Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1900-11-22
another BANk D[FAUI|[R
Assistant Cashier of Newport (Ky.)
Institution Gets Away With
Nearly 100000.
SHORTAGE FOUND AFTER LONG SEARCH.
Bank Closed by National Bank Elk.
aminer Tucker, Who Is Made Tenn
pOrary Observation-Disclosures of
Brown Not KnOwn-Steal Amounts
to Double the capitalization.

brown NOT hnOVVn-Steal AmOunta
:. to Double the capitalization.
Cincinnati, Nov. 2O.-"This bank il
closed by order of the comptroller Of
the currency. o. P. Tucker, National
Bank Examiner"
This was the notice placed on the
doors of the stately building of the
German national bank of Newport
KY, before the time for opening. The
salient facts of the cause of the no
tice had been known since Sunday
morning and, therefore, there were
ing run on the bank by oepositors
The alleged defalcation of Assistant
Cashier Frank NJ. Brown to the
amount of about 100000 was a fact
so overwhelming that no deposition
was foolish enough to suppose that
any good could be accomplished by
attempting to get money from the
bank Monday.
Covered His Tracks Well.
National Bank Examiner o. P.
Tucker, who is in charge, in an inter
view Monday said that the alleged
defalcation was not discovered by
him until ten 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 comparison
of Browns individual ledger with the
cashiers daily checking up. Here it
was found that Brown had been fore
ing balances from day to day until
the total of $780, 900 had been with
drawn from the funds of the bank.
Criminal Proceedings.
The examiner further said that the
matter of criminal proceedings had
been referred to United States Dis
trict Attorney Hill, of Louisville. who
would cause a warrant for Browns
arrest to be issued. The examiner
himself had not taken this step be-
cause he knew that Brown was alb
sent. 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 pres
ident of the Consolidated Bookstore
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 it's obliga-
ton. not more than $4,000 can be
realized from this source. The exam
liner stated that he would probably
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 double
liability assessment must be made.
Depositors' Money Tied Up.
Depositors may receive a dividend
as soon as the comptroller of the cur
rency viii! authorize it. but this may
be weeks, and even months. Deposit
ors vii! be notified of the amounts to
their credit and they will be required
to make proofs of their claims Ex-
aminer 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. Until that
time he would not make a positive
statement as to the extent of the liza
bility beyond that it now appeared
to be $192 900.
The bank was the depository Of
nine building associations and Of the
adjoining corporations of Bellevue,
Dayton and other towns, as well as
of about 1900 individuals and firms.
There are no indications of an &C.
complete or of anyone knowing about
Browns departure or destination.
Appointed Temporary Receiver.
Washington, Nov. O-Controller of
the Currency Dawes has appointed
Oliver P. Tucker, national bank ex-
aminer, temporary receiver of the
German national bank of Newport,
Ky. Mr.. Tucker telegraphed the con-
troller that he had taken charge ow-
ing to the discovery of defalcation
amounting to about $195,UUO, and
thereupon the controller appointed
him temporary receiver. The officials
here consider it astonishing that a
defalcation amounting to more than
the reserve of the bank could have
remained undiscovered for any length
of time. but they attempt to offer
no explanation, as Mr.. Tucker has not
yet furnished any details.
Last Bank Statement
The last examination of the bark
was made in May last. The following
is a statement Of the condition of the
bank as shown by it's sworn report
to the comptroller of the currency
under date of September 5, 1900:
RESOURCES.
Loans and discounts....... ,$515 451 81
u. S. bonds to secure circulation, @,OOO OO
Premium on Observation-Disclosures. lob Is
Banking house, furniture and fix
lures ....................... s2,O12 20
Real estate owned. .................. "a ,992 63
Cash on hand and with banks...... 100, 225 46
Total $780, 71s II
Capital stock. :. . . . 500. 900 90
Surplus and undivided profits. 80. 50,63O Il
Circulation ACKNOWLEDGEMENTS. 5000 90
Due to other banks. ................. 16, 17S As
Deposits 534 9O4 q
Borrowed money. ................... 10000 90
TOTAL III Is. S72s no IA