gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
c11448f38166c4b9
Response Measures
None
Description
Embezzlement at other New Orleans banks and discovered irregularities contributed to the run and insolvency.
Events (4)
1.September 11, 1896Run
Cause
Local Banks
Cause Details
Runs triggered by panic from recent failures (American National, Union National) and general wave of distrust in New Orleans banks.
Measures
Bank paid those who came earlier in day; clearing house and other banks offered assistance according to reports.
Newspaper Excerpt
There having been a run on the bank yesterday.
Source
newspapers
2.September 11, 1896Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed/suspended after sustained runs and inability to realize assets; later found mismanagement, overdrafts and insolvency.
Newspaper Excerpt
The Bank of Commerce ... did not open its doors this morning. President Nichols gives the following explanation: 'The unprecedented run on the bank for the past six weeks ... we deemed it advisable ... to take this step of liquidating.'
Source
newspapers
3.September 23, 1896Receivership
Newspaper Excerpt
The liquidators of the recently suspended Bank of Commerce came into the Civil District Court with a report ... The bank is insolvent and its capital and surplus are lost.
Source
newspapers
4.October 9, 1896Other
Newspaper Excerpt
President Nichols and Cashier DeBlanc of the suspended Bank of Commerce have been arrested. They gave bond in the sum of $500 each.
Source
newspapers
Newspaper Articles (25)
1.September 11, 1896Santa Fe Daily New MexicanSanta Fe., Santa Fe, NM
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CONDENSED NEWS. At Winnepeg Li Hung Chang declared in favor of McKinley. Chas. S. Thomas, of Colorado, is stumping Maine for Bryan and Sewall. At Chicago, Geo. Magill, president of the Avenue Savings bank which recently failed was arrested today. Dan Lamont, secretary of war, says he will vote for Palmer for president and Burke Cookran declares he will vote for McKinley. At New Orleans, to-day Frank D. Leaf and Louis Colombe, book-keepers for the Union National bank, were arrested by a U. S. deputy marshal. The special charge against them has not yet developed. At New Orleans, the Bank of Commerce, a state institution, failed to-day. The bank has deposits of between $800,000 and $400,000, while its assets are about $800,000. The bank had a long list of small depositors. At Cincinnati, Thomas D. Pearce, Harry T. Atkins and Henry Pearce, owners of the Franklin cotton mills, doing an extensive cottun business under the name of Pearce, Atkins & Co., and Henry Pearce Sons Co., assigned to day. The assets are $240,000; liabilities, $163,000. Assets consists of of $110,000 in personal property, and $180,000 realty.
2.September 11, 1896Alexandria GazetteAlexandria, VA
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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.
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,
4.September 12, 1896The Norfolk VirginianNorfolk, VA
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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.
5.September 12, 1896Richmond DispatchRichmond, VA
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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.
6.September 12, 1896Wheeling RegisterWheeling, WV
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HALF A MILLION Is the Amount Crooked Bookkeepers Are Alleged to Have Stolen From a New Orleans Bank. New Orleans, September 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 doors this morning. At 1:30 this afternoon there was a lively run on the Peoples' Bank. Depositors formed into line. There is considerable excitement. Checks for $100 or under are being cashed. New Orleans, September 11.-Frank D. Leefe and Louis Colombe, bookkeepers in the Union National Bank, have just been arrested by U. S. Deputy Marshal. The arrests were made in order to hold the men spending a fur'ther investigation. The total defalcation so far discovered amounts to over $470,000. Bookkeeper Colombe took a dose of morphine this morning and has been unconscious all day.
7.September 12, 1896The Roanoke Daily TimesRoanoke, VA
8.September 12, 1896The Roanoke Daily TimesRoanoke, VA
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TROUBLE IN THE CRESCENT CITY ANOTHER BANK WENT DOWN YESTERDAY. The Bank of Commerce Closed Its Doors. As Usual, the Assets Are Said to be More Than Liabilities-A Lively Run on Another Bank--Two Clerks of the Union National Placed Under Arrest. The Government Continues the Transfer of Money to Meet Demands.
9.September 12, 1896Evening JournalWilmington, DE
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THEFTS WRECK A BANK Two Bookkeepers Are Charged With Filching $500,000. ONE ATTEMPTS SELF DESTRUCTION The Tangled Afairs of the Union National Bank of New Orleans-Almost a Financial Panic In the Crescent City-Four Recent Bank Failures. NEW ORLEANS, Sept. 12.-The rottenness in the Union National bank was made known when United States Bank Examiner Johnson swore out affidavits against the two principal bookkeepers, charging them with embezzling the entire amount of the deficits. One of the guilty men sought escape by suicide. Mr. Johnson reached the conclusion that these were the guilty men after working hard for two days on the books and lost no time in notifying District Attorney J. Ward Gurley of the situation. He went to Mr. Gurley before the latter had breakfasted and explained his haste to he due to the fear that the guilty men would escape unless arrested at once, The first affidavit charged Bookkeeper Frank B. Leefe with embezzing $185, 558.79. The second charged Bookkeeper L. Lacombe with the embezzlement of the remainder, in round figures about $406,000. The amount of the embezzlement, so far as can be ascertained, is $592,000. The bank examiners have 60 far failed to implicate any of the other officials. It has not been ascertained, either, when the men began the peculations charged. Bookkeeper Leefe had been in the employ of the bank for 19 years and has been considered the soul of honor. He was very devout. Mr. Lacombe has been in the employ of the bank 16 years, and while he lived very well for a man on a salary of $150 a month no suspicion has ever been attached to him. Bookkeeper Leefe Arrested. Leefe has been arrested and placed on bond of $10,000. When the United States marshals went to serve the papers on Laoombe, it was found that he had learned of his discovery and attempted to commit suicide by taking a dose of morphine. He was placed under guard at his home. He is in a comatose condition, and it is thought he will live but a few hours. The panic is about over. The rottenness in the affairs of the American Na. tional and Union National, from which $1,000,000 was taken, caused the people to lose confidence, and the run they made on the Mutual and the Bank of Commerce, neither of which was very strong, caused the Mutual and the Bank of Commerce to close. There was a slight run on the People's, but It was soon stopped, and now the panio is over. Six out of the 18 banks in the city have closed their doors within the last year and four within the last month. New Orleans has never known such a panic since the days of 1873.
10.September 12, 1896Birmingham State HeraldBirmingham, AL
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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.
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.
12.September 12, 1896The Indianapolis JournalIndianapolis, IN
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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
13.September 12, 1896The Providence NewsProvidence, RI
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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.
14.September 14, 1896The SunNew York, NY
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BANK-LOOTING SYNDICATE. SEVEN PERSONS IN THE NEW ORLEANS STEAL OF $602,000. The Two Clerks or the Union National, Colomb and Leone. Did the Work Inside - Money Used in Riotous Living and Speculation-Arrests to Be Made at Once. NEW ORLEANS, Sept. 13.-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 twenty-four 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. Colomb 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 to-night 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 CO ton speculation last year when cotton went up so high. the syndicate was ahead of the game. The sudden 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 be high livers. Not so Colcomb and Leone: they conld not be so, for they were kept all the day at their desks working away to cover up the crookedness in their books, 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 n 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 it 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 14 gentleman could do under the circumstances, they say. Colomb 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 isdeath, 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 thirty-six hours he opened his eyes and looked around the room, but he neither spoke nor seemed to know any one. Colomb's death renders the work of investigating the defalcation very difficult. and United States Bank Examiner Escott doubts whether it will ever be possible to know all the details. The receivers of the Bank of Commerce and American National Bank will take possession of them to-morrow. 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 and that there will be no trouble to-morrow. United States Bank Examiner Escott completed his first trial balance of the Union National Bank to-night and found the amount stolen to be $602,687.07. This is subject to an increase when all the accounts are carefully examined.
15.September 14, 1896Evening JournalWilmington, DE
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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 24, 1896New-York TribuneNew York, NY
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BANK-WRECKERS IN NEWORLEANS CAPITAL AND SURPLUS OF THE BANK OF COMMERCE WIPED OUT-OVERDRAFTS OF MORE THAN $300,000. New-Orleans, Sept. 23.-Another sensation was sprung this afternoon when the liquidators of the recently suspended Bank of Commerce came into the Civil District Court with a report. They find that the affairs of the bank have been mismanaged; that some of the accounts have not been properly kept, and that grave irregularities have been committed. The overdrafts amount to more than $300,000. The bank is insolvent and its capital and surplus are lost. All that can be accomplished under most favorable circumstances will be the payment in full of deposits and bills payable by the bank. This, however, is not certain.
17.September 24, 1896The Norfolk VirginianNorfolk, VA
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ANOTHER SENSATION SPRUNG In Connection With the New Orleans Bursted Bank. New Orleans, Sept. 23.-Another sensation was sprung this afternoon when the liquidators of the recently suspended Bank of Commerce came into the Civil District Court with a report. They find that the affairs of the bank have been mismanaged; that some of the accounts have not been properly kept and that grave irregularities have been committed. The overdrafts amount to more than $300,000. The bank is insolvent and its capital and surplus is lost. All that can be accomplished under most favorable circumstances will be the payment in full of depositors and bills payable by the bank. This, however, is not certain. There are some ugly rumors afloat reflecting severely against certain of the bank officers,
18.September 24, 1896Birmingham State HeraldBirmingham, AL
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OVER DRAFTS $300,000. The Report of the Liquidators of the Bank of Commerce. New Orleans, is Highly Sensational. New Orleans, Sept. 23.-Another sensation was sprung this afternoon when the liquidators of the recently suspended Bank of Commerce came into the civil district court with a report. They find that the affairs of the bank have been mismanaged; that some of the accounts have not been properly kept and that grave irregularities have been committed. The overdrafts amount to more than $300,000. The bank is insolvent, and its capital and surplus is lost. All that can be accomplished under the most favorable circumstances will be the payment in full of deposits and bills payable by the bank. This, however, is not certain. There are some ugly rumors afloat reflecting severely against certain of the bank's officers.
19.September 24, 1896The Morning TimesWashington, DC
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UGLY RUMORS AFLOAT. $300,000 in Overdrafts on New Orleans Bank of Commerce. New Orleans. La., Sept. 23.-Another sensation was sprung this afternoon when the liquidators of the recently suspended Bank of Commerce came into the civil district court with a report. They find that the affairs of the bank have been mismanaged; that some of the accounts have not been properly kept, and that grave irregularities have been committed. The overdrafts amount to more than $300,000. The bank is insolvent and its capital and surplus is lost. All that can be accomplished, under most favorable circumstances, will be the payment in full of deposits and bills payable by the bank. This, however, is not certain. There are some ugly rumors afloat reflecting severely against certain of the bank officers.
20.September 25, 1896Tensas GazetteSaint Joseph, LA
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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 ComΡΠ΅Π³ΡΠ΅, 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
21.September 26, 1896The Morning NewsSavannah, GA
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BAD WORK IN A BANK. The People of New Orlenns Irate Against the Officials. New Orleans, Sept. 25.-To-day affidavits were made against President Nichols and Cashier de Blanc of the lately suspended Bank of Commerce by one of the bank's depositors and shareholders, charging them specifically with receiving deposits after they knew the bank was insolvent, and in violation of act 108 of the legislature of 1884. This act makes it a crime for any bank officer to consent to the reception of any deposits, or the creation of any debt by a banking institution after he shall have knowledge that it is insolvent or in failing circumstances. The penalty for violating the act is not less than five years in the penitentary at hard labor. The president and cashier were arrested and taken before First Recorder Finnegan. They plead not guilty to the charge and were bound in bonds of $500 each, Ex-Gov. and Chief Justice Francis T. Nichols, who is the uncle of the bank president, signed the bonds for both, and they were released. A large crowd was in attendance at the recorder's court, and on the outside quite a demonstration was made against the bank officers by the infuriated people, many of whom lost money in the bank. President Nichols trembled like a leaf as he passed through and begged the officers to protect him. The failure is turning out to be as bad as any bank failure that ever occurred in New Orleans. President Nichols, who was always regarded as the pink of integrity, seems to have generally seen that concerns in which he was interested or had been were accommodated whenever they needed money. His own account with the bank is overdrawn $112,000.
22.October 9, 1896The Union TimesUnion, SC
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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.
23.October 9, 1896The Union TimesUnion, SC
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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.
24.October 14, 1896New-York TribuneNew York, NY
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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.
Stole $300,000 From the Bank Another sensation was sprung at New Orleans the other day when the liquidators of the recently suspended Bank of Commerce came to the Civil District court with a report. They find that the affairs of the bank have been mismanaged; that some of the acounts have not been properly kept, and that grave irregularities have been committed. The overdrafts amount " more than $300,000.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.
