Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1906-12-27

Pittsburg. Dec. 25.-Seven women,
members of prominent families OF
Waynesburg, Pa, await in fear the
coming of a special agent of the de-
partment of justice, who tomorrow
will begin an investigation into the
criminal features of the failure OF the
Farmers and Drovers' National bank
of Waynesburg, where they have been
employed as clerks.
One of these women is a close rc,-
alive of an official of the crippled
bank and all are said to have been
the tools of ]. Is. F. Rinehart, eX-cash-
Ter and vice president of the bank,
who in his mad desire for social po-
litcal and financial supremacy in
Greene county, where he started as a
country school teacher at $40 a
month, sacrificed friends and rela-
tiyes alike to gain his ends only to
be hurled back as lie reached the PIN.
udCle Oh MS lie hopes.
1t is stated that every one OF these
women will be arrested for forgery
md making false entries on charges
by the federal authorities.
The marvellous system of boollkeep-
ing inaugurated by Rinehart when he
had gained absolute control of the
bank is said to be responsible for the
implication of the women. One of
his first moves was to discharge
many of the men employed and en-
gage the women, selectir them from
the best families and dEErpg only
persons whose family LI\hections
would strengthen the ba.
Seven Sets of 5oevs.
After these women had been taken
into the bank Rinehart arranged u
system on bookkeeping by which there
We're seven separate and distinct sets
of books, each set in charge of one
of the women. Every month Rine-
hart would take these to his private
once and there balance up the set
and to which no one else had access.
The result was that not a single cUl-
p.oye or officer, except Rinehart, had
any real knowledge of the condition
of the bank. After getting affairs
in the desired shape Rinehart began
what is alleged to be tn most sys-
tematic scheme to loot a bank that
was ever evolved.
The women clerks, knowing nothing
of banking laws or practices, had OK
plicit confidence in IAnehart He
would go to one of them and instruct
her to credit to the account of some
prominent citizens of Waynesburg an
ammount usually near 100000. This
would be done
A day or two later Rinehart would
go to the same clerk end, handing
her blank note, tell her to fill it
out fer $4,000 and sign the name of
the person to whom lie lad credited
the false account, explaining that the
bank he a similar note which was
about to mature and that the person
whose name was to be signeu desired
a renewal. The note would be made
out and forged by the clerk in the be-
lief that there was nothing wrong in
anything that Rinehart desired.
Naturs of His Plot.
Usins his position as vice president
and also the influence gained by'hi5
position as director in the Colonial
Trust Co, one Of the soundest bank
ing institutions of Pittsburg Rinehart
would then have the note rediscounrcd
through some institution in another
city, realizing between $4,000 and $lO,-
0O0. The next day he would in
struct the woman clerk to make en-
try in the books showing that the
$4,000 had been withdrawn by the
Waynesburg party and the account
closed.
Rinehart. it is charged, would peck
ct the money realized and the trans
action would he closed until the note
would mature, when it would be re-