The Montgomery advertiser., 1905-10-20
BIG SHORTAGE CHARGED
w. B. SMITH ACCUSED OF MAKING
 WAY WITH sI8s,O13.e2.
Embexxlement, Misappropriatfon, and Making False Entries the AIle- gatfOns Made Against ex-
 Bank President.

Louisville, Ky. Oct. 19.-w B. Smith
 formerly president of the Western Ma. l tfonal Bank of this city, was indicted
 today by the federal grand jury on ter
 counts charging him with embezzle.
 ment, making false entries and the mis
 appropriation of the funds of the bank The total dedication charged in the
 indictment Is $19s,013.92. divided as fol 1 lows:
 Misappropriation ..... .. .. 12,047.27 | Embezzlement .. .. .. 50,000 0G Mir. Smith Is said to be in Porto Rico
 and 1t is alleged a cablegram has been | received from him saying he will return
 to Louisville October 29.
 1 The first count in the indictment
 charges that on May 1, 1905, Smith
 of the Citizens Bank of CarrsviiIe, ky
 to be entered in the general blotter of
 the Western National Bank. On the
 same day Smith is charged with mak- l ing two false entries in favor of
 George c. Wallis of Paducah. One of | these entries Is for $39,966 and the other is for $10.00O.
 The fourth charge recites that on l May 29 Smith made a false entry in favor of himself.
 The fifth count charges that on June 12th Smith debited the account of the White Oak Canal Coal Company $35, ,000, this sum purporting to have been paid by the direction of the Queen City Saw ing Bank and Trust Company of Gin cinnati.
 The sixth count charges Smith with having made false entry for $35.O00 in favor of the Continental National National Bank of Chicago The date of this entry is June IS.
 The seventh. eighth and ninth counts charge misappropriation of the funds of the Western National Bank by small notes made and endorsed by F. P. Toof and l.. c. Garrett. 1t being alleged that Toof was insolent at the time.
 The tenth and last count of the in- dictment charges that on July 8 while president of the Western National Bank Smith embedded $5O.O00 of the banks money which was in his custody
 The principal witness. who testified before the grand jury in the investiga- tion are: R. D. Garrett, National Bank examiner of the United States; George Wallace, Paducah; F. P. Toof, Paducah; A. Julian. president of the Queen City Savings Bank and Trust Company of Cincinnati; T. L. Jefferson and George Stege. of Louisville. --
 Smith went to New: York from Louisville last week and was in. the Fifth Avenue Hotel. Last Saturday he wired President Jefferson his resigna- tion as a director of the Western Ma tionaL MT. Smith bought controll- ing interest in Western National two years ago and became it's president but owing to dissatisfaction among the directors over his administration he was forced to resign July 10. last. He was succeeded by T. L. Jefferson. the present president of the bank.
 Mir. Jefferson and the other members of the directorate exerted all their en- 21 the Comptroller of the Currency ordered it closed. The bank has since re-opened under favorable conditions
 Smith is 33 years old. He came here from Paducah, where he was interested in several enterprises. At the age of q Smith was cashier of the Lewisburg Banking Co. at Lewisburg. Ky. and two years later held similar position In Slaughterville, Ky
 In 1902 Smith helped organize the Globe National Bank and Trust Com pany in Paducah and became it's presi- dent He remained in this position for two years. going to Louisville a year later.
 prominent part in church affairs and Sunday school He owned an interest in The Ledger He also had stock In The Jackson Whig. a newspaper pub | lished at Jackson. Tenn.
 He was formerly president of the | Peoples Home Purchasing Company | of Paducah, which Is now in the hands | cf a receiver. a fraud order having | been issued against it by the govern | ment several months ago