Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1905-07-26
Henry Rule A. Defaulter.

The following clipped from the
Daily Oklahoman of Oklohoma City
o. T. will be of intrest to the older
resident of this vicinity who were
acquainted with Mr.. Rule when he
was a resident of this city:
Deputy Sheriff Casey is expected
home this morning from Kansas City.
Mo-, with his prisoner, Henry Rule,
who will be brought here to answer
charges of a serious nature Rule is
charged with defaulting the Qeming
Investment company to the amont
or $4,000 and the shortage is said
to be traced back over several years.
Rule was manager Of the local office
of the Deming Investment company
and was never suspected Of dishon-
esty until the time of his disappear
ance about three months ago. An
investigation of the company's books
showed the manner by which Rule
became involved, and at last so deep
that he apparently saw no way Of es-
Gaping the eventual exposure and
fled.
The head Office of the Deming In
vestment Company is in Oswego,
Kansas, and Mr.. Rule had been the
manager here for several years. He
was not suspected of being crooked
at all, and was given the most i'm
plicit confidence by the firm. The
matter first came out when Mr.. Rule
left here, going that morning to Mr.
Wilkin, of the State National bank,
and saying that he wanted $1,000
to close loan right away; also that
he did not want to wait until the
bank opened. Mr.. Wilkin knew
that he had been making quick
loans from time to time, and so he
let him have the money. The ST.
600 being given him. Mr.. Rule
left on the Chotaw that morning
and was never seen again by the
company. However, he sent back
a part of the money that he had got
ten from Mr.. Wilkin. His leaving
led to the investigation of the books,
and an auditor from the head office
came down to look them over. He
found that Mr.. Rule had been fore
ing the trial balances from time to
time to cover shortages. One not
an expert would not be able to un-
derstand the means he used. He
was short on cash, and when he sent
in the balances at the end of each
month he would force them to make
them balance with the cash on hand.
One Of the crookedest peices of work
was in the matter of reporting mon
ey paid out ON loans, when in reali
ty, it had not been paid ont. He
would then borrow from the next
months business, and report the
money paid out on loans, and so OIL
until he became hopelessly involved.
1t was not known in what manner
he took the money he used, but this
was the one way, and in fact the
only way that nian could cover up
shortage.
In this way he managed to drive
along for three years, or it is sup
posed so, getting in debt each month
deeper. His actual shortage on the
forced trial balance was $4,700,
while he returned $S00of the thous-
and, making the total $4,000. 1t
was not known how he disposed Of
this money, but it was thought that
he was living too extravagantly.
The story that Mr.. Rule was de-
mented was circulated by or with
the consent of the Deming company,
, as they wished to shield him. They
wereinformed that his friends would
come to his rescue, and that perhaps
so per cent Of this money would be
paid back at once. They have kept
this matter from the public as long
as they Thought they could and pro-