Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1910-09-15
BANK COMMISSIONER DOLLEY
TELLS OF FLACK'S METHODS

affairs OF j. A. Flack:
THE system followed by Flacl
made it impossible for the depart
ment to learn anything Of it. He hell
up time certificates and removed
leaves in the loose-leaf ledger max
ing the books balance at all times
II would have taken two men two
months to have found shortage II
that bank before It did develop. j
would have been necessary to cal
In everything connected with the banl
and put an expert auditor at work
when a farmer came in with
money and made time deposit
Flack would hand out a certificate
and keep the money. Then he would
remove leaves from the ledger and
It would appear that everything was
straight. A woman came In after
the shortage was discovered with a
deposit slip for $3.50. The books
showed it to be $780, Flack had
neatly erased the figure six.
1--WE have been suspicious Of Flack
for some time. He was too liberal
with money and there was no visible
source of supply other than the bank.
He claimed to have lot of western
land that he had been disposing Of
at fancy prices but we found that to
be untrue. The depositors have lost
nothing and the bank Is operating as
usual. The officials made up the
deficiency. A warrant has been is
sued for Flack who Is believed to
have gone east and we are on his
trail.
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 corresponding
amount of cash. He had the loose
leaf ledger system. The bank check
ed up all right as both the cash and
leaf we're gone. Only an expert ac-
countant could have discovered this
manner of defaulting and 1t probably
would have taken him several weeks.
Nothing new Of Importance came
to light today. A few discrepancies
have been found in deposit accounts
but none of Importance. The gath
ering up of matters show that Flack
was short a total of $4,000 or
this 100000 was taken from the
bank and he turned back $4,000
in property making a shortage OF
$4,000 as at first reported. This
was made good by the directors.
Then there was $4,000 in estates for
which he was administrator, covered
by bonds in bonding company and
by individual bond. other deinquen-
cies will make up the balance !
Nothing has been heard Of Flack.
1t was reported that he was seen N
Chicago Tuesday but 1t is more likely
tht he irs in Mexico where he would II
be safe. The bonding companie; are L
after him. a
County Attorney Rugh will file ]
complaint when detailed facts are a
by the bank comm ssioner. Il
The State bank has about > safe
ty boxes belonging to individuals to S
many of which Flack had access. A.
L. Fair, who formerly lived mere, +
came up from Lawrence and found
q 5000 mortgage gone from his box
It was found among the banks Sc
curitlels No others have been found W
disturbed though only few have D
been examined. The baseball asso- L
ication whose debts he volunteered n
to pay appears on the books with an
overdraft OF $500. Flack was per- ty
sonally the treasurer and had no in T
structions about depositing money m
and 1t is not known whether or not in
the association is liable for the re
W
1t rs not believed that Flack went re
away penniless. He promised to pro-
duce $4,000 Monday and it is be- hi
Iieved that he had this sum in cur al
rency. He evidently thought IL t "
Ter to skip with 1t than pay it over, OF
Il is probable that he has this sum NJ
With him. Ii
/. s. Hallam, president of the bank, IA
aid this morning: 81 am mighty W,
lrOud Of the good friends l have in tn
his crisis and that l was able to
seep the bank sound and protect its vo
leposltors. The bank is doing bust III
less as usual and we believe that the WI
nd Of the losses has been reached" lei
er
II was reported today that half wi
sctIon Of land in Wallace county is tn
! Flack's name. The bank lie inves-
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