The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-09-07
Made No Entry on Books.

A woman came to the bank Tuesday
afternoon with a deposit slip for $500.
This was not found on the books. a
banker from 'Talmadge had 5000 in the
same condition. F1ack was probate
judge four years. He handled a great
| many estates and after he went into
the bank he was allowed to keep on as
financial manager. In what condition
these estates are none but Flack
knows. One of the puzzles has been
how he fooled the bank examiners for
three years while his defalcations
have been going on. 1t was revealed
by the assistant cashiers demand on
Friday morning when he was asked in
the presence of the directors what he
did two weeks ago to cover up the rec
| ords. Calmly he replied:
at took leaves out of the ledger"
The bank which three years ago had
about 100000 deposits, gained slowly
until it ran up to $4,000. Then it
began to decrease and two weeks ago
had only $101, 900. The examination
of the books showed that it should
have had $3.50, 1000. When the examin-
er was busy Flack took from the loose
! leaf ledger containing the accounts of
| depositors enough leaves to bring the
amount down practically to that
| shown by his statement. After the ex-
! aminer left he returned them. This
| had been his method and out of the
profits he has bought some $4,000
worth of property in town. lived in
luxury and everybody wondered how
! he did it. But he explained that he
| owned nine sections of land in western
Kansas and had made a fortune On it.
1t turns out that he had only two
| quarter sections, which he sold long
| ago at a small profit. He was treas
urer of the baseball association, and
when the season ended, two weeks ago,
he generously offered to pay all the
| debts. Now the books of the bank
| show that there is something like $500
overdraft in that account.
Flack was generally trusted. He
was one of the most generous men in
town. He gave to every good cause
and more than anyone else in his posi-
ton. He had the old fashioned cour-
tesy that won friends and took life
to deed over his property, he smiled
and did it with the remark: IF there
is anything wrong 1 do not know it."
The owners of the bank are able to
stand the loss. They are worth ten
| times the amount, and the fact that
the deposits increased today, despite
the withdrawal of a few accounts, in
dictates they need not fear. Nor are
| the other banks affected. They have
| known for weeks that something was
wrong and have trimmed their sails.
| Furthermore, the bank is guaranteed
under the new guaranty law. One
man, however, has sympathy-he is 1.
S. Hallam, the aged president of the
| q
lumberman, then made Flack cashier
and manager of the bank in which he
bought the controlling interest He
trusted him as if he had been son,
and it was not until last week that be
would be made to believe that he had
been robbed
eve wired the Title & Surety Guar
anty company yesterday" said the
deputy bank commissioner, Mr.. Wat
son, that we expected to collect $4,000
| bond. We have not heard from them. "
The bank will not try to bring Flacl
| back but the guaranty company will
| go after him. He is suffering from
Bright's disease and it is likely that
he is at some springs. He intended tc
go to Excelsior Springs, but cannot be
| found there. Flack liked to pose as q
scholar and bought many books. He
acted as the handwriting expert in the
| recent Benignus murder case. spendins
days and nights on clews. He took g
keen interest in sports and never missed
a ball game. Out of banking hours ht
| was a gentleman of leisure, with ap-
parently not a care, and this was his
attitude up to a half hour before he lef
town. His wife is with him, and it is
said they may have gone to Mexico.
/ He was counted on to take an activ,
1 part in the Democratic campaign thi:
fall. He made an active campaign Ell
! cong ressman four years ago. but did no