New-York tribune., 1890-05-20
PELL AND CLAASSEN ON THAI.
MORE EVIDENCE OF BANK-WRECKlNU'
HOW CASHIER CoNNELL. OF THE LENoX HILL
BANK WAS SATISFIED.


BANK WAS SATISFIED.
csbi.r Doharrl of the Lcnox Hill Bank, continneu
yesterday morning at the trial OF George H. Ic''' "'
fore Recorder Smyth his readings nom ''o go
dpcrs of the bank 10 show the melh"" !" WV
simmons Peii, Meyer and Watson oarr'" vi
,,psactons. ON cross examination by Mr. Ne"c"moc'
he calculated the daily balances of Jam'' y ~"
mons and John oatcrlee & co. at the DAM
ronu,rv l. and 90 simmons had balance Na'NHS
from 600 +o1, 900 a day, ana sa,'eIIev
balance was over $1,000 every day MI Ne"''''~
asked holding up one Of >mmOns'S checks TOT q--''
bearing the date Of January 20: II thi' 'n''" ''''
been presented AT the bank on the morhi"N VI '','
nary so with balance oi 9ol'oOV III "'' '''
il not have been good
Yes sir" said the witness. -
And even deducting the check Of 10000 wh'n
had been certified. II would have been go'd' ~ M
would be balance Of $1,000 according f" the book
yes. sir. as they appeared on that day. but 'he'e
was error -
" Wond i, not have been absolutely e"oo
uNo sir another check for $4,000 had been Ger
tilted but i, wa incorrectly entered a, check oi
John Sattcrlee u CO.. -
Mr. Ncwcombe put some further P"''"''' - W.
endeavor 10 show that simmons HAD not "Nen''""
his account The witness IN answer 10 a quc'''"
said that it undoubtedly A custom among n'""'
to certify checks. relying on deposits to be m'no ~
some time before the bank closed.
Samuel H. Leszvnsky who vice president ana
principal owner Of the LenoX HI bank ir'" '"'
time it began business IN August. l--7, nnul l''
ccnibcr 10 1--9. testified a 10 the n"g"tlhtph- i'r
the sale Of the bank lie said that Philip J. Never
met him on broadway and asked him to sell %" con
troll Of tie bank. AitcrwaN Meyer called several
time, At the witnc,,'s Office and poke Of the matter
He did nDt disclose the name Of his principal uh''
a few days before the sale when he sid thhi =. H.
Virgins. Of Boston. wanted 10 purchase the stock.
Virgins talked 10 the Witnc.~ on December l.. II
was agreed that the stock should be paid for at the
rate ot a3lO for each II the jOj shares, hut th"
amount finally paid somewhat l"-e -lo','"".
Virgins said that the transfer must be made Oh the
next DAY December L. q, ne had e" 20 10 Boston the
next evening Mr.. Lc,zynsby said that it would be
imp0,s ible transfer the control before the l9h and
Wieein, finally agreed that Fell should act as Ms
agent and that the transfer should then be made.
Pcu Wa, Al the bank the 19h, with certified
checks signed by James 4. simmons George II. Pcl,
agent ". VI. Kildui. and others. The old Board %
Directors resigned one BY one and each resignation
accepted, one OF the friends of the ne" manage
ment was elected.
Virgins had spoken Of the necessity Of having all
the bonds other asset, Of the bank ready to be
surrendered Fifty Of the bonds AZ the Western
National Bank and these, the witness told Pe could
not well be Produced but he showed letter certify
ing that they at the Western National Bank
subjct 10 order Twenty nine other bonds were with
taken 10 the bank, ready for Inspection 10y the
owners. pcl not made director Of the bank
Edward j. Connell, the former cashier Of the LcnOX
Hill Bank. and the principal witness against Pcll.
was recalled lie testified
Mr.. Wallack was elected president, and before the
directors had all gone, he asked me for all the bonds
belonging TO the bank brought them to HIM. lie
said that he would take them away as Undcr,tood.
for ssAe. said that must have receipt for them.
He took the slip containing memorandum OF the
bonds which III the bundle and wrote Il
received the above. and signed #. | asked him the
next day about the bonds and said that must have
them back or have an accounting for them The
day after / again said 70 Mr. Wallack thai wanted
the bonds accounting, that must protect the
bank and that would have no nonsense about It.
lie tclephoncd for simmons, IcI and Mcyc. and they
to the bank. ! said that must have
counting simmons suggested that they migI, furnish
security Pcl offered the stock Of tine bank a,
security said no, that Wa, no good ior tina,
purpose wa. d liability and Wa, the very thing We
must protect Pcl said he could not make return
Oh tina, day, rs it saturday.
simmons finally asked if stock Of the 81 Ionis
ocean Canal and sportation Company would do.
| said that knew nothing about IT. lie asked If II
would be sufficient If brought letter from Cashier
Hutchins. Of the Third National Bank. certifying II,
value. laid yes and he brought the stock and the
90 g. and there were eighty share, Of q 900 each.
Pell offered additional security 100 shares of The
| EQuit1ble Iidnk stock l1cn thought ] had ample
! securty and placed IL In the bank vaults. / fnl
them then that / had tO get out Of the bank, that
/ could not stand that kind Of business. | told Mr..
WdIlack that day that there must bc more certil
cation for any one unless there Wa, nancy in the
bauk ~ meet the check Pcl said that the checks
had all been paid far and good. ! said that
| didn't know that, that was stl cashier and that
would instruct the paying teller not 10 certify unless
the money was i'm the bank. handed ia my res
/ 1,aOI.
Assistant District Attorney Davls-IlOw about Your
salary A-Thcy paid me in full.
Q:-For the twelve months which had Just bcgunl
Ayes ~ 800
| Q.-Who handed il to you! A.-Mr. Pell.
4 C.-And the directors also gave yOn a vote Of
thanks for the manner in which You had discharged
yOur dutest A.-Yes, sir.
| The trial not finished
W NJ Killduf, Of the firm Of Pell. Wallack & Co.,
testified yesterday morning before Judge benedict IN
the trial Of r. j. ClaasSen for cmbezzing the funds
OF the sixth National Rank. He told Of some loans
made simmons January 20. -. ID. baldwin.
I the president OF the American Loan and Trust Com
pany, produced the account OF James A. simmons
with the company ID. NJ Ripley, who clerk
for simmons. testified that AT hi, request he went to
the Sixth National Bank 10 serve a. director He
said that he told days before that lie must
prepare appear : a director The testimony for
the prosecution Is not finished.