The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1913-01-10
.CEyL0N BANK TELLS
STORY OF CARR DEAL
From Mondays Daily.

The First Nationals Bank of Cey.
lon has published complete state,
ment of the fraud which was prac.
ticed on the bank few weeks ago
the story of which appeared in The
Free Press. The bank was swim.
died out Of about $4,000 by one
John Carr on forged check. The
swindle was worked so smoothly
that the bank did not suspect any
crookedness until week later.
John Carr went to Ceylon and ne.
Sotiated with B. II. Ward for the
purchase of stock of merchandise
which Mr.. Ward owned in that vii
iage. Mr.. Ward introduced the man
to Mr.. Heningson, cashier Of the
Ceylon bank, and to Fred Koenecke,
assistant cashier of the bank, as a
former resident of Alaska. Mr.
Ward said that the man had forme'
ly travelled through Minnesota and
that his, Mr.. Wards, father, had
bought goods OF him. The man was
also said to have been in business
in Fairmont about twenty-five years
ago.
Carr first came to Ceylon on De
cember 3 and by the evening of
that day it was understood by the
bank authorities that the transac-
ton was practically closed and
Carr had also bargained for Mr..
Wards house in Ceylon, saying that
no doubt his family would arrive
within a short time to take up their
residence in Ceylon. ....
The next day Carr went to Ceylon
again and called at the bank. He
talked to the men at the bank about
the vacation of the house for
which he had negotiated and which
was occupied by Mr.. Koenecke and
his wife, and Mr.. Koenecke finally
agreed to vacate the house immedi-
ately. Carr then remarked that he
supposed that he would be doing
considerable business very soon any
way so he would start an account
with the bank. He presented draft
on the First National Bank of
Fairbanks, Alaska, for $4,000 He was
given certificate of deposit for
$4,000 and had the other $1,000 de-
posted subject to check. He said
that if he found place where high
er rate of interest would be paid
on the $4,000 than the rate of the
Ceylon bank, he wanted the priv
lege of getting his money and this
was granted him. He returned to
Fairmont that night and paid Mr.
Ward $500, down for the store and
agreed to take invoice of the stock
on December 10,
Nothing more was heard of him
ingson received telegram saying
that Cars wife had been fatally
injured in an accident and that
Carr had gone to Seattle to be with
her. He also asked, Me-. Heningson
to represent hip in the, b, invoice,
which Mr.. HeniIgson did. =, Mr.. Hen
ingson and Mr.s@Ward also received
special delivery, letters from Carr
telling in detail of the accident and
OF what he wanted done in the mat
ter Of the purchase of the stock g
goods and he also gave a Seattle ad-
dress.
Mr.. Heningson then telegraphed
to him, at Seattle and became sus-
picious when he received no reply
to his message. He inquired of the
49, o'oi apouI Vic aLuGSSdSc anu was
told that it had not. been delivered,
there being no person of the name
Carr at the address given. Mr.. Hen.
lrgson then telegraphed to the
First National bank at Fairbanks.
Alaska, concerning the validity of
the draft and was told that it was
not genuine.
A meeting of the bank directors
was called and it was found then
that Carr had exchanged the Ccylon
certificate of deposit for a draft on
a Fairmont bank for $4,000 and $500
IN cash, and then had cashed the
draft for $4,000 in st. Paul.
The bank at Ceylon has made this
statement public to show it's deposi
tors how the entire swindlo W.
carried out and has announced tho.
the stockholders alone, and not the
depositors will lose by it.
Mr.. Koenecke, the assistant cash
Ter OF the Ceylon bank. was last
married to Miss Minnie
Olson of this city, and is well
known TO many Mankato people.