The citizen. (Frederick City, Md.) 1895-1923, 1908-05-29
BANK FAILURE CRIPPIES Gi1y
plttsburg May Lose s1,ooooao
Deposit in Allegheny National nal
Shortage Of Cashier Montgome,v :.
timated at Two Millions or Mo-, -
State Funds Tied Tn

49,, =. uoiiars Of its fund.
'iea up inoennitely as a result Of tss
suspension of the Allegheny Nsti.s .as
Bank, the city of Pittsburg snds J.
self confronted with the possibilitv :, !,
being forced to issue bonds to ~.
money to meet current expenses 200
The suspension of the bant ,..
the city with practically M ira 'eayes
ately available funds. 'ni'nedl'
Shortly after the bank closoa q.
Treasurer John P. Steel nresou. vlv
check for s1,546,953.34. the 'e ame
OF the city's deposit, but It w rn,O aoi
honored. - was not
"The bank is in the hands -.
ceiver," explained the paying talla. 70
Tnen there is nothing doing a.
served Treasurer Steel. w
The paying teller shook his bo,a
The proceeding was merely forra.,
will the city lose any monauss
was asked of National Bank Eyam;,..
Folds. '4A"iiine'
Il don't know" was the renlv
The investigations to date into -.
defalcations of William Montgomo .u'
cashier of the ALLEGHENY NatiOns,
Bank, show loss to the bank of 80
los, 900, and place the disboSo.,
officer in the front rank of hans
wreckers. 1t is thought that thic +
not the full extent of the robbery
Montgomery waived prelimina,v
hearing and was held for Grand Jury
investigation.
The city of Pittsburg entered sui,.
to recover $1,000 900 from men wSo
were on bonds safeguarding the citv
against loss of its deposi.s wbiss
amounted to $1,500,000, every dollar
of which is supposed to have gone IN
Montgomery.
There is doubt whether one of ths
bonds for 100000 can be collected
In that case the city will lose 81. 0OO.
600. 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 s1,000,OO0 of the 81, 800.
600 on deposit.
Among the bondsmen are Cashier
William Montgomery, who is named
in one of the suits entered by the City
Solicitor. Secretary of State Robert
McAfee is another of the bondsmen.
He was also 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 $500, 900.
State funds to the amount of s523.
AIT were carried in the bank, and
these officials will take immediate
steps to recover the money. The
State fund, however, is secured BY
bonded companies to the extent Of
$4,000, 900.
1t transpired that poker game
was regular part of the days busi-
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 thinner
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 bis
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.
Failure Follows Bank Crash.
Pittsburg.-With assets of $4,000.
600, most of which the firm had
thought was good paper, and with
debts of only 100000, James Ca
rothers G Co., brokers. one of the
largest firms east of the Allegheny
Mountains, went into voluntary bank
ruptcy because of the failure of the
Allegheny National Bank, of Pitts
burg. The firm is said to have car
ried an immense amount of the Ale
gheny National stock as assets and
security, but the absolute failure OF
the bank has rendered this paper Oh
no value and the firm asked for re-
ceiver to protect itself and creditors.