Click image to open full size in new tab
Article Text
CASHIER SLIPS OUT WITH CASH AT MINN. LAKE
Bank Closing Caused By Embezzlement Shortage.
MAY REACH $50,000.
Arrival Of Bank Examiner Forces Quick Move
[By Associated Press]
Minnesota Lake, Aug. 7.—Disappearance of F. A. Ludwig, cashier of the First National Bank here, has disclosed a "serious shortage" in his accounts and this instead of frozen assets necessitated closing the institution it was learned today.
While National Bank examiners are checking the accounts of the bank, officials of the institution refused to make any statement, but apparently authentic information is that the shortage will approximate from $40,000 to $50,000.
Monday afternoon a bank examiner dropped into the bank on one of his unannounced trips and Ludwig, who had gone to Mankato that afternoon to take two sister-in-laws to a train dropped out of sight after telling his wife and mother-in-law that he would be gone "just a minute."
It was 7:30 P. M. when Ludwig left his wife and her mother.
An officer of the First National bank whose name is withheld at his request told the following story of the closing of the bank, according to the Wells Mirror:
Planned Mankato Trip
Cashier Ludwig had planned to take his auto Monday evening and drive with his wife, mother-in-law and two sister-in-laws to Mankato the latter two could catch a north bound train.
H. A. Schlotzhauer, National Bank examiner, arrived Monday on the 4 p. m. train. Shortly afterward Cashier Ludwig left by auto as previously planned.
Upon reaching Mankato, the cashier stopped the car near a hotel and left his wife and mother-in-law waiting in the auto. Finally it began to rain so the waiting women stepped into the hotel, but watched out of the window in the belief something had happened to detain him but that he would return. Then she formed the theory that he had been waylaid by a yegg and perhaps fatally injured.
At 4 a. m. Tuesday Mrs. Ludwig telephoned Alfred Gentz, who is a son of Albert Gentz, a cattle buyer in Minnesota Lake, and also notified the police officers of the strange disappearance of her husband. Mr. Gentz got out of bed and dressed and drove the women back to their home in Minnesota Lake.
Tuesday work was begun on checking over the bank's books. A shortage was discovered, but the amount is being withheld until it is learned whether there is anything else wrong.
Decide to Close
Wednesday morning the directors found news had gotten abroad of the disappearance of Cashier Ludwig and they decided to avert a possible run by closing the bank to protect depositors.
The bank official who told the foregoing story declared he was practically certain it would only be a short time until the First National bank opens again.
Mr. Ludwig is said to be a young man of about 28 years. He is described as possessing a keen intellect. Besides his wife, he has a little daughter. Mr. Ludwig was also treasurer of the school board. It is understood that he has been speculating on the stock market.
