Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1890-02-01
WITH CLOSED DOORS.
THE INVESTIGATION OF THE WRECKED
NEW YORK BANKS.
Ola,ssu ard Ps Arrested and Arral. ned on
the Charge Of Aiding and Abstting
Dishonest Director Hearing
Next Thursday.

dispose Of tie $500, 600 in bends owned by
the Sixth National Bank ss simply case
of highway robbery. Il seems that Pres
ident Classep, after abstrt ctirg the bonds
from the safe deposit vault, tur1ed them
over to George H. Pell, broker of unsAy-
ory reputation, who attempted to dispose
of them on the street, representing them to
be the property of his wife. Mr. Colsen,
cashier of the bank, learning OF the action
of Classen, notified the Clearing House and
Bank Examiner. Tue latter began "a lD-
vastigstion yesterday stternCoI. He soon
learned enough 10 Gauss him
TO CLOSE THE BANK
and call on Classen for the return Of the
| 1922 coo iD securities. The Examiner,
| by his prompt action, succeeded in get
ting b ok $2Ol 600 of the bonds. On &c
count Of the rest OF the ahstracted bouds
Classen banded the Bank Examiner checks
for 1882 OC0 Thee checks fell short OF
the market value OF the abstrsc!ed
securities Sl40. 600. None of the checks.
however, have been piid, and they ere
being protested. The Comptroller Of the
Currency will appoint receiver. and all
the facts in the case will bs laid before
the District Attorney.
Later in the day the District Attorney
iesued an order for the arrest OF Cllssen
and Broker Pell.
Commissioner Shields, in the formal ar
raignment Of the prisoner before him,
stated to him that his arrest wss on .
charge Of siding end abetting a bAnk di
rector in ha7iDg unlswfllly emb " 50
and distracted certain securities. 1T IL
a criminal charge" added the Comnis-
s.oner, and you are entitled to an exam
ira iOn aud to bail 1t i9 also discretion
ary with you 10 make statement, or TO
rsfuse to do so. Anything you may say
will be
USED AGAINST YOU,
40 pelbapa you had better ssy what you
have to say 10 your counsel for the Irss-
ent
Psll nodded in afquiescence, and then
| told the Commissioner he wished 10 have
en- examilaiicn. II said that he would
he prepared fer hearing Gtxt Thursday
aud the examination was set for thss day
at II q. ID.
Assistant District Attorney R)se then
addre sad the Commissioner on the subject
CT bail. lie said that while Pell was ar
ree,ej, net az a principel for aiding and
sbetting, his crime was quite az grave. A
| like punishment was provided fer him a.
for the p;iacipil-from 5 to 10 years in
prisonmeat.
"rDe facts ehoR that this mae assisted
q ba,k official ia transferring 10 his Owl
use over $430, 600 worth of securities he
| longing to a bark. Eight days ago, he
said, the bank stood in the highest panes
II had the coz ofdence of the s stockholders
aud the perfect faith Of its Gtpositois In
a feH daya $500. 900 worth of its
SECURITIES WERE GONE.
and only By the most strenuous and prompt
measures taken by the bank examiner was
any nf It ssv5d Two hundred old thou
sands OF dcllsrs have bee1 returned b.
the prompt measures. He then slated that
the bail should in soy event no! be for 3
less sum than S25. 600
Commissi0ner Shields decided to rsquire
bali in the sum OF $50 600 and up 20 noon
NJ Pell bad b2ea unable to furnish bonds
The Sxth National aud the LeoOI Hill
Banks sTe still closed, and q. 10 o'clock 8
notice wss posted on the door of the
Equitable which stated that bank was
closed temporarily. An official statement
Of the condition of the three banks is ex-
pected this evening.
Amos Goodhart, attorney for the L7nox
Bank, as well az a director, called upOo
State Superintendent Of BAnks Preston
THE forenoon aud ssid he was srx.ous 10
know the ,x4ct
CONDITION OF AFFAIRS
TT tue bank as vel az OF the cashier. Nj
Van Zirdt WIS cIiminslly liable FIR the
c.rtification OF the two checks for $50, 600
elch, tried by the Sixth National Bank.
Mr. Preston told ihs lawyer hat lie was
not sufficiently conversant with the law
on that point and that he wag consequent
Iy unable TO answer the question just at
present. Besides, il was not question
he thought he would be called upon to
answer. L. is rumored that the cashier,
Mr.. Van Zindt, was being watched by
the police, and it was thought would be
arrested SO eOon as the statement now
being pTepTed was ready. Examiner
Hspburu, when seen az the Sixth National
Bank at r0Oa, leid TIE bank would not
lo'e more ,hal $3.50 600. OF this amount
.400 coo Wa represented By bonds aHo
securities which had b1en a'resdy sold
ea1 the other $500 GOO represented checks
sh.c .ch are had against the Equitable and
Le1ox Hill banks
President Cisssen came OIt OF hidiGg
long enough this ai,ernO to make a
statement to thu public Hs denies thai
he was 8 member of the syndicate which
purchased the c1ltrul OF the Sixth Nation
NJ Bank, or that he had ev5r met TX Presi-
denT Leland until the sale was completed.
lie Gains that ii was at the suggestion OF
Cashier Ilsnn end with the consent OF
the B,nrd OF Drec,ors thst he arranged to
sell the $3.50 600 in bonds held by the
bank aEd ,bs. it was for the purpose cf
providing more evsilGble cash 30 that the
discount busine might be increased, lh.t
tAi3 step vas decided upon. He deni's
that any o. the furds OF the bank were
uscd By the syndicate 10 psy for Leland
stock and claims tea. had the hank ex
amiaer nat refused to accept the certified
checks Offered by P5ll, there would have
been no boahle.
The United States District Attorney Il is
afternoon Issued o warrant for the AIrest OF
james A. Simm, n, and Off .ers are now
looking for him.
LATER-Gsorge P,ll was arrested to-
day, AID being unable TO stcure bail vas
lodged in LudloT stIest jil.