Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1900-11-19
WRECKS A BIG BANK
Kentucky Bank Clerk and Nearly
100000 Of, the Banks Funds
Missing.
The German National Of Newport,
KY, lrreparably Ruined BY the
Defalcation.

Forced Balances Deceive Experts
and the State Bank Examiner
For Years.
Cincinnati. Nov. 19.-"This bank is
closed by order Of the comptroller of the
currency. (signed Q. p. Tucker, ma
tional bank examiner
This notice was placed on the doors
of the German National Bank Of New
port, KY, before the time for opening.
The salient facts OF the cause have been
known since Sunday and therefore there
was none of the unusual scenes accom-
panying run on the bank by deposi-
tors. The alleged defalcation Of the as
sistant cashier, Frank NJ. Brown, to the
amount of about $780, 600 was a fact SO
Overwhelming that no depositor was
foolish enough to suppose any good
could be accomplished by attempting to
get money from the bank today. |
Examiner Tucker, in an interview to-
day, said the alleged defalcation was not
discovered by him until Saturday night,
having heen unable to find anything
wrong until that time. They found that
] Brown had been forcing balances from
| day to day until a total of 1892, 900 had
4 been withdrawn from the funds of the
/ bank. The examiner further said the
matter of criminal proceedings had been
referred to United States District At
ltorney Mills, of Louisville, who would
cause warrant for Browns arrest to
Ibe issued The only bond which the
bank holds is that of Paris G. Brown,
/ father Of the assistant cashier. who is a
we'll known river man and president Of
the Consolidated Boat Store Company.
4 This bond is an open one, conditioned to-
cover any shortage of the son. It is
i said the father has voluntarily offered
\ his entire property to meet Its obliga-
Il tions. Not more than $4,000 can be
4 flrealized from this source. The examiner
stated the stock was OF no value. as
! double the liability assessment must be
made. The depositors may receive a
diridend as soon as the comptroller OF
!, the currency shall authorize 1t. but this
: may be weeks, even months.
n The bank was depository for nine
I building associations and OF the adjoin-
ling corporations Of Bellevue, Dayton
: and other towns as we'll as fifteen hum
= dred individuals and firms. There are
no indications Of an accomplice or any
one knowing about Browns departure
or destination.
Cincinnati, o., Nov. 19.-The German
National Bank at Newport, KY. which
was crippled by the alleged peculations
of Frank NJ. Brown. the individual
, book-keeper and assistant cashier. has
been placed in charge Of United States
4 Bank Examiner Tucker. who Sunday
i posted a notice that the bank will re-
. main closed pending a thorough exam
8 ination.
Il Examiner Tucker makes the unoffi-
e lcial announcement that Brown, who is
: missing, is short about $20l,0OO. AS the
n capital stock of the bank is only $780,
600, it will be seen that the case is ser-
= GUS Brown had BEEN with the bank
g eighteen years, was one of the most
!. trusted men ever connected with this
8 old bank, and 1t is, stated by the ex-
/ .perts that his operations extended back
e as far as ten years. Browns alleged
k shortage is double the capital stock
l. and more than the reserve and all the
e assets. including their real estate.
n While Alvord got away with 500, ,00(
I'll in New York he did it In a large bank
y but Brown did not have 50 much to 81
ION and seems to have done the ful
limit for small bank in a city OF fewer
than 10000 inhabitants.
: The First National bank Of Newpor
wrecked two years ago by Cashiel
!, Youtsey, and now with the German Ma
!, tional bank closed, Newport has onl.
= :; one bank left For two weeks ther
= have been rnmors that Brown wa
). short and some depositors Withdrew
3. their accounts. Three weeks ago tn
- bank examiners made good statemen
= for the bank and the officers and di
rectors allayed suspicion by referrin
to the report Of this examination an
6, to their last statement.
az Last Wednesday Brown left. and
- was announced that he had gone on
- vacation. He did get a ticket for Odir
:, ILL.,, but it Is learned now that he di
~ ~ no go there, and 1t is generally believe
=. :. that he is out OF this country wit
- plenty of money in his possession.
!, is learned that Brown was suspende
- last Tuesday pending an investigatio
Z and that experts have been at work a
the past week while the officers an
directors have been making announce
i ment that everything is all right. La:
=, ,,s Friday the officers and directors, ove
Ia their own names, published In the PAL
ers Of this city a statement that tn
!. bank had been found to be all rigt
az and that the rumors about Brown WEI
"a false. They continued making the
gtataments to the press as late as la
midnight, but the statements Were NJ
accepted, by Cincinnati paper Whte
do exposed the alleged shortage and eau
en- ed a panic in Newport today, 50 tn;
B. the bank had to be taken in charge
M the examiner.
me The widest scenes We're witnessed
ge Newport Sunday, and more serio'
no trouble Is feared.
Brown, it is alleged. was living fa
life, with wine. women and gambling
his repertoire. His career war not G
,es short by any discovery At the bank un
ne jealous woman gave him away. Brow
SLY is a widower with oneson. aged 10 veal
ms who lives with Browns father. Paris
nd Brown, ex-mAyor OF Newport and Q
J. OF the leading burness men OF Csnci
ati. 81
Last pammer Brown visited Yello'
]. stone Park a6d q Cincinnati wom'
ax- wanted TO u company him, but this y
ex denied her When she ascertained soi