Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-18
BANKS SHORTAGE
NEARLY $2,0OO,0OO
Allegheny Bank Suspends at
Pittsburg Today.
CLOSED BY CONTROLLER
Sequel to All-Day Conference of the
Officials.
MONTGONERY'S REGULATIONS
National Examiner Lyons Is Made
Receiver-Interest Centers in Fate
Of City and State Deposits.
MONTGOMERY'S POPULATIONS

W 18th more tnan a 1nlllloll dliu
a half dollars OF its funds tied up
indefinitely as a result OF the sus-
pension Of the Allegheny National
Bank today. the city OF Pittsburg
finds itself confronted with the
possibility OF being forced to is
sue bonds to raise money to meet
current expenses. \ formal ef-
fort to Withdraw the money was
made by City Treasurer Steel
after the announcement OF sus-
pension was made. but the check
was not honored. The suspension
of the bank leaves the city with
practically no available funds.
PITTsBURG. May 1s.-The Allegheny
National Bank suspended today Shortly
after o'clock the following notice was
posted on the door:
CLOSED by order of the controller and
placed in charge of William l.. Folds.
national bank examiner.
At that time only a few depositors were
about the institution. The suspension fol-
which a thorough discussion of Cashier
William Montgomerys peculations was
held.
That the bank would not open today
was generally stated in the morning
papers For days it has been apparent
that the cashiers alleged mlsdeeds had
seriously crippled the institution. and the
actual suspension this morning caused
little or no excitement. Quite number
at
avenue opposite the bank. and when the
order of suspension was posted all read
it and then quickly disappeared.
Shortage Close to 100000.
Cashier Montgomery. who Is in the
county Jail, accused of embezzling Si69.OOO
and the abstraction of securities valued at
S1250OO. will be arraigned in the United
States court this afternoon on the first
charge.
While Montgomery's peculations are Of
ficially placed at S59l,000. it is said the
banks shortage is close to $2.OUu.OVO.
Montgomery is held in sl25oOO bail
Robert Lyons. a national bank exam
liner. has been appointed receiver of the
bank.
Chief interest in the banks closing now
centers in the ultimate fate of the de-
posits of the city and state. State Treas
urer Jhon O. Sheath and Deputy Attor-
ney General Jesse E. B. Cunningham ar
rived here this morning from Harrisburg.
State Funds in the Bank.
State funds to the amount of So23.i17
were carried in the bank. and these Off
cials will take immediate steps to recover
the money.
The state fund is secured. however. BY
bonding companies to the extent of S4,JOo,-
600.
Shortly after the bank closed City
Treasurer John F. Steel presented a
check for 81 .546. .953.34. the amount of the
city's deposit. but it was not honored.
The bank is in the hands of a re-
ceiver." explained the paying teller.
Then there is nothing doing" observed
Treasurer Steel.
The paying teller shook his head
The proceeding was merely formal.
Concern About City Funds.
will the city lose any money. was
asked of National Bank Examiner Folds.
II don't know was the reply
William Stewart. president of the de-
funCt bank; Walter Chess, a director
Thomas Evans of Macbeth Evans Glass
Company; Robert McAfee. secretary OF
the commonwealth of Pennsylvania, and
William Montgomery, The defautins
cashier. are security for the citys de-
posit and each liable to the amount OF
S,GOgUb
As TO the length of time the funds viii
he tied up nothing can be learned. Wher
asked If II would be year or two Exam.
iner Folds said he did not know.
Should the citys deposit be tied up very
long IL will be necessary TO issue bonds
to raise money to meet current expenses
Bonds for State Funds.
The Fidelity and Deposit Company OF
Maryland and the United States Fidelity
and Guaranty Company are under bond
to the state for the deposit.
There is absolutely not the sightes,
doubt of the state receiving every penn,
of its deposit at the Allegheny National
said Treasurer Sheath.
Poured Money Into Brokers Hands
CHARLTON. Iowa. May Isl, has JUS
been disclosed that in the three or fou,
years preceding his suicide the late
cashier r. r. Crocker of the defunct FRS
National Bank paid more than a hal
million dollars TO one firm in MS stock
trading operations. The greater part o
this was during the last few days of hi
life when he poured money into the stocl