New-York tribune., 1908-01-16
HAMILTON BANK ARREST
TNDTCTS MONTGOMERY.
SPECIAL Grand Jury Finds Cause for
Charge of OUeracithdrasrdl.

made against him are that, while vice-presi-
cent he made two overdrafts on the funds OF
the bank
The indictment Of Mr.. Montgomery caused
some surprise TO those who have followed the
sfsirs OF the Hamilton Bank since 1t closed. on
october "a and went into the hands Of a re-
oeiver, for while iti was known that the spe
cisl grand jury was engaged in investigating
certain phases OF the institutions affairs. it
generally believed that other persons than
the ex-presdent Of the institution would be
called 10 the bar In fact, Mr.. Montgomery him
self testified on Tuesday before the body that
indicted him.
The former bank official was al the District
Attorneys Office with his counsel. Howard s
Cans, when the indictments were presented
against him. and after appeared before
Justice Bowling, in the Criminal Branch Of the
Supreme Court, where he pleaded not guilty
Justice Bowling held him in $500 bail on each
OF the two counts William H BirkInire,
architect. at No. 800 Broadway, a director Of
the Hamilton Bank. qualified as bondsrnan.
The indictment against Mr.. Montgomery
charges him with a nisdemeanor consisting OF
alleged overdrafts. one OF $4,000. made on
SepteIp Der o. 1907, and another, Of Sf29 made
OF October %
Frederick d Ives. vice-president of the Ham
flton Bank. said yesterday in discussing the in
dictment against MI Montgomery: The over
drafts made by Nj Montgomery were satisfied
nv him. and he owes the Hamilton Bank moth
ing The overdrafts considered merely tech-
rlfcaI violations Of the banking laws
In pIeading before the court Mr.. Montgomery
obtained leave 10 withdraw the plea, if he de-
sired within week Several bank clerks ap-
peared before the special grand jury yesterday.
The investigation into the affairs Of the Ham
tlton Bank was brought about, partly az least,
ty The report OF Frank White, the receiver Of
the institution. 10 Attorney General Jackson. in
which he called attention TO certain alleged
overwithdrawa walls. The report involved William
r Montgomery and also E. r Thomas, O T.
Thomas and T. Augustus Heinze. the three lat
+er having been forced sever their official
relations with The bank z. Augustus Heinze
has since been indicted by the federal grand
jury in connection with alleged overceruhcation
IF checks while president Of the Mercantile Ma
tionsl Bank. Mr. Montgomery said at the time
The receivers report was made public:
= have never overdraw-u my account and
have never owed the Hamilton Bank cent,
either directly or indirectly. defy the Attorney
General, Frank White or any one else TO prove
7hat have. I did not overdraw my account
end any statements TO that effect are false
absolutely false!'
WHAT RECEIVER REPORTED.
The figures OF the receiver Of the Hamilton
Bank Of amounts drawn cut by directors during
The week prior 10 its closing and their balances
with the institution showed that Mr.. Montgom-
erv- had drawn S1.51S 6Is which left 2 palance
% his credit Of s. IL
The receiver further reached the conclusion
from an examination of the individual ledger Of
ne fremont branch Of the Hamilton Bank that
sfr Montgomery had cverdraTn his account as
much S3z,2e1 p
The specific charges in the two indictments
against GIr. Montgomery were that on August
- h drew z check for S1295o and had II Ger
rfAed and made payable 70 B L. Strassburger |
7evvele- at Nc. 81 Maiden Lane, the amount
IN question. S129J0 constituting an overdraft Of
SO $50 a.. and that on September 8 he drew q
-heck 70 the order Of Dr. L. g Warner for
S2l Gsl1, when his balance in the bank ar the |
-irre he drew the check was only S5.91S p. and
,ast three days later, when the check was pre-
sented 70 and paid by the bank he had only
S7s4 - u his credit
These TWO checks. II as said yesterday. were
far shares Of the Hamilton Bank stock Il was
slso said in the District Attorneys Office that
NJ Montgomery was acting for President Will
i'm c T)srlror1- Of the Home Bank of Brooklyn /
The punishment provided by the Penal Code /
for me offence charged against M Montgom-
~ Is one year il prison or fine of S'oh, or
Eotb.
As Mr. Montgomery Is no longer an official
~ the Hamilton Bank his Indictment viii have
'-stl-urian and its several branches in few
da-s
I. : less than three weeks ago that the man
indicted YESTERDAY was honored by several hun
e-ed depositors Of the institution Of which he
-yss then the executive head Mr. Montgomery
had rendered woman service TO the depositors
committee in its effort have the bank re-
opened When the news came that Justice
Belts had discharged the receiver and granted
han business
ae--eraI hundred depositors hired z brass band
and marched to the home Of Mr- Montgomery,
- No 1857 Anthony avenue, where they sere-
naded him
STATEMENT BY COUNSEL
lanes ". Osborne and Howard s. Cans. who
.-s associated as counsel for Mr. Montgomery.
fss,,ed q statement last night in which they
rsid, IN part:
The fact that such overdrafts existed was
allied 10 the attention Of the authorities by MI
Montgomery himself, and but for the InfoTIIla-
-iou which he had offered. would IN All prop
ability. never have been discovered From the
outset Of the investigation MI Montsomerys
counsel have offered 10 the DiStrlct Attorney
1%5ca an the information tn their possession and
have given them access TO every means WHEREBY
arv light could be thrown on the matter Inc
District Attorneys Office wss unwilling 10 aVall
Itself Of ali the information and the indictments
have been founded. indictments must or ne
cessity be founded, upon partial presentation
cf the facts.
Itased upon purely technical violations or the
banking Law. There are two charges the hfst
being the overdraft in the case OF check mace
able 3 s EtrassburgeT Inc over
draft occurred by reason Of the negligence OF
cle Il the employees of the bank VINO WIS m
structed 20 get the check OF one laVld a sum
van. The check was given for the purchase OF
some Of the stock OF the Hamilton BANK Inc
messenger IN the bank, instead OF gettlng M,