The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1916-03-31
PUZZLE TO EXPERTS
Tangle In the First National Bank Of
New Richmond Worst Ever
Encountered.

ANtN hlShhlouu, W. oiC CABCNtSu III
short time. The bank closed its
doors November 20, last, and Novem-
Der 80 Judge Frank Davis was APP
pointed receiver.
In spite of the most diigent ef-
forts of the receiver and government
experts it has been impossible, it is
said, to determine the exact condition
o; the accounts.
Those who have been engaged in
the examination say that it is the
worst tangle they ever encountered
So loose was the system of bookkeep-
ing, say the examiners, that they can
not tell in many instances whether the
creditors are debtors or the contrary
All facts ascertained have been turn
ed over to the Comptroller of the
Treasury and United States District
Attorney Bolin.
1t is reported the deficit is many
thousand dollars and that the stock
holders will be called upon to make
good twice the amount of their stock
This will not meet the deficiency, it
it conceded by Judge Davis, who will
retire as receiver next Friday, to be
succeeded by p. E. Wagner, Pittsburg.
Judge Davis says he has grown tired
of the job and desires to devote his
time to other work.
81 can not give out any details
about the bank" said Judge Davis,
but the concern is in just about as
bad condition as it could be. Unable
to tell anything from the books we
have had to start an entirely new sys-
TEN of bookkeeping, hoping to get
some order out of the chaos that eX-
lists"
The failure has been more disas-
trOus to this thriving place than a
flood Scores of well to do people
have lost their all. it is said. as the
bank, which was established in 1865,
was regarded as one of the most sub
stantial financial institutions in Cler-
mont county.
Among the stockholders the heaviest
loser is probably II. G. Donaldson, a
farmer near New Richmond, who was
a director in the bank and held fifty
two shares of stock Mrs. Allie Dan
iels, Miss Emma Moran and Mrs. Rose
Hawkins are among the women stock
holders who, it is reported, will bel
hard hit by the failure.
Inspector Bennett of the Department
of Justice, who was at work for sew
.eral weeks on the books, has made a
report to the government authorities
and it is rumored that number of
criminal prosecutions shortly will be
instituted. The active operations of
the bank were conducted by L. S.
Friedman, president; George w. Nc
Murchy, cashier, and Jesse Fee, assist
ant cashier.
lntimation that the government will
take drastic action against certain
officials has revived interest in the
failure which caused tremendous ex-
element in this county. While Re-
ceiver Davis declined to verify the
statement, it is said several of the
officers invested heavily in a brick
factory at Logan, o., in Texas lands
and in other enterprises which proved
Improbable.
One of the peculiar incidents con-
nected with the collapse of the bank
that is attracting much attention is
the experience of A. c. Reinhardt, en-
gagged in the transfer business. Since
the failure Reinhardt has been nOti-
fed several times that he had over
drawn his account $1,000. He siren
uously denies that he owed any such
and AYERS that his books show
that the bank is in his debt $44O. He
says that the receiver has offered to
for $1,000 1t is also as
serted by Reinhardt that for more than
two years he tried unsuccessfully TO
have his bank book balanced, but al
ways was put OFF with various ex-
cuses.
AT least dozen other depositors de-
clare they received the same treat
ment, among them Archie House, con
fectioner, who was charged with an
overdraft of $1,000, which has been
for $500. Il is said the
examiners have been unable to tell
who does and who does not owe the
bank, because of the system of keeping
accounts.
The depositors will lose from sec, 900
10 100000, it is reported. and no es-
innate is given from any source as TO
the probable amount that may be
saved from the wreck
One firm of contractors had S23, 900
on deposit at the time the bank closed
lis doors. IL is reported.
The further the investigation pro-
crosses the worse the state OF Affairs
uncovered, the investigators say.
il is waste OF money TO advertise