The Indianapolis journal., 1900-11-19
Intfmatfon that Bank Omcials Made
False Statements Regarding the
Condition of the Institution.
STOCK PLuNGER IN TROUBLE
r. d. CARLEY, GOTHAM BROKER,
DECLARES HIMSELF BANKRUPT.
Liabilities Are More than n Million,
the Assets Nothing-SeveraI Heavy
western Creditors.


Bank Examiner Tucker to-day took pos
session of the German National Bank at
Newport. KY, and posted notice that the
bank would remain closed pending an ex-
animation. Examiner Tucker also an
nounced unofficially that Frank NJ. Brown,
the individual bookkeeper and assistant
cashier. was missing and that partial
investigation showed that Brown was short
about $20l 900. 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 extend 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 assets. including real estate While
Alyord got away with 100000 in New York.
he did 1t in large bank. but Brown did
not have so much TO so on and seems TO
have gone the full limit for a small bank, in
city Of less than $4,000 Inhabitants. The
First National Bank of Newport was
wrecked two years ago by Cashier Yout-
sey, and now, with the German National
closed. Newport has only one bank left.
For two weeks there have been rumors
that Brown was short and some depositors
withdrew their accoVnts. Three weeks ago
the bank examiners made a good statement
for the bank. and the officers and direc-
tors allayed suspicion by referring to the
report of this examination and TO their
last statement, in which all of Browns
alleged defalcations were covered up. Last
Wednesday Brown left, and it was an
nounced that he had gone hunting on a
vacation. He did get a ticket for Odin,
ILL.,. but IL is learned now that he did not
60 there, and it is generally believed that
he Is out of this country, with plenty of
money In his possession. 1t Is learned to-
day that Brown was suspended last Tues
day pending an investigation, and that
experts have teen at work all the past
week. while the officers and directors have
been announcing that everything was all
right.
Last Friday the officers and directors,
over their own names. published 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 statements
to the press as late last midnight, but
the statements were not accepted by the
true condition of affairs. and thus caused
a panic in Newport to-day, so that
the bank had to be taken in charge by
the examiner. The widest scenes were
witnessed in Newport to-day, and serious
trouble is feared tomorrow, when the Of
ficers and directors will be confronted by
people who have hunted them In vain to-
day.
Brown was living fas. life, with wine,
women and gambling in hi. repertoire. His
career was not cut short by any discovery
at the bank till a jealous woman gave
him away. Brown is a widower with one
son. aged ten years, who lives with
Browns father, Paris c. Brown, ex-mayor
Of Newport and one OF the leading busi-
ness men OF Cincinnati. Last summer
Brown visited Yellowstone Park, and a
woman that he is said to have maintained
In Cincinnati wanted to accompany him.
but this was denied her. When she as
certained some time afterward that an
other woman was with Brown on his West
ern tour the Cincinnati woman gave the
bank officials some information that
brought about the crisis. The only fare
well letter that Brown is known to have
left was 10 this woman, whose apartments
are on Ninth street. I'm Cincinnati, and in
this letter he admits that he had secured
about all that he could get and that the
time had come to say farewell. Brown
was great poker player. with the limit
never too high. and he had been a plunger
on horse races for years. His bets on the
races were frequently too high for the pool
rooms In Covington. Ky, and he had
brokers I'm both Chicago and New York
Among the directors is Paris c. Brown,
the father of the defaulter who is known
from Pittsburg TO New Orleans at every
river wharf as the head OF the stores for
boat supplies. The cashier OF this bank
Is also the paying teller. and Brown re-
lieved him as paying teller when the
cashier went to his dinner. 1t is stated
that Brown did most of his work during
the noon lunch of the cashier. There was
quite run on the bank yesterday, but the
usual announcement was made. as IL con-
tinued 90 be made TO the press till after
midnight More of a rush is expected at
the bank Tomorrow even II there has been
a notice posted that the bank is closed
pending investigation. and some fear ex-