Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1890-02-07
BANKS

Gratis correspondingly depressed.
BANKS SUSPENDED.
Two Financial Concerns of New York are
Closed by the Bank Examiner.
New YORK, Jan. 3O.-The Lenox Hill
bank has just suspended payment. 1t is
controlled by the same parties who last
week bought control of the Sixth National
bank in this city, which had already been
closed by the bank examiner. knowledge
of the relation IF the two institutions
caused a run on the Lenox which it was
unable to meet. The president is said to
have made attempts to obtain funds in
Wall street to continue payments, but was
unsuccessful. The clearing house associa-
ton to-day acted OH the Sixth National
and decided to drop it from the association
There are all kinds Of rumors in regard to
the Sixth National bank, one being that
few days had sold out its securities as
soon as they obtained possession. Its pres
ident, p. J. Claussen. is said to have been
connected with mining schemes in Lead
Vile a number Of years ago. A represent
tative of the bank examiner said the state
ddePposit%Ssss s will Certainly be paid in
been affected in connection with the other
two institutions. Its president makes
the following statement: "Owners of the
Sixth National have a minority interest in
the Equitable and the bank is not affected"
The suspension of the two banks was
widely discussed in Wall street, but the
be confined to the Stockholders loses, and
although the bear traders depressed stocks
at the opening, the market easily re-
covered and some stocks made a decided
advance. Wall street this afternoon looks
upon the attempt to dispose of 100000
in bonds, owned by the Sixth National
bank a s s sanm! + e case prs Of higghTTnf Sus rob-
after abstracting the bonds from the safe
deposit vault, turned them over to George
N. Pell, a broker Of unSavOry reputation,
who attempted to dispose of them on
1t, representing them to be the property OF
his wife. Mr.. COlsen, cashier Of the bank.
learning of the action of Claussen, notified
the clearing house and the bank examiner.
day afternoon. He soon learned enough
to cause him to close the bank and call on
Claussen for the return of 1922, 900 in secur-
tiles. The examiner by his prompt action
succeeded in getting back $2O1,0O of bonds
in lieu of or on account of the rest of the
nOoGIdCtCu uOIluo. ClduSScu lduuCu GlC
bank examiner checks for 1882 900. These
checks fall short of the market value of
the distracted securities $4,000. None
of the checks. however, have been paid
and they are being protested this morning.
The comptroller of currency will appoint
a receiver and all the facts in the case will
be laid before the district attorney to-day.
He issued warrants this afternoon for the
arrest of ClauSsen acd Pell.
THE EXAMINERS STATEMENT.
New YORK, Jan. 9O.-The bank examin.
er, who is in charge of the affairs of the
Sixth National bank, made a statement of
his examination up to that time. He said
the missing bonds have not yet been found.
Their par value is $421,OOo, and their mar
ket value $492, 466. Upon that had been
paid $4,000, leaving a deficit on account of
the bonds OF $4SS3 466. There are numerous
worthless bonds and notes, but he
says that after his examination he cannot
Even if they were, he said, Chas. H. Le-
land, the ex-president OF the bank, has
authorized him to state that he will make
good any deficit in the accounts of de-
pOsitors. A deputy United States marshal
found George H. Pell this evening at his
house on Fifty-fifth street and arrested
him, and took him before Marshal
RNcoLAOs III OllCSGCu UllnC liz w lOChCu w
in Ludlow street Jail, where he was in
confinement later.
CI.OOSSEN is STILL IN THE CITY.
New YORK. Jan. 3l.-President ClOOssen,
| who could not be found by the deputies,
presented himself to the News agency this
afternoon and dictated a statement to the
public, which goes over his connection
with the Sixth National bank and denies
any wrong doing or intent to defraudin all
explains the connection of various direc-
tors with the bank and gives the details of
the transfer. Desiring to secure cash for
use in the bank and at the same time get
the benefit OF the premiums on the bond, he
suggested the sale of certain bonds to the
directors and they expressed their approval
lacking cash means and adopted this way
of securing them. He recounts the sale of
the stock through the brokers and claims
that the refusal of checks by the examiner
was on account of the technicality in hand
ling them, and further asserts that he has
no funds not accounted for. He says the
checks not thus far covered by Pell.
tional bank. The Equitible bank remained
closed during the day and all those deposi-
tors who inquired learned was that they
would resume in a few days and that there
were ample funds to care for them. Late
in the afternoon the examiners received
from the Sixth national bank what re-
manned Of the securities, but refused to
make any statement to the press until after
the formal report had been sent to the
proper authorities. At Washington Pell
attempted TO secure bail, but failed to get
any bondsmen who were acceptable to
the district attorney. This morning Cloos.
sen came to the officers and gave himself
up, STIMULATING that he be not taken tC
Ludlow street Jail for the night. He spen,
the night at the AstOr house. He was &C
companied by his attorney when he gave
himself up. Cl0ossen asserts entire limo
cence Of any wrong doing and denies thai
there was any Misrepresentation or embez
element.
The President of the Sixth National.
NEW YORK, Feb. 1.-The president Of
the Sixth National bank, Peter j. Claassen
who surrendered himself last evening