The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1908-06-11
DEFAUETING BANKER PLUNGED
IN MINES.

Pittsburg (Specia William
Montgomery, former cashier of the
Allegheny National Bank, has finally
concluded to open up and tell OF the
banks troubles, and to assist Re-
ceiver Robert Lyons In winding up
the affairs of the bank. He has been
approached repeatedly by friends that
suffer by the banks crash, and i'm.
portuned to disclose where the funds
went but heretofore he has main,
tanned a stolid indifference to the
supplications of his closest friends,
Among these friends was Secretary
of the Commonwealth Robert Nc.
Afee, who lost his fortune by Mont.
gomerys crime. IL was not until
receiver Lyons got after the cashier
thursday, however, that any inform
ation that would assist the receiver
was obtained.
Owns 100000 Shares.
The disclosures made to Lyons
make Montgomery appear to have
lost his reason entirely. He con-
tessed to owning upwards of 4,000,-
200 shares of mining stocks, the pres
ent value of which nobody can esti-
mate.
The mines in which Montgomery
put the bank,s money are scattered
all along the Pacific Coast from Cen
tral America to Alaska. Montgomery
seems to have had a mania for buy
ing wildcat mining stocks at what
ever price he could get them. He
paid for some of the stocks as low
as one cent a share, and others ran
into hundreds of dollars.
Receiver Lyons, in a desperate eff
fort to get some idea OF Montgom-
ery's methods that would help him,
or give him lead that would enable
him to extricate the banks affairs
from the apparently hopeless tangle.
put all the former clerks on the car
pet, but they were ignorant of any
clew that would be of value to the
receiver.
Thursday Lyons went to the jail
and saw Montgomery, and the tale
Montgomery told startled even the
receiver.
Represent Immense Losses.
While some of these mining Sc
curities may be of use in clearing up
the affairs OF the bank, 1t is said that
many of them represent immense
losses over the original prices. Mont
gomery, 1t now appears, carried on
this speculation over a number of
years, and 1t has been ascertained
that his defalcations date back two
years, when the value of mining
stocks began to show a marked
shrinkage
To make good his losses, Mont
gomery found it necessary to seek
assistance and as the bank of which
he was managing head offered the
best opportunity, the reason for his
downfall is apparent.
Settle Many Notes.
AS far as the work of settling up
the banks affairs have progressed,
large amount of collateral In the
form of notes have been found. The
people whose signatures were attach
ed to them have been notified to set
tie, and this has been done to such
an extent that the bank has now on
hand 100000 in cash.
Others are complying with the re-
ceiver's request almost daily. No
statement has been made concern
ing these borrowers, since the Gov
ernment seldom goes into details in
matters of this kind. Whether 1t
will be necessary to sue on some of
the collateral in the bank has not
been made known.
With the money on hand and what
is believed will be collected almost
the entire amount due the dpositors
can be paid without resorting to as
sessment of the stockholders. al
though such an assessment is inevi-
table.
Stockholders VIII Lose.
The depositors will receive their
money, but the stockholders will lose
every cent of their stock.
The manner in which Montgomery
talked of his transactions was a sur
prise to all who have followed his
course since he was put in jail. Now
that he has begun to talk 1t is ex-
pected that more will be forthcoming
with the result that more of the
funds heretofore undiscovered will be
brought to light.
BIG CARP TOWS ROWBOAT.