Telegram-herald., 1890-02-01
UNDER ARREST.
One 81 the New York Bank Wreck.
ens held n Heavy Bonas.
fhe hqaitable Hsuk Whlrh Was Goa
tFoiiee a. the sehsas~rs slasxs Ia
beors Hoa ths Funas
Ner~ Atsasoa

Were Nsusea
SFw soKk + cnooKEp p NrrrKs
NV Noea. Jan. 81 III appaars kv
the summary furnished by tbe bank "a.
Emlner thst tae totsl theft from he
sixth Nations ksuk amounts to q frife
more than 500 ESQ TIE Equitable ana
the ienos Hin srs liabls 10 tbe e1teui
That they certified the checks Ihls NIlI
red uce The loss ~ the Si3th a. shou.
Ssao zoe provided the two State banks
meet thelr obligations The hsnk ek-
Aminer assured depositors that in us
Opinion their claims would he paid VA
full THIS vas made certain later iu
the dsy by De guarantee ~ Mr. LELAND
SEM to the bsnk examiner through ais
counsel state Bank Examiner Preston
and Irenholm are examining Sac Edalrs
E Of the LenoK lill and Equitable hanks.
. They say The Equitable viii probably
I De- allowed G. continue business The
statement that the 81 Nicholas Bauk was
implicated in any Wsy VITA tne deal Is
denied
President Claassen Of the sixth
. National i charged Nlth having de.
hoerately wrecked that hsnk and
warrants etre issaed Thursday aft
ernOon for h.s arrest and that ~ George
II. PelL hrorer. who e. charged with
having aided him ia the commission
of the crime. rtll was arrested
Thursday niglt al hls home lu Tlfiy-
tfth street and locked up in Ludloa
street jaii.
FeA MSS taken before nited States
Commissioner shields to-day and held
IN bonds Of s25 0oo Tor examination on
Thursday neAt The charge WAS that %
aiding and abet'ing hank director 10
having uniawf-ily embezzied sno ab
stracted certain securities
Peter j. C.4ssseE. pres dent % lie
bank, for whose arrest warrant Wa
issued al the same tine % was that foi
Pell is still al large lie has an.
doubtedly skipped. FOR a corps Of United
States deputy marshals, who have been
IL search of him since early Thursday
evening, have been unable 70 locsts
him.
The Sixth National Bank and the
Lenox HiN Bank are sull closed and al
10 o'clock a notice was posted on the
door % the Eq uita bic which stated that
that bank was closed temporarily.
The methods by which The Sixth Ma
tlonal Bsnk sSS wrecked are almost
identical with those used by Henry :
Ives IN his dealings with the Cincinnati.
Hamilton g. Dayton railroad A few
days ago, through negotiations conduct
81 by Pell. Clsassen and others bought
a controlling interest in the Sixth Ma
uonal by purchasing the interest OF
the president. Charles n Leland
Frederick n Tappon. president o. tie
Gsllatin National Bank. tells the story
Of the wrecking as follows:
After Mr. LELAND had solo ~ fnferes' ~ the
SIKH Asilonsi BanR the directors ~ere 70
Quested 70 resign. which they old nDs BY one.
'he vacancies beirg fled hy other mon The
board n directors however has nof been
legally organized since They could net leeal.
- elect D president because none 81 ~
ne~ directors had fsken fhe oath O. ofce
Tbe election O. p 8 Clssssen wns fters.
fore void. Ir1rnoiiafclv on t-sun.iue ths
once of presioeut q ;bc bank NJ Clsssseu
MADE three loans of 81 80 each secured Nv TIE
stock ~ The LenoE Hll Bsrk-s ven poor -
curity-snd then went down 20 The ssfe
deposit Fsuns of The Natlons Pars
tfEN aEr aN-IFf &c fFf~Ffrnru Wref
railroad bond 90 thr par value a. s-ee 0n
These bonds Dc placed IN fhe hands 81
George Pell f1r sale Pei wzs fosrrsrfv 8
partner IN thc frrr - Grov~Ftern r Pen stock
brokers who q LED iu August fss7 Ths cash
isr ~ The Sixth National Bank. NJ Coleeu DO
came alarmed a. The crtraordirsry nroceetings
of fhe new president and directors sud he rsrr.
down n the clearing house and gave fhrn
re startling iufor1nston narrated bfsr
earefui d~lfhersffor On ~ whol.
nsttcf fhe clea-iHr house couinlftts- fr1rre.
ciBiely reached fte conclusion thai thc hank
sboulc ~ PLACED in no hands % Cororrs-r eslt
onciSi 81 oncc Hepburn the Notio-sl
Bank EIsminef sss scGf for and fhr facts oop.
uBnicstcd 20 him with fbe requesf thsf 10
vouid take charge % the ccnccru The following
morning snc x irroafirafe the rharFse rasfs ~
NJ Cohen No eshier against fhs o-roers arf
dfTectors This e1aminatisn took piscs vester
day ard fnuF confirmed thr sfstenrnts ruade
bv The cashier Toe clearing houss commit
80 visited fbe Siyfh Nationsi PAM lHfr tea
prlsY snernoon. aac after having verified
hy personal ersuiuaflou the fart. o. sireafv
stated teleFrsph~s % fte Courf~oiier ~
tbe Cur-eacF r. Wash rgf0n fhof the hark
vo1ld Dot - permitted ~ eTcharfs sbrorrh
fhs clearing horsa fh's morning sad naf fhr
new board of dfrectors Should hnre r0 further
oortroi over me s.-ets ~ fhs' uetifufion Tr
suw - 90 1880 70 uar 30 fslo Ia frr
purchaser ~ Hr Lsa-ns rfork paid far
d. evidently. me uotey b%lore
in7 ~ the bank
fomuiss.cne- Hepburn states TIA
thas far tho ues0c bonds. par value
So. 000. market clue So. s6e. sra st.II
missing There arc loans of $50 000.
for which Sc security on hand is very
dubious There are also sss ooO r. uro.
tested notes of Broker pen. who is said
by some 70 have Echemed ne whole
transaction. The other assets seen ~
be al right Ths rom missioner thinks
depositors viii he PAID r. fulI Hstsvs
it is tbe most sr5acious csse ~ bans
WreckinF in tho history - fhis ~itr.
Nj Cassscn. the uresidsrt - the
siIth Nshon-l Rank. is. according ~
the city dirocforr. broker 81 g. Bro,5
vsv. and W Na.srk son ~ me ate
L-ster Walick fbe setor. vho is nresi-
dent ~ the Leror Hnl BANK has IN
of ce u fbe Same building n Wei
lack is psrtnrr c. pfI WsIack Co.
T. su~c-ed 1uers Tssl
Corr-vF1s. o. Jan ~ Governor
Can pbsll bas sf-, ute6 Hon Samuel p
Hunt to bs 5gs 81 the superior
court ~ Cincinnati viee 81 Barn ~
TAFT resigned fo ae-ert fhe Solicitor
Gsrsra ship tsndereo hlu ~ President
Harrison
suasu To~fus- f,- a. orrhss
CFIcAro Jar e'-Tbs Chicago