Los Angeles daily herald., 1890-02-01
THE BANK WRECKERS
Several of the Alleged Con.
spiratOrs Arrested.
WARRANTS ISSUED FOR OTHERS
Broker Pell Is in. Jail-President
Claasen Is Prisoner at
His Hotel.

NEW 1oRK, January 31.-The Sixth
National Bank and Lenox Hill Bank are
still closed, and at O'Clock notice was
posted on the door of the Equitab BILE
which stated that the bank was CLOSED
temporarily. An official statement q
the condition of the affairs of the three
banks is expected this evening.
George H. Pell, the broker arrested
last night for the part he took in dispos.
ing of securities of the Sixth Nationa
Bank, was today held in $250,0O0 bail
| for examination Thursday next, and
| Clsssen, the president of the bank, for
whose arrest a warrant was issued at the
same time as was that for Pell, is still al
large.
| 1t is rumored that Cashier Van, of the
Lenox Hill Bank, is being watched by
the police, and it was thought he would
be arrested as soon as the statement
now being prepared WAS ready.
| Examiner Hepburn, when seen at the
Sixth National Bank at noon, said the
bank would not lose more ssthan $780,.
900. OF this amount $400 900 was ~epre-
l
had already been sold, and the other
held against the Equitable and Lenox
Hill banks.
The United States District Attorney
this afternoon issued warrant for the
arrest Of James A. Simmons, and officers
are looking for him.
PRESIDENT CLAAsEN's STATEMENT.
| At news agency about noon TODAY,
Peter j. Claasen, president of the Sixth
National Bank, made a statement, in
which he says: ''It is not true that
was member of the syndicate that pur.
chased a controlling interest in the Sixth
Ne ioDsl Bank. 1t is not true that
made any loan to myself in said bank
On the contrary l have checked on nv
other 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. The
| first time | saw Leland, the late presi-
dent of the Sixth Natiocal, was January
22d, when certified checks were rendered
to him and accepted by him, amounting
TO $500 900, for which he turned over the
| control of the stock Of the bank. These
checks were deposited by him in the
Union Trust Company and paid.
Hence was not mem Der
of the purchasing syndicate. All
the terms had been arranged and
agreed before I ever met him. After
| wsrd, this payment being satisfactory to
Leland, he procured the resignation
seriatim, of the old board of directors,
and as they resigned new board took
their places, seriaitm, one member at a
time. Thereupon, Leland rendered his
resignation as president, and was elected
unanimously in his place. On the morn
ing of the 23d, net Leland at the Ma
tional Park Bank vaults, where ne turned
over to me securities belonging to theSixth
National, and l finding them correct, re-
ceipted therefor. Either the same after
noon or the following day, in confer
ence with Cashier Colson, l learned that
we lacked cash means. and be suggested
and l concurred with him, that 1t would
bs we'll to dispose from 100000 to
| 5000 600 worth of high premium bonds,
and have the cash therefor for the use Of
the customers of the bank. My inten-
tions were to raise the surplus OF the
bank up to at least $3.50, 1000, and go be
able to accommodate depositing custom
ere. stated to the,cashier that before
would sell any OF these securities, would
have to consult with the directors AS
we'll as with the gentlemen who owned
a least eighty per cent of the controlling
stock purchased, and did 80 consult
them. They also fully concurred in the
plan, and | was requested to entrust the
sale to Pell, Wallsck d Co., who re-
ceived thereupon $622,000 par value of
these bonds to be sold, for which they
gave receipt to The bank, which duly
turned over to the cashier. Suisse
quantity POI of these bonds were returned
$50 600 in, cash was paid, and for the
balance Pell, Wsllack & Go. gave
checks, mostly certified, to the bank on
last Tuesday, January 2S.h. But the
bank examiner, as we'll as the clearing
house committee, declined to acce pt
hese checks as payment. About $780,
600 OF these checks were certified by the
banks upon which they were drawn. II
subsequently, developed that had thew
been sent to the clearing house in the
usual course and order Of business, thew
would have been paid.
1t viii be seen that the banks assets
were not used to purchase stock. further
desire 70 say that am not director nor
vice. president Of the Equitable Bank.
nor am l such in the Lenox Hill Bank.
THE EXAMINERS AT WORK.
All day long it was expected that
President Tallman would call at the
Equitable Bank and furnish the $50 COO
necessary to resume business, but he cid
not appear, and the door remained
closed. Many depoeitors called during
the afternoon, and were told that the
bank would resume in few days; that
its affairs were all right, and il was only
closed because an examination was in
progress. The examiners worked all
day at the Lenox Hill Bank. 1t was ex-
pected statement would be given out.
but it was found impossible to tell any,
thing about the work until late hour.
Late this afternoon, by order of the
United States Bank Examiner, all the
remaining securities and funds of the
Sixth National Bank were carried away
from that institution and placed In some
safe deposit vault. Examiner Hepburn
told the reporters that he probably
would finish his work tonight, but cnuld
make no further statement to the press
until his report had been forwarded to
the Com mptroller at Washington.
ANXIOUS DEPosIToRs
During the afternoon the bank was be-
sieged by depositors who were anxious
about their money. Many ladies wers
among them, and all were told their
funds were safe. Among the depositors