New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-21
ARREST BANK PRESIDENT
D. S. Mills, of Audubon National,
Charged with MiSappIiCatICn.
BAIL GIVEN AT SlCKBED
Two More Men Connected with
Alleged Juggling Likely To Be
Taken Into Custody Soon.

David S Mills. who resigned as president
OF the Audubon National Bank on June H.
and on whose manipulation of the banks
funds the directors blame the liquidation
Of tho bank that began on "Wednesday.
was arrested yesterday at his home, No.
800 West 1921 street. by order Of United
States Attorney Henry \. Wise. on
charge of misspplCation Of 5000 Of the
banks money. and held in $4,000 cash bail.
The complaint against Mills charges
that he discounted at the bank notes
amounting to $1,000 obtaining on them
s49. eco and that he used the money so
obtained TO buy the banks own stock
from the other directors Of the institution.
Mills is sick in bed at his home. having
recently been operated on at n private
hospital He was placed under arrest in
his sickbed yesterday afternoon by Chief
| Deputy Marshal Hecht. and a couple Of
| hours later. after bail had been arranged
| for. United States Commissioner Shields
went TO the house and accepted bail. Mills
waived examination. Two other men are
involved in the investigation and are like
| ly to be placed under arrest.
! According TO the directors Of the bank.
Mills wanted TO get control of the in
! institution. of which he was one of the
| organizers. He had 175 of the 200 shares
of the banks stock at the the time Of the
organization I'm November 1909 and since
| February last had increased his holdings
! TO 100 shares. The directors say that when
Mills began to add to his holdings In Feb
ruary loans began to appear on the books
of the bank for whom no responsible
borrower could be found, while It was
Milss habit 10 take notes to William
Merilles the auditor Of the bank and have
them passed and discounted without con
sultation with any other officer Of the bank.
According TO William Remers. the cashier,
who was elected president on Wednesday,
at the meeting at which liquidation was
decided on. several Of these notes are
among the s2fN,coO in loans the bank still
has outstanding.
The eleven directors of the bank held
among them 3H shares Of the stock on
June 10 a meeting of directors was called.
some Of them being reached by telephone.
and at this meeting. the directors say,
David Neito appeared and offered to buy
the stock Of the directors. Some of them
had already been approached and had
agreed TO sell Neto said he represented
two Of the directors Some Of the directors
got cash for their stock. while others took
notes. Mills. who also appeared as
seller. took notes. Mills then resigned as
president and all Of the directors resigned
and Reimcrs resigned as cashier, hut
Reimers afterward agreed 10 stay until
July l5
The bank was then without officers or
directors. and Reimers was running the es-
ia Adjustment He began to look up the
loans again. and on June 30 called in
Charles u. Hanna. the national bank ex-
| aminer. TO investigate. After Mr.. Hannas
investigation the former directors were
hurredly called together again and told
that it was believed that their stock had
been bought with the banks own money,
secured on notes put through by Mills.
They were told that the best thing they
could do would be 10 get their stock back.
The stock was in the banks vault and
had never beenstransferred on the books.
The directors. two OF them say. went TO the
vault and got out the stock and put the
money in the vault In place Of II. Having
recovered their stock they assumed office
as directors by the grace of God and
elected John f. Oltrogge president much
against his will Mr.. Oltrogge resigned on
Wednesday ard Reimers took his place.
The money is still in the vault, owner to be
proved, and the notes are still in the bank,
payer to be found.
David Neito, who appeared as the buyer
Of the directors stock on June 10 Is a
South American who has not been natural
lied as en- American citizen. He has an
office with Frank f. Wilson on the fifth
floor Of No. ~ New street on the bule
tin board In the elevator he is named as
concerned in the Magdalena Fruit and
Transportation Company and the Washer
man Realty Company. In the office is
safe bearing the name of the Anglo COlom-
bau Fruit COmDauV