The citizen. (Frederick City, Md.) 1895-1923, 1911-09-29
Treasurer Schnauffer Under
IS 900 Bail.

Oh the closed bTulSMlCS savings Bank
was arrested al MS home OF Saturday
last charged with embezziement and cx-
hibitine false and fraudulent papers to
Deputy Bank Examiner John c. Motter,
OF J. He was brought TO this city, taken
before the court and released by Judge
Uruer on $500 bail s.. 500 IN each case
His bro,heT-in-laW Dr. Levin West. be-
came his bondsmau-
The arrest was the outcome Of an in
yesiigaiion hy The Iate grand Jury. An
Indictment was returned and warrant
was issued by the cie-k 20 the court for
hi, arrest Il was served BY Deputy
: e-in MYERS. OF Bruins x, who found
him al home,
rne arrest became known soon after
tn warrant was sery-L Nr. SChnauf-r
immediately notified bis family and DR.
West and the deputy came 20 Frederick
During the proceedings Schnau.ieT was
nervous and seemed under a heavy strain.
After being released be returned 10
BruusWCS
The arrest involves Schnaufier in the
failure -. The bank which closed is doors
last December. Il IS charged That upon
being confronted Sy Examiner Motter
with irregularities he exhibited a paper
and made statements purportIng that the
bank was solvent. and that the Irregular
ties could be corrected IN a few DAYS. Al
his request the bank examiner allowed
him week 10 correct the trouble. and IN
the meantime number OF large deposits
are said 20 have been made. The irregu-
larities, however. could not BE- corrected.
but became more serious rs the inves;iga-
ton progressed.
The charge OF embezzlemenl Is based
upon overdr4fts which Schuautfer Is said
to nave allowed Il. Is understood that
the amount specified Is $50 His friends
say he Is innocent and that ne viii be able
to clear himself Of the charges. They
ascribe the failure entirely 10 careless
business methods and overconhdence IN
lending cash on notes Il Is known that
his own family los, with other depositors
and sirCe the failure be has made over 10
the trustees what little property he had in
his own name. At the time the bank
closed there were deposits amounting 10
$4,000. Receivers John ). Newman
and Mlllard F. Shafer have made distri-
button OF 335 per cent 10 depositorS.
with prospects OF finally paying so per
cent.
Following the failure an expert account
ant was several weeks unlsngling the
banks affairs Between 100 and 500
notes were found where money had been
loaned and no attempt made 10 collect
the interest. In some cases the notes
were out Of date.
SchnauTer' : personal account vas over
drawn 10 4 large extent This was due
10 having given checks under his own in
dorsement for ali expenses connected with
the business. Nothing has ever been
found to Indicate that be misappropiiaied
cent The Careless method ( conduct
ing the bank was disclosed by the new
savings bank law.
Much sympathy IS expressed for
Schnaufer. He came to Brunswick from
Baltimore IS or 20 wears ago and es,ab-
lished the bank. He took a promiuen,
part in the advancement Of the town and
was generous to its citizens. Last year
mention was made OF his name a. a can
didate for Congress. but he declined to
run. He Is a member OF The Episcopal
Church, IS married and has f3ur children.
Montgomery County Matters
The will OF Col. Augustus W. Dorsey.
the Confederate soldier who died recently
al his home, near Brook-ville. this county.
has been admitted TO probate here. Il
dIspOses Of an estate valued at about
$1,000, the beneficisrieS being relatives
Of the testators wife. VINO died several
years ago. Il gives 5000 each to Mar
garet Dorsey Brghtweli, Mary Bright
well John BrighiwelI and Ruth Ovens.
OF Washington; Lucy Dorsey. OF Balii-
more. and Margaret o. Magruder. of this
county The sword. and pistol used by
Colonel Dorsey during the war are left TO
Frank Dorsey. Of Baltimore The resi-
due IS bequeaih-d to Margaret Dorsey
Brighiwell and Mary Brightwell. Leon
ard !. Weer. Of BrOokeyille. IS made ex-
ecltor.
Kings Disiillery, at Kings Valley. this
County. was destroyed BY fire abont 10
O'Clock Friday night, enisiling loss Of
about 6. 600. only one third OF which was
covered by insurance. By hard work the
flames were kept from spreading 10 ware
houses 50 yards away. containing nearly
1000 barrels Of uhiskey. The cause OF
the FIRE IS not known The disiillerv be
loneed TO John r. Lewis, a grandson Of
the laie Luther King, who conducted the
business for many years.