The Indianapolis journal., 1890-02-01
Mr. Pei and President Claassen, Of New
York, Charged with Embezzlement
The Former Sent to LudlOw.Street Jail in De.
fault Of $4,000 Bail, and the Latter Allowed
to Stay at O Hotel Under Guard.
Statement from the President of the
Sixth National, Denyingall Charges.
The Equitable Bank Also Closes Its Doors
Affairs Of the Lenox Hill-Investigations
of Examiners Hepburn and Preston.


NEW YORK BANK TROUBLES.
Arrest of Broker PeIl and Presidents Claassen
The Latter's Statement.
NEW YORK. Jan. 3l.-George ii. Pell, the
broker who was arrested last nj ght for the
part he took IN disposing of the gilt-edgod
securities of the Sixth National Bank, wss
Shields to-day. and held in so5. 600 bail for
examination on Thursday next. Commits
sioner Shields. on the formal arraignment Of
the prisoner, stated TO him that his arrest
was on a charge of aiding and abetting
bank director in having unlawfully en-
bezzled and abstraoted certain securities
1T is a criminal charge" added the
commissioner, land you are entitled 20
an examination and TO bail 1t is
also discretionary with you TO make q
statement or to refuse to do so. Anything
you may say will be used against you. so.
perhaps. you had better say what you have
TO say to your counsel for the present"
Pell nodded in acquiescence. and then told
the Commissioner that he wished to have
an examination. He said that he would
be prepared for hearing next Thursday,
and the examination was set for that day
at IL A. NJ.
Assistant United States District Attorney
Rose then addressed the Commissioner ON
the subject of bail He said that while
Pell was arrested not as a principal. for
aiding and abetting his crime was quite as
grave. A like punishment was provided
for him as for the principal-from five to
ten years imprisonment The facts
show" said he, that this man assisted
a bank officer in transferring to
his own use over S43o,000 worth
of securities belonging to a bauk. Eight
days ago this bank stood among the high
est in respect. 1t had the confidence of the
stockholders and the perfect faith of its
depositors. In few days $500, 900 worth of
its securities were gone, and only by the
most strenuous and prompt measures taken
by the bank examiner was any of il saved.
Two hundred odd thousand of dollars have
been returned by these prompt measures"
He then insisted that the bail should in any
event be not for less sum than $4,000
Commissioner Shields decided to require
bail In the sum of $4,000. Several friends
of Mr.. Pell appeared later in the day. and
offered to 60 on his bond, but the amount
of their real estate did not satisfy the dis
trict attorney. and MIR. Pen had to pass to-
night in Ludlow-street Jail
AT about noon to-day a weIl-dressed man
walked into Kiornan's news agency on
Broad street. He had a shrewd but dis
agreeable face. He was apparently about
forty-five years old. He announced him,
self as Peter j. Claassen, president of the
Sixth National Bank. and told the group Of
astonished employees that lie had q state-
ment to make. He dictated the following,
after which he calmly walked ont of the
Office:
ITO the Public-As the president of the
Sixth National Bank of the city Of New
York, desire to make statement that
deem due to my family. my friends and
lit is not true thatI was member of the
syndicate that purchased the controlling
interest III the Sixth National Bank. 1t ia
not true that made any loan to myself In
said bank. On the contrary, haze checked
on my own personal bank accounts In this
city, and have deposited TO my credit In the
Sixth National Bank, and have checked not
one cent against it.
dan, for me to say that he consented to be-
come director in the Sixth National Bank
at my urgent request. He has not quail
fled as such director, nor has he at
tended any meetings. at the bank
whatever. He. finding from his engage
ments that he would. not be able TO
60 so far up town when he would be
needed, sent me his resignation as direc-
tor last Tuesday. The same may be said as
to the position of Mr.. Henry c. eutter,
with the exception that he Is Mr.. Sim
monss friend instead of mine, as General
Jourdan Is.
The first time I saw Mr. Leland. the late
president of the Sixth National Bank. was
nn at A r. lrm
were rendered to him and accepted by hiq
amounting TO S650,000. for which he turned
over the control of the stock of the bank.
These checks sns deposited srd by hin, IN the
hence was not O member of the purchasing
syndicate-all the terms had been ar
ranged and agreed 10 before i ever
met him; Afterwards. this payment
being satisfactory to Mr.. Leland. he
procured the resignation, ser.atim. Of the
old board OF directors. and as they resigned
the new board took their places one men,
Der at a time. Tbereupon afr. Leland
rendered his resignation as president. and
was elected unanimously In his place.
"0n thenorning of the 2ad by an arrange
ment with Mr.. Leland, / met him between
10 and ii A. NJ at the National Park Bank
vaults, where he turned over to me the
securities belonging 70 the Sixth National
Bank, and ], finding them correct. receipted
therefor. Either the same afternoon or on
the following day, in conference with the
cashier Mr. ColS0n, learned that the bank
lacked cash means and be suggestedlAnd
concurred with him, that IL would be
well TO dispose of say from $500. 900
to 100000 worth of the high premiura
bonds and have the cash there
| for for the use of the customers
| of our bank. My intentions were 20 raise
the surplus of the bank up to at least $780,
| 600. and SO be able to accommodate our de-
posting customers with ease to ourselves
| and with convenience 10 them. / then
| stated 10 the cashier that before would
| sell any of these securities 1 would have q
| consultation with the directors. as well as
with the gentlemen who owned at least 50
percent. of the controlling stock purchased.
| did so consult them. They also fully oors-
! CURED in the plan, and i was requested TO
| entrust the sale of these bonds bv these
gentlemen to Pell. Wallack a. Co. who re-
| ceived Scr. 900 par value of these bonds 10
| be sold, for which they gave their receipt
| to the bank, which 1 duly tur,ed over 10
| the cashier.
subsequently sOl of these bonds were
| returned. $4,000 in cash was paid and for
the balance Pell, waliack x Co. gave
| checks. mostly certified TO the bank on
| Tuesday, Jan. e. but the bank examiner.
| as well as the clearing house COMMITTEES,
| declined To accept these checks as paw menf.
! About $500, 900 of these checks were certi-
! fed by the banks upon which they were
drawn. Ii subsequently developed that
had they been sent 20 the clearin Y house in
the usual course they wouid have been
1 A xxrfH