The citizen., 1911-09-29
Treasurer Schnauffer Under
IS 900 Bail.

William Schnauffer, treasurer and head
of the closed Brunswick Savings Bank,
was arrested at his home on Saturday
last charged with embezzlement and ex-
hibting false and fraudulent papers to
Deputy Bank Examiner John c. Motter,
of l. He was brought TO this city, taken
before The court aud released by Judge
Urner on $1,000 bail. 81, 500 in each case.
His brother-in-laW, Dr. Levin West, be-
came his bondsman.
The arrest was the outcome of an in
vestigation by the late grand Jury. An
indictment was returned and warrant
was issued by the clerk Jf the court for
his arrest Ii was served by Deputy
Sheriff Myers, of Brunswick, who found
him al home.
The arrest became known soon after
the warrant was servcG. Mr.. SChnautfer
immediately notified his family and Or
West and The deputy came to Frederick.
During the proceedings Schnautier was
nervous and seemed under a heavy strain.
After being released he returned TO
Brunswick
The arrest involves Schnaufier in the
failure Of the bank which closed It's doors
last December. 1t is charged that upon
being confronted Sy Examiner Motter
with irregularities he exhibited paper
and made statements purportlng that the
bank was solvent and that the irregulari-
ties could be corrected in a few DAYS. Al
his request the bank examiner allowed
him week to correct the trouble and i'll
the meantime number of large deposits
are said to have been made. The irregu-
larities, however could not be corrected,
but became more serious as the investiga-
ton progressed
The charge of embezzlement is based
upon overdrafts which Schnaufier is said
to have allowed 1t, is understood that
the amount specified is $50 His friends
say he is innocent and that he will be able
to clear himself of the charges. They
ascribe the failure entirely to careless
business methods and overconfdence in
lending cash on notes II is known that
his own family lost with other depositors
and since the failure he has made over to
the trustees what little property he had in
his own name. At the time the bank
closed there were deposits amounting to
S23o,ooo. Receivers John S. Newman
and Millard f. Shafer have made distri-
button OF 35B per cent to depositors,
with prospects of finally paying so per
cent.
Following the failure an expert account
ant was several weeks untangling the
banks affairs. Between 100 and 500
notes were found where money had been
loaned and no attempt made to collect
the interest. In some cases the notes
were out OF date.
Schnauffer'S personal account was over
drawn to a large extent This was due
to having given checks under his own in.
dorsement for all expenses connected with
the business. Nothing has ever been
found to Indicate that he misapproplated
a cent. The careless method conduct,
ing the bank was disclosed by the new
savings bank law.
Much sympathy IS expressed for
Schnauffer. He came to Brunswick from
Baltimore rs or 20 years ago and estab-
lished the bank. He took prominent
part in the advancement of the town and
was generous to its citizens Last year
mention was made of his name as a can.
didate for Congress. but he declined to
run. He is member of the Episcopal
Church, is married and has four children.
Montgomery County Matters.
The will of Col. Augustus w. Dorsey,
the Confederate soldier who died recently
at his home, near Brookevlle. this county.
has been admitted to probate here. 1t
disposes of an estate valued at about
$4,000 the benehciaries being relatives
of the testator's wife, who died several
years ago. 1t gives 81 900 each to Mar
garet Dorsey Brightwell Mary Bright
well, John Brightwell and Ruth Owens,
of Washlugton; Lucy Dorsey. of Balti-
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 bequeathed to Margaret Dorsey
Brightwel and Mary Brightwell Leon
ard l. Weer, Of Brookeville, is made ex-
ecutor.
Kings Distllery, at Kings Valley, this
county, was destroyed by fire abont 10
O'Clock Friday night, entailing a loss of
about $1,000, only one third of which was
covered by insurance. By hard work the
flames were kept from spreading to ware
houses so yards away, containing nearly
1000 barrels Of whiskev. The cause of
the fire is not known. The distillery be
loneed to John r. Lewis, a grandson Of
the late Luther King, who conducted the
business for many years.