The sun., 1908-05-08
BANK CASHIER $46S,OOO SHORT
WIN. MONTGOMERY or THE ALE
GHENY NATIONAL ARRESTED.
Partial ExamlnaISA Reveals Embezzle-
ment Of Nearly Ialf Million and
RumOrs Say AmOL It May Be Doubled
Many Politicians Interested In Bank.

ment Of Nearly Ialf a Million and
RumOrs say AmOL It May Be Doubled
Many Politicians nterested In Bank.
PIrTsBoRG, May Nv liam Montgomery
cashier Of the Allegheny National Bank was
arrested this evening charged with EN-
bezzlement
His shortage is known to be tieo, 1000. but
there are rumors that it will he far in excess
Of that amount. probably more than
81, 100000.
Soon after his arrest Montgomery was
released under $50 900 bail, George f. Tener'
a brother Of John X. Tener Republican
nominee for Congress in the Twenty-fourth
district, becoming his bondsman.
The first intimation tnat Montgomery was
short in his accounts came from Henry
Reiber, the former paying teller OF the
Farmers Deposit National Bank who with
James Young, former auditor, robbed that
institution Of ST. lO5.OOn. Reiber and Young
are in Jail
last week Reiber is alleged TO have said
that part Of the immense sum he took from
the Farmers National had gone as loans
10 Montgomery 10 help make up his short
age. A hurried examination Of Mont
gomerys books was made and sufficient
evidence was fosnd to cause William Stew
art, the president, to send for National
Bank Examiner William J.. Folds. Folds
arrived from Philadelphia this afternoon.
He soon discovered that Montgomery
defalcation was at least $3.50, 600. without
waiting to investigate further Folds went
before United States Commissioner Lindsay
and swore out warrant for Montgomery
A United States Marshal who was sent to
the bank could not find Montgomery. but
at S O'Clock ne was put under arrest lie
got bail two hours later.
For years the Allegheny National Bank
has been the headquarters Of Republican
politicians. The late Senator NJ. S. Quay
always made the bank his headquarters,
and during all the Quay campaigns
Billy Montgomery, as he was known to
every one here, handled the Quay money.
Most of the Allegheny county Republican
leaders Of the present day are interested in
the bank, Secretary OF the Commonwealth
Robert McAfee, being one Of the directors.
Mont gomery. the defaulting cashier, has
been known for years as man about town.
but in spite Of that he was considered a
conservative business man He was always
thought to be wealthy.
When arrested this afternoon the only
statement he would make was that he has
not a penny Of the stolen money left nor
has he any Of his own. He declares that he
has loaned large sums TO spectators,
who when he called on them to return the
loans were unable to pay.
The stability Of the bank will not be
affected by the defalcation. Some Of the
wealthiest men in Pittsburg are connected
with the institution. Both the city and the
State carried accounts at the bank, the
State account being in the neighborhood OF
$500 900
1t is reported late tonight on the most
reliable authority that this afternoon promi-
nent financial men and politicians, after
the defalcation was discovered. went to
William L. Folds, United States bank
examiner. and offered him 500 900 in cash,
the amount Of the known defalcation, il
he would not prosecute Montgomery or
let the story come out. Folds refused the
offer and ordered Montgomerys arrest,
II is intimated that arrests will be made
because Of the attempt to influence the
examiner
HARRISBURG Pa. May The Allegheny
National Bank has depost Of SjS2, II
of the funds oR the State Of Pennsylvania,
This deposit is protected by corporate
bond Of $4,000 and personal sureties Of
100000.
State Treasurer John 0. Sheath said to-
night: Il believe the State deposit is fully
protected. The corporate bond is signed
by the United States Fidelity and Guaranty
Company Of Baltimore and the Fidelity and
Deposit Company Of Maryland, also Of Bal
timore. There are also two personal surety
bonds in the sum Of 600 signed by the
directors Of the bank and other well known
PittsbTgers
The Allegheny National Bank has been a
large State depository for many years
William Montgomery and the late Senator
Quay were close friends and the institution
was commonly known here as 'Quays
Bank" Quays control Of the political
situation resulted in big State deposits in
that bank, which long had been and is now
what is known as an "active depository
which ia not required to pay interest on
Ctota danOaita haCauea thew are subject TO
daily checking For many years the
amount Of State money in this bank has
ranged from half million to a million and
a half.