Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-12-24
Remarkable System Of Books.

Inc system OF bookkeeping introduced by
Rinehart is responsible, 1t is said. He dis
charged many of the men employees and en-
gagged women, choosing those whose family
connections would strengthen the bank. In
his bookkeeping there were seven separate
sets of books, each set in charge of a wom-
an. Every month Rinehart would take the
seven sets to his private office and balance
them. Then. 1t is said, he would lock up
the books. and not an employe or officer ex-
cept himself had any real knowledge of the
condition Of the bank.
The women clerks knew nothing OF bank
ing laws or practices and had implicit con-
Hdence In Rinehart He would instruct
account of some prominent citizen Of
Waynesburg an amount usually about $40
OOO A day or two later he would go to the
same clerk. according to report. and, hand
ing her bank note, tell her to fill it out
for 10000 and sign the prominent citizen 8
name, explaining that the bank held a
similar note which was about to mature
and which the signer wished renewed.
Using his position as vice president of the
Farmers and Drovers' and director in the
strong Colonial Trust Company of Pitts
purg, Rlnehart would then have the note
redlscounted, it is said, through some bank
sio,coO, and would instruct the woman
clerk to make entries showing the $4,000
had been Withdrawn by the Waynesburg
man and the account closed.
Endless Chain of Notes.
Rinehart. 1t is charged, would pocket the
money and when the note matured would
renew it or draw another, working on the
endless-chain principle
During the past year it is charged that
close to 100000 was realized by Rinehart
and spent in getting control of coal lands
IN Green and Washington counties, in polit-
1cat campaigns and in donations to the
Waynesboro churches several of which were
built almost entirely with funds he contrib
uted.
United States Examiner John B. Cum
nlngham discovered early last summer that
all was not right, caused Rinehart to resign
as cashier and named in his place Harry
George, nephew of the examiner
Rlnehart moved into the Office of State
Senator D. s. Walton adjoining the hank
Walton is president Of the bank, and a
secret passage connects his Office with the
banking rooms. Rinehart had himself Sc
cretly elected vice president, then sent word
to his friends that he would transact their
financial business at the Office of Walton
Many persons took their funds to him.
After the bank closed for the day it is
charged, Rinehart would go by the secret
passage into the bank, get possession of
the books and papers and do with them as
he pieased, his business ability and ba mixing
knowledge making it possible for him to
carry out his plans. The seven women re-
manned loyal to him and never hesitated to
do his bidding.
From Obscurity to Prominence.
An old resident of Waynesboro TODAY
told of the rise of Rinehart from country
school teacher to the leading citizen worth
2UO,OoO. Rinehart gave up his school
twelve years ago and became assistant
cashier in the bank. The cashier went
wrong for 100000, as had his predecessor.
Rihehart became cashier and a prominent
man. He was pointed out as the example
for young men. He took interest in many
kinds of business ventures and today his
name appears on half the signs over the
stores along the main street.
Rfnehart sought power. He entered poll
tics, and on election days the directors
room of the bank would become a buffet,
where doubtful voters were shown the light.
while the funds of the bank it is alleged.
would pour in golden streams into Green
county for election purposes.
Rinehart's wife was the leader of Waynes-
burg society, and both contributed freely to
churches and charities. Today both Rine-
hart and his wife attended the Methodist
church and both taught In the Sunday
school. The townspeople even now do not
seem to believe him guilty.
Examiner Cunningham would make no
public statement today except to say that
everything SO far charged against the man.
agement of the bank is trueAand half has
not been told.
The state deposit of $751; 600 in the bank
will be paid back tomorrow. The fund was
made up by the directors who were on
bond fnSurinP the state against loss