St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-03
SWINDLED BY A PAIR.
How Two Stock Operators Over
drew Their California Bank
Accounts.
Ex-Cashier Flood Tells How This
Precious Pair Got His Con-
fidence.

SAN FRANCISCO, July 2.-James w.
Flood, cashier of the Donohoe Kelly
bank, who is under conviction for the
embezzlement of Sl64.O0O of the banks
funds, has broken silence Tor the first
time since the discovery of the defalca-
ton and cleared up the apparently in
eXplicable mystery which has sur
rounded the disappearance of the
money and the manner of its with
drawal from the bank. Flood has all
along maintained that the money was
paid out over the counter in the
regular course of business, but before.
during and after the trial he perempto-
riiy refused to divulge the names of the
persons who secured the money, con-
tenting himself merely with the state
ment that he is the victim of misplaced
confidence; that he is willing to suffer
the consequences of his iniiScretion.
Recently the facts of the case have
been tranSpiring, and TO get clear of the
whole matter Flood, who is in Jail,
finally determined to tell the entire
story.
The case. after all, is simple, andthe
deficit occurred, as Flood heretofore
claimed,iD the overdrafts, $50, 600 being
paid to James Cogan; a once well-known
stock broker here, and $50, 900 to Andrew
Fox, once SOn-in-laW Of Senator Stew
art. Cogan was large operator, and
established himself so completely in the
confidence Of. the officers of the Dono-
hue Kelly bank that he was given large
credit. His account fluctuated greatly,
ana was some days largely in his
favor, at other times heavily over
drawn. But the stock market
finally began to go strongly against
Cogan, and his Overdraft at the bank
reached very large sum. Then Flood
became alarmed and pressed Cegan for
payment. But he was ready in prom
iseS and explanations, and, to protect
himself, Flood gave him further credit,
thinking operations would be brought
to successful issue and the overdraft
properly covered. But it was not, and
one night about four years ago Cogan
died, having committed suicide, as many
thought, and he owed the bank S150,000.
Flood alone of the officers of the bank
knew how much had been lost. Fox's
operations were exactly similar, though
separate from Cogan's, and he managed
to get $500 from Flood. Fox was
finally expelled from the stock eX-
change, and Flood then realized that he
had been deceived by both Fox and
Cogan. he managed to cover up the
deficit by system of false entries
and false checks and drafts, but
one day in February last he was
taken unawares by the bank examiners
and the defaIcation discovered The
cashier had in the meantime reduced
the deficit over $50, 600 from his own re
sources. Flood seems to have MAIN
tanned silence either from QuiXotic no.
tionS that he owed it to Cogan to pro-
tect his memory, or because he was
ashamed TO tell how easily and com
pletely he was deceived. A motion for
a new trial is now pending, and he is in
the meantime in Jail, bail being denied.
1t is not known where Fox is, as he has
been absent from San Francisco several
years. He was at one time, it is said,
on the police force in Seattle.