Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-09-12
NEW ORLEANS BANK TROUBLE.
Government Policy Regarding Fall
ed National Institutions.


NEW ORLEANS, LA. September IL
The Bank OF Commerce closed its doors
to-day. IL was organized In 1881. with
n capital stock of 100000 William =
Nichols. nephew Of Chief-Justice Nichols,
of the Supreme Court. is it's president.
There was great crowd about the bank
building shortly after the doors were
closed. 1t Is stated that the doors were
closed as a matter Of sprecaution, there
having been a run on the bank yester-
day. The depositors, it Is understood,
will lose but little.
PAPERS FOR sAFE-KEEPING
WASHINGTON. ID. c., September H.
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 boxes containing
securities and other papers of depostors
and others. left with the banks for safe
keeping. Comptrcler Eckels to-day wired
instructions 10 the receivers to de-
liver the boxes 10 all owners who are
not indebted to the banks. and to allow
owners ell papers not relating to their
transactions with the banks. or which
could not be used in settling them.
TO HELP BUSINESS MEN.
Mr.. Eckels explained that it was not
only not the wish Of the department TO
interfere with or embarrass the business
men Of the city in any way by the manage
ment Of the receivershps but. on tho
other hand to facilitate and help them
as much as possible. In order to aid
as greatly as possible In restoring conf
dence to the people OF New Orleans in
their financial institutions. the Treasury
Department has sent by telegraph and
express. TO the Sub-Treasury I'm that city
within the past two days. yl.35OcD0. 10
be used in meeting the sugar bounty
claims and other demands upon the gov
eminent
Up 10 the hour OF closing the depart
ment this afternoon Comptroller Eckels
had received no report from the agents
and employees Of the bureau I'm charge
OF the failed banks.
UNION BANK MYSTERY.
NEW ORLEANS. September u-Bank-
Examiner Escott arrived here to-day and
took charge Of the Union National. but
his arrival has not dispeled the gloom
OF mystery which hangs over that in
stitution Mr.. Chalaron. the president
Of the Union Bank. visited the bank build
ing early this morning. but remaned
| only a short while. His persistent 81
lence in the face Of so many ugly rumors
about the bank. is severely criticised
! on all sides. Some of his warmest de-
Tenders have grown lukewarm to his
interest. and now say 1t is strange he
does not talk.
BOOK-KEEPERS ARRESTED.
This afternoon two individual book
keepers Of Union National Bank-Messrs.
/ Frank b. Leefe and A. Colomb-were
arrested on afidavits made by Cashier
Labarthe Colomb, II appears. IS only
"constructively" under arrest. The
] charge against Leefe is that Of violating
section 500. Revised Statutes United
/ States OF America. By aIsifying his
/ books and accounts, and especially In
! hook Of the bank known as the book
/ Of daily summaries OF individual entries"
| his accounts showing a credit balance Of
| Sl260iSS which should have been 1885,.
| 1850 The charge against Colomb is OF
| a similar character. Leefe was arraigned
I before United States Commissioner Craig.
| He pleaded not guilty. and was placed
under bonds OF $1,000, which he i'm
mediately furnished.
! BOOK-KEEPERS sCAPEGOATS.
These arrests. taken in connection VITA
| President Chalarons strange silence, are
causing much comment TO the effect that
an attempt will be made TO make the
! book keepers scapegoats. II is well known
that the banks book-keepers do not
handle a cent Of she banks funds. a
reporter Of the Southern Associated Press
is Informed tonight by an unimpeachable
source that al prominent physician related
10 Book Keeper Leefe forced an interview
with President Chalaron late this after
noon. in reference 10 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 Ghe physician
| does. Mr. Chalaron is an old man. highly
/ nervous in temperament. and was wrap
ped up in the existence Of the bank. II
/ Is beginning TO be believed that tho
change I'm the bookkeeping Of the bank
which was recently inaugurated has had
a tendency 10 confuse Mr.. Chalaron, and
that I'm going over the books he has
become unbalanced. and jumped 10 tho
conclusion that there is a defalcation.
Otherwise his precipitate action in closins.
the bank without consulting the directors
and his silence are inexplicable. There
is strong ground for belief in the ply
sician's story.
Judge Theard this evening appointed
two receivers for the Bank OF Commerce.
and its affairs will be Immediately llqui-
dated. 1t has ample assets. and this
course was deemed best I'm order to fully
protect the banks depositors and other
| creditors.
PEOPLES BANK IN PERIL.
There was a persistent run to-day on
the Peoples Bank, and that institution Is
| In peril
Messrs. II and r. Beer to-day ordered
10000 in currency by express from New
/ York, 20 assist 10 relieve the tension
which now exists In this market