The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1890-01-30
100000 is MISSING.
Why the Examiner Took
Charge Of the Sixth
National Bank,
New York.

United States Bank Commissioner A.
B. Hepburn discovered a startling con
dition Of affairs this morning when he
took possession of the Sixth National
Bank, at Thirty-fourth street and Broad
way, New York.
1t was ascertained that President p. j..
Claassen, who who was installed in that
position only two days ago. has since at
tempted to dispose of S622, 900 of the
banks securities consisting of gilt-edged
bonds of a market value of over $500, COO.
All but S250,000 of these bonds have
been sold, and where the money has gone
is vet unknown.
Mr.. Claassen represents the syndicate
which last week bought out the interest
of Charles H. Leland, the former presi-
dent of the bank, and assumed control on
Tuesday
At half-past eleven o'clock Commits
sioner Hepburn issued the following pre-
Hminary statement;
EXAMINER HEPBURN's STATEMENT.
''Mr. Leland sold ,035 shares of stock,
controlling interest, to the parties at
present in control Of the bank at $50, and
gave them possession January g.
On January %, $4,000 par value of
high-priced bonds belonging to the bank
were delivered to Pell, Wallace & Co.,
and a receipt taken reading as follows:--
Received, New York, January %,
1890, of the Sixth National Bank, of New
York, the following named bonds, to be
sold for account Of said bank and ac-
counted for to its president as he may
demand.
There was no entry on the books of
the bank to show any disposition of the
bonds. The stock book called for the
original amount.
II found the 1922 600 bonds gone and
demanded their restoration, or funds to
represent their market value. / went
with the President, P.L Claassson, TO Pell.
Wallack & Co., who said about S400, 600
of the bonds had been sold and checks
sent to the bank, and that the remaining
bonds were with different brokers for
sale, and that they would get and return
them.
"They brought to me S201 ,0OO of the
bonds. The checks offered for the bal
ance could not be accepted.
1.-THE above, together with other mat
ters affecting the bank, rendered the tenn
porary closing of the bank imperative
IF the gentlemen in charged carry out
the promises of assurance given yester-
day the Comptroller will undoubtedly re-
open the bank.
81 do not think depositors will lose
anything. The object in taking posses
sion was to insure that. Gentlemen, that
is all. ;"
THE LAW EvADED.
In addition to this Mr.. Hepburn stated
that the situation was further compli-
Gated by the fact that not one OF the new
directors had yet qualified by taking the
oath of Office as required by law
Andrew ID. Colson, who has been CASH
ier of the bank for twenty-five years, was
the first to discover that any irregulari-
ties had been going on, his suspicious
being aroused by seeing the receipt
which is mentioned in Commissioner
Hepburn's statement. This was on
Tuesday afternoon.
SECURITIES TAMPERED WITH.
II ct once saw that the securities of the
bank had been tampered with, and with
out saying word to anyone went right
off to find Mr.. Camp, the manager of The
Clearing House.
PROMPT ACTION TAKEN.
81 met him at his house at six O'Clock
he thought it was a matter for prompt
action.
II had no definite knowledge that any
of the securities were gone, but I sus-
pected that something was wrong.
We went Immediately to the house of
Bank Commissioner Hepburn, though it
was late at night, and reused him up.
and yesterday he began his investigations
with the result which he has just stated" /"
"How do accounts stand now?"
PROMISES TO REFUND.
''That 1 cannot tell, because do not
know whether the directors will fulfill
their promises or not. They have prom
ised to pay in $50, 900 in cash today, and
if they do this there will be no trouble
about going on"