The Parisian. (Paris, Tenn.) 1907-1962, 1921-08-19
AUDIT OF BOOKS
NOT COMPLETE IN
BANK SHORTAGE
CONTINUED from page one.)

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the day before. The books, 1t seems,
failed to balance that afternoon.
There was hurried checking by the
bank employees of all the books
and a meeting of the directors. Mr.,
Lasater, returning on an afternoon
train from Memphis was immcdi-
ately called into a conference, and
| 1t is said acknowledged the false
entries, which it seems kept his
book balance in such shape that the
tshortage could not be detected.
According to Mr. Frank Morris, as
sistant bookkeeper the shortages
were effected from time to time for
by Mr.. I.asater being merely the
making of lesser entries on the
general ledger of the days deposits
than the amount shown on. Mr..
Morris individual ledger as turned
over for the balance at the close
of the day; this, it Is said, enabled
the taking of the difference be-
tween the actual deposits and the
lesser amounts shown on the general
ledger, thereby keeping all customers
accounts correct and throwing the
shortage into the banks surplus
fund. Mr.. Lasater agreed to turn
over to the bank all of his assets
and the transfer of his new hand
some home on Walnut street together
with other real estate here was
effected early this week; the bank
has also taken over his personal
property automobiles, dog kennels,
chicken farm, household furniture,
etc.
The conditions as developed will
have no effect on the affairs of the
bank, according to the officials, as
the bank carries surplus of
100000 in addition to it's capital
stock of 100000, and this totaled
with the undivided profits, amounts
to $253,973.00
According to a statement made
Tuesday afternoon to Partisan re-
porter by President ]. C. Porter of
the banking institution the shortage
will not be as large as was first
reported, although the exact figures
cannot be estimated with any degree
of accuracy as yet; he says any
thing which could be given out
would be merely guess work until
the audit of the books are completed,
at which time the shortage, together
with all details in connection with
the incident will be made public
He stated that the shortage came
as a great surprise to all Officials
and employees of the bank, since Mr.
Lasater had held the absolute con
fidence of everyone connected with
the institution, so much so that no
daily re-checking of the ledger bal.
ances were required and, he said
1t was in this manner that the short
ages which occurred from time to
time for the past year or more, had
gone undiscovered.
Mr.. Porter stated further that the
bank had suffered no Inconvenience
or embarrassment as a result of the
affair, no more than a dozen depos-
tors having withdrawn their accounts,
some of whom returned the day
after and re-opened them. He states
that the resources and capital OF
the bank are sufficient to care for
the shortage without the stockhold-
ers having to suffer, and that he
has guarantees of full restitution
from Mr. Lasater and others so that
the bank will suffer no loss.
AS yet Mr.. Lasater has had. no
formal statement to give out Tor
publication other than his quoted re.
marks to personal friends and bank
officials, from which it seems that
speculations which developed con,
trarily caused his deeper financial
plunge and the shortage came to
the surface before he had an OPP
portunity to cover it with redemp-
ton funds, as was his apparent even
tual plan.
Many wild rumors have been afloat
during the past week, alleging first
one condition and then another, but
in view of the strength of the bank.
ing institution, and the shortage be,
ing less than the banks maintained
surplus, to say nothing of the capital
stock, those who should know are
Immediately aware that the situa-
ton will have no effect whatever
on the standing OF the bank, nor
affect it in any way other than the
loss to the stockholders of any diff
ference there might ultimately be
between the actual shortage and the
amount of restitution Mr.. Lasater
will be able to make. And, to this
end, it is well known that he has
friends and relatives more than sui.
ficiently able financially to replace
the amount that is short, which will
mean the directors and stockholders
of the bank will not have to suffer
the unfortunate incident
Mr.. Lasater, having secured his
shortage, it is doubtful ii there will
be any prosecution, as under the
laws of this state when restitution
is duly made, prosecution is waived.
Following his arrest Thursday night
he was kept in company with a
deputy sheriff until Saturday after
noon when he waived preliminary
hearing in magistrates court and
was placed under $4,000 bond for
his appearance at the November
term of circuit court this sum was
readily executed by w. r. and j. p.
Lasater, father and uncle of the ac-
cused, and W. d. and j. H. Nc
Swain, after which he was released
from custody and is now at his home
in this city.