The Birmingham age-herald., 1910-07-24

Louisville, July 23-Augustus Ropke assistant secretary and bookkeeper of the Fidelity Trust company one of tke soundest financial institutions in Louisville, Is alleged to have made away with s1,14o,00o, the entire sur plus of the concern, according to a statement made late this afternoon by John w Barr, president of the trust company. at his offic. three blocks away from the county jail, where Ropke has been locked up for 10 days un- able to furnish bail in the sum of $25,000. Ropke was a heavy specula- tor and lost large sums In Wall street and the Chicago board of trade.
 The question was put to MT. Barr: Does this amount represent Ropke's net defalcation?' 'I can only say to you" replied MT. Barr, that the en- tire surplus of the company has been wiped out"
 MT Barr's announcement was made after a special meeting of the stock holders held late this afternoon. MT. Barr said that the stockholders had been advised of the entire situation. They were told that the capital stock of the concern was intact, but that the entire surplus was gone as a re- suit of the alleged dedication.
 The loss will be met by an issue of stock, as announced several days ago, aggregating s1.00o.o0O, which will be issued to stockholders at par It was announced also that a meeting will be called some time in August to arrange for the issue of this stock.
 The experts who were at work on the books when the alleged dedication was discovered have not yet finished their task, but it has been definitely as- certained that the amount of the short age will reach the amount stated.
 The Fidelity Trust company repre- sents the wealth of Louisville and not witstanding the serious blow it has sustained there is no apprehension in financial circles over the outcome Of the shortage, which has been antici- pated In stree. rumors for some days The all-important question of how such a. large amount representing the entire surplus of an institution handling the business of the Fidelity bank came to disappear will probably not be solved until the experts make their detailed report and this Is not expected before next week.
 The stockholders have already agreed, it is understood. to subscribe the full amount of the new issue.
 August Ropke Is a German. about 45 years old. He Is a man of family and has always stood we'll and enjoyed the unbounded confidence of his busi- ness associates. He lived unostenta- tiorsly and indulged in only one lux ury as far as his friends knew. that was his automobile. But the craze for speculation Is declared to have seized him and his accusers claim he began his dabbling in stocks and grain sew eral years ago. He was successful for a time, but the inevitable losses came and he tried to recoup. One year ago he is reported to have made $200,- 000 only to lose it a month or moro later. How long he has been taking money from the bank as alleged, Is known only to the bank officials, and they may announce it when the experts now engaged ol the books have made tn cir report. He has been in the en- ploy of the bank for IS years and 1t is understood the investigation will cover the entire period Ropke was influential with a large German ele- ment in Louisville and he had only to suggest an investment here and a ven- ture there to them to bring out their money.
 One or two Louisville brokerage houses were kept busy at times hand ling Ropke's trades.
 At one time Ropke was in position. 1t Is reported on good authority. to return all the money he Is alleged to have taken but 1t is said he was un- able to replace it without detection.
 One day about two weeks ago a shortage of $6000 was accidentally dis covered by one of Ropke's assistants and the matter was reported to his su- periors. This resulted in Ropkes arr rest on the charge of enbezzlement and he has been in jail since. He takes