Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-11-20
GERMAN NATIONAL BANK
IN HANDS Of A RECE|VER.
DETALCATION OF ASSISTANT CASH
TER BROWN APPEARS TO
BE 100000.
HOW SHORTAGE WAS FOUND.
NOTHING TO INDICATE THAT THE
DEFAULTER HAD ANY
ACCOMPLISH.

NEWPORT, KY, November 49,
The experts at work on the books
placed the shortage of Brown at $751;
500 According to reports from those
who were with Brown when he left last
Tuesday night, he had less than $500
with him. Browns salary was only
$500 per year. Cases are now cited
where he spent more than that amount
in one day. His bond was for $4,000,
and 1t is good as far as it goes.
Browns system required wonder
full memory. The experts say he car
ried in his head the figures that en-
abled him to call off correctly lot OF
false entries in a way to throw the
clerks who were doing the clicking
with him off the track. A depositor
would put in $3,100.
Brown would enter the proper
amount of the deposit in one book and
enter it as 500 in another. He would
take the difference, $4,000 himself.
Then when it came to checking up he
would handle one of the books.
Another clerk would check and
Brown would call Off Instead Of call
ing off 500, which appeared as the
amount of the deposit on the book
which he was handling, he would call
It as $3,100, thus making 1t correspond
~,xs4L a.
other clerk. He also, it is alleged,
worked in another way
A depositor would draw out $780,
Brown would make the PROPER entry
in one book and enter $1,000 in an
other. When the depositor had his ac-
, count checked UP the figures were taken
from the book in which the correct
entry had been made.
When the bank officials looked to
see what amtunt was due the deposit
tor, they were given their informa-
ton from the books which showed that
$1,000 had been withdrawn Brown had
nemorized all the individual accounts
and the experts found no private marks
CT any kind on The books
The general ledger was kept correct
and balanced with the cash while the
individual ledger, it is alleged, was
fixed to suit Browns purposes, the for
mer being the one that the bank Off
Gals examined 1t is generally be-
lieyed that Browns first shortage
started accidentally with an error of
$1,000 in the individual accounts.
This bank is closed by order of the
comptroller of the currency.
20. P. TUCKER,
National Bank Examiner"
This was the notice placed to-day on
the doors of the stately building of the
German National Bank of Newport be-
fore the hour for opening. 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
defalcation of Assistant Cashier Frank
NJ. Brown to the amount of about $780,
600 was so overwhelming that no de-
positor was foolish enough to suppose
by attempting to get money f. m the
bank to-day.
National Bank Examiner Tucker,
who is in charge, stated that the al
legged defalcation was not discovered
by him until 10 o'clock Saturday night;
that both he and the banks own ex-
perts had been unable to find anything
wrong until that time. The discovery
was made in a comparison of Browns
individual ledger with the cashiers
daily checking up Here it was found
that Brown had been forcing balances
from day to day until the total of $780,
600 had been withdrawn from the funds
of the bank The examiner further
said that the matter of criminal pro-
ceedings had been referred to United
States District Attorney Miller, of
Louisville, who probably will cause
warrants for Browns arrest to be is
sued.
The examiner said he 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,
father of the assistant cashier, VINO is
well known river man and president
of the Consolidated Boat Store Com
pany. This bond is an open one, con-
ditioned to cover any shortage by the
son. Mr.. Brown has voluntarily offer
ed his entire property to meet its obli-
CATION. Examiner Tucker says the
stock is of no value, as a double liza
bility assessment must be made De-
positors may receive a dividend as soon
as tne controller of the currency will
authorize it, but this may be weeks
and even months. Examiner Tucker
says he will employ full force of
clerks TO arrange the business of the