New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-06
2. j. CLAASSEN IN COURT:
PRESIDENT LELAND TESTIFIES
x,r,r1rLLs HOW THE TRANSFER OF STOCK WAS
u.pE-pELL MANAGED THE AFFAIR-TRY-
ING TO OPEN THE 1ENoX HILL.

5ank was taken before Commissioner Shields yesterday
afternoon for examination. lie has been unable to
ocure bondsmen. The crowd of persons who wished
70 he present at the examination great that
the Commissioner found it necessary TO transfer MS
court TO Judge Walaces large courtroom the fourth
eoor United States District Attorney Mitchell con-
ducted the examination for the Government Generai
Foster who in the trial of James D. Fish, the latest
hank president before Claassen TO be arragned a
defendant in the United states Court one OF inc
prosecuting lawyers. appeared as Claassens COUNSEL
e. W. WetmOre. President Leland's counsel was al
hand to guard the interests of his Client anu ha'N
Examiner Hepburn also present.
President Charles H. Leland. tho first witness
answered the questions with apparent ird"hi0s'' anu
With great readiness. He said that in January nc was
president of the sixth National Bank ana a s'o.N'
holder and depositor. lie owned looo - si''O
The last annual election directors was on the second
Tuesday of January. The directors VINO were elec'cu
~ tbe nnmber Of shares owned by Mr.. Leland were
=. H. Leland c. rockingham, W. D. O'uilal' - "'
Doubleday and c. F. Leland. At the meeting Oh inc
BOARD of Directors, held just after te s'ocnolueIs
meeting G. II. Leland was elected president. The
minutes NJ tbe meeting of the Board of Directors on
Iuorv % preserved by Cashier COlsOn on two sheets
Of paper show that the designations OF the members Vi
the old Board read one after the o'her anu
p J. Claassen, d. NJ Ripley J. h. watson II. l. CuV
Ter and James Jourdan were elected. MT OlaaSseh
made all the motions for the election of the new
s,
was then immediately on the motion Of Mr.. Ripley
chosen president of the bank regard to the negoua
tions preceding the election. Mr.. Leland SAID;
The arst iAtimaton 70 the matter came from B. r
Mcdonald HI said that Mr.. Simmons had spoken 10
him He asked If my stock was for sale salu 'h"I
:, WIS IL could get my price He suggested an mNr'
view between Pen and at the bank the week pcloe
the transfer Of stock made Pel came TO the osnN'
I said I wanted $3.50. He asked how the stock was
worth so much. 1 said Of our securities stood
much higher in the market than on our books showed
him that earnings Of the bank were really ABOUT 80
nor cent and with the location and old standing OF the
hank the stock ought TO bring what asked "sAeu
ps1 who his PRINCIPALS He said that theY were
syndicate interested in large contracts lie mentioned
General Jourdan, James A simmons, u +, cutter anu
others Before this had received an Offer OF 90
for the stock and had refused it, At this interview on
January j. we made the contract as TO the STOCK
said that such important TRANSACTION 'l'E' SoNu
be some writing. He sat down and tried TO oraW
contract but up several pieces OF paper a'ei
writing few words, and l finally wrote out contract
and Peu signed it "Janes \. Simmons, by George H.
Peu" 1 produce the contract.
On Tuesday January 81, Pei came 70 the bank ana
asked was ready transfer the stock On Wednes'
Do January 90 delivered the stock 10 Peu and r'-
ceived from him 1913 Geo in checks TO pay LOT hU''
shares. They NY own shares ana oVl'f9 ot'O1-'
ing 10 nv son. rockingham, DoubedaY ana oh'i>.
7 rorar,ber some 81 the checks One for $4,000 and
one for $4,000 drawn by Hoadley q CO.. one 0
$50 600 bv J. B. Ncwcombe Co, ana ouei'
bv Pell Wallack Co. ard James \. simmons. De-
coon about the check he SAID that he thought tnS
thew were all right. Pen, simmons, Doubleday tTo'h-
lngham Clsassen. Ripley, j. H. Watson ana 0heis were
present. , IL,
Mr.. Leland said that he deposited the checks with
trust company on the afternoon of the day on which
he received them They were all promptly paid.
F D. Tappan president of the Gallatn National
Bank was called. He produced letter which had
been received at the Clearing House from l. D.
C1aassen las Prest." on January 80. 1t was adj
ont Of
uon The writer said:
The annexed slips from the Kernan News Company Of
today Nos S4.56 have just notice
Ths facts stated thr by Mr. Bank Examiner Hepburn
ara Substantially correct can only add that the former
president MI Charles H. Leland from whom the conuohg
interest of the bank was purchased was fu4y a"ais
now the bonds were b. disposed Of Mr. LELAND hao
the option Of accepting pay Tor sad ''oc" etAel III
bonds or in cash the proceeds sale thereof which
latter be chose.
Tn show Won -. I am ready do what deem night
in matter az Us present status WI 'utH over ~
tank now at the Irre that MrLeand was paid Tor IT,
allowing 70 be tLeeffom any and a. deficits that
may have arisen. -
through your Kind Intervention.
The examination VIII 90 saturday at O'Clock
That there vas conspiracy Of some sort behind the
dongs which caused the closing Of me sixth HaloI1l
the Equitable and the LenOx Il banks is conceded by
all who have been al all closely interested ID the
affairs of these Institutions. But IN what direction the
of it were Will probably remain mystery until
Claasseu and Pcl the men under arrest haze been
tried The facts which have been pre-cnted 70 the
pubc 50 far have shown that others beside CIa-st
and Peu have at least aided IN doing mat winch
the Federal and state law, as wei as the Penal
Code held to be criminal. James y. simmons, VINO
signed checks which certified but not backed
bv funds: Charles L. Wallack the president OF the
Ionox Hill Bank, VINO nystcrously disappeared when
the trouble first became public. and A. y. Courier
the former cashier OF the Equitable Bank Who ceri e
checks when the drawer had not the fuNd7 III mo
bank to cover them, all at liberty. Why tMa -
so is best known. perhaps, by those who have been
most interested in hurryinc up the settlement oil te
trouble at the Equitable and LenoX Hi banks.
Conrad y. Jordan, the president Of the western
National Bank the leading financial man III the s.t.e
ment Of the troUbles Of the Equitable bahk ana Ic
representative Of nearly all The depOsllor' OF u!c
LenOx Hill Bank, IS doing an "Iuh ms Pr t.,
arrange the affairs also Of LenOA Bdnh' az a.,
that he depends on collateral and courage 70 90 t"
but only the former Will take the m.Ituuon on. W
the hands Of Chief Examiner Covei GiG Hr.' NJ Ie
met certified checks amounting 10 rIrlOVJ bclot ~
Jordan his friends eau take the olk "li ~ ~,
hands Of the state authones nee Je'te1 rnrsay
morning q short time after National IdHt
A. r. Hepburn had authorized the opening # the anh
doors for busiuess Their existence was unknown
by MI Hepburn and by Mr. Preston, the 7t5te Baih
Examiner. until later in The day. Mr. jordan TOOK
the checks ana is endcavorlng to make an arrange
ment whereby they can be DESTROYED Claa9scn ~ ~
PeI are in PRISON, but unless some strong proof Is
brought against them TO convict them OF cohsp!a(
and fraud, they Will either be let off WITH hghtt
sentences or allowed 10 90 scot free. MI LcItlu
got back his l.o35 shares Of bank stock aud ne
Securities taken by Caassen are i be returned 70
the bank Through the various exchanges when lhls
causes the entire loss % Mr.. Leland IS now placed AZ
not more than $1,000. TO many this means that
the stock and the securities have been surrendered
by Claassen and Pel. one Of Mr.. Hepburn assist,
ants said yesterday that Waack could be produced
in four hours time II he were wanted.
Around the sixth National Bank there was no more
excitement than there usually is on "A busy day.
The deposits exceeded the amount Of money withdrawn
and several people who took their money away tues
day brought il back yesterday
The Equitable Bank affairs ran along smoothly as
~ nothing had occurred to Interrupt IFS business.
Conrad y Jordan who has taken upon hs shoulders
lie settling OF the LcnOX I'M Bank trouble, locked
himself in his oncc in the Western National Bank
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