the name of Rahter, who is worth nothing in
financial way. His plan of operation. which
i known a "kirng. was a~ follows
lie would make a loan of say 81. 600 at some
bank, give check on the litileStowu hank.
and then while the check was Ia course of
coming 10 the l.irtleStnwn hank for collection
he would precede il. pay few hundred dol
lars IN cash and check for the balance on
some other bank. At the same time he would
make another loan, pay the discount aud with
The money hurry on aud meet the checks at
the other bank. pay part and give check, on
lhtticStoWn or some other hank. He would
then hurry on Ia that bank meet his ohliga
tlonS with part cash aud balance in cheeks
and So on from bank tn bank. He made Lit
I.e>towu hlS seat of operation. After going
the rounds his checks. drafts. ric would
turn zap IN LitricStowu. and with promises
Young l.elcvre would hold them. with
Rahter'~ hacking a. cash assets. Then
after fixing It up al LitIlesiowu, Rahtrr would
b" ready tu start new again. and finally land
in Little~towu in short time with another
hig batch of worthless paper aud new promi-
SeS- All to be- added 10 the constantly in
crea>ing supply of cash assets These
notes we're never passed upon hy the direc-
tor. who had given order, not Ia accep, any
Of Rahtcr, paper. The discover, was .
great surprise and shock 10 them.
The capital stock ot the bank j. SiOOuo
and it had accumulated a surplus of S2j.OON.
The examiner found the latter SUN had been
wiped ont and the capital stock impaired To
the amount nf IJ.S2l94. The stock WAS
made good hv SiN 81 the Directors. MeSsrs.
George Ston">itcr. president. George
Hump. Ephraim Myers. Dr. Bishop. Al.
keasy and George Basehnar. The seventh
director, Frank Grouse. Is SO situated hnanci
ally thar be- could not pay his portion Of the
loss. The amount paid hy each director was
S2.G3G-gH. The beard nt directors expect to
realize oH about tw,,-thiri> oi the value at she
paper.
RnhteT Is the same man who wa> a. the head
ct the 'Liugara BiterS Company which stuck
Harrisburg hank. If which Simon Cameron
Was at the head. for SsO.Oo. About ls'-j
Rahtrr failed ior over >JAst.tsa. He Is a man
1T about ~ YEAR 1T aEc, aud j. Nhiskcy
drummer. travelling iog a trim in Baltimore.
Check, aud drafts eerc found hy the Rank
Examiner 9" bs dated a. 'nr ahead rs April
18th, ryads o. mrv, check and draft, coming
iu. Ne has caught large number Ui Lat
'iy~inuu people teF garsou- sums, and about
u years ago ca8gh, the First National Bank
~ Hanover for SlStssa
Walter iyeievve' assets amount To- some
b. promptly handed ihls amount So the inSti
tHison "a help pa, she l0,s, Beside thjs. b..
SAY. hc ha, friends who vii advance him hy
SATURDAY Si0.N0
The stability ~ ths hank ha. uat tr,,,a BE
.truyed Coahdyace si the people of ihr
community j. sill placed III. thu -NrrlJew
ia.ari 81 Director. and therr ha, hyen ma rin
O. further o'mphoaie wattsF- and rmlarra,s
7ts management