Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-05-19
CASHIER WRECKS HIS BANK
Allegheny National Closes with Two
Million Shortage.
STATE AND CITY FUNDS TIED UP
Unless Payments Are Available Bonds
VIII Have 20 he Isssed TO
Provide Revenue for Town
Receiver Named.

PITTsBURG. May IS-with more than
g. 5o0.OO0 Of its funds tied up indefinitely
IS a result Of the suspension Of the Alle-
gheny National bank today, the city OF
Pittsburg finds Itself confronted with the
possibility Of being forced to issue oonas
to raise money TO meet current expenses
A formal effort to withdraw the money
vas made by City Treasurer steel after
the announcement Of suspension was made
but the check was not honored
The suspension Of the bank leaves the
city with practically no Immediately avail
able funds
The following notice was posted on the
door shortly after 8 o'clock by Natonai
Bank Examiner william L Folds;
Closed by the order OF comptrolleT o. The
currency and placed in charge OF NAhAIn
l. Folds
That the hank would not open today was
generally stated IN the morning papers
For DAYS Il has been apparent that the
cashiers alleged misdeeds had seriously
crippled the Institution and the sctual sus-
pension this morning caused little or no
excitement Quite q number Of depositors
were gathered on Fifth avenue opposite the
bank and when the order Of suspension
was posted all read St and then quickly
disappeared.
Cashier Montgomery. who IS in the
county Jail accused Of embeEzling S4ss oo
snd the abstraction Of securities valued At
$4,000. will be Arraigned in the United
states court this afternoon On the first
charge.
While Montgomery's peculAtions are Off
cially placed at $4,000 IT Is said the banks
shortage is close to S20oo.0oo.
Half Million state Funds.
Robert Lyons, national bank examiner.
has been appointed receiver Of the Al
legheny National bank.
state Treasurer John O. Sheath and Dep
uty Attorney General Jesse F. B. Cunning
ham arrived here today from Harrisburg.
sta, funds TO the amount Of $50 81 were
carried in the hank and these officials will
take immediate steps to recover the money.
The state fund. however, is secured by
bonding companies to the extent Of A,Soo-
ooo
shortly after the bank closed City Treas
urer John F. Steel presented q check for
s. .54s. .sSs 81 the amount Of the city's de-
post, but 81 was not honored.
some who Are Liable.
William Stewart. president Of the defunct
hank: Walter Chess. one Of the directors;
Thomas Evans Of the Macbeth Evans
Glass company: Robert McAfee secretary
Of the commonwealth Of Pennsylvsnia, and
William Montgomery. the defanlting
cashier. are security for the city deposit,
and each liable TO the amount OF 500, 900
As to the length OF time the funds will
be tied up cannot be learned. When asked
II Il would be a year or two Examiner
Folds said he did not know Should the
city's deposit be tied up very long II will
be necessary TO issue bonds to raise
money to meet current expenses.
The Fidelity and Trust company Of Mary
land and the United states Fidelity and
Guarantee company are under bond TO the
state for its deposit.
There IS absolutely not the slightest
doubt OF the state receiving every penny
Of its deposit at the Allegheny National" "
said Treasurer Sheath. 1T is up to the
hank and the surety companies 10 deter
mine who shall pay the money. That Is a
matter between them and has no interest
IN