The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1890-01-31
TWO BANKS WRECKED
ny the Dishonest Practices Of tbs rresi.
dent-Or,ler OF Arrest Issued. l..

Ily the Dishonest Practices Of ths rresl.
dent-Or,ler OF Arrest Issued. q, ..l
New YoRS, Jan. 30.-The Lenox Hill
bank has suspended payments, 1t Is
controlled by the same parties, who last
week bought the control OF the Sixth
National bank Of this city, which had
already been closed by the examiner.
The knowledge Of the relation Of the
two institutions caused a run on the
Lenox, which 1t was unable 10 meet.
Tho President is said 10 have made m
attempt to obtain funds In Wall street
to continue payments, but was unsuc-
cessful. ~
Tic Clearance House Association to-
day acted on tho Sixth National aud de-.
cided 10 drop It from the association.
There arc NIL kinds Of rumors in regard
to the Sixth National Bank, one being
that its new officers, who have only been
in charge few days. had sold out its &C.
curities rs soon as they obtained posses.
sion. Its president, P. J. Glassen, is
said to have been connected with min
Ing schemes in Leadville number OF
years ago. The representatives OF the
Bank Examiner say TINT depositors will
certainly be paid III full. The Equitable
Bank has also been mentioned Ia con.
nection with tho other two institutions.
It's President makes the following state.
ment: "The owners Of the Sixth M.
tional have q minority interest in the
Equitable only, and the bank Is not
Affected" e'E. 5r. =
The suspension OF the two banks was
widely discussed on Wall street, but
brokers appeared to think that the effect
would be confined TO stockholders
Losses, and although the bear traders
depressed stocks at the opening, the
mar ket easily recovered and some stocks
made decided advances.
Wall street this afternoon looks upon
the attempt to dispose OF the S60O,0O in
bonds owned by the Sixth National
Bank as simply u case Of highway rob-
berry. 1t seems that President Ciassen,
after abstracting the bonds from the safe
deposit vault, turned them over to
George II. Pell, a broker Of unsavory
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 &C.
ton OF Ctassen, notified tho Clearing
House and Bank Examiner. The latter
began an Investigation yesterday alter
noon. Hc soon learned enough to cause
him to close the bank and call on Classen
for the return Of the S622, 900 in securi-
ties. The Examiner, by his prompt
action, succeeded in getting back s2Oi..
600 OF the bonds. On account Of the
rest OF the distracted bonds Classen
handed the Bank Examiner checks for
$685., 900. These checks fell short OF the
market value OF the distracted securities
$4,000. None Of the checks, however,
have been paid, and they are being pro.
tested. The Comptroller OF the Currcn-
cy will appoint receiver, and nil the
facts in the case will be laid before the
District Attorney.
Later in the day the District Attorney
Issued an order for the arrest OF Classen
and broker Pell for their connection
with wrecking the Sixth National bank.
BANK ExAMlNER's STATEMENT.
Mr.. Hepburn, Bank Examiner was
at the bank early this morning and was
at work examining into the securities
and business. About noon he made the
following statement to the reporters
who had asked for it: Mr.. Leland
sold 1895 shares Of stock, con-
trolling interest, to the parties at
/ present in control OF the hank
and gave the possession January 90.
January %, SG22, 1000, the par value of
high priced bonds belonging to the
bank were delivered to PelI, Wallack &
Co., and receipt taken, reading rs fol-
lows: Received, New York, January %,
1890, oil the Sixth National Bank OF New
York, the following named bonds to be
sold for account OF said bank, and &C.
counted for to its president as he may
demand. tn
J. J. Classen, the President Of the
Sixth National Bank, is, according to the
city directory, Il broker at No. IS Broad
way, and Mr.. Wallack, who is President
Of the Lenox Hill Bank, has an office in
same building. Mr.. Wallack is also a
partner OF Pell 4 Wallack, who appear
to have negotiated the sale OF the assets
OF the Sixth National. Mr.. Pell was for
merly member OF the firm OF Grove
stein 4 Pell, stock brokers. George Il.
Pell made the deal by which Mr.. Leland
sold his interest in the bank.
A speculation is rife as to the cause
which led TO the act. Whether the
schemcrs thought they could pay the
money back is not known. They may
have intended to put the funds into some
other scheme, and If this were successful
to pay back their speculations, OF what
ever they may be called. The methods
are also identical with those used by
Henry S. Ives in his dealings with The
Cincinnati, Hamilton & Dayton Rail.
road. ~. -