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LOOTED BANK OFFICERS GREATLY SURPRISED. Continued From Page One. tional bank of Newport. Ky., prior to the time for opening today. The salient facts of the cause of the notice had been known since Sunday morning, and, therefore, there were none of the usual scenes accompanying a run on the bank by depositors. The alleged defalcation of Assistant Cashier Frank M, Brown to the amount of $200,000 was a fact so overwhelming that no depositor was foolish enough to suppose that any good could be accomplished by attempting to get money from the bank today. National Bank Examiner O. P. Tucker. who is in charge, in an interview today said the alleged defalcation was not discovered by him until 10 o'clock on Saturday night; that both he and the bank's own experts had been unable to find any. thing wrong until that time. The discovery was made in a comparison of Brown's individual ledger with the cashier's daily checking up. Here, he said, it was found that Brown had been forcing balances from day to day. until the total of $192,000 had been withdrawn from the funds of the bank. The examiner further said the matter of criminal proceedings had been referred to United States District Attorney Hill. of Louisville, who would cause a warrant for Brown's arrest to be issued. The examiner himself had not taken this step, because he knew that Brown was absent, The only bond which the bank holds is that of Paris C. Brown, the father of the assistant cashier, who is a well-known river man and president of the Consolidated Boat Store Company. This bond is an open one, conditioned to cover any shortage by the son. It is said that though Paris C. Brown has voluntarily offered his entire property to meet its obligation. not more than $20,000 can be realised from this source. The bank stock. Examiner Tucker said, is of no value, as a double assessment must be made. Depositors may receive a dividend as soon as the comptroller of the currency will authorize It, but this may be weeks, and even months. Depositors will be notified of the amounts to their credit and they will be required to make proof of their claims. Examiner Tucker said he would employ a full force of clerks to arrange the business of the bank and make every effort to collect all the debts due the bank and in every way discover the bank's exact condition, but until that time he would not make a positive statement as to the extent of the Habilities beyond that It now appeared to be $192,000. The bank was a depository of nine buildIng associations and of the adjoining corporations of Bellevue, Dayton and other towns, as well as of about 1,500 individuals and firms. There are no Indications of an accomplice or of any one knowing about Brown's departure or destination.