7731. Teutonia Bank and Trust Company (New Orleans, LA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: April 15, 1912
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: c75df149

Response Measures

Full suspension

Other: Police stationed to keep back crowds; clearing house refused to intervene.

Description

Depositors clamored and police guarded the building (run-like behavior) on April 15 when the bank was ordered closed; bank officers were arrested for embezzlement and concealing insolvency. The bank failed to open and was suspended and thereafter remained closed with prosecutions and civil actions—no evidence of reopening in the articles.

Events (2)

1. April 15, 1912 Run

Cause: Bank Specific Adverse Info
Cause Details: News of officers' alleged false statements, embezzlement and insolvency led depositors to gather and withdraw funds.
Measures: Police stationed to keep back crowds; additional cash reported on hand and thousands of dollars were received into the vaults to meet withdrawals.
Newspaper Excerpt: Police are on guard today, keeping back long lines of depositors who are clamoring to get into the bank building.
Source: newspapers

2. April 15, 1912 Suspension

Cause: Bank Specific Adverse Info
Cause Details: State examiner closed the bank after discovery of missing records and allegations of embezzlement, false statements and insolvency by officers.
Newspaper Excerpt: The bank was ordered closed last night. ... the Teutonia Bank and Trust company was ordered closed by State Bank Examiner Young this morning.
Source: newspapers

Newspaper Articles (12)

1. April 15, 1912 Evening Star Washington, DC

Article from Evening Star, April 15, 1912

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Article Text

POLICE HOLD THRONG OF CLAMORING DEPOSITORS Officials of Teutonia Bank of New Orleans Under Arrest. NEW ORLEANS, April 15.-Joseph H. Gomila, chairman of the finance committee of the Teutonia Bank and Trust Company, under arrest, with other officials, accused of having sworn to false statements as to the bank's condition, admitted to the authorities today that his indebtedness to the institution is $180,000. Eugene F. Buhler, president of the bank, and Frank J. Braud, former assistant cashier, are under arrest. They have been released on bond. The bank was ordered closed last night. Police are on guard today, keeping back long lines of depositors who are clamoring to get into the bank building. Some estimates place the loss the bank will sustain as between $300,000 and $400,000, but no official statement has been issued. The company had a capital of $200,000, reported deposits of $1,413,569.71, and its reported resources were $2,039,670.37. Cincinnati Bank Opens as Usual. CINCINNATI, Ohio, April 15.-The Second National Bank, which has been taken over by the Cincinnati clearing house, pending the formulation of plans by its stockholders for a reorganization satisfactory to the controller of the currency, opened as usual today. About $2,000,000 in cash was on hand to meet a run, but there were no unusual demands.

2. April 16, 1912 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, April 16, 1912

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NEW ORLEANS BANK IS ORDERED CLOSED Officers of Bank Arrested Charged With Embezzlement New Orleans, April 15.-Following closely upon the arrest during the night of two of its officers, Eugene F. Buhler, president of the institution, and Joseph H. Gomila, chairman of the finance committee, charged with swearing falsely as to the bank's condition, the Teutonia Bank and Trust company was ordered closed by State Bank Examiner Young this morning. Frank J. Braud, a former assistant cashier of the bank, was also arrested and charged with the embezzlement of $600,000 of the institution's funds. Buhler and Gomila were released on a bond of $1000 each and the other man, failing to secure bond, is being held. Owing to the disappearance of records no definite statement as to the total loss to the bank has been obtained. Some estimates place the amount between $300,000 and $400,000. Mr. Gomila admitted to the Associated Press today that his indebtedness to the bank is $180,000 as told the authorities. The institution had a capital of $200,000. According to its last statement on March 7 it had resources cf $2,039,670.37 with deposits of $1,413,569. The New Orleans clearing house association, of which the Tuetonia bank was a member, held a special meeting during the night to consider the question of extending aid. Later it issued a statement to the effect that it would not intervene. Policemen have been stationed in front of the bank to keep back the crowds composed principally of small depositors who began to gather during the early hours of the morning after the suspension of the bank had become generally known. Buhler and Gomila were rearrested later in the day charged with embezzlement of the bank's funds. Their bonds were increased to $30,000 and $20,000 respectively, which they had not furnished up to late tonight.

3. April 17, 1912 Las Vegas Optic Las Vegas, NM

Article from Las Vegas Optic, April 17, 1912

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FOUR BANK OFFICIALS PLACED UNDER ARREST NEW ORLEANS INSTITUTION'S FAILURE CAUSES RIGID IN. VESTIGATION New Orleans, April 17.-Further investigation into the affairs of the suspended Teutonia Bank and Trust company resulted in the arrest today of A. Wagatha vice president and former cashier, on the charge of receiving deposits while knowing the bank was insolvent. He furnished $10,030 bail. Eugene F. Bushler, president, was arrested twice yesterday, four times in all. He is out under $45,000 bail to answer charges of embezzling $6,500, making false statements, concealing the condition of the bank and receiving deposits, knowing of its insolvency. Joseph H. Gomila, director and chairman of the finance committee, made another trip to the jail today and decided to stay rather than furnish $55,000 bail. He is held on six charges, two embezzlement, making false statements, and concealing conditions and three for forgeries of approximately $14,500. Frank J. Braud, former cashier, charged with embezzling $60,000, is in jail in default of $20,000 bail. Emilie C. Roehl, W. S. Rogers and P. E. Brue are held as material witnesses.

4. April 17, 1912 El Paso Herald El Paso, TX

Article from El Paso Herald, April 17, 1912

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BANK SUSPENDS AND OFFICERS ARE HELD New Orleans, La., April 17.-Further investigation into the affairs of the suspended Teutonia Bank and Trust company resulted in the arrest today of A. Wagatha, vice president and former cashier, on the charge of receiving deposits while knowing the bank was insolvent. He furnished $10,000 bail. Eugene Bushler, president, was arrested twice yesterday, four times in all. He is out under $45,000 bail to answer charges of embezzling $6500. making false statements, concealing the condition of the bank and receiving deposits, knowing of its insolvency. Joseph H. Gomila, director and chairman of the finance committee, made another trip to the jail today and decided to stay rather than furnish $55,000 bail. He is held on six charges, two embezzlement, making false statements and concealing conditions, and three for forgeries of approximately $14,500. Frank J. Braud, former cashier, charged with embezzlement of $6000, is in jail in default of $20,000 bail. Emile C. Roehl, W. S. Rogers and P. E. Brue are held as material witnesses.

5. April 18, 1912 The Salt Lake Tribune Salt Lake City, UT

Article from The Salt Lake Tribune, April 18, 1912

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ANOTHER ARREST IN TEUTONIA BANK UHJL CASE NEW ORLEANS, April 17.--Further investigation into the affairs of the suspended Teutonia Bank and Trust company resulted in the arrest today of A. Wagatha. vice president and former casbier, on the charge of receiving deposits while knowing the bank was insolvent. He furnished $10,000 bail. Eugene F. Bushler, president, was ar. rested twice yesterday, four times in all. He 16 out under $45,000 bail to answer charges of embezzling $6500, making false statements, concealing the condition of the bank and receiving deposits. Joseph H. Gomila, director of the finance committee, made another trip to the jail today and decided to stay rather than furnish $55,000 bail. He is held on six charges, two embezzlement. making falso statements and con. cealing conditions, and three forgeries of approximately $14,500. Frank J. Braud, former cashier, charged with embezzling $60,000, is in jail in default of $20,000 bail. Emile C. Roehl, W. S. Rogers and P. E. Brue are held as material witnesses.

6. April 18, 1912 The Pensacola Journal Pensacola, FL

Article from The Pensacola Journal, April 18, 1912

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By Associated Press. New Orleans, April 17.-Further investigation into the affairs of the suspended Teutonia Bank and Trust Company, which failed to open for business Monday, resulted last night in the arrest of A. Wagatha, vice-president and former cashier, on the charge of receiving deposits knowing that the bank was insolvent. He furnished $10,000 tail. Eugene F. Buhler, president, was arrested twice yesterday, four times in all. He is out under $45,000 bail to answer two charges of embezzling $6,500 and $8,500, making false statements and concealing the condition of the bank and receiving deposits knowing of its insolvency. Joseph E. Gomilla, director and chairman of the finance committee, made another trip to the jail yesterday and decided to stay rather than furnish $55,000 bail. He is held on six

7. April 18, 1912 The Pensacola Journal Pensacola, FL

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Arrests Continue as Result of the Suspension of Teutonia Bank By Associated Press. charges, two embezzlement, makins false statements and concealing condiNew Orleans, April 17.-Further intions, and three for forgeries of apvestigation into the affairs of the susproximately $14,500. All the officers are pended Teutonia Bank and Trust Comprominent in financial and social af. fairs. pany, which failed to open for business Monday, resulted last night in the Frank J. Braud, former cashier, arrest of A. Wagatha, vice-president charged with embezzling $60,000, is in and former cashier, on the charge of jail in default of $20,000 bail. Emile C. receiving deposits knowing that the Roehl. W. S. Rogers and P. E. Brue bank was insolvent. He furnished $10,are here as material witnesses. Brue 000 tail. could not make $1,000 bond Roehi Lugene F. Buhler, president, was and Rogers gave bond. Thousands of arrested twice yesterday, four times in dollars were received into the vaults of all. He is out under $45,000 bail to the tottering institution Friday and answer two charges of embezzling $6,Saturday. The amount due from banks 500 and $8,500, making false stateand bankers is put at $98,056, upon toents and concealing the condition of which little will likely be realized as the bank and receiving deposits knowthe Teutonia's bills payable will total ing of its insolvency. $250,000. Of this amount $110,000 is Joseph E. Gomilla, director and due the National Park Bank of New chairman of the finance committee, Orleans, $105,000 the German-American made another trip to the jail yesterday National Bank, and $35,000 the Whitand decided to stay rather than furney-Central National, the last two of nish $55,000 bail. He is held on six this city.

8. April 18, 1912 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, April 18, 1912

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MANY ARRESTS ARE MADE OF BANK MEN Practically Every Officer of Institution Under Heavy Bond New Orleans, April 17.-Further investigation into the affairs of the suspended Teutonia Bank and Trust company, which failed to open for business Monday, resulted during the night in the arrest of A. Wagatha, vice president and former cashier, on the charge of receiving deposits knowing that the bank was insolvent. He furnished $10,000 bail. Eugene F. Buhler, president of the bank, was arrested yesterday twice and four times in all. He is out under $45,00 bail to answer two charges of embezzling $6500 and $8500, making false statements and concealing the condition of the bank. He is charged with receiving deposits knowing of the insolvency. Joseph M. Gomila, director and chairman of the finance committee, made an other trip to the jail today and decided to stay there rather than furnish $55,000. He is held on six charges, two of embezzlement, making false statements and concealing conditions, and three of forgeries of approximately $14,500. All the officers are prominent in financial and social circles. Frank J. Braud, former cashier, charged with embezzling $60,000, is in jail in default of $20,000 bail. Emil C. Boehl, W. S. Rogers and P. E. Brue are held as material witnesses.

9. April 20, 1912 The Lakeland Evening Telegram Lakeland, FL

Article from The Lakeland Evening Telegram, April 20, 1912

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ANOTHER OFFICER. Of Suspended .Teutonia .Bank .and Trust Company Is Arrested. New Orleans, April 20.--Further investigation into affairs of the suspended Teutonia Bank and Trust Co. resulted in the arrest of A. Wagatha, vice president and former cashier, on the charge of receiving deposits knowing that the bank was insolvent. Eugene F. Buhler, president, was arrested twice ou charges of embez zling $6,500 and $8,500. making false statements and concealing the condition of the bank and receiving deposits, knowing of its insolvency. Joseph 11. Gomile, director and chairman of the finance committee, is held on six charges, and Frank .I. Braud, former cashier, is charged with embezzling $60,000.

10. April 21, 1912 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, April 21, 1912

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MORE ARRESTS IN BANK SCANDAL New Orleans, April 20.-As a result of sensational disclosures made by District Attorney St. Clair in his investigation of the looting of the Teutonia Bank and Trust con pany, which suspended Monday, W. E. Dunn, cashier: A. E. Mazurette, and other miror officials were last night arrested as material witnesses. They were later paroled. President Byhler was rearrested and spent his first hours in the parish prison on the charge of forgery. His bail will be bulked at $50,000. Director J. M. Gomila, in jail on vari018 charges, has resigned from the parish grand jury.

11. August 1, 1912 The Herald Algiers, New Orleans, LA

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# SECURITY BREWERY Charges Blaise Suit Inspired by Rival Brewery. Declaring that George P. Blaise had associated himself with the American Brewing Company, a corporation engaged in competition with respondent, for the purpose of furthering the interest of the said company to the detriment of respondent, the Security Brewing Company field its answer recently in the United States District Court in the matter of Schumert & Warfield et al. vs. the Security Brewing Company, an action to force the latter company into involuntary bankruptcy. The defendant admits that it owes debts in excess of $1,000, but it denies that it is insolvent or was insolvent on April 17, 1912, when it applied to the Civil District Court on that date for the appointment of a receiver. The defendant admits that in the suit of the Teutonia Bank and Trust Company vs. the Security Brewing Company, that in the answer filed it admitted that the board of directors of the corporation had passed a resolution that said corporation was unable to meet its obligations as they matured, and that a receiver was necessary, but that said declaration did not admit and was not intended to admit that the Security Brewing Company was insolvent. It is specifically denied that a receiver was appointed on the ground of insolvency, but, on the contrary, the defendant avers that the receiver was appointed to facilitate the conduct of the business and because of the liquidation of the Teutonia Bank and Trust Company, and on representation to the court that the corporation was perfectly solvent. Defendant avers that the plaintiff's petition is defective in that the requisite number of creditors are not before the court; that George P. Blaise, one of the creditors, was the secretary of the defendant company, and that as such an officer he was present and a party to the meeting of the directors which

12. August 8, 1912 The Herald Algiers, New Orleans, LA

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# SECURITY BREWING COMPANY IS SOLVENT. That the Security Brewing Company was not insolvent when it applied for a receiver in the state court in the month of April last, as a result of the suit filed against it by the Teutonia Bank and Trust Company, was declared by a jury yesterday in the United States District Court, when a verdict to that effect was returned. The case has consumed two days of Judge Foster's court, and was only concluded at 5 o'clock in the afternoon. Schumert & Warfield, with four other creditors, filed a petition asking that the judge declare the corporation a bankrupt. It was claimed that the defendant company was insolvent and had committed an act of bankruptcy within the meaning of the bankruptcy act, when an application was made in the Civil District Court for the appointment of receivers to take charge of its affairs. The company replied that it was fully solvent, but had been hard pushed on account of the failure of the Teutonia Bank, to which it was indebted in the sum of $92,000. The object in asking for the appointment of a receiver was, it was claimed, for the purpose of negotiating a sufficient loan with other banks so that the obligation to the Teutonia Bank could be met and the business of the brewery continued. It was agreed that the case be tried by a jury, which, by the way, was the first trial of its kind to be had in the local Federal Court. Witnesses were heard for both sides, and at the conclusion of arguments of the attorneys the case was given to the jury at a late hour yesterday afternoon. In its verdict the jury declared that on April 17, 1912, the day upon which application was made for the appointment of receivers, the Brewing Company was not insolvent.