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WACO. CASHIER WALLING OF A BROWNWOOD NATIONAL BANK Brought in Under Arrest-Read It Only In The Gazette-A Great Wheel Event. Summer Normal. Waco, Tex., June 29.-(Special).-S. J. Walling, cashier of the recently closed National bank was brought here tonight in the custody of a deputy United States marshal. He was arrested upon a warrant issued by United States Commissioner Lednum of Dallas, charging him with embezzling $12,000 of the funds of the bank, upon which charge he will be given a preliminary hearing before United States Commissioner John H. Finks of this city. The bank was recently closed by Bank Examiner Gannon and B. B. Paddock of Fort Worth was appointed receiver. It is claimed that an investigation of the bank's affairs led to the charge against Cashier Walling and his arrest, Walling was taken before Commissioner Finks on his arrival and his bond fixed at $10,000, which he was not prepared to give and in default was locked up in the county jail. His preliminary examination was set for July 10. The Gazette's correspondent interview ed the prisoner, who sat behind a barred window. Walling said the bank was organized in June, 1800, with a capital stock of $150,000, of which $75,000 was paid in, afterwards $50,000 was paid in out of the earnings of the bank and later on the remaining $25,000 capital stock was paid in. "I was the owner of $30, 000 in stock," Walling said, and was the heaviest stockholder. We made considerable money and we lost a great deal. 1 was cashier, and really general manage er, the directors and officers let all the work fall upon me, and I had practically no assistance. I did not secure personally nor for myself one dollar of the bank's money, the $70,000 which I was accused of misappropriating and misapplying was all loaned out to business men and firms, of which I believe there were eight. The books of the bank will show this. These loans are not worth par, many of the bor rowers having failed and the stringency in money matters making it impossible to realize upon the securities. These loans were all made within the last six or twelve months. The bank was getting on nicely prior to May 10. At that time some immediate changes were made in the officers. Rumors began to be heard, and a steady withdrawal of deposits bet gan and was maintained for four weeks. Our deposits ran down from $130,000 to $50,000. This exhausted all the money the bank had and suspension was the remult." Walling said he came to Brownwood three years ago from his home at Shelbyville, Tenn. He feels his imprisonment on account of his wife and children. He expects to be able to make bond in a few days, and is confident his will be acquitted of the charges on trial. The affidavits against Walling charges him with embezzling, misappropriating and misapplying the funds of the bank to the amount of $70,000, mak ing false entries in the books and trans. mitting false statements to the comptroller of the currency
