The herald., 1893-07-03
A MYSTERY CLEARED UP
Cashier Flood Explains His
DefalcatiOn.
He Was a Victim of Misplaced
Confidence.
The Money Paid to Stock Gamblers
in OverdrS is.
Ono Of the Men Whom He Trusted Is
Dead and tho Other Denies That
He Had Any transactions
with Mr.. Flood.

By the Associated Press.
SAN Francisco, July 2.-James w.
Flood ex-cashier of the Donohue-Kelly
bank. vino is under conviction for the
embezzlement of $l64,O00 of the banks
funds yesterday broke silence for the
fret time since the discovery of the de-
falcation, and cleared up the apparently
unexplicable mystery which has sur
rounded the disappearance OF the money
and the manner of its withdrawal from
the bank. Flood has all along main
tanned that the money was paid out
over the counter in the regular course of
business, but before. during and after
his trial, he has peremtorily
refused to divulge the names of the per-
sons who secured the money, coutenting
himself merely with the statement that
he is victim of misplaced confidence,
and that he was willing to suffer the
consequences of his indiscretion. At
bis trial, Flood made no defense what
ever. except that through his attorney
he claimed that he had at no time ex-
ceeded his authority as cashier, the
money being paid out in overdrafts and
in the regular course OF business. This
uhsworn statement, however, was not
satisfactory and he was promptly pSo-
nounced guilty of enlightenment.
Recently facts of the case have been
transpiring little by little. and to set
clear the whole matter, Flood, who is
in Jail, fiually determined to tell the en-
tire story. The case after all is simple,
NJ ha daG Goit
tofore claimed, in overdrafts, $4,000
being paid James Cogan, once a we'll
known stockbroker here, and s35 900 to
Andrew Wood Fox, once son-in-law of
Senator Stewart. Cogan was a large
operator and established himself 80
completely in the confidence of the off,
GERS of the Donohue-Kelly hank that he
was given large credit His account
huctuated greatly and was some days
largely in his favor and at other
times heavily overdrawn, but the stock
market finally began to go strongly
sgainat Coga5p and p5fp bis oysrdSafI sys at lha
h.Ik- realcIla5rffie alarmed "a and pressed
Cogan for payment, but he was ready in
promises and explanations and to pro-
tect himaelf Flood gave him further
credit, thinking his operations would be
brought to a 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
$3.50, ,O0O
Flood alone of the officers of the bapl,
knew how much had been lost.
Fox's operations were exactly similar.
though separate from Cogan's, and be
managed to get s35, 600 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 examiner and the defalca-
tion was discovered. The cashier had
reduced the deficit over $2O.-
COO from his own resources.
Flood seems to have remained silent.
either from a quixotic notion that he
owed it to Cogan to protect his memory.
or because he was ashamed to tell how
easily and completely he was deceived.
A motion for new trial is now pend
ing, and he is in the meantime in iail.
bail being denied.
Fox has been absent from San Fran.
cisco several years. He was at one
time, It is said, on the police force in
Seattle. He lie divorced from his wife.
The Chronicle has dispatch from
Portland. Ore, saying Fox was inter-
viewed there tonight at the Hatton
house, by reporter. Fox denied that
te ever had any connection with Flood.
He maintained that he had not been in
Sar Francisco since 1882. Fox has been
for a powder concern for some
years.