Union National Bank (New Orleans, LA)

Article Text

BIG BANK FAILURE

Union National Bank of New Orleans Suspends. New Orleans, La., Sept. 9.-At 11 o'clock today the failure of the Union National bank was announced. Stephen Chataron is president of the bank. Its capital stock is $500,000 and it claimed to have besides a surplus of $150,000. The bank failed to clear this morning. Its doors were opened for a short time, but closed at 10 o'clock.

Article Text

THE FOURQUREAN-PRICE CO

NEW ORLEANS BANK FAILURE. It Is Due to a Defaleation-Bank's Condition. WASHINGTON, September 9.-Comptroller Eckels was notified this morning that the Union National Bank, of New Orleans, had closed its doors. The first message contained no further information, and in reply to a question as to the probable cause Mr. Eckels said he supposed it was due to withdrawal of deposits. He based this opinion upon the fact that from October 31, 1895, to July 14, 1896, the date of its last report to the bureau, the bank's liabilities to depositors had decreased from $1,371,835 to $704,027. Aside from its capital stock and deposits on July 14th, the bank had liabilities of $147,000 to other banks, and miscellaneous accounts of $327,955.1 Its total assets were $1,889,022, of which $804,869 were leans and discounts, $182,000 overdrafts, and $453,000 stock and security. Comptroller Eckels directed Bank-Examiner Johnson to take charge of the failed institution. and in a few minutes received a telegram from him saying that the president of the bank explained that the suspension was due to a defalcation. Neither the amount involved nor the name of the guilty official was given. DEFALCATION UNCONFIRMED. NEW ORLEANS, September 9.-The report telegraphed from Washington about a defalcation in connection with the failure cannot be substantiated. A Southern Associated Press representative sent a note to President Chaleron informing him of the report, and asking that it be affirmed or denied. The note was turned over to Bank-Examiner Johnson, and that gentleman informed the reporter he had nothing to say, as he was only temporarily in charge of the bank. "Is that the only answer you can give?" he was asked. "That's all I can say," said Mr. Johnson. From a gentleman who is close to the affairs of the bank It is learned that while the individual deposit-book on the bank showed that there was so much money in hand, the general ledger showed that there was eight times as much. The vice-president of the ClearingHouse Association, Mr. E. Toby, of the Canal Bank, says he has heard nothing of the reported defalcation. The effect of the failure on general business is rather depressing, and other failures may follow shortly.

Article Text

NATIONAL BANK GOESUNDER

A Quiet Run Resulted in Closing the Doors. Defalcation Alleged, but Not Confirmed as Yet. 9.-Comptroller Washington, Sept. Echels was notified this morning that the Union National bank of New Orleans had closed its doors. He directed Bank Examiner Johnson to take charge, who reported that the president of the bank explained that the suspension was due to a defalcation. Neither the amount of the defalcation nor the name of the guilty official is given.

Article Text

A BIG BANK FAILURE

The Union National of New Orleans, Closes its Doors. The Union National Bank of New Orleans, failed last Wednesday. It was the oldest bank in the city and had always stood high in the confidence of the public, until lately there was some uneasiness felt and depositors began gradually to withdraw. The date of its last report the bank showed liabilities to depositors had decreased from $1,371,835 to $704,027. Aside from its capital stock and deposits on July 14 the bank had liabilities of $147,000. To other banks and miscellaneous accounts of $328,955. Its total assets were $1,887,022, of which $804,869 were loans and discounts, $182,000 overdrafts and $458,000 stock and securities. Comptroller Eckells directed Bank Examiner Johnson to take charge of the failed institution, and in a few minutes received a telegram from him saying that the President of the bank explained that the suspension was due to a defalcation. Neither the amount involved nor the name of the guilty official was given.

Article Text

Comptroller's Statement

Washington, D. C., Sept. 11.-Referring to the New Orieans dispatch to the effect that much dissatisfaction existed there over the fact that Bank Examiner Johnson had been placed in charge of the failed Union National Bank, Comptroller Eckles this morning said to a reporter for the Southern Associated Press 's at had he known of Mr. Johnson's connection with A. & V. Myers. the firm whose failure so seriously affeeted the Union Bank, he would not have designated him to take charge. The assignment. however, Mr. Eckles said. was merely temporary, because Mr. Johnson was already in charge of the affairs of the American Bank and that was enough to engage all his time and abilities. As soon as the news of the Union failure reached the Bureau, Comptroller Eckles 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. Eckles said he had no doubt of the truth of the statement sent out last night from New Orleans that two sets of books had been kept, and that a discrepancy of at least $600,000 existed between them. Ex-Deputy Comptroller Tucker has been appointed receiver of the Mutual National Bank, which closed its doors

Article Text

FEDERAL SENATORSHIP

"Will the fusion with the Republicans on the législative ticket result in the election of a Republican to the United States Senate to succeed Senator Pritchard?" Mr. Butler was asked. "If such an arrangement had been made," replied Mr. Butler, evasively, "our candidate for Governor would have had a clear track. As it is, there is a threeeornered race for Governor, and if We elect our candidate, as I have no doubt we will. it will be without the aid of Republican fusion. The candidates elected to the Legislature will be free to follow their own inclinations. I am led to believe that neither of the three parties with candidates in the field will have a majority of the Legislature, Appointment of Johnson. WASHINGTON D. C., September 11.Referring to a New Orleans dispatch to the effect that much dissatisfaction exlisted there over the fact that Bank-Examiner Johnson had been placed in charge of the failed Union National Bank, Comptroller Eckels this morning said to a reporter for the Southern Associated Press that had he known of Mr. Johnson's connection with A. & V. Meyer, the firm whose failure so seriously affected the Union Bank, he would not have designated him to take charge. The assignment, however, Mr. Eckels said. was merely temporary, because Mr. Johnson was already in charge of the affairs of the American Bank, and that was enough to engage all his time and abilities. As soon as news of the Union failure reached the bureau Comptroller Eckels directed Examiner Scott, of Louisville, Ky. to proceed to New Orleans and relieve Mr. Johnson, which had already been done. JOHNSON'S REPORT. The preliminary report of Mr. Johnson upon the condition of the Union Bank had not reached the Comptroller at noon, but Mr. Eckels said he had no doubt of the truth of the statement sent out last night from New Orleans that two sets of books had been kept. and that a discrepancy of at least $600,000 exists between them. Ex-Deputy-Comptroller Tucker has been appointed receiver of the Mutual National Bank, which closed its doors yesterday, and he was expected to take charge to-day.

Article Text

Attempted Suicide

NEW ORLEANS, La., September 12. -Louis Colomb, one of the individual book-keepers of the Union National bank, took poison, yesterday. If his life is saved, it is hoped that he may enable the officers to unrevel some of the mystery surrounding the affairs of the bank. No new developments to day, and the panic is somewhat moderated.

Article Text

The Tangled Afairs of the Union National Bank of New Orleans-Almost a Financial Panic In the Crescent City-Four Recent Bank Failures.

Article Text

The Union National Bank, one of the oldest banks of New Orleans closed its doors Wednesday. The other banks of the city have taken precautions to prevent unnecessary runs upon them in order to protect themselves and their depositors.

Article Text

Johnson Has Been Relieved

Washington, Sept. 11.-Referring to the New Orleans dispatch to the effect that much dissatisfaction existed there over the fact that Bank Examiner Johnson had been placed in charge of the failed Union National bank, Comptroller Eckles this morning said to a reporter for the Southern Associated Press that had he known of Mr. Johnson's connection with Q. & V. Myer, the firm whose failure so seriously affected the Union bank, he would not have designated him. to the charge. The assignment, however, Mr. Ecyels says, was merely temporary, because Mr. Johnson was already in charge of the affairs of the American bank and that was enough to engage all his time and abilities. As soon as notice of the Union failure reached the bureau the comptroller directed Examiner Escott of Louisville 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 he had no doubt of the truth of the statement sent out last night from New Orleans that two sets of books had been kept and that a discrepancy of at least $600,000 exists between them. Ex-Deputy Comptroller Tucker has been appointed receiver of the Mutual National bank, which closed its doors yesterday, and he was expected to take charge today.

Article Text

OVER $470,000 STOLEN DEVELOPMENTS IN THE NEW ORLEANS BANK DEFALCATION. Two Bookkeepers of the Union National, the Looted Institution, Placed Under Arrest. SITUATION STILL PANICKY BANK OF COMMERCE COMPELLED TO CLOSE YESTERDAY. Receivers Appointed for Pearee, Atkins & Co. and Henry Pearce Sons Company, Cincinnati. NEW ORLEANS, Sept. 11.-Frank B. Leefe and Louis Colcombe, bookkeepers in the Union National Bank, were arrested to-day by United States deputy marshals. Colcombe was not taken into custody, as he was too sick to leave home. He is under arrest, however, 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 reported 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 defalcation so far discovered amounts 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 a prominent commercial firm, which occurred eight or ten years ago, show that the stealing has been going on for some years. The government believes that there was outside collusion and expects that 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 unconscious all day, which prevented his actual arrest. 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 doors 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 passage way for the pedestrians to pass on the sidewalks. All manner of surmises and opinions were being freely aired. but the sum and substance seemed to be that the Bank of Commerce had adopted the only course left to it. President Nichols 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 assets embarrassed us. After consulting with the vice presidents of the clearing house and submitting a statement to them

Article Text

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.

Article Text

ANOTHER BANK CLOSED

The Fourth Since the Financial Fanis Begun In New Orleans. New Orleans, Sept. 12-The failure in rapid succession of the American, the Union and the Mutual banks, all national institutions, and the very strong evidence in the case of the first two of crookedness, had the effect of causing a somewhat panicky feeling. The Associated banks, however, had anticipated this, and took precautions which somewhatichecked the panic. Thursday morning a very heavy run began on the Bank of Commerce, a state institution, which has a large number of depositors, doing the business of the Homestead associations, and all day long a swarm of depositors crowded the building. The bank paid all who came, and it was announced that the Whitney National and the other banks proffered the Bank of Commerce all the money it needed. The Bank of Commerce failed to open its doors yesterday. The Bank of Commerce was organized In 1887, with a capital stock of $100,000. William P. Nichols is its president. There was a great crowd about the bank building shortly after the doors were closed. It is stated that the bank was closed as a matter of precaution, there having been a run on the bank. Depositors, it is understood, will lose but little, as the bank has a surplus of $57,000.

Article Text

Bank Bookkeeper Takes Poison

NEW ORLEANS, LA., Sept. 12.-Louis Colomb, one of the bookkeepers of the Union National Bank, took poison yesterday. If his life be saved it is hoped he may enable the officers to unravel some of the mystery surrounding the affairs of the bank. There were no new developments to-day. The panic has somewhat moderated.

Article Text

The Union National Bank, of New Orleans, has suspended.

Article Text

$500,000 Is Gone, It is believed the defalcation that caused the failure of the Union National Bank at New Orleans will reach $500,000. There has been quite a run on the bank for some time, so that the deposits still in its charge will not reach $100,000.

Article Text

LEGRAMS IN BRIEF

DOMESTIC DOTS. gold democrats of New Yor state convention and indorse and Buckner. R. Legg, treasurer of Pik Arkansas, has disappeared a shortage of $20,000. failure of the Union Nationa Kansas City Lead and Oil work by Marsh Bros., was destroye The loss is $100,000, fully in gold democrats of Connecticu lecided to put a full state ticket I including presidential elect Francis J. Child the oldes of the Harvard University ac in Boston, aged seventy-on -Lieutenant-Governor Sheehan York, has written a lette that he cannot support th platform. Kennett, ex-chief of police and killed Detective Lawson Angeles was sentenced to fif in prison. V. Bryan, cashier of the De ustom-house, was arrested fo zlement of $3,600 governmen V. Powderly and Ex-Senato Miller addressed a McKinle neeting in Cooper Union, New explosion of powder at the mil Ohio Powder company a stown, O., resulted in the death men. democratic electoral ticket 11 was indorsed by the republi opulist and silver party state tions. Iemphis, Herron, Taylor & Co. grocers, assigned. Assets liabilities, $98,000. Cause ollections. ouston, rex., Sam Allen, lumber has filed a deed of assignment $300,000, assets in land and $700,000. cations amounting to $500,000 lared to be responsible for the of the Union national bank at rleans. Superior, Wis., property of Stinson of Chicago nas been at in proceedings to recover on a $135,000. York Tammany is beginning npaign and has arranged for a neeting September 29, at which J. Bryan will speak. of Cleveland, O., celebrated ennial and also the anniversary modore Perry's naval victory British on Lake Erie in 1813 lete returns of the South Caronatorial primary have not been but there is no doubt of nomination over Evans by 5,000 Hill was elected a delegate New York state democratic conand instructed to support the platform. He declined the emocratic convention of the district nominated John L. of Dayton for congress, vice Sorg, renominated and dePeterson, 11 years old, tried pet dog from being crushed eight train at Chicago Heights killed. The dog was not Russell club, a national demoreanization of 300 men, went

Article Text

THE NEW ORLEANS BANK FAILURES

The failure of four National Banks within a short time in New Orleans, to-wit: the American, Mutual, Union and Bank of Comшегсе, has alarmed the people throughout Eouisiana. The causes assigned for the-failure of two of them are gross mismanagement, and criminal conduct on the part of the officers in charge.. It is said that in China when a bank fails the law is to cut off the head of the man who is responsible for the management of the bank, and more than a thousand years have passed since one has failed in "The Flowery Kingdom." Every one thought when the $5,000,000 of sugar bounty money was paid into the vaults of the banks it would make them safe and sound, and nothing can make up for the criminal course pursued by the officers in charge of those institutions. A bank failed in Glasgow, Scotland, some years ago, the effects of which were felt far and wide and much distress and poverty was entailed upon the depositors on account of its failure. The law took hold of this matter, and every director, no matter how High his station in life, was held to strict accountability for the mismanagement of the Bank. But in this country it is unfortunate the case that when a man has money, power and influence through the ability of his law yers and influence of his friends,- no matter how guilty, he almost in every instance goes unwhipped of justice- How far the officers of these New Orleans institutions will be held accountable to the law for their shortcomings remaine to be seen- The truest test of a high covilization is the manthem enfureed

Article Text

UNION NATIONAL BANK

Examiner Lynch, who has been on duty at New Orleans, has submitted his report to Comptroller Eckels. The comptroller states that Examiner Lynch reports having left matters in excellent shape in New Orleans. The Union National Bank, it is thought, will shortly resume business, while satisfactory progress is being made in obtaining subscriptions to the stock of other banks now suspended.

Article Text

REOPENED FOR BUSINESS

WASHINGTON. Dec. 7.-The Union National bank of New Orleans, La., which suspended payment September 3. 1896, has been permitted to reopen its doors for business.

Article Text

Bank Resumes

Washington, December 7.-The Union National bank of New Orleans, La., which suspended payment September D, 1896, having complied with all the conditions imposed by the comptroller of the treasury, is now in a suitable condition and has been permitted to open its doors.

Article Text

BANK RESUMEN WASHINGTON, Dec. 7.-The Union National Bank of New Orleans, La., which suspended payment Sept. 1, 1896, having complied with all the conditions imposed by the comptroller of the currency precedent to resumption, is now in a solvent condition, and has been permitted to reopen its doors. CHICAGO MONEV

Article Text

DOMESTIC.

The Union National bank of New Orleans, which suspended payment September 9, 1896, has resumed business. Three persons were killed and ten others more or less seriously injured in a collision on the Baltimore & Ohio railway near Storrs Station, O. Secretary Carlisle transmitted to the speaker of the house the estimates of appropriations required for the fiscal year ending June 30, 1898. They amount to $421,718,965. The estimates for the present fiscal year amounted to $418,091,073. Five negro men working on the Cotton Belt railway between Camden and Beardon, Ark., were fired upon without warning by a gang of unknown persons and killed. Samuel Rosenbaum, aged 60 years, a cloth-trimming agent, shot his wife and then shot himself in Rochester, N. Y. Domestic trouble was the cause. The fire losses of the United States and Canada for the month of November amount to $5,211,800, against $8,993,000 during the same time last year. Frederick Loveland, aged 70, the oldest and best-known guide in the Adirondacks, was killed by a falling tree. Jim Davis, who killed the 13-year-old son of his employer, Joe Williams, near Pine Bluff, Ark., was lynched by a mob. In his annual report to congress James H. Eckels, comptroller of the currency, takes a firm stand for the retirement of the greenbacks. At the present time there are 3,679 national banks in existence with a total capital of $650,014,895. The total amount of circulating notes oustanding October 31 was $234,553,807. Receivers were appointed during the year for 27 banks and 37 went into voluntary liquidation. Willis A. Meyer's department store in Milwaukee, known as the Boston store, was seized by the sheriff, with liabilities of $100,000. A boiler in the mill of the Wilcox Lumber company at Seville, Ga., exploded, killing six men. At Frankfort, Ky., the court of appeals refused a new trial to Scott Jackson and Alonzo Walling, convicted of the murder of Pearl Bryan and sentenced to be hanged. An earthquake shock at Dunbar, Pa., and surrounding towns gave the people a great fright. Jules Soule, editor of the Biloxi Review, was shot and killed at Biloxi, Miss., by J. H. Miller, editor of the Biloxi Herald. A newspaper article was the cause. W. B. Franklin, president of the board of managers of the national home for disabled volunteer soldiers, in his report to congress says that the whole number cared for at all homes during the year was 40,445 and applications for admission are more numerous than ever before.