New-York tribune., 1900-11-20
KENTUCKY BANK CLOSED.
NEWPORT INSTITUTION. WHOSE ASSIST
ANT CASHIER TOOK ABOUT 100000,
INHANDS OF BANK EXAMINER.


possession OF the institution on rumors that
Assistant Cashier Brown had embezzed about
100000 The following notice was posted on
the doors before the hour for opening:
This bank is closed by order Of the GeqtEoller
National Bank Examiner.
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 run the bank by depositors.
The alleged defalcation of the assistant cashier
Frank NJ. Brown was so overwhelming that no
depositor foolish enough to suppose tnal
any good could be accomplished by attempting
to get money from the bank to-day.
National Bank Examiner Tucker. who Is In
charge, stated that the alleged defalcation was
not discovered by him until 10 o'clock Saturday
night. that both he and the banks experts
had been unable to find anything wrong until
tnat time. The discovery was made by COM
parison of Browns individual ledger with the
cashiers daily checking up Here il was FOUND
that Brown had been forcing balances from day
to day, until the total of 800 had been with
drawn from the funds of the bank The exam
lner further said that the matter OF criminal
proceedings had been referred to United states
District Attorney HILL of Louisville, who prob
ably will cause warrant for Browns arrest to
be issued. The examiner said he had not taken
tIi4S SleD because ne knew Brown was dDSSilI-
The only bond which the bank holds is that OF
Paris c. Brown. father of the assistant cash
leC, who is a well known river and presl-
dent of the Consolidated Boat Store Company.
rms pond is an open one, conditioned to cover
any shortage by the Mr.. Brown has vol
unfairly offered his entire property to meet It's
obligation Examiner Tucker says the stock is
Of value, as a double liability assessment
must be made. Depostors may receive a divi-
dend as soon the Controller of the Currency
viii authorize it. but this may be weeks ana
he 7fF1Or N1-a hp
employ full force of clerks to arrange the bus
mess of the bank and make every effort to col
lect all the debts due and in every way discover
the banks exact condition. Until that time ne
will not make a positive statement as to the ex-
tent of the liability beyond that it now appeared
to be $4,000 The bank was the depository or
nine building associa tions and of the adjoin-
ing corporations of Bellevue. Dayton and other
towns, as well Of about fifteen hundred in
dividuals and firms
There are no indications of an accomplice or
of any one knowing about Browns departure
The experts who have been working to-day
with the receiver or the books of the bank place
the shortage Of Brown the missing assistant
cashier and individual bookkeeper. at S191. 500.
According TO reports from those who were with
Brown when he went away last Tuesday night,
he had less than $500 with him. Browns salary
only 81 800 year. Cases are cited
where he spent more than that amount in one
day. His bond was for $4,000, and it is good as
far as it goes
United States District Attorney Hill will ar
rive from Paducan tomorrow, when, it is said,
eral detectives have certain persons under sur
veance, and there are reports tonight about
arrests that will follow on the arrival Of District
Attorney Hill. During the run on the bank on
Saturday 100000 was secured in Cincinnati to
bridge over the trouble. This was returned to-
day, and Receiver Tucker had other moneys
and papers also transferred to Cincinnati
Browns system required a wonderful memory
The experts say he carried in his head the
figures that enabled him to call off correctly a lot
Of false entries in way to throw the clerks
who were doing the checking with him off the
track. depositor would put in So 100 Brown
would enter the proper amount of the deposit
in book and enter it as 800 in another He
would take the difference So, 600, himself. Then
when ii came TO checking up he would handle
one of the books. Another clerk would check
$100 which appeared as the amount of the de-
posit the book which he was handling, he
would call il as So, 100, thus making It corre
spond with the book in the hands Of the other
clerk He also, 1t is alleged, worked in another
way. depostor would draw out 500. Brown
would make the proper entry in one book and
enter So 100 in another. When the depositor had
his account 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 amount due the depositor they got
their information from the books which showed
that So 100 had been withdrawn Brown had
memorzed all the individual accounts, and the
experts find no private marks Of any kind on the
books The general ledger was kept correct and
balanced with the cash, while the individual
ledger, it is alleged, fixed to suit Browns
purposes the former being the one that the
bank officials examined. 1t IS generally believed
that Browns first shortage started accidentally
with an error of 81 600 in the individual ac-
counts.
Officers of the National Bank of the Republic
at Broadway and Wall-st., the local correspond
ent of the German National Bank of Newport.