The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-01-07
'RINEHART IS
ABSOLUTELY
UNRELIABLE
so SAYS COMPTROLLER OF THE
CURRENCY WHO HAS ISSUED
A STATEMENT.

WASHINGTON, d. C., Jan. Aft
er looking over all the reports he has
received from the examiners in charge
of the Farmers and Drovers National
Bank OF Waynesburg Comptroller OF
the Currency Ridgely issued a state
ment, showing that the condition OF
the bank is worse than shown by first
reports, because the first reports had
1t that the amount of the rediscount-
ed notes was between 100000 and
100000. Instead of that the total
is in excess Of $1,121, 900, according to
the Comptroller.
Gossip resulting from this state
ment has 1t that the bank ought to
pay to Its creditors not to exceed 40
per cent. OF its liabilities. The uncer-
tainty on that point, however. is very
great because there is no telling how
many of the notes are genuine and
what percentage of the genuine are
signed by financially irresponsible peo-
pie.
A great deal Of the uncertainty.
says the Comptroller, comes from
Cashier ]. B. F. Rinehart's utter un.
reliability. Facts with respect to Rine-
hart are being disclosed which make
the blase men of the Comptroller's Of
flee open their eyes. There are facts
with regard to the Waynesburg cas-
that will come out later that make
the case n to be talked about even
among men whose daily business is to
deal with fraudulent transactions.
Comptroller Riigely's statement fol-
lows:
The amount of Indebtedness of the
Farmers and Drovers Bank on account
of r~ediscounted notes and other
frauds perpetrated by Cashier Rine-
hart is still unknown. Notes have
been daily presented to the receiver
since his appointment, bearing the en-.
dorsement of the Farmers and Drov-
ers National Bank, which we're redis.
counted in good faith by different
banks is liable upon It's endorsement.
A resolution purporting to have
been regularly passed by the directors
giving the president, vice president
and cashier each authority to borrow
or rediscount, has been upon the rec.
ords for more than a year. The
amount of these r%ediscounts now
known to exist is s1,121.463. 1t is
probable that more such claims will
be presented. held by banks which
may not are to present their claims
sooner than necessary.
1t is impossible to discover the ex-
istence Of these claims except by the
voluntary statements Of Rinehart and
holders of the notes. AS Rinehart Is
utterly unreliable. for a complete
statement the receiver can only await
the pleasure of the banks holding the
claims.
Many of these notes are either forg.
ed or were paid by the makers and
carelcssly left with Rinehart. A large
number of the notes which are genu-
inc are made by parties financially ir.
responsible. The bank also holds
much of the paper of the same par
ties who are liable as makers of the
rediscounted notes.
The liabilities of the bank, includ-
ing the liability upon rediscounts. will
exceed $40 200. The developments
demonstrate in declaring the bank In,
solvent on December -, and placing
II in the hands OF a receiver. The ap.
pointment was made as soon rs 1t be-
came apparent from information re-
ceived by the national bank examiner,
from sources external TO the bank.
that ~redlscounts existed to such an
amount as to render the bank proba-
bly, insolvent.