Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1890-02-01
PLEADS INNOCENCE.
The Alleged Attempt at Whole-
sale Bank Wrecking.
DLAAssEN GETS THE PUBLIC EAR.

ing House.
NEw YORK, Feb. 1.-The alleged attempt
to wreck the Sixth National, Equitable, and
Lenox Hill banks continues the subject of
| interest in financial circles here. Pell, the
broker who sold the Sixth National securi-
ties, was arraigned yesterday and In default
of So, 900 bail sent to Ludlow Street Jail,
where he spent last night, and where he is
likely to stay for time. The latest devel-
opment in the case is a statement
| from r. ]. Claassen, the president of
the Sixth National, in which he denies the
charges against him in most positive terms
and gives his story of his connection with
the affairs of the banks.
Not Member of n Syndicate.
Mr.. Claassen says: at is not true that
was member of the syndicate that pur-
| chased a controlling interest in the Sixth Ma
| tional bank. 1t is not true that have made
personal loans to myself on said bank On
the contrary have checked on my other
| personal bank accounts in this city, and have
| deposited to my credit in the Sixth National
bank, and have not checked one cent against
It." He then acquits Gen. James Jourdan of
II,
Henry c. Custer
The Negotiations with Leland.
He then gives the following account of his
] financial negotiations with Mr. Leland,
former president of the bank "The first
, time that | ever saw Mr.. Leland, the late
president of the Sixth National bank, was
| on Jan. %, at III a. m, when certified checks
were rendered to him and accepted by him,
amounting to $3.50, 900, for which he turned
| over the control of the stock of the Sixth
| National bank. These checks were deposited
by HIM in the Union Trust company and
were paid. Hence, l was not a member of
| the purchasing syndicate-all the terms had
been arranged and agreed to before ever
met him. On the morning of the 23d, by
arrangement with Mr.. Leland, met him be-
tween 10 and IL o'clock at the National Park
bank vaults, where he turned over to me the
securities belonging to the Sixth National
bank, and l finding them correct as per
statement furnished to me by the chief book
keeper of the bank, receipted therefor.
Something for Cashier CoIston.
Either the same afternoon or on the fol-
| lowing day, in conference with the cashier
Mr.. Colston, learned that the bank lacked
cash means, and he suggested and con-
| CURED with him, that it would be well to
dispose of say from $500, 900 to $500, 900
worth of the high premium bonds, and have
the cash therefor, for the use of the custom
ers of our bank My intentions were to rsise
the surplus of the bank up to at least $3.50.
600 and to be enabled TO accommodate our
depositing customers, with ease to ourselves
and with convenience to them. l then
stated to the cashier that before would sell
any of these securities | would have to con-
suit with the directors as well as with the
| gentlemen who owned at least so per cent
of the controlling stock purchased, and
did so consult them. They also fully con-
CURED in the plan.
How Pen Got the Bonds.
Il was requested to entrust the sale of
these bonds, by these gentlemen, to Messrs
Pell, Wallack & Co, who received thereupon
| S622, 900 par value of these bonds to be sold
for which they gave their receipt to the bank
which duly turned over to the cashier
| Subsequently 20l of these bonds were re-
| turned, So, 900 in cash was paid, and for the
balance MeSsrs Pell Wallack a. Co. gave
checks, mostly certified, to the bank ON last
Tuesday, Jan. 2s. But the bank examiner,
| as we'll as the clearing house committee, de-
clined to accept these checks as payment.
Accounted for All the Bonds.
at will, therefore, appear that / had no
proceeds from these bonds that l did not
account for, and the checks thus far not
covered by Messrs. Pell, Wallack & Co. are
still due to the Sixth National bank. 1t will,
therefore, also be seen that the banks assets
were not used to purchase the stock Ifur-
Their desire to say that am not a director
nor vice president of the Equitable bank of
this city, nor am such in the Lenox Hill
bank +"
Cashier Colston's Disclaimer.
In regard to Claassen's statement that Col
ston had been consulted in the sale of the
sG22 900 worth of bonds, the cashier last night
at first refused to make any reply. He final
ly said 1t was false, though he would not OBJ
ject to fathering such advice if the money
had been turned in Ii is the general opin-
ion that all the depositors will be paid in
full as to all the banks
Classsen Appears in Court.
About g O'Clock President Claassen ap-
peared before the United Stats commission
er with his counsel and two deputy United
States marshals, and the warrant charging
him with endorsement ari misappropria-
ton of funds was read to him. 1t was ar
ranged that Mr.. Claassen's examinati on
should take place at 10 D. m to-day, and
meanwhile he was paroled in the custody of
the marshals and his counsel This was In
accordance with an arrangement made in
advance, that II Claassen would give himself
up he should not he put in Jail last night.
A warrant has been issued for the arrest
OF James A. Simmons, who was made a di-
rector of the reorganized Sixth National
bank
Ex-President LeIand's Statement.
MIR. Charles II. Leland, former president
of the Sixth National bank, has issued a
gfatafnnpf 6aplayi,f, tbofl ~
the stock of the bank to be worth in the
neighborhood of $3.50 for the last three or
four years. He says he had other offers for
his stock, but held it ut that figure He
wanted to sell his stock and retire for some
time, but he wanted his own price-which he
got.
The sale of the Bank.
"The purchasers met me at the bank on
Wednesday, the 22nd day of january, at
noon, says Mr.. Leland, land paid me the
entire purchase price in certified checks as
agreed, and my stock was at once trans
ferred and the board of directors reorgan-
lied. / deposited my checks on the same
day and they were paid in due course 1t
was not until the following dey that deliv-
cred to Mr.. Claassen in the presence of two
witnesses, the keys of the safety vault box
containing the securities, and after the veri-
fication of the list of the securities l re-
turned them to the box, locked il and deliv-
cred the keys to Mr.. Claassen, as the presi-
dent of the bank"
Expelled the Sixth National
One of the largest meeting ever be Id In the
clearing house took place at ] o'clock YES
terday afternoon. Out of sixty three ma
tional banks fifty-one were represented,
mostly by the presidents. The meeting
crushed out of existence at least under its
present ownership, the Sixth National bank,
by passing unanimously a resolution ex-
peiiing the bank from the association.
Claassen's RECORD.