The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-05-18
WAS WRECKED
BY ITS CASHIER
ALLEGHENY NATIONAL BANK Al
PITTsBuRG WILL CLOSE
ITS DOORS.
FORMER CASHIER is IN JAIL
Efforts TO ReorganIze the Institution
and Put II on Sound Basis Failed
Comptroller Of the curren-
cy In Charge.

Pittsburg, May 1S.-It was officially
announced last night that the ALE
gheny National bank, whose former
cashier William Montgomery, Is In
Jail, specifically charged with the mis-
appropriation Of $4,000, while ofn
GERS OF the bank and OF the treasury
department are trying to fathom still
larger apparent discrepancies in the
banks funds, will not reopen foi
business to-day.
Instead notice on the door will
announce that the comptroller Of the
currency has taken charge and will
close up the affairs OF the bank
Until late Sunday II had been ex
pected by Examiner Folds, who dis
covered the alleged peculations and
made the charges against Montgom
cry, and by the officers and directors
of the bank, that the institution would
weather the storm and be able to con
tinue business. To this end a mum
Der of strong financial institutions and
prominent capitalists OF the city of
fered assistance and to provide $3.50,
900 cash II the directors provided a
like amount to meet the immediate
needs or provide for possible emer
gencies. At the same time a complete
reorganization was decided upon and
new cashier and other officers were
practically agreed upon.
A hitch occurred in these plans Sat
urday and Sunday was spent in con.
ferences attended by Examiner Folds
representing the treasury depart
ment, the banks directors and finan.
ciers who had proffered aid After a
careful review OF the situation sus
pension of the bank was decided upon
as the only logical course but this
decision was scarcely announced un.
I'll a new ray OF hope appeared. The
announcement was withdrawn and the
conference reconvened to discuss the
new suggestion for continuing bust
ness. Finally, however. 1t was agreed
to stand by the earlier decision and
to liduidate.
The suspension of the bank. II IL
believed, will have practically no ef
feet upon commercial or financial In
gtitutions OF the city. It has been
largely discounted by the events OF
the past week and besides the private
and commercial deposits of the bank
are small, amounting to not over
100000. The bank as a city deposit
ory carried about s1.500,000 OF the
city's funds and as an active state de
pository over 100000 of state funds
It is possible that the city may expert
ence some inconvenience In having It's
funds tied up for a time. but It is un
derstood that both the state and city
are protected against actual loss by
bonds of surety companies.
II Is perslstently reported that
the total apparent shortage Is $4,000,
900, against which there is an offset
of s750.000 in securities and other
property turned over to the banh
since the discovery of the shortage
Montgomery in all his statements
has exonerated all others of compile
ity in or knowledge of his misdeeds
Montgomery passed an uneventfu
day in jail. leaving his cell only tc
attend chapel services, where, It IL
said, he asked that he be prayed for
He is forced to observe the same
routine as the most common prisoner
and is allowed no special privileges
For breakfast he had only bread and
coffee and for the principal meal oi
the day bread, coffee and vegetable
soup.
The Allegheny National is one OF
the oldest financial institutions In
Pittsburg. II was organized In 1851
and in 1865 was chartered as ma
tionnl bank. At the last call of the
comptroller of the currency. Febru
airy IA, the bank showed capital OF
100000, loans and discounts of So.
049, ,4SS, surplus and undivided prof
its of $s2e,461 and deposits Of ST.,
244,s63.