The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-09-10
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Used Loose Leaf Ledger to
Change Records to Suit
Cash

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Cash
Abilene, Kas., Sept. 1O.-When the
defalcation by John A. Flack, former
ly cashier of the Abilene State bank,
was discovered few days ago, 1t was
given out that he was short about
$4,000 Of the banks money.
1t now develops that Flack really
is short about $4,000.
Just what Flack did with the money
cannot be determined here in Abilene,
but the prevailing opinion seems to
be that he has q, large part OF 1t
"saIted" and that he Is by no means
penniless in his wanderings.
There is every reason to believe
that Flack got away with a large
amount Of cash. So far as can be as
certained, he was not speculator
and his habits were the best. He
lived well, but not especially ex-
travagantly, so it is fair to presume
that he took goodly portion of the
$4,000 with him. The depositors will
not lose, IL. as reported, the directors
sign up for $4,000.
To -resecute Him.
William l. Watson, deputy bank
commissioner officially informed the
county attorney this morning that
Flack has violated the banking law
and should be prosecuted. Warrants
will be issued for his arrest.
The directors are now sorry they
allowed Flack to escape. Laurence
H. Phister of Kansas City, agent
for a bonding company, arrived this
morning and is making records for
the claim of $4,000 on F1ack's bond.
AS the company was notified last Sat-
urday 1t is believed 1t is already on
Flack's trail.
Flack and his wife took all their
clothing and valuables. That he did
mot leave penniless was found today
when woman with him on the train
when he left reported to the bank that
she saw him take from his pocket q
roll of new bills of large denomina-
tions. the biggest roll she ever saw.
He took off two Of the bills and gave
them to his wife.
Might Have Taken More.
Had It not been for the low point to
which he drained the deposits he
might have kept up his stealings for
a long period. The discovery came
through his inability to meet checks
for large amounts drawn by farmers
in land deals. They had difficulty in
securing drafts that would not be
protested and some were weeks get
ting settlements, he asserting that
letters were missent Of errors made
when in fact he had done, nothing.
Then local banks refused to handle
;o nd hn N}tu.
spondent reported to the president,
ties in doing business. An expert ac-
books and found the discrepancy.
Flack watched the mails closely and
frequently, after his assistant had
sent papers. went to the postofiice
and asked for the mail before 1t had
he destroyed.
How He Worked It
Topeka. Sept. 10.-J. N. Dolley.
state bank commissioner, was asked
this morning. how 1t was that the de-
falcation in the State bank Of Abilene
could 60 on without being discovered
by his department.
There we're two ways In which
Flack fooled us" he answered. zone
was that he would issue certificate
|of deposit, say for year, put the
money in his pocket and make no
record of the certificate. He figured
that the certificate would not show
up for year and he had that time
to either make 1t good or skip with
the money.
Another way was that he removed
leaves from the deposit ledger. When
our men checked up the bank these
leaves being missing there would be
nothing to show for the correspond
ing amount Of cash. He had the loose
leaf ledger system. The bank checked
up all right as both the cash and leaf
were gone. Only an expert account
ant could have discovered this man
ner Of defaulting and 1t probably
would have taken him several weeks"
- . sis . 90 .
M THE WEATHER. =
North Dakota-Generally fair
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