The Washington herald., 1908-05-08
BANK CASHIER SHORT
PittSburg Mans PeculatiOnS
May Reach a Million.
LOSS OF $46s,OOO IS ADMITTED
Political and Business Circles Are
Stirred-ReIeased on $4,000 Bail.
Accused a FavOrite of PennsyI-
vania RepubIicans-Institu a
City and state DepOsitary.

Pittsburg, May William Montgomery,
cashier of the Allegheny National Bank,
the institution of the Allegheny County
Republican politicians. was arrested to-
day charged with embezzlement.
His shortage is admitted TO be 1853, 900
but there are rumors that it will be far in
excess of that amount, probably more
than Sl,O00O00
Soon after his arrest, which caused a
sensation in political and business circles,
Montgomery was released on $4,000
bail, George Z. Tener, the million
aire real estate man and brother of John
X. Tener, Republican nominee for Con
gTess in the Twenty-fOurth district. be-
coming his bondsman. There is much sur
prise expressed at the small amount of
bail demanded, when the defalcation is
admitted TO be so large.
The first intimation that Montgomery
was short in his accounts came from
Henry Reiber, the former paying teller
Of the Farmers Deposit National Bank,
who, with James Young former auditor.
robbed that institution Of more than ST.
lO5,OO0
Reiber and Young are in jail, and last
week Reiber is alleged TO have said that
part, of the immense sum Of money he
took from the Farmers National had
gone as loans 10 Montgomery 10 help
make up his shortage.
Inquiry Reveals Shortage.
A hurried examination of Montgomery 5
books was made, and sufficient evidence
was found against him TO cause William
Stewart. the president, TO send for Ma
tional Bank Examiner William I. Folds
fields arrived here from Philadelphia this
afternoon. He soon discovered that
Montgomery's defalcations reached S469, ,-
000 at least. Without waiting to investi-
gate further, Folds appeared before Com
missioner Lindsay and swore out a war
rant for Montgomery arrest. a United
States marshal who was sent TO the
bank could not find Montgomery. hut at
> o'clock he was placed under arrest. He
obtained bail two hours later
Because Of the political importance Of
the bank. it IS believed that the defalca-
ton will be one of the most serious Of the
many that have recently happened in
PittsbUrg
Once Quay's Headquarters.
For years the Allegheny National Bank
has been the headquarters Of Republican
politicians The late Senator Quay al
ways made The bank his headquarters.
and during all Of the Quay campaigns
Billy" Montgomery, as he was known TO
every one here. handled the Quay money.
Most of the Allegheny County Repub-
icans of the present day are prominent
in the bank, Secretary Of the Common
wealth Robert McAfee being one OF the
directors.
Montgomery was always thought TO be
wealthy, his fortune being estimated fire.
quently at s500,000 When arrested this
afternoon, the only statement he would
make was that ne has not a penny Of
the stolen money left. nor has he any Of
his own. He declares that he has loaned
large sums to spectators, and when he
called on them TO return the loans they
were unable 10 do so.
The standing cf the bank will not be
affected by the defalcation. Some of the
wealthiest men in Pittsburg are connect
ed with the institution. Both the city
and the State carried accounts at the
bank, the State account being in the
neighborhood of $4,000. Because it is a
checking account. the exact amount is
unknown.