7551. Bank of Commerce (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 11, 1896
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
58df0813

Response Measures

Full suspension, Books examined

Other: Receivers appointed and bank placed in liquidation; indictments later for embezzlement of officers.

Description

Multiple contemporary dispatches state the Bank of Commerce (a state institution) experienced an unprecedented run for ~six weeks and did not open on Sept 11, 1896. Directors/management put the bank into liquidation and receivers were appointed; indictments for embezzlement and later receiver reports confirm permanent closure. Cause of the run is primarily panic from other local bank failures (the wreck of the American National and related New Orleans failures) and later revealed mismanagement/embezzlement within the system.

Events (5)
1. September 11, 1896 Receivership
Newspaper Excerpt
Judge Theard this evening appointed two receivers for the Bank of Commerce and its affairs will be immediately liquidated.
Source
newspapers
2. September 11, 1896 Run
Cause
Local Banks
Cause Details
Runs and general panic in New Orleans following failures (notably the wreck of the American National Bank) produced heavy withdrawals over ~six weeks.
Measures
Bank announced liquidation to protect depositors; consulted clearing house vice-presidents and submitted statement.
Newspaper Excerpt
Owing to the unprecedented run on the bank for the past six weeks...
Source
newspapers
3. September 11, 1896 Suspension
Cause
Local Banks
Cause Details
Immediate suspension/closing cited as precautionary response to sustained run and inability to realize assets quickly; directors opted for liquidation.
Newspaper Excerpt
did not open its doors this morning... we deemed it advisable... to take this step of liquidating
Source
newspapers
4. September 24, 1896 Other
Newspaper Excerpt
receivers of the Bank of Commerce have filed a report ... grave irregularities ... overdrafts amount to more than $300,000.
Source
newspapers
5. October 1, 1896 Other
Newspaper Excerpt
grand jury ... brought in several indictments for embezzlement against President Nicholls and Cashier de Blanc of the suspended Bank of Commerce.
Source
newspapers

Newspaper Articles (23)
1. September 11, 1896 Evening Star Washington, DC
Article from Evening Star, September 11, 1896

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SUCCUMBED TO THE RUN. Failure of Another New Orleans Bank. NEW ORLEANS, September 11.-The Bank of Commerce, a state institution, did not open its doors this morning. President Nichols 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 the assets, and after consulting with the vice presidents of the clearing house and submitting a statement to them, we, 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 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 assets of the bank are about $800,000. The bank had quite a long list of small depositors.

2. September 11, 1896 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, September 11, 1896

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A Bank Falls to Open. NEW ORLEANS, Sept. 11. - The Bank of Commerce, a state institution, failed to open this morning. President Nichol gives the followlog explanation: "Owing to an unprecadented run on the bank the past SIX weeks and the impossibility of realizing with sufficient rapidity on the assets, and after consulting with the vice president of the clearing house, submitting a atatement to them, we deemed it advisable in order to protect the interests of depositors, BD they might be paid in full, in a short while, as well as the stock. holders, to take the step of liquidation, a step which none deplore more than we do." The bank has deposits of between three and four hundred thousand dollars, while the assets are about $860,000. The bank had a long list of small depositors.

3. September 11, 1896 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 11, 1896

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TELEGRAPHIC BREVITIES. A receiver has been asked for the company building the trolley road between Baltimore and Washington. Peace, Atkins and Co., proprietors of the Franklin Cotton Mills, Cincinnati, assigned this morning. Liabilities $163,000. James Cherry, a cigarmaker of Norfolk, threw himself under a train of moving cars at the depot of the Norfolk and Western Railroad this morning, and was cut in two at the hips. The officers of the United Society of Christian Endeavor announce to-day that the next international Christian Endeavor convention will be held July 7-12, 1897. San Francisco has been se. lected as the place. Another New Orleans bank, the Bank of Commerce, closed its doors to-day. There W3S a great crowd about the bank building shortly atter the doors were closed. It is stated that the doors were closed as a matter of precaution, there having been 8 run on the bank yesterday. Depositors, it is understood, will lose but little. The steamship Fuerst Bismarck which ar. rived at New York last night brought $3,697,800 in gold. Aggregate arrivals thus far are $23,172,050. Lazaid Freres have deposited $3,000,000 gold in the subtreasury in exchange for greenbacks. An explosion occurred at the mills of the Ohio Gunpowder Company. at Youngstown, Ohio, this morning about 8 o'clock, in which two men lost their lives. The explosion was heard for miles.

4. September 12, 1896 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, September 12, 1896

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Another Bank Closes, NEW ORLEANS, Sept. 11.-The Bank of Commerce, a state Institution. did not open its doors this morning. 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 and after consulting with the vice presidents of the clearing house and submitting a statement to them. we deemed it advisable, in order to protect the Interests of depositors, 80 that they might be paid in full In A short while. as well as the stockholders. to take this step of liguidating-n step which none feel more than we do." The bank owes depositors between $800,000 and $400,000. while the assets of the bank are about $800,000. The bank had quite a long list of small depositors,

5. September 12, 1896 The Norfolk Virginian Norfolk, VA
Article from The Norfolk Virginian, September 12, 1896

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YET ANOTHER FAILURE. New Orleans Bank Bursts, the Fourth Within a Few Days. New Orleans, Sept. 11.-The Bank of Commerce closed its doors to-day. The Bank of Commerce was organized in 1887. with a capital stock of $100,000. Wm. P. Nichols, a nephew of Chief Justice Nichols, of the Supreme Court, is its president. There was a great crowd about the bank building shortly after the doors were closed. It is stated that the doors were closed as a matter of precaution, there having been a run on the bank yesterday. The depositors, it is understood, will lose only a little. Washington, Sept. 11.-Acting under the general instructions given them, the receivers of the several failed national banks at New Orleans took possession of all the property found in the vaults of the institutions. Among these were a number of hoxes containing securities and other papers of depositors and others left with the banks for safekeeping. Comptroller Eckels to-day wired instructions to the receivers to deliver the boxes :0 all owners who are not indebted to the banks, and to all owners the papers not relating to their transactions with the banks or which could not be used in settling them.

6. September 12, 1896 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, September 12, 1896

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NEW ORLEANS, LA., September 11.The Bank of Commerce closed Its doors to-day. It was organized in 1887, with a capital 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 after the doors were closed. It is stated that the doors were closed as a matter of *precaution, there having been a run on the bank yesterday. The depositors, it is understood, will lose but little.

7. September 12, 1896 The Roanoke Daily Times Roanoke, VA
Article from The Roanoke Daily Times, September 12, 1896

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Article Text

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

8. September 12, 1896 Birmingham State Herald Birmingham, AL
Article from Birmingham State Herald, September 12, 1896

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Bookkeepers Arrested. New Orleans, Sept. 11.-Bank Examiner Escott arrived here today 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 lukewarm to his interest and now say it is strange he does not talk. This afternoon the two individual bookkeepers of the Union National, Messrs. Frank B. Leefe and A. Colomb, were arrested on affidavits made by Cashier Labarthe. Colomb, it appears, is only "constructively" under arrest. The charge against Leefe is for violating section 5209, revised statutes of the United States, by falsifying his books and accounts, especially in a book of the bank known as the "book of daily summaries of individual entries," 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, is 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 tonight by an un!mpeachable 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 tonight that President Chalaron'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 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. 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 other creditors. There was a persistent run today on the People's bank and that institution is in peril. Messrs. H. & B. Beer today ordered $100.000 in currency by express from New York to assist in relieving the tension which now exists in this market.

9. September 12, 1896 Birmingham State Herald Birmingham, AL
Article from Birmingham State Herald, September 12, 1896

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AS A MATTER OF PRECAUTION The Bank of Commerce, New Orleans, Closes Its Doors. New Orleans, Sept. 11.-The Bank of Commerce closed its doors today. The Bank of Commerce was organized in 1887 with a capital stock of $100,000. William P. Nichols, nephew of Chief Justice Nichols of the supreme court, is its There was a great crowd president. about the bank building shortly after the doors were closed. It is stated the doors were closed as a matter of precaution, there having been a run on the bank yesterday. Depositors, it is understood, will lose only little.

10. September 12, 1896 The Houston Daily Post Houston, TX
Article from The Houston Daily Post, September 12, 1896

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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.

11. September 12, 1896 The Indianapolis Journal Indianapolis, IN
Article from The Indianapolis Journal, September 12, 1896

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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

12. September 12, 1896 The Times Richmond, VA
Article from The Times, September 12, 1896

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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

13. September 12, 1896 The News & Observer Raleigh, NC
Article from The News & Observer, September 12, 1896

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A PANIC IN NEW ORLEANS. Three Heavy Bank Failures in as Many Days. New Orleans, La., Sept. 11.-The Bank of Commerce, which everybody thought would be able to weather the wave of distrust and suspension 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 pedestrians to pass by. Surmises and opinions were being freely exchanged by the crowd, 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: "Unprecedented run on the bank for the past six weeks and the imposs lity or realizing with sufficient rapidity on the assets, and after consulting with the vice-presidents of the Clearing House and submitting a statement to them, we 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 stock holders, 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 assets of the bank are about $800,000. The bank had quite 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 súccess up to this morning had been such as to justify the highest hope of its founders. RUN ON THE PEOPLE'S BANK. At 1:30 this afternoon there was 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. 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 BOOK KEEPERS ARRESTED. New Orleans, La., Sept. 11.-Frank L. Leefe and Louis Colombe, book keepers of the Union National Bank, have been arrested by a 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 a $10,000 bond 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 purported to be in the neighborhood of half a million dollars. THE GOVERNMENT LENDS AID. Washington, Sept. 11.-The Treasury department 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 recent 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.

14. September 13, 1896 The Daily Texarkanian Texarkana, AR
Article from The Daily Texarkanian, September 13, 1896

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New Orleans, La., is having a time with its banks. Four of them closed their doors in the past four days. The bank of Commerce was the first to go to the wall and the three others followed by runs being made on them. The people of all classes are heavy loosers, but will be paid their money back in time.

15. September 14, 1896 Evening Journal Wilmington, DE
Article from Evening Journal, September 14, 1896

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SYNDICATE OF ROBBERS Seven Persons In the New Orleans Steal of $602,000. CONFESSIONS HAVE BEEN MADE. Two Clerks of the Union National, Colcomb and Leone, Did the Work Inside. Money Spent In Luxurious Living and Speculation-Arrests to Be Made. NEW ORLEANS, Sept. 14.-There is only one more secret to come out in the wreckIng of the Union National bank and the bank panic which raged here last week, and it is announced that it will be disclosed within the next 24 hours. That is the names of the confederates, the men on the outside who drew out and appropriated the $602,000 of the bank's money. Colcomb and Leone, the bookkeepers, cooked the accounts so as to keep the bank always in debt to these confederates. The bank was robbed by a syndicate composed of seven persons, two on the inside of the bank and five on the outside. The whole transaction was businesslike and systematic, including an agreement as to the amount to be drawn out or stolen each day and the division of the funds. Colcomb, whose lack of nerve was shown by his suicide the moment suspicion pointed to him, was the organizer of the project and its director. It is reported that a confession has been made: that three members of the syndicate have been named, and that the only reason their names are not now made public is to prevent any escape, as some of them are out of town. The money went mainly in riotous living, the balance on speculation, with the hope of recovering the amount stolen. In the big cotton speculation last year when cotton went up so high the syndicate was ahead of the game. The sadden collapse of the market prevented it from making good the bank's money and rendered a new raid necessary. The bank has been plundered more heavily than ever since. The outside members of the syndicate are said to lie high livers. Not so Colcomb and Leone; they could not be so, for they were kept all the day at their desks working away to cover up the crookedness in their books. Money Spent In Luxurious Living. They had little time for a spree. Colcomb spent most of his share of the swag on his family. He lived most luxuriously, had ten servants and a housekeeper to relieve his wife of the trouble of domestic affairs, a rather large household for a clerk on a salary of $150 a month. He had evidently anticipated that the defalcation would come out sooner or later and had determined on suicide when 18 did, for he carried the poison on his person. to be used at a moment's notice. He had many friends, and they all speak of him as generous and brave. To commit suicide is the only thing a gentleman could do under the circumstances, they say. Colcomb was interviewed on Thursday night about the bank's condition. He was calm and collected then and apparently in the best of humor, although it was only a few hours before his death. and he had then evidently determined on suicide. He did not tell his family of his intention, and it was not until several hours later that he took the poison and was discovered in an insensible condition. Once or twice in the next 36 he rrs he opened his eyes and looked argePPine room, but he neither spoke nos seemed to know any one. Colcomb's death renders the work of investigating the defalcation very difflcult, and United States Bank Examiner Escott doubts whether it will ever be pos. sible to know all the details. The receivers of the Bank of Commerce and American National bank will take possession of them today. The other two closed banks, the Mutual National and Union National, still remain in the hands of the United States examiners. It is thought that the panic is over. United States Bank Examiner Escott completed his first trial balance of the Union National bank and found the amount stolen to be $602,687.07. This is subject to an increase when all the accounts are carefully examined.

16. September 25, 1896 Omaha Daily Bee Omaha, NE
Article from Omaha Daily Bee, September 25, 1896

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Bank Was Dishonestly Managed. NEW ORLEANS, Sept. 24.-Messrs. Reynes and Bush, receivers of the Bank of Commerce, have filed a report in the civil district court in which they state that grave irregularities have been committed, and that the overdrafts amount to more than $300,000.

17. September 25, 1896 Tensas Gazette Saint Joseph, LA
Article from Tensas Gazette, September 25, 1896

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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

18. October 1, 1896 The Morning News Savannah, GA
Article from The Morning News, October 1, 1896

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FINANCIERS IN THE TOILS. Two of the Bank of Commerce Offcials Under Arrest. New Orleans, Sept. 30.-The grand jury to-day brought in seveal indictments for embezzlement against President Nicholls and Cashier de Blanc of the suspended Bank of Commerce. The specified charges are that they at various times appropriated sums of money that had been deposited in the bank. Beginning on July 23, 1873, when they took $23,500 and from that time to February, 1894, an aggregate of $96,000 is charged to have been taken by them. The men were arrested and held in bonds of $24,500 each, which they have not been able to give. They are in the custody of the sheriff.

19. October 1, 1896 The Globe-Republican Dodge City, KS
Article from The Globe-Republican, October 1, 1896

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LATE NEWS NOTES. Seven cows were killed by lightning near Leavenworth. Miss Willard has issued an appeal to the W. C. T. U. for the Armenians. Jules A. Barron, brother-in-law of ex-Governor Lubbock of Texas, was killed by a trolley car at Galveston. Germany and Russia are endeavoring to uniform extradition laws in all Europe. with relation to Anarchists. The American representatives have finished their examination of English archives upon the Venezuelan boundary question. The Venezuela Commission will report to the President early in De. cember. Examiner Escott says that the liabilities of the Union National Bank of New Orleans are $1,635,700. C. L. Grimes was acquitted of the charge of murdering his son-in-law, Luther Whitmore, at Moberly, Mo. Two swell robbers held up five men in a Chicago office, got $1,600, shot a milkman and escaped in his wagon. President Nicholls and Cashier De Beane have been arrested at New Orleans for receiving deposits in the Bank of Commerce after it became insolvent. It is report d that England, Russia and France will act together as regards Turkey. A cloudburst struck the town of San Marcos, Texas, and washed away a large portion of the town. Treasurer George S. Morrison of Rensselaer county. N. Y., is a defaulter for $250,000. An anti-Masonic congress is in session at Trent, Southern Tyrol, with delegates from all European countries and Canada. Banks of Greeley and Argonia have failed. Mrs. Julia Lamb of Worth county has been convicted in the federal court at St. Joseph of pension frauds and fined $1,000 and costs of suit. Edward H. Mohnken. who resided near Sedalia, died from blood poisoning, the result of an accident wherein his ankle was fractured John W. Wicks of Topeka, who was married in St. Joseph last week, now mourns the loss not only of his wife but of $300 with which she skipped out. Four murderers were executed in New Mexico in one day. Bessie Bellwood. the well known music hall singer, is dead. Her death was due to syncope. Eugene C. Gregory, a Yale student, committed suicide in his home in New York by inhaling illuminating gas. Al Ruhman, the husband of Zella Nicolaus, has been sent to the Chicago bridewell on a fine of $100 for vagrancy. Harry M. Conway of Chicago was shot and killed by his 18-year-old wife, who then sent a bullet into her own heart. Li Hung Chang has sent a message to the secretary of state thanking the United States government for the many courtesies shown him on his visit to this country. A convention of delegates from the severalstateswill be held at Asheville, N. C., October 21-23 to petition Congress to adopt a "national flower of America," the convention to select the flower. D. D. Breckinridge of Watertown, N. Y., en route to Amesville. Ohio, to be married to Miss Ethel Gould, had his leg broken in a railway wreck at Athens. Miss Gould, on hearing of the accident, went to Athens, and the wedding took place at the appointed time. Callias Bey. the Arabian who married the widow of P. T. Barnum, is dead. Carnegie armor plate making secrets were learned by Russia through a small contract placed at Homestead. A Russian was present for eight months by stipulation in the contract, and learned the whole business. Carnegies were very accommodating, expecting new orders from Russia. James J. Joy of Detroit. famous railroad builder and financier, is dead. Burpee, Ramsey & Co., shoe manufacturers, of Lynn, Mass., have failed. They did d business of $1,000,000 a year. Because he slapped a 5-year-old white child James Hawkins was lynched and Alexander and Arthur Green shot dead near Gretna, La. All were colored. James A. Keaton has been appointed associate justice of the Oklahoma Supreme court. The lumber and mills of the Cascade Iowa, Lumber company were destroyed by fire. The loss is $105,000. A disastrous gale visited Great Britain. Much damage was done in London. Frank H. Johnson, a Chicago grain broker. killed himself in Lincoln park because of losses. National Sporting club, London, will not allow Corbett the premises, but will welcome Fitzsimmons. Allied Silver forces of Topeka will run C. K. Holliday for the Legislature against E. D. McKeever, Republican. A great locomotive on the Eig Four railroad blew up at Pekin, IIL, killing the fireman and wrecking a factory near by. Cattle Thief Kittrell, under arrest in Mexico and wanted in Indian Terretory. can not be extradited, his case not being covered by

20. October 8, 1896 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, October 8, 1896

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GREENED NT The Humane Fire Co. of Easton. Pa., celebrated its centennial Thursday. William Hoffman committed suicide at hanging. Uniontown, Pa., Wednesday, by Andrew Ireland, proprietor of Grove Hall, at Ocean Grove, died Thursday aged 77 years. Torpedo Boat No. 3 was launched from the Columbian Iron Works, at Baltimore, Thursday. The National Association of Demo cratic Clubs has absorbed the Associa. tion of National Silver Clubs. The Very Rev. Charles A. Vissani, ai pelp AND *** MON JO A S O Rome Sunday week, aged 65 years. The Greenpoint exchange of the New York & New Jersey Telephone Co. in Brooklyn, was burned Wednesday; loss, '000'08$ A hotel and several other buildings at Ladonia, Texas, were burned Wed. uesday night. Three persons perished in the flames. The Leadville miners have resolved to continue the strike. Several of the mine managers are preparing to start sposq Aleu 9214 dn It is reported from Honolulu that Consul General Mills will send the re mains of Kate Field to the United States for cremation. The Massachusetts Republican State convention. Thursday, endorsed the St. Louis platform and nominated Roger Wolcott for Governor. The body of Joseph Waddington, who disappeared from bis home 18 panos SBM 1sth Rediet "I N Salem. at the Salem creek Wednesday. The Democrats at Elmer. N. J., Wednesday nominated M. F. Riley for Senator. J. Morris Reeves for Assembly and John A. Finiaw for sheriff. An attempt was made to wreck Pennsylvania railroad passenger train a near Altoona. Wednesday night, chaining a tie to the rails, but it failed. by The Colorado Republican State conventon nominated a full State ticket, beaded by Judge George W. Allen Governor,and also Presidential electors. for The Rhode Island Legislature bas taken action permitting the SoundMoney Democrate to place the bames of ballot. Palmer and Buckner on the official The Philadelphia Democratic City Committee Wednesday unanimously nominated for Sheriff Alexander Crow, Jr., didate. the Independent Republican can. Fierce forest fires are raging along the line of the Northern Pacific rail. road in Wisconsin and Minnesota and immense destroyed. tracts of timber are being The Democrate of Monmouth county, N.J., Thursday nominated William R. Stevens for Senator and H. P. Imlay, Craig 'A Albert pus JOiH O quesor for Assembly. The Rhode Island Senate Wednesday passed a resolution authorizing the eq1 10 of em 11ª JO secured #1 treasury eqt SV coin plog a: State empty, notes are to be issued for $250,000.00 The Republicans of Salem county, N.J. Wednesday nominated Richard C. a Miller for Sepator, Joseph B. Crispin for Assembly and Benjamin B. Wescott for sheriff. @ -mep Thursday as ere V S aged the Paschen Co. 's building and 1 10 1001xe eq: 01 decords S11 S $73,000. Two firemen were injured, one possibly fatally. 3 Benjamin Rome. a business man of Prine George county, Md., was run & Pail 8 sq petter pus 1940 road train near his home, at Bowie, Thursday evening. B It is said that during his visit to this country Rt. Hon. Joseph Chamber@ lain. the British colounial secretary. to was constantly guarded by two secret service agents. The reason for this precaution is not stated. The creditors of the Bay City, Mich., Lumber Co. met in Toronto Wednesday and decided to wind up the a affairs of the company. The liabilities P are between $500,000 and $600,000, with : "sanome 1891 JO sseaxe a: assets 9. The candidates of the New York Populists for Governor and Lieutenante Governor having resigned the State : convention was reconvened at Syracuse Thursday and the Silver Democratic u tuted. candidates for offices were substi31 The Elwood, Ind., Window Glass Co. es has accepted the wage scale and decided 10 MIOM 11818 01 action of the Western Window any Glass Manufacturers' Assocation This action. 9 it the is said, association. threatens the disruption of r B The Governor of New York Wednesday 99 designated Justice George B. Bradley p. of Corning as Associate Justice of the p appellate division supreme court. in the Second judicial district, in the SQ place made vacant by the death of 'I Justice Calvin E. Pratt. or a The grand jury at New Orleans has et returned seven indictments for bezzlement against President em- Nicholls de and Cashier De Blanc of the suspended en Bank of Commerce. The specified o charges are that they at various times c. embezzled sums of money aggregating -2 $96, 000. The men have been arrested et and held in bond of $24,500 each. The schooner L. M. Morrill,at Seattle, of from Ounalaska, brings news of the loss (' eqf most dear XIS pas e 30 81 British cruiser Satellite in Dutch Har"1" bor on the night of September 4th. et out JO assistance 047 01 enos pay They 1Their pas boath selleds B a! dew 'II UMO eqf 4q TAS seoq oz Only one of the party was saved. 18 Francis R. Lassiter. United States 10 district attorney for the Eastern district of Virginia

21. October 9, 1896 The Union Times Union, SC
Article from The Union Times, October 9, 1896

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# Bank Officers Indicted. At New Orleans, La., the grand jury brought in seven indictments for embezzlement against President Nicholls and Cashier DeBlanc of the suspended Bank of Commerce. The specified charges are that they at various times embezzled sums of money that had been deposited in the bank. Beginning on July 23d, 1893, when they took $23,500 and from that time until February, 1894, an aggregate of $96,000, is charged to have been taken by them. They have been arrested and are in the custody of the sheriff.

22. October 9, 1896 The Union Times Union, SC
Article from The Union Times, October 9, 1896

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# NEWS OF THE WORLD. ARRANGED PARAGRAPHICALLY FOR THE BUSY READER. Happenings Both Home and Foreign as Taken From the Latest Dispatches. Notes From the South. The tugboat Dauntless, held at Brunswick, Ga., on the charge of filibustering, has been released on bond. The Southern railway reports for August the gross earnings of $1,442,001, a decrease of $109,551; net earnings of $420,908, decrease $44,425. D. Silver, a prominent merchant of Sparta, Ga., was assassinated on his way from his store shortly after dark. The murderer made his escape. Dr. W. L. Ryder, who assassinated Miss Sallie Emma Owen in Talbotton, Ga., on the night of April 5th has been convicted and sentenced to hang January 15th, 1897. At New Orleans, La., President Nichols and Cashier Deblane, of the lately suspended Bank of Commerce, have been arrested. They gave bond in the sum of $500 each. Reports received from all sections of Texas indicate that the cotton crop has been seriously damaged by heavy rains. Cotton was full flown and hundreds of acres are washed clean. A tremendous cloudburst struck the town of San Marcos, near San Antonio, Texas, and washed a large portion of the town away. Several people are missing and it is believed they have been drowned. Capt. George H. Berry, of the Effingham Hussars, a company of the First Regiment, Georgia cavalry, was assassinated while on his way from Savannah to his home in Effingham county, about three miles west of Savannah.

23. October 14, 1896 New-York Tribune New York, NY
Article from New-York Tribune, October 14, 1896

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NEW-ORLEANS BANK OFFICERS INDICTED. SENSATIONAL DEVELOPMENTS LOOKED FOR IN THE CASES TO-DAY. New-Orleans, Oct. 13.-The Grand Jury late this afternoon returned eleven indictments in blank, but they are understood to be against the officers and directors of the suspended Bank of Commerce. It is said that sensational developments will follow to-morrow. The indictments against the directors are under Section 877 of the Revised Statutes of Louisiana, which relates to officers concealing the failing condition of a banking institution.