Los Angeles daily herald., 1890-01-31
EASTERN HAPPENINGS.
Two Big Banks Wrecked in
Gotham.
DUDE WILLIAMS GETS HIS DUES.
Six Years in the Pen-LampsOn
Ousted from the Lieutenant
GOvernOrship of Ohio.

Associated Press Dispatches to the HERALD
New York, January 30.-The Lenox
Hill bank has suspended payment. 1t is
controlled by the same parties who last
week bought control of the Sixth Ma
tional Bank of this city, which had
already been closed by the Bank Exam
iner. knowledge of the relation between
the two institutions caused run on the
Lenox, which it was unable to meet. The
Clearing House Association today acted
on the Sixth National, and decided to
drop it from the association. 1t is ru'
mored in regard to the Sixth National
that it's new officers, who have only been
in charge a few days. sold out ite securi-
ties as soon as they obtained possession.
President P. J. Claseen is said to have
been connected with mining schemes in
Lesdville number of years ago. The
depositors will be paid in full.
President Tappen, member of the
clearing committee, and President Gala
tin. of National bank, this afternoon
said it seems that after Leland sold his
interest in the Sixth National, the d.
rectors were requested to resign, which
they did. The new directors, without
being legally organized, elected ?. j.
Claasen president. Claasen made three
loans of $50 900 each, secured by stock
| in the Lenox Hill bank very poor &C.
curity), and then went to the safe deposit
vault of the National Bank and alb
st,acted railroad securities valued at
| $622, 900, which he placed in the hands
of George Pell for sale. Cashier Cosen
becoming alarmed, notified the clearing
house, which in turn notified Bank Elk.
aminer Hepburn. The latter's examine.
ton fully confirmed the statements oi
Colsen. Tappen added that Colsen be-
haved throughout in an admirable man
ner.
The purchasers of Leland's stock, Tap
pen said, evidently paid for it with the
banks money. The Leuox Hill and the
Funitable Banks are State institutions
and will probably be closed up.
Bank Examiner Hepburn told re-
porter of his examination of the books
There was no record to show what dispc
sition had been made Of the 1922 .00(
in bonds. He demanded their restitu
ton or their equivalent. The presiden
went with him to Pell, Wallack & Co..
who said $490,000 worth had been sold
They brought $2Ol 900, and they Offered
checks for the balance. These check
the examiner refused to accept. Thi
with other complications decided him il
closing the bank.
If the gentlemen carry out their prom
ises the Comptroller will undoubtedl
reopen it, The examiner doesn't thin
the depositors will lose anything nov
Cashier Colsen said he had been cor
nected with the Sixth National for twent
, years, and he did not propose to stand b
and see his friends and the deposition
swindled. He was not going to re!
until some one was brought to Justice.
Claasen, the new president Of the Sixt
National, is broker at 45 Broadway
Wallack, president of the Lenox Hill
Bank, is a son of the late Lester Wallacl
and has an office in the same building
Wallack was also a partner of Pell {
Wallack, who negotiated the sale of tn
securities. The methods used are ident
cal with those of Ives in the Cincinna
Hamilton and Dayton case.