The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-12
OVER $4,000
DEVELOPMENTS IN THE NEW Or
LEANS BANK DEFALCATION.
Two BooISkeepers of the Union Ma
tionaI, the Looted Institution,
Placed Under Arrest.
SITUATION STILL PANICKY
BANK OF COMMERCE COMPELLED
TO CLOSE YESTERDAY.
Receivers Appointed for Pearce, At
kins q Co. and Henry Pearce
Sons Company, Cincinnati.

NEW ORLEANS, Sept. 11.-Fra nix
B. Leefe and Louis Colombo. book
Keepers in the Union National Bank,
We're arrested to-day by United States
deputy marshals. Colombo was not taken
into custody, he was too sick to leave
home. He is under arrest, however. at his
house. Leefc was arraigned and held in
$4,000 bonds for a hearing. His bond was
Immediately signed He declined to make
statement. The charge is classifying ac-
counts. Two sets OF books were kept The
defalcation is reported to be in the neigh
borhood of half 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 $4,000, and the falsifica-
ton of the books, if not done to cover up
the actual losses of the bank by the fail
ure 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 collision and expects that the
tracing up of the accounts doctored, to-
gether with other evidence sought, will re-
veal the conspiracy and result in the arrest
of number of other parties some very
prominent. Bookkeeper Colombo 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 it's doors this morning
There was large crowd outside the bank
but everybody was orderly and all the blue
bad RI n wac IN oil r,nc
for the pedestrians to pass the side
walks. All manner of surmises and opin-
ions were being freely aired. but the sum
and substance seemed TO be that
the Bank of Commerce had adopt
ed the only course left to it. President
Nichols gives the following explanations
The unprecedented run on the bank for
the past six weeks and the imDosSibility
of realizing with sufficient rapidity on the
assets embarrassed us. After consulting
with the vice presidents of the clearing
we deemed it advisable in order TO protect
the interests of depositors, in order that
they they might be paid in full in short
while well the stockholders, to take
this step of liquidating-a step which none
feel more than we do The bank owes
depositors between $3o00 coo and $500 O00, while
the assets of the bank are about $500, 600
The bank had quite a long list of small
depositors.
The Bank of Commerce was founded in
1887 with capital of 100000. In that year
several prominent business men got to-
cilities of New Orleans were insufficient
made uD their minds to remedy the defect
as much possible and the Bank of Com
merce was the result. The plan of the in
stitution was to do a general banking bust
ness in such way to furnish accom-
modations to all classes of patrons. from
men of millions to wage-earner. and also
to do collecting business. 1t found a
fruitful field before it, and its success up
to this morning had been such to justify
the highest hope of its founders.
At 1870 this afternoon there was a lively
the Peoples Bank. Depositors
focked 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 conSid-
cradle excitement but no trouble of any
kind. The officials of the Peoples do not
seem to be worried over the run and all
checks for 800 under being rapidly
cashed.
President Albert Baldwin. of the clearing
house, says that the crucial test has been
passed and he expects that there will be no
more trouble among local bankers.