New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-01-31
SKETCHES OF CLAASsEN AND PELL.
MINING TRANSACTIONS OF THE FORMER AMI
RAILROAD SCHEMES OF THE LATTER

MINING TRANSACTIONS Or bAiS ANA''
RAILROAD SCHEMES OF THE LATTER
GeneraI Claassen is about ffty-two years Old In
1862 he was colonel of the 1924 Regiment New" iorh
Volunteers In the brigade commanded Dy ueno'"'
James Jourdan, OF Brooklyn, which was attacheu '"
the 18th Army Corps. under command Oh "eHerai
John G. Foster Colonel Claassen served with creuiV
until the close Of the war, when ne was hauc 4"
brlgadergeneml by brevet Those VINO are Intimate
with him now do not know anything about his career
% several wears after the close of the war but some
OF them have impression that ne maze consuerap'
money by specializing in cotton. In 1870 nc was
member of the banking and brokerage hrm oil Douse
Potter & Co.. with Offices in Pinest. between william
and Nassau sts The firm went out OF business sew
c,,I veors ago. At one time there was some scandal
in connection with transactions in mining stocks con
ducied by General Claassen. After the firm dissolved
General Claassen went into various specua'l'o
schemes. occupying his time chiefly in endeavorng 10
influence capital In their behalf. ABOUT four years
ago General Caassen fitted up an elaborate suite OF
Offices I'm the Potter Building, where he represehCeu
himself as an agent for syndicate which intended to
build a system OF elevated railroads in chicago lie
was unable TO obtain the capital required anu ohe
day the Offices were closed and General Claasseh re-
tired for time from his usual haunts in the money
centre Of the city, In the last several months he has
renewed his old acquaintance, and seemed once olo
70 he on the highway to abundant prosperity.
He lives with his family, cons sting OF his vile anu
one daughter, in a handsome fouL story DrownsIohe
house No 262 Cntonave., Brooklyn, one OF the lhoSe
arstocratic neighborhoods of that city, Inc mousse IS
splenddly furnished the decorations and draperles
giving evidence that the occupants possessed Doth
taste and wealth. The family bear excellent repu-
iaton in the nelghborhood. They lived quietly and
appeared TO have no wish TO make a display OF their
wealth They kept carriage and moved IN Good So
ciety.
General Clsassen was at home when Tribune re-
i0ht Whauf la
the bell the servant who responded In answer 10 d
reoncst 10 see the General said "I-ah-that is-he's
not at home"
Won't you say to him, please, that wish to see
him on an important development of which ne coulu
not have been informed yet2" asked the reporter
He's not at home-not at home-not home" spas
medically replied the blushing GIRL and at each re-
mari, the door became more closely shut.
4 few minutes later somebody's servant came to
Tho basement door Of the mansion with note in her
hand.
Is that for me - asked the reporter
ats for Mr.. Claassen' said the girl and she en-
tered tie house. ,.,,.....,
When she came out she admitted having denVereu
the note to General Claassen in person.
George H. Pcu who conducted the sale OF Mr. Lee
lands stock and afterwaId Of the securities Of the
hank. is well known in Wall street although he
has not been frequently seen there III INC
iaef wear or two. lie was the junior part
ner Of the youthful firm of Groycsteen d PeI'
which failed in August, 1907, uhuGE uiuou"l 80.
stances PEI was president Of the East and West
pailrood of Alabama and the firm lad been borrowing
large sums of money pledge oil the company
bonds To make the operation as easy as pOSsiDlq
the price Of the bonds was kept at high figure by
Gcttious sales The sale of 100000 under the rule
for the account of the firm carried the Price lrom
100 to 90 without securing a purcHasers "lcH tl9
statement OF the firm was completed II was IOuuu
that fine liabilities amounted to Sl,3O0,OOO Ihcy
we're divided chiefly among banks ana trust com
NAMES who had loaned on the security OF the Dohds
Tho firm assigned to T. W. Harding. "A WellldlOWn
nemher of the stock Exchange, put the settlements
in many eases were private. The creditors who held
The railroad bonds were forced to take the property,
witch was a narrow gauge road not cou.plctcd put
Manned to extend about III miles from Cartersylle,
Ca Ia PclI CITY. Ala. The company was TcOrganzed
and Eugene Kelly became its president. Grovestcen
a Poll had attempted to build the road on call loans
al the stock Exchange and the collapse was as COM
plee as il was assured from the beginning. ~ was
oDlv short time before the failure tnat MT Eel was
a candidate for Congress, but he was dlsastrolsY
hearen 1t was said that his in the canvass
were so large that they helped 10 participate the
crash. Since that time Mr.. Pell has rarely visited
lie was interested in the insurance brokerage
tusiness of Pell & Wallack at No. AZ Liberty but
il was not known that he had an active part in the
the clerks I'm charge OF the Office said that they did
moi know where he could be found Replies to al
further inquiries about Mr.. Pe or his business affairs
refused 80 ~, 80, - =. H..
medium for sale of the stock ought to have excited
suspicion, for President Leland is an old member
the stock Exchange and probably knew the principal
ares at least Of the GrOvesccn &c Pell failure. 1t
would seem be impossible that an English syndicate
would have employed him as an agent IN an important
negotiation. The employment of him TO sell the
he has no stock Exchange connection. and. in fact it
was his Offering of a part OF the securities which
first caused comment about the new management Of
tho bank.