Union Bank - New Orleans, LA

Episode Information

Episode UID: 5774106191161
Episode Type: Suspension → Closure
Bank Type: state
Bank ID: 577410619 hash
Start Date: September 1, 1896*
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest: a208bfed9de1b872

Response Measures

None

Description

The article describes the Union Bank as a 'late failure' and mentions massive defalcations discovered after its closure.

Events (2)

1. September 1, 1896* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Enormous defalcations by clerks involving two sets of books and approximately $500,000 in missing funds.
Newspaper Excerpt: Explain the Late Failure of the Union Bank Dishonest Clerks Keep Two Sets of Books and a Get Away With Half Million Dollars
Source: newspapers

2. September 11, 1896 Other

Newspaper Excerpt: The bookkeepers of the Union bank were arrested today. Colombe was not taken into custody, as he was too sick to leave his home.
Source: newspapers

Newspaper Articles (1)

1. September 12, 1896 The Herald Los Angeles, CA

Article from The Herald, September 12, 1896

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Article Text

NEW ORLEANS BANKS BREAK And Heavy Runs Threaten to Close Others ENORMOUS DEFALCATIONS Explain the Late Failure of the Union Bank Dishonest Clerks Keep Two Sets of Books and a Get Away With Half Million Dollars Associated Press Special Wire NEW ORLEANS, Sept. 11.-The Bank of Commerce, which everybody thought would be able to weather the wave of distrust and suspicion which followed the recent wreck of the American National bank, was compelled to close its doors this morning. There was a large crowd outside the bank, and all manner of surmises and opinions were being freely aired by the crowd. but sum and substance seemed to be that the Bank of Commerce had adopted the only course left to it. President Nichol gives the following explanation: "Owing to the unprecedented run on the bank the past six weeks, and the impossibility of realizing with sufficient rapidity on assets, and after consulting with the vice president of the clearing house, submitting a statement to them, deemed it advisable in order to protect the interests of depositors, so that they might be paid in full in a short while, as well as the stockholders, to take steps toward liquidation, a step which none feel more than we do." The Bank of Commerce was founded in 1887 with a capital of $100,000. The plan was to do a general banking business, to furnish accommodations to all classes of patrons, from men of millions to wage earners, and also do a general collecting business. It found a fruitful field and its success had been such as inspired the highest confidence in its founders. At 1:30 this afternoon there was a lively run on the People's bank; so many people were in line hat it extended into the streets. There is considerable excitement but no trouble of any kind. The officials of the ePoole's bank do not seem worried over the run and all checks for $100 or under are being rapidly cashed. The bookkeepers of the Union bank were arrested today. Colombe was not taken into custody, as he was too sick to leave his home. He is under arrest, however, at his residence. Leefe was arraigned and held in $10,000 bonds for a hearing. His bond was immediately signed. He refused to make a statement. Two sets of books were kept. The defalcation purported to be in the neighborhood of half a million dollars. The arrests were made in order to hold the men pending a further investigation. The total defalcations as far as discovered, amount to over $470,000 and the falsification of the books, if not done to cover up the actual losses of the bank by the failure of prominent commercial firms which occurred lenght or ten years ago, shows that the stealings have been going on for some years. The government believes that there was outside collusion and expects the tracing up of the accounts doctored, together with the evidence saught, will reveal the conspiracy and result in the arrest of a number of other parties, some very prominent. Bookkeeper Colombe took a dose of morphine this morning and has been unconscious all day,which prevented his actual arrest. President Baldwin of the clearing house says that the crucial test has been passed and he expects that there will be no more trouble among the local bankers.