The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-11-19
CLOSED BY DAWES.
Receiver in Charge of the German
National at Newport.

National at Newport.
Newport. Ky. Nov 1s-The German
National bank was closed today by or
der of the comptroller of the currency
Washington, Notwithstanding of the
Currency Dawes has appointed Oliver P
Tucker, national bank examiner, tenn
porary receiver of the German National
bank of Newport, Ky Mr.. Tucker teIe-
ken charge owing to the discovery of a
defalcation amounting to about S195, coo.
and thereupOn the controller appointed
him temporary receiver. The officials
here consider it astonishing that a de-
falcation amounting to more than the
reserve of the bank could have remained
undiscovered for any length of time bur
they attempt to offer no explanation as
Mr. Tucker has not vet furnished any
details. The last examination of the
bank was made in May last The fol-
lowing IS statement OF the condition of
the bank as shown by its sworn report
to the comptroller of the currency I'M
der date of September 5, 1900:
Liabilities-Capita1 stock 800 600: sur
plus and undivided profits $50. Al: cir
eulation $4,000; due to other banks, $l6,-
1886; deposits 1854, 904; borrowed money
$4,000. Total. $736, 1914.
Resources-Loans and discounts, s513,-
451-51; United States bonds to secure
circulation, $4,000; premium on bonds.
SIC 31-25; banking house furniture and
fixtures. 1872, 012.29; real estate owned
$34. 1892 So: cash on hand and with banks
S130,225.46. Total, 1886. 713.14
LITTLE FOR DEPOSITORS.
Cincinnati, Nov. 19.-"This bank is
closed by order Of the comptroller of the
currency. (Signed) o. p Tucker. Ma
tional Bank Examiner"
The above notice appeared on the
doors of the stately building of the
German National bank Of Newport Ky
prior to the time for opening today. The
salient facts of the cause of the notice
had been known since Sunday morning
and therefore there were none of the
usual scenes accompanying a run on the
bank by depositors. The alleged defaI-
cation of Assistant Cashier Frank NJ.
Brown to the amount of about 5000 900
was a fact so overwhelming that no de-
pOSitor was foolish enough to suppose
that any good could be accomplished by
attempting to get money from the bank
today
National Bank Examiner o. p. Tucker,
who is in charge, in an interview today
said that the alleged defalcatiOn was
not discovered by him until 10 o'clock
on Saturday night; that both he and the
banks own experts had been unable to
find anything wrong until that time.
The discovery was made in a cOnpari-
son of Browns Individual ledger with
the cashiers daily checking up. Here,
he said, it was found that Brown had
been forging balances from day to day
until the total of 1892, 600 had been with
drawn from the funds Of the bank. The
examiner further said that the matter of
criminal proceedings had been referred
to United States District Attorney Mil
Ter, of Louisville, who would cause a
warrant for Browns arrest to be is
sued. The examiner himself had not
taken this step because he knew that
Brown was absent. The only bond
which the bank holds is that of Paris
c. Brown, the father of the assistant
cashier, who is a well known river man
and president of the Consolidated Boat
Store company. This bond is an open
one, conditioned to cover any shortage
by the son. It is said that though
Paris c. Brown has voluntarily offered
his entire property to meet the obliga-
ton, not more than $4,000 can be re-
allied from this source
The examiner stated that he probably
would be named as temporary receiver,
but the appointment of a permanent re-
ceiver was in the hands of the comp
troller of the currency. The stock, he
says, is of no value, as q double liability
assessment must be made. DepOSitorS
may receive a dividend as soon as the
comptroller of the currency viii author
ize it, but this may be weeks and even
months. Depcsitors viii be notified of
the amounts to their credit and they
will be required to make proof of their
claims. Examiner Tucker said he would
employ a full force of clerks to arrange
the business of the bank and make
every effort to collect all the debts due
the bank and in every way discover the
banks exact condition, but until that
time he would not make a positive state
Inent as to the extent of the liability
beyond that it now appeared to be $780,
900.
The bank was the depository of nine
building associations and of the adjoin-
ing corpora lions of Bellevue, Dayton,
and other towns, as well as of about
fifteen hundred individuals and firms
There are no indications of an accom-
plice, or of any one knowing about
Browns departure or destination.
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