The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1900-11-23
THIS GAPS
THE CLIMAX.
Clerk Brown Loots New
port, KY, Bank.
He IS SHORT OVER 100000.
His Steal Exceeds the Capital Stock,
Reserve and All Assets, Including
Real Estate.

| SAAFN ~ INA II NsS ANONs ulLtu
States Bank Examiner Tucker to-
day took possession OF the German
National Bank at Newport, KY,
and posted notice that the bank
would remain closed pending an ex-
animation.
Examiner Tucker also announced
unotficially that Frank M. Brown,
the individual bookkeeper and
assistant cashier, was missing and
that partial investigation showed
that Brown was short about $20l,-
600. Brown had been with the bank
eighteen years; was one of the most
trusted men ever connected with
this old bank, and it is stated by the
experts that his operations date back
as far as ten years.
The capital stock of the bank is
only 100000 Browns alleged
shortage is double that amount, and
more than the reserve and all the
assets, including the real estate.
While AlvOrd got away with $780,
600 in New York, he did it in large
bank, but B"own did not have so
much to go on and seems to have
gone the fuillimit fora small bank
In q city of less than 10000 inhabi-
tants. The First National Bank of
Newport was wrecked two years ago
by Cashier YOutsey, and now with
the German National closed, New.
port has only one bank left.
For two weeks there have been
rumors that Brown was short and
some depositors withdrew their ac-
counts. Three week ago the ex-
aminers made good stat ement for
the bank and the officers and
directors allayed suspicion by re-
ferring to the report of this eXami-
nation and to their last statement.
Last w ednesday Brown lett. ami it
hunting on vacation. He did get
learned now that he did not go there,
and it is generally believed he is
now out of this country with plenty
OF money in his possession.
1t was learned to-day that Brown
was suspended last Tuesday pend
ing an Investigation and that ex
perts have been at work all the past
week, while the officers and direc.
tors have been making announce.
ments that everything was all right.
Last Friday the officers and direc-
tors, over their own names, pub
lished in the papers of this city
statement that the bank had been
found to be all right and that the
rumors about Brown were false.
They continued making these state
ments to the press as late as last
midnight, but the statements were
not acct pied by the Commercial
Tribune, which exposed the alleged
shortage and caused a panic in
Newport to day, so that the bank
had to be taken in charge by the
examiner.
The widest scenes were witness
in Newport to-day and serious
trouble is feared TO morrow, when
the directors will be confronted by
the people, who have hunted them
in vain to day.
Brown, it Is alleged, was living a
fast lie with wine. women and gam
bling. His career was not cut short
by any discovery at the bank till a
Jealous woman gave him away.
Brown Is widower, with one son,
aged 10 years, who lives with
Browns father, Paris @. Brown, ex-
Mayor of Newport, and one of the
leading business men OF Cincinnati.
Last summer Brown visited Vel
lowstone Park aud certain Cincin-
natl woman wanted to accompany
him, but this was denied her. When
she ascertained, some time after
ward, that another woman was with
Brown on his Western tour, the Gin
cinnati woman gave the bauk Off
cials some information that brouV ht
about the crisis.
The only farewell letter that Brown
is known to have left was to this wo
man, whose apartments are on Ninth
street in Cincinnati, and in this let
ter he admits that be had secured
about all that he could get, and that
the time had come to say farewell.
NEWPORT, KY, Nov. 20.-Newport's
sensation grows as the people begin to
realize what a herculean task Book
keeper Brown performed in looting the
bank and retaining the confidence of the
directors to the last.
1t is suspected that Brown had ac-
complies and these are under sur
veillance. There is no trace of Brown.
There we're four women in the case.
Three of these have fled. The directors
have decided to make an attempt to
resume business, provided the stock
holders give it the necessary support.
Twice the amount of the capital stock
is wiped out by Browns shortage. One
plan is to pay the deficit and resume.
The other is to reorganize with capital
of 500, 600 and to include no one now
connected with the bank.
The DefaIcation Discovered.
National Bank Examiner o. p.
Tucker, who is in charge, in an inter-
view, said that the alleged defalcation
was not discovered by hin until ten
O'Clock on Saturday night, that both
he and the banks own experts had
49,, rr,hle 10 ind ANYTHING wrong