New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-09
G.. Fl. LELAND TESTIFIES.
THE SALE OF HIS BANK STOCK DESCRIBED.
CLAAssEN'S ExAMINATl-N A FUTILE EFFORT
TO HAVE 1T POSTPONED.

The examination in the case OF Peter D. Ciaasse",
accused OF embczzllng the funds oil the oN'h .'aoa'
Eank in the short time in which lie acteo as IOs
president was resumt yesterday afternoon before
Commissioner Shields. Uned States DlsinctAt'o'hey
Mitchell conducted the prosecution of the case, ana
ex Assistant District Attorney Foster represented MI
Claassen. General Foster asked for an Adjournment
Of the examination because Judge cBrleh' vi "0
supreme Court had ordered Mr.. ClaasSen TO appear
yesterday afternoon and be Examined as Wlthes9
in supplementary proceedings judgment Obtained
by Walter C. stokes and John F. Thompson against
William p. Grovesteen and George II. Pel Holmes "
Adams, The attorneys for the plaintiffs had learner
OF the receipt OF stock OF the sixth National bank by
pc and they had OBJ aimed an order for the examination
of Mr. Claassen in order to obtain Information as u
any money received by Pell Commissioner Shields
said that the examination must on, and he directed
that a message be sent 10 Holmes & Adams request
ing that the examination in the civil be adjourned
Mr. Mitchell recalled Charles IL. Leland, president
OF the Sixth National Bank. and asked him for the
contract by which Pel agreed to purchase the shares
o. the stock of the bank held controlled by Mr.. LIE
land. The witness produced memorandum delivered
TO him by Pell January Il. 1t reads
have this day bot for account James A. simmons
from Charles IL. Leland one thousand and thirty lve
bank OF New y ork deliverable and payable at six
hundred and fy dollars Pey ae S Sn MeSHHesday
per GEORGE IL. PELL.
Mr.. Leland in answer TO Mr. Mitchells questions
testified:
met Mr.. CIaassen on January 23, at the National
Park Bank safety vaults, where the securities of the
sixth National kept. do not remember whether
1t was my suggestion or that OF Mr. Claassen that
the meeting was held Mr.. Doubleday was present
with Mr.. Caassen and Frederick ~ smith, my secre,
taIy, was with me. l took MIR. Claassen to tho
VAULT, and opened the compartment in which the
banks securities were. They were in four boxes.
first took out two boxes and counted each bond while
Mr Claassen checked them off by the certified list
which had been prepared by the cashier or assistant
cashier. When the securities in those boxes were
ed | them back and took out the Otllcf TWO
boxes and went through with those securities IN the
same way. When they had all been counted ! re.
up. Then turning 10 Mr. Claasscn ! gave INN inc
key saying. Mr.. President here is the key 70 the
Mr. MtchcII-Mr Leland have YOU since January
y been AGAIN v Sonnf 6d i % rd 9 TO You
only received it personally yesterday the day before
cxactlv know / left it all to Edward King and to
my counsel. do not know when they acquired 1t
Q. Did you personally have anything to do with
the NEGOTIATIONS for the recovery OF me STOCK y
Q. Have they informed YOU As to the details Of the
negotiations \. No sir; not as TO the details
Q. When you returned 10 the bank as It's presl.
don't did Won find $50 unpaid check, in IT, vaults
The affair, were in complicated state and / in
10 condition Of mind 10 understand them. trusted
Mr. Leland at the request Of Mr. Mitchell then
identified number Of new certificates which had been
made ont for tho l03j Il shares when they were
rar, fcrrod 10 the new owners
General Foster cro,sexamlned President Leland
The witness said on examination, that ne nad
mot Nr. CaS~cn personally. before January -
whom Peu introduced him b. the witness.
VT Leland said that he met Pei once AZ an
athletic association meeting. lie was introduced 10
him hy Mr.. Hayes. He did not again meet PEI
until the negotiations for the sale OF the bank STOCK
began. .
General Foster then asked the witness a. 10 Mr.
Mcdonald who first spoke Of the sale Of the STOCK
To a syndicate. Mr.. Leland said that he had known
Mcdonald for ten or fifteen year.. lie IS IN the
roray, business Mcdonald first mentioned J.
Scrvrn-cr a, the man who wished 10 talk about the
purchase ~ the stock. but afterwari he said that
PEN wa, the man. The witness said that when he
asked Tcll 10 hi' principals, Pell said that sim
mons wa a very wealthy man and that Cutler was
"A member Of a syndicate which had purchased HUI
nuf, pharmacy for 81 100000. Pel mentioned
Claa,scr'~ name. but did not say much about him.
Pell first offered 500 hare. but the witness sara
that hi, pricc was three figures with six at tho
head lie finally fixed the price at $3.50. and PeH
after % moments hesitation accepted the offer. Inc
Sc itrr-s said that the stock held by Mr.. Doubleday
Tr4thugham AMI the Witness son had been gwen
70 them act directors. and had been put lnto
his DO. .c>,lou TO do with a he Thought best.
Mr. Leland said that he had withdrawn $4,000 Of
tho So 600 o- $4,000 which lie had In the bank
when ~ sod his stock.
General Foster wished adjournment before
finishing nj, eros, cXamiuatiOn but District Attorney
Mitchell said that be wanted 10 20 on with the te,-
dan luf Cnarlc, +. MacLcan. Nr. JOrdan'> counsel
.aid th.t Mr. Jordan wa, busy that he did not wish
10 wait ben the court room and had left word that he
would come when sent for. An adjournment was
taken until tomorrow at l O'Clock, when Mr. Jordan