New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1890-02-05
BRO.K. Err a ARRESTED,
Broker Pell, in Default Of
Bondsmen, Now Reposes in
Ludlow Street Jail
he is Charged With E1nbezzle.
menf and Misappropria-
ti0n of Funds

New YORK, Special. George II. Pel1, the
broker who was arrested for the part he
took Am disposing of the gil-tedged securities
OF the Sixth National bank, was taken be-
fore UnitedStates Commissioner Shields to-
day and held in 500, 900 bail for examine
ton on Thursday next. Being unable to
procure bondsmen he was committed to
jail. About 6 ocock President Claasen APP
peared before the United States commits
sioner with This counsel, and the warrant
charging him with embezzlement and mis-
appropriated of funds was read to him.
1t was arranged that Mr.. Claasen's
examination should take place
at 10 a. m. term orrow, and meanwhile he
was paroled in custody of two deputy
marshals and his counsel in accordance
with an arrangement made in advance that
if Claasen would give himself up he should
not be put in jail tonight. President
Claasen made ia. statement to-day to the
public. He deEies that he was member of
the syndicate which purchased the control
of the Sixth National bank, or that he had
ever met ex-President Leland until the sale
was completed. he claims that it was at
the suggestion Of cashier Colson, and with
the consent Of the .board of directors, that
he arranged to sell rthe $3.50, 900 in bonds
held by the bank, and that it was for the
purpose of providing more available cash,
SO that the discount business might be in
creased, that
THIS STEP WAS DECIDED UPON.
lie denied that any of the funds of the bank
were used by the syndicate to pay for Lee
lands stock, and claims that had the bank
examiner not refused to accept the certified
checks offered by Pell there would have
been no trouble. ali day long it was ex-
pected that President Talllaan would call
at the Equitable bank and Furnish the $50
600 necessary to resume business, but he
did not appear, and the doors remained
closed. A great many depesitors called
at the bank during the after
noon, and were told that the bust
ness of the bank would be resumed in
a few days, that the affairs of the institu-
ton were all right and that it was only
closed because the examination is in prog
ress. The examiners worked all day at the
Lenox Hill bank. They expected to give
some statement but it was not found pos
sible to tell anything about the work until
a late hour. When the afternoon had
nearly passed the remaining securities of
the Sixth National bank were carried to
some safe deposit by order of Examiner
Hepburn. Reporters were not admitted to
the bank, and it was with some difficulty
that Information was obtained. He
said he would probably finish his
work before morning and would
make no statement to the press, but
that he would Immediately forward his re-
port to the controller at Washington. Dur
ing the afternoon the bank was besieged
by depositors, who were very anxious about
their money. All We're told that their funds
We're safe. The examiner said the bank
would not lose more than s75OOOO OF this
amount 100000 was represented by, bonds
and securieties which had already been
sold, and the other $3.50, 900 represented
and Lenox Hill banks. At meeting of the
clearing House association to-day the Sixth
National, under its present ownership, was
unanimously expelled from the association