a5c3243cAccommodated withdrawals
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NEW ORLEANS BANK FAILURES. New Orleans, Sept. 11.-The Bank of Commerce, a state institution, failed to open its doors this morning. New Orleans, Sept. 11.-Special.-The Bank of Commerce closed its doors today. There is nothing particularly sensational in the closure. The depositors and other indebtedness will be paid in full. Business is very much depressed and the public pulse is feverish. New Orleans, La., Sept. 11.-SpecialThere is a run on the Peoples' bank and they may suspend.
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CRISIS AT NEW ORLEANS. A Run on the "People's Bank" Is Reported But No More Failure in That City Today. SITUATION IS SHAKY. But Worst of Panic May Be Over. . Defalcations In Union National Nearly $500,000. New Orleans, Sept. 12.-There has been a lively run on the People's bank. Depositors flocked to the institution and formed into line before the paying teller's window. So many people were in line that it extended clear into the street. There is considerable excitement but no trouble of any kind. All checks for $100 or under are being rapidly cashed. The failure of the Bank of Commerce which everybody thought would be able to weather the wave of distrust and suspicion which the recent wreck of the American National bank has caused a very shaky feeling among depositors. There was a large crowd outside the People's bank buteverybody wsaorderly and all the blue coats had to do was to clear a passage way for the pedestrians to pass on by the walks. The manner of surmises and opinions are being freely aired. The arrest of the book-keepers of the Union National bank was made last night. The arrests were made in order to hold the men pending a further investigation. The total defalcations discovered amount to over $470,000. Some of the defalcations occurred eight or ten years ago. The Bank of Commerce which failed yesterday was founded in 1887, with a capital of $1,000,000. In that year several prominent business men got together and deeming that the banking facilities of New Orleans were insufficient, made up their minds to remedy the defect as much as possible and the Bank of Commerce was the result. The plan of the institution was to do a general banking business in such a way as to furnish accommodation to all classes of patrons from men of millions to the wage-earner and also to do a collecting business. It found a fruitful field before it and its success-up to the present had been such as to justify the highest hope of its founders.
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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.
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Orleans, La., Sept. 11.-The Bank of Commerce, which everybody thought would be able to weather the wave of distrust and suspicion, which the recent wreck of the American National Bank caused, was compelled to close its door this morning. There was a large crowd outside the bank, but everybody was orderly, and all the blue coats had to do was to clear a passageway for pedestrians to pass on by the sidewalks. Surmises and opinions were being freely aired by the crowd, but the sum and substance seemed to be that the Bank of Commerce has adopted the only course left to it. explanation: President Nichols gives the following "Unprecedented runs on the bank for the past six weeks, and the impossibility of realizing with sufficient rapidity on the assets, and after consulting with the vice-presidents of the clearing house and submitting a statement, we deemed it advisable, in order to protect the interest of depositors so that they might be paid in full in a short while, as well as the stockholders, to take this step of liquidation-a step which none feel more than we." The bank owes depositors between $300,000 and $400,000, while the assets of the bank are about $800,000. The bank had a long list of small depositors. The Bank of Commerce was founded in 1887, with a capital of $100,000. The plan of the institution was to do a general banking business in such a way as to furnish accommodation to all classes of patrons, from men of millions to a wage earner, and also to do a collecting business. It found a fruitful field before it, and its success up to this morning had been such as to justify the highest hope of its founders. At 1:30 this morning there was a lively run on the People's Bank. Depositors flocked to the institution and formed into a line before the paying teller's window. So many people were in line that it extended clear into the street. There is considerable excitement, but no trouble of any kind. The officials of the People's Bank do not seem to be worried over the run and all checks for $100 and under"are being rapidly cashed. TWO MEN ARRESTED. New Orleans, La., Sept. 11.-Frank B. Leefe and Louis Colombe, book-keepers of the Union National Bank, have been arrested by the United States deputy marshal. Colombe was not taken into custody, as he was too sick to leave his home. He is under arrest at his house. Leefe was arraigned and held in $10,000 bonds for a hearing. His bond was immediately signed. He declined to make a statement. The charge is falsifying accounts. Two sets of books were kept. The defalcation is purported to be in the neighborhood of half a million of dollars. HELPING THE BANKS. Washington, Sept. 11.-The Treasury Departments continues to transfer money to the sub-treasury at New Orleans to aid the banks there and in the neighboring cities in meeting the extraordinary demands incident to the récent bank failures. A large proportion of these transfers have been made by wire, although several large amounts have been shipped by express. The aggregate of transfers yesterday and to-day is approximately $1,500 000
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Run 011 the People's Bank. NEW ORLEANS, Sept. 11.-At 1:30 this afternoon there was IL lively run on the People's bank. Depositors flocked to the bank and formed into line by the paying teller's window. So many people were in line that It extended clear Into the streets, There was considerable excitement. but no trouble of any kind. The officials of the People's bank do not seem to be worried over the run, and all checks for $100 or under, were rapidly cashed.
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NEW ORLEANS BANKS The Bank of Commerce Closed Its Doors Yesterday. A RUN ON THE PEOPLE'S BANK. The Bookkeepers of the National Bank Arrested-The Discovery of Heavy Defalcations Is Expected. 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. All manner of surmises and opinions were being freely aired by the crowd, but the sum and substance seemed to be that the Bank of Commerce had adopted the only course left to IL President Nichol gives the following explanation: "Owing to the unprecedented run on the bank for 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 and submitting a statement to them, we deemed It advisable in order to protect the interests of our depositors, 60 that they might be paid in full in a short while, as well as the stockholders, to take steps for liquidation, a step which none feel more than we do." The bank has deposits of between three and four hundred thousand dollars, while the assets are about $800,000. The bank had a long list of small depositors. The Bank of Commerce was founded in 1887 with a capital of $100,000. It found a fruitful field and its success had been such as to inspire the highest confidence in its founders. At 1:30 o'clock this afternoon there was a lively run on the People's bank. So many were in line it extended clear into the street. There is considerable excitement. but no trouble of any kind. The officials of the People's bank do not seem worried over the run and all checks for $100 or under are being rapidly cashed. The National Bank's Bookkeepers, New Orleans. Sept. 11.-The cashier and bookkeeper of the National bank were arrested this morning. 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 eight 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 other evidence sought, 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 unconsclous all day. which prevented his arrest, as he was too sick to leave his home. He is under arrest. however. at his home. Bookkeeper Leefe was arraigned and held in $10,000 bonds for R. hearing. His bond was immediately signed. He refused to make a statement. 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.
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THEFTS WRECK A BANK Two Bookkeepers Are Charged With Filching $500,000. ONE ATTEMPTS SELF DESTRUCTION The Tangled Afairs of the Union National Bank of New Orleans-Almost a Financial Panic In the Crescent City-Four Recent Bank Failures. NEW ORLEANS, Sept. 12.-The rottenness in the Union National bank was made known when United States Bank Examiner Johnson swore out affidavits against the two principal bookkeepers, charging them with embezzling the entire amount of the deficits. One of the guilty men sought escape by suicide. Mr. Johnson reached the conclusion that these were the guilty men after working hard for two days on the books and lost no time in notifying District Attorney J. Ward Gurley of the situation. He went to Mr. Gurley before the latter had breakfasted and explained his haste to he due to the fear that the guilty men would escape unless arrested at once, The first affidavit charged Bookkeeper Frank B. Leefe with embezzing $185, 558.79. The second charged Bookkeeper L. Lacombe with the embezzlement of the remainder, in round figures about $406,000. The amount of the embezzlement, so far as can be ascertained, is $592,000. The bank examiners have 60 far failed to implicate any of the other officials. It has not been ascertained, either, when the men began the peculations charged. Bookkeeper Leefe had been in the employ of the bank for 19 years and has been considered the soul of honor. He was very devout. Mr. Lacombe has been in the employ of the bank 16 years, and while he lived very well for a man on a salary of $150 a month no suspicion has ever been attached to him. Bookkeeper Leefe Arrested. Leefe has been arrested and placed on bond of $10,000. When the United States marshals went to serve the papers on Laoombe, it was found that he had learned of his discovery and attempted to commit suicide by taking a dose of morphine. He was placed under guard at his home. He is in a comatose condition, and it is thought he will live but a few hours. The panic is about over. The rottenness in the affairs of the American Na. tional and Union National, from which $1,000,000 was taken, caused the people to lose confidence, and the run they made on the Mutual and the Bank of Commerce, neither of which was very strong, caused the Mutual and the Bank of Commerce to close. There was a slight run on the People's, but It was soon stopped, and now the panio is over. Six out of the 18 banks in the city have closed their doors within the last year and four within the last month. New Orleans has never known such a panic since the days of 1873.
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ANOTHER BANK CLOSED. New Orleans Purnishes the Third Pailure in Three Days. COULD NOT STAND THE HEAVY RUN Bank of Commerce Forced to Go Into Liquidation- 188018 Are Doubie the Sum Due the Depositors. New Orleans. La, September 11.-The Bank of Commerce. which overybody thought would be able to weather the wave of distrust and suspleton which the recent wreck of the American National bank caused, was compelled to close to doors this morning. There was a large crowd outside the bank, but everybody was orderly and all the bluecoats had to do was to char a passageway for the pedestrians to pass on the aldewalks All manner of surmises and opinions were being freely aired, but the sum and substance seemed than the Bank of Commerce had schopted the only course left to sit. President Nichole gives the following explanation: "The unprecedented run on the bank for the past six weeks and the impossibility of realizing with sufficient rapidity on the nasets and consulting with the vice president of the clearing house and submitting a statement to them, we deemed it advisable in order to protect the Interests of depositors, in order that they might be paid in full in a short time, as well as the stockholders, to take this step of liquidating-a step which none feel more than we do." The bank owes depositors between $300.000 and $400,000, while the ussets of the bank are about $800,000. The bank had quite a ong list of small depositors. The Bank of Commerce was founded in 1887 with a capital scook of $100,000. In that year several promisent business men got together. and deeming that the bank facilities of New Orleans were InsufBelent made up their minds to remedy the defect as much as possible, and the Bank of Commerce was the result. The plan of the institution was to do a general banking business in such a way as to be of accommodation to all classes of patrons, from men of m/Hons to wage earners. It found a fruitful fileld before it and its success up to this morning had been such as to justify the highest hopes of its founders. At 1:30 this afternoon there was a lively run on the People's bank. Depositors Blocked to the Institution and formed into Ince before the paying teller's window. So many people were In line that it extended clear into the street, There was excitement. but no trouble of any kind. The officials of the People's bank do not soem to be worried over the run and all claims for $100 or under are being rapidly cashed.
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NEW ORLEANS BANKS. ANOTHER CLOSES ITS DOORS FOR 'NOW F конд The Treasury Department Doing All In Its Power to Prevent Embarrassment to Business Men. NEW ORLEANS, Sept. 11.-The Bank of Commerce closed its doors to-day. The U with 1887 uj organized SUM bank tal stock of $100,000. William P. Nichols, nephew of Chief-Justice Nichols, of the Supreme Court, is its president. There was a great crowd about the bank building shortly fter the doors were closed. It is stated that the doors were closed as a matter of precaution there rueq am uo una B been Sujreq suo 0801 TITAL understand S1 11 Deposition email 30 WOOTS HHL Bank Examiner Escott arrived here today and took charge of the Union National Bank but his arrival has not dispelled the gloom of mystery, which hangs over that institution. Mr. Chalaron, the president of the Union Bank visited the bank building early this morning, but remained only a short while. His persistent silence in the face of SO many ugly rumors about the bank is severely criticised on all sides. Some of his warmest defenders have grown lukewarm to his interest and now say it is strange he does not talk. This afternoon two individuals bookkeepers of Union National bank, Messrs. Frank B. Leefe and A. Colomb. were arrested on affidavits made by Cashier Labarthe. Collarmb, it appears, is only "constructively" under arrest. The charge against Leefe is for violating section 5209 Revised Statutes United States of America by falsifying his books and accounts, and SE umour runeq eqf JO rood B up especially -prajpuj TO sepermins shall JO Hooq eui,, -pare B Summous accounts s14 pen it balance of $12,604.88, which should have been $196,163.60 The charge against CoI character, 'E JO ST 'quot was arraigned before United States Commissioner Craig. He pleaded not guilty '000'0T$ JO puoq depun perced STEM puu which he immediately furnished. These arrests, taken in connection with Prseident Chalaron's strange silence, are causing much comment to the effect that sq1 exem 01 opeur eq TIPM atternis 11ª book-keepers scapegoats. It is well known that the bank's book-keepers do not handle a cent of the bank's funds. CINIM SIH SI A reporter of the Southern Associated Press is informed to-night by an unim peachable source that a prominent physiclan, related to Book keeper Leefe, forced an interview with President Chalaron 1 07 up пооилодзъ spp case, and the doctor says to-night that President Chalaron's mind is unbalanced, and Mr. Chalaron does not know anyeq)) ou wern books eq: inoge эдош p[o we s] Chaldren "-W soop physiciant man, highly nervous in temperament, and 041 JO extstence em up dn paddram SUM bank It is beginning to be believed that our JO a our up change *4* bank, which was recently inaugurated, has had a tendency to confuse Mr. Chalbooks our дало Sujos up that puu 'UOJE 18 pedum[ pure become swy 04 the conclusion that there is a defalcation. Otherwise his precipitate actio nin clesing the bank without consulting the directors. and his silence is inexplicable up general 201 punors 200118 U S1 the physician's story. Judge Theard this evening appointed two receivers for the Bank of Commerce, and Its affairs will be immediately liquidated. It has ample assets, and this course was deemed best, in order to fully protect the bank's depositors and creditors. There was 2 persistent run to-day on the Peoples Bank and that institution is in peril. Messrs H and B Beer to-day ordered one hundred thousand dollars In currency by express from New York to MOU yours *** relleve 01 181880 exists in this market. INTERNATION WHL JO NOLLOV ASHINGTON D C. Sept. 11 -Referring to the New Orleans dispatch to the effect that much dissatisfaction existed there over the fact that Bank Examiner equ TO excess up person useq peq uosuyor falled Union National Bank, Comptroller Eckels this morning said to a reporter for peq personally our he known of Mr Johnson's connection with A. and V. Meyer. the firm, whose failure so seriously affected the Union bank, he would not have designated him to take charge. The assignment, how ever, Mr. Eckels said, was merely temporary, because Mr Johnson was already in charge of the affairs of the American IIV 0202ue 01 SUM 1641 pue runeq SMOTT SB uoos SV security pur own siy of the Union failure reached the bureau, Comptroller Eckels, directed Examiner Escott of Louisville, Ky to proceed to New Orleans and relieve Mr. Johnson, which had already been done. The preliminary report of Mr. Johnson upon the condition of the Union Bank, had not reached the Comptroller at noon but Mr. Eckels said state the JO unnut en JO ignop ou Req 04 MON word 24214 180 1098 10011 useq puq spooq JO 5108 0.05.1 req. kept and that a discrepancy of at least $600 exists between them. Ex Deputy required useq 884 Thomas receiver of the Mutual National Bank
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CHALARON MAY BE CRAZY. Two of the Union National's Bookkeepers Arrested. New Orleans, Sept. 11.-Bank Examiner E. Scott arrived here to-day, and took charge of the Union National, but his arrival has not dispelled the gloom of mystery which hangs over that institution. Mr. Chalaron, the president of the Union bank, visited the bank building early this morning, but remained only a short while. His persistent silence in the face of so many ugly rumors about the bank is severely criticised on all sides. Some of his warmest defenders have grown luke warm to his interest, and now say it is strange he does not talk. This afternoon the two individual bookkeepers of the Union National, Frank B. Leefe and A. Colomb, were arrested on affidavits by Cashier Labarthe. Colomb, it appears, is only "constructively" under arrest. The charge against Leefe is for violating section 5209, revised statutes United States, by falsifying his books and accounts, especially in a book of the bank known as the "book of daily summaries of individual accounts," his accounts showing a credit balance of $12,604.88, which should have been $196,163.60. The charge against Colomb is of a similar character., Leefe was arraigned before United States Commissioner Craig. He pleaded not guilty, and was placed under bonds of $10,000, which he immediately furnished. These arrests, taken in connection with President Chalaron's strange silence, are causing much comment to the effect that an attempt will be made to make the bookkeepers scapegoats. It is well known that the bank's bookkeepers do not handle a cent of the bank's funds. A reporter of the Southern Associated Press was informed to-night by an unimpeachable source that a prominent physician related to Bookkeeper Leefe forced an interview with President Chalaron late this afternoon in reference to Leefe's case, and the doctor says to-night that President Chal1 aron's mind is unbalanced and Mr. Chalaron does not know anything more about the books than he (the physician) does. Mr. Chalaron is an old man, highly nervous in temperament and was wrapped up in the existence of the bank. It is beginning to be believed that the change in the bookkeeping of the bank, which was recently inaugurated, has had a tendency to confuse Mr. Chalaron, and that 1 in going over the books he has become unbalanced, and jumped at the conclusion that there is a defalcation. Otherwise his precipitate action in closing the bank without consulting the directors and his silence is inexplicable. There is a strong ground for belief in the physician's story. d Judge Theard this evening appointed two receivers for the Bank of Commerce, d and its affairs will be immediately liquiS dated. It has ample assets and this course was deemed best in order to fully protect the bank's depositors and other f creditors. There was a persistent run to-day on the People's Bank, and that institution is in peril. Messrs. H. & B. Bees to-day n ordered $100,000 in currency by express S from New York to assist to relieve the f tension which now exists in this market.