The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-11-20
Sensational Arrests Promised in
Connection With Newport,
Ky, Defalcation.
SHORTAGE F0oTs UP s1e1,500.
Absconder's Wonderful Memory
Enabled Him to Check Up
Without Detection
System Explained.

Cincinnati, O., Nov. 19.-The experts who
have been working to-day with Receiver
Tucker on the books OF the German Ma
tional Bank at Newport. KY. place the
shortage Of Frank NJ Brown. the missing
assistant cashier and Individual bookkeep-
er. at s191,5
According to reports from those who
were with Brown when he left last Tues
day night, he had less than $50 with him.
Browns salary was only $3.50 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.
United States District Attorney Hill will
arrive from Paducah tomorrow, when 1t IS
said criminal proceedings will be begun.
Federal detectives have certain parties un-
der surveillance. and there are reports to-
| night about arrests that will follow on tho
arrival Of District Attorney Hall.
During the run on the German National
Bank last Saturday $4,000 was secured in
Cincinnati to bridge over the trouble. This
was returned to-day. and Receiver Tucker
had other moneys and papers also trans
ferred to Cincinnati.
Browns system required a wonderful
memory. The experts say he carried in his
OF correctly lot of false entries in way
to throw the clerks who were doing the
checking" with him. off the track.
Browns Method Explained.
A depositor would put in $3l0O. Brown
would enter the proper amount of the de-
posit in one book and enter 1t as $40 in
s,,other. a. 61d He would take the difference.
checking, up. he would handle one of the
books Another clerk would check and
Brown would call off Instead of calling of
deposit on the book which he was holding.
he would call 1t as $780, thus making 1t
correspond cor witt, With the book in the hands Of
woe Worked Ie !, in another Mas depossor
would draw out sl00. Brown would make
| the proper entry in one book and enter
! taken from the book in which the correct
| entry had been made. When the bank Of
! fc,als looked to see what amount was due
| the depositor they were given their informa-
| ton from the books which showed that s3,-
| 100 had been drawn.
| Brown had memorized all the individual
| accounts and the experts find no private
marks Of any kind on the books. Tie gen.
eral ledger was kept correct and balanced
| with the cash. while the Individual ledger.
It Is alleged was fixed to suit Browns pur-
| poses. the former being the one that the
| bank officials examined.
This bank is closed by order OF the
Comptroller Of the Currency.
! (Signed 20. P. TUCKER,
| National Bank Examiner"
The above notice appeared on the doors
OF the bank prior to the time for opening
| to-day. The salient facts of the cause Of
| the notice had been known since Sunday
| morning, and, therefore. there We're none
| OF the usual scenes accompanying run
| on the bank by depositOrs. The defalcation
| Of Assistant Cashier Frank NJ. Brown was
a fact so Overwhelming that no depositor
was foolish enough to suppose that any
| good could be accomplished by attempting
| TO get money from the bank to-day.
| TEMPORARY RECEIVER NAMED.
! Washington. Nov. 1a-Comptroller of the
| Currency Dawes has appointed Oliver p.
! Tucker. National Bank Examiner. tempo
| rary receiver of the German National Bank
| Of Newport. Ky. Mr.. Tucker telegraphed
| the Comptroller that he had taken charge
| owing to the discovery Of defalcation
! amounting to about sl92. 900. and thereupon
| the Comptroller appointed him temporary
| receiver. The officials here consider IL as
| tonishing that a defaication amounting to
| more than the reserve Of the bank could
! have remained undiscovered for any length
| OF time, but they attempt TO offer no eX-
| PLANTATION, as Mr.. Tucker has not Yet fur
nished any details.
The last examination of the bank was
made In May last. The following is a state
ment OF the condition Of the bank shown
| the Currency under date of September 5.
| 1900:
Liabltes-Capital stock. $4,000: surplus
and unGiTiGed profits, so C2Ji!. Ci- cu..i ,.O...
| $1,000: due to other banks, si6l1s.45: de-
| posts. 1854 eN %; borrowed money, $4,000.
! Total. s736.7i314
Resources-Loans and discounts s5l; 45l.5 81
| United States bonds TO secure circulation.
s25. .0p: premium on bonds, 81 oSl .25: banking
| house, furniture and fixtures. g. real
| estate owned. S34, S92. So; cash on hand and
| with banks. $780, :6 Total, 1856. .7lS.4.