St. Paul daily globe., 1890-02-01

Udllk. MI. 1d0cQdSE, III reply tO nlS'
queries, Informed him that the bonds
were all right, and gave the doctor
personal check for some money to pay of
his employees, and offered him his bonds
if he did not think they were safe. DIR.
Carmody took the check and said he
felt satisfied that the bonds were safe
with the bank. Among other depositors
of the bank are ThorDert, the Broadway
florist; Rudolph Aronson, Bill DAILY
and William Mcmahon. All OF them
expressed confidence in the statement
that their money was safe. Mr.. Nc
Mahon has 0,000 in the bank. Lawyer
Henry w, Unger has commenced suit
against the Lenox Hill bank in
BEHALF OF DEPoSIToR
for comparatively small sum. George
II. Pell, the broker who was arrested
last night for the part he took in dis
posing of the gilt-edged securities Of the
Sixth National bank, was taken before
United States Commissioner Shields to
day, and held in S25,0 600 bail for exam
ination on Thursday next. Commits
sioner Shields, on the former arraign-
ment OF the prisoner before him,
stated to him that his arrest Was on the
charge of aiding and abptting bank di-
rector i'll having willfully embeZzled and
distracted certain securities. ''It is q
criminal CHARGE" added the commits
siOner, land you are entitled to an ex-
animation and to bail. 1t is also disere-
tionary with you to make a statement
or to refuse to do so. Anything you
may say will be used against you, SO
perhaps you had better say what you
nave to say to your counsel for the pres
ent." Pell nodded in acquiescence, and
then told the commissioner that he
wished to have an examination. He
said that he would be prepared for a
hearing next Thursday. and the exam
ination was set for that day
at IL a. m. Assistant United
States District Attorney Rose then
addressed the commissioner on the sub
ject of bail. He said that while Pell
was arrested, not as principal, for aid
ing and abetting. his crime was quite as
grave. A like punishment was provided
for him as for the principal-froln five
to ten years Imprisonment. The facts
show that this man assisted bank
official in transferring to his own use
over S430, 900 worth of securities belong
ing to bank. Eight days ago. said he,
this bank stood in the highest names.
1t had the confidence of the stockholders
and the perfect faith of its depositorS.
In few days S90O,00J worth of its secur
lties were gone, and only by the most
strenuous and prompt measures taken
by the bank examiner
WAS ANY OF IT SAVED.
Two hundred odd thousand of dollars
have been returned by these prompt
measures. He then insisted that the
bail should in any event not be for
less sum than $4,000. Commissioner
Shields decided to require bail in the
sum of S25,0U0. When the proceedings
in relation to the bank troubles before
United States Commissioner Shields
were ended, George II. Pell was taken
to United States Marshal Jacobus' office
to give his friends an opportunity to Sc
cure bail. He was guarded by two de-
teetives. Several friends called on him
during the day. Among them was
man supposed to be his brother, Maj.
Pell. Two others who had seen the
Assistant District Attorney Rose that
they were ready to give bail. They
were not accepted, however, as
their real estate possessions did
not satisfy Mr.. Rose. Their
names were Kept secret. There
were altogether five applicants to be-
come bail for Peil, but none of them
qualified. This ended all attempts, TO
get bali, and about 5 p. m. Pell, in
charge of Deputies Cooper and Jetfries,
was driven to Ludlow street jail in
carriage. Rumors had been flying
about all day of arrests. but it was only
little while after 6 O'clock that any
thing definite was made known, when
Commissioner Shields said that Presi-
dent j. p. Claasen,of the Sixth National
bank, was in the building, having given
himself up. Marshal JacobuS, with
Mr.. Claasen, his counsel, BENJAMIN. f.
Foster, ex-United States district attor-
ney; Ashley w. Cole and Deputy Mar
shalS Bernhardt and Holmes, entered
tho Office, Commissioner Shield,
greeted Mr.. Claasen and shook hanG5
with him. The warrant was read to
Mr.. ClaaSen by the commissioner. 1t
CHARGED HIM WITH EMBEZZLING
and mlsappropriating the funds of the
Sixth National bank. An examination
was set for tomorrow morning. Mr..
Claasen, when he gave himself up to
the marshalS, made it condition that
he would not be required to spend the
night in Ludlow street jail. Accord
ingly, with his counsel, he was per-
mitted to take rooms for the night at
the Ast0r house. Prior to surrendering
himself he walked from his home In
Brooklyn to the Wall street ferry and
up Wall street to the news agency,
where he made the above statement,
and to which he affixed his signature.
He was advised not to argue the ques-
ton as to the right to arrest him. but
to take measures to protect himself. He
called upon the law firm of Shearman
% Sterling, but they advised Mr..
Claasen to seek out law
firm that undertook criminal cases,
as such was not in their line.
Gen. Foster was called upon and all ar
rangementS were made for MIR. Claasen
To surrender. Two deputy marshals
had been hunting in the vicinity of the
news agency. and when the conditions
had all been eXacted as to Mr.. Claasen's
not having to stay for the night in Lud-
low street Jail. Ashley W. Cole led them
to where they were joined by Mr.
Claasen. Mr. Cole introduced the party
to each other and they proceeded to the
marShals office. Mr.. Ciaasen asserts
his thorough innocence of any wrong
doing in the affairs of the bank and de.
nies that there was any misappropria-
tiOn or embeZzlement. Charles Ill. Le-
land, former president of the Sixth Ma
tional bank, has issued statement de-
ciaring thathe had considered the stock
of the bank to be worth in the neigh
borhood of $3.50 for the last three Or
four years. He says he had other offers
for his stock. but held it at that figure.
He wanted to sell his stock and retire
for some time, but
HE WANTED HIS OWN PRICE,
which he got. Of the sale Mr.. Leland
says: II made the sale believing that
the purchasers not only had strong
financial support. but large business
connections. which would result largely
to the advantage of the bank and its
The purchasers met me
at the bank on Wednesday,, Jan. %. at
noon, and paid me the entire purchase
price in certified checks as agreed, and
my stock was at once transferred to the
board of directors reorganized. | de-
posted my checks on the same day, and
they were paid in due course. 1t was
not until the following day that | de-
liyered TO Mr.. Claasen in the presence
of two witnesses. the keys to the safety
vault box containing the securities, and
after the verification of the list of the
securities returned them to the box.
locked it, and delivered the keys to Mr..