New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-12
ANOTHER BANK GOES UNDER.
THE FOURTH INSTITUTION TO COLLAPSE
IN NEW-ORLEANS.
FAILURE OF THE BANK OF COMMERCE OF THAT
CITY AFTER BRIEF RUN on IT-ACTION


OF THE TREASURY DEPARTMENT.
New-Orleans. Sept 1.-THE Bank of Com
merce. a State institution closed its doors to-
day. According to its last statement the bank
had a surplus OF S51 900
The Bank of Commerce organized In 1887
with a capital stock of 100000 William z.
Nichols. nephew of Chief Justice Nichols. Of the
Supreme Court. is its esdent There was a
great crowd about the bank building shortly
after the doors were closed. 1t is stated that the
doors were closed a matter Of precaution.
there having been on the bank yester-
day. Depositors. It is und arstood will lose but
little.
This is the fourth bank in this city to close its
doors within a short time
Bank Examiner Escott arrived here to-day
and took charge of 'he Union National This
afternoon the two Individual bookkeepers Of
the Union National Bank. Frank b. Leefe and
A. Coomb, were arrested afiidavits made
by Cashier Labarthc. Colomb, it appears. Is
only "constructively" under arrest. The charge
against Leefe is for violating Section DOB Re
vse1 United States Statutes. by falsifyinG his
books and accounts. his accounts showing
credit balance Of Sl2G0i SS which should have
been $19G.1G3 GO. 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 $4,000 which he Immediately furnished
These arrests. taken in connection with Presi-
dent Chaleronc strange silence, are causing
much comment to the effect that an attempt
will be made &c make the bookkeepers scape-
goats 1t was reported tonight that a prom
inent physician, related to Leefe. forced an III
terviey with President Chaleron this afternoon
in reference to Leefe's case and the doctor says
tonight that President Chaleron's mind Is un-
balanced. and that he does not know anytnlhg
more about the books than he the physlcian)
does Nj Chaleron is old and OF hlshiy her-
VOus temperament.
.Iudge Theard this evening appointed two re-
ceivers for the Bank Of Commerce, and its af1airs
will be Immediately qudated. 1t mas ample
assets and this course was deemed best III ord'r
TO fully protect the banks depositors ana otner
creditors
There was persist mt run to-day on the Peo-
nle's Rank and that institution Is in peril
Messrs H. & H. Beer to-day ordered slooWo IN
currency by express from New-York to assist in
relieving the tension which now exisls IN 'his
market.
Washington Sept 1.-THE Treasury Depart
ment yesterday ordered transferred from New
York to New Orleans. by telegraph S9oo'o0o, so
as to relieve the pressure on the NeW-Oreans
banks and will do ali it can properly TO sustain
them The recent failures have left the solvent
short
necessary TO draw on their reserve deposits in
N.w-York banks. Controller Eckes has re-
ceived telegram from Bank Examiner John
SON. at Orleans. stating that the Clearing
House Committee had decided to issue Clearing
House certificates Mr.. Johnson expressed the
belief that there would be further trouble
with the banks
Acting under the general instructions given
then, the receivers Of The several failed National
banks at New-Oreans took poss assion of all the
propertv found In the vaults OF the institutions.
Among these were number of boxes contain
ing securities and other papers OF depositors and
others left with tho banks for safe-keeping
Controller Eckcls to-day0 telegraphed instruc-
tions to the receivers To deliver the boxes 10 all
owners who are not indebted to the banks. and
to hand TO owners the papers not relating to
their transactions with the banks. or which
could not be used in settling them. 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
management of the receivers. but on the other
hand to facilitate and help them as much
possible
In order to aid as greatly as possible in restor-
ing confidence to the people Of New-Orleans in
their financial institutions, the Treasury Depart
ment has sent by telegraph and express to the
Sub-Treasury in that city within the last two
DAYS 81 35OOO to be used In meeting sugar
bounty claims and ctner demands upoA the
Government.
Up to the hour Of closing the Department this
afternoon, Controller Eckels had received no re-
port from the agents ana employees Of the bu-
reau ir charge of the failed banks
Referring to the New-Oreans dispatch to the
icf cd
over the fact that Bank Examiner Johnson had
been placed in charge Of the fallen Union Ma
tional Bank. Controller Eckeis this morning
said to a reporter for the United Associated
Presses that had he known Of Mr. Johnsons
connection with A. e. V. Meyer. the firm whose
failure so seriously affected the Union Bank. he
vould not have designated him TO take charge.
The assignment however. Mr. Eckels said. was
merely temporary because Mr.. Johnson was
already in charge OF the affairs Of the Ameri-
can Bank ard that was enough to engage all
his time and abilities. As soon as news OF the
Union Bank failure reached the bureau CON
troller Eckels directed Examiner Escott. of
I Iouisyil- Ky. to proceed to New-Orears and
relieve Mr. Johnson. which had already been
done. Tho preliminary report or MT Johnson
unon the condition of the Union Bank, had not
rea ched the Controller at noon. but Mr.. Eckes
said he had no doubt Of the truth Of the state
ment sent out last night from New-Orleans tha'
crepancy of at least 100000 exists between
them.
Ex-Deputy Controller Tucker has been ap-
nointed receiver Of the Mutual National BANK.
which closed it's doors yesterday, and he was
expected to take charge to-day.
The correspondent in Ncv'York Of the Bank OF
Commerce Of New-Orleans is the Chase National
Bank Henry w Cannon. the president OF 'he
Chase Rank said he was surprised by the announce
mon, Of III. closing OF the Bank Of Commerce He
was inclined TO think the reported failure was
merely a suspension as matter of precaution III
view of the conditions prevailing at New-Oreans
An tho hanks had virtually suspended cash pay
,nonts The Bank Of Commerce had credit balance
I,,,h the Chase Bank IT had not asked for loan.
tut had II done so II would have been accommo-
Lilo