The Penn's Grove record., 1908-05-22
BANK FAILURE CRIPPLEsC CITY
Pittsburg May Lose 100000
Deposit in Allegheny National.
Shortage of Cashier Montgomery Es.
timated at Two Millions or More
State Funds Tied Up.

Pittsburg.-With more than a mil.
lion and a half of dollars of its funds
tied up indefinitely as a result of the
suspension of the Allegheny National
Bank, the city of Pittsburg finds it.
self confronted with the possibility of
being forced to issue bonds to raise
money to meet current expenses.
The suspension of the bank leaves
the city with practically no immedi-
ately available funds.
Shortly after the bank closed City
Treasurer John P. Steel presented a
check for $1,546, 953.34, the amount
of the city's deposit, but it was not
honored.
THE bank is in the hands of a re-
c%eiver," explained the paying teller.
Then there Is nothing doing" OBJ
served Treasurer Steel.
The paying teller shook his head.
The proceeding was merely formal.
Will the city lose any money!"
was asked of National Bank Examiner
Folds.
Il don't know" was the reply.
The Investigations to date into the
de~falcations of William Montgomery,
cashier of the Allegheny National
Bank, show a loss to the bank of 81
10000, and place the dishonest
officer in the front rank of bank
wreckers. 1t is thought that this is
not the full extent of the robbery.
Montgomery waived a preliminary
hearing and was held for Grand jury
Investigation. 20
The city of Pittsburg entered suits
to recover $1,000,0 900 from men who
were on bonds safeguarding the city
against loss of its deposits, which
amounted to $500, 900, every dollar
of which is supposed to have gone to
Montgomery.
There is doubt whether one of the
bonds for 100000 can be collected.
In that case the city will lose $1,000
900. In any event the city is certain
to lose 100000, for it has been dis
covered that no attempt was ever
made to have the bank give bond for
more than $1,000, 900 of the $780,.
600 ON deposit.
Among the bondsmen are Cashier
William Montgomery, who is named
In one of the suits entered by the City
oOiiSiIOl. 0OCl SIdIy Vi OtdtS hOU6Pt
McAfee is another of the bondsmen.
He was also a director in the bank.
1t is thought most of the restitution
will have to be made by Joshua
Rhodes, the wealthy steel man, who
was on the first bond for 100000.
State funds to the amount of $685.
ATT were carried in the bank, and
these officials will take immediate
steps to ecove the money. The
State fund, however, is secured by
bonded companies to the extent of
$4,500,000.
1t TRANSFERRED that a poker game
was a regular part of the days BUSH
ness in the bank. When the closing
hour arrived the game began in the
directors room, it is said. Montgom-
cry acted as banker in the game.
Bank funds are alleged to have been
used to redeem chips.
Montgomery's first Sunday in Jail
was not relished. He baked at the
brown bread and coffee offered him
for breakfast. He ate the dinner
with relish, however, and then at
tended chapel service When an
eight-year-old boy sang tears came to
Montgomery's eyes. He held up his
hand when the preacher asked that
all who wished to be prayed for sig
nifty their desire in that way. Mont
gomery was accompanied to the SER
vice by other officers of the bank.