Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-02
ESPECIAL TELEGRAM TO THE DISPATCH.

ESPECIAL TELEGRAM TO THE DIsPATCH.1
NEW YORK, February 1.-The depositorS
of the Sixth National Bank were comforted
to-day by hearing that they would get their
money. The assurance was backed up by q
check for half million dollars from Charles
K. Leland, the ex-President of the bank,
who sold his shares in the bank for $780,
600, and turned over the bank and its
assets to the enterprising fnanciers who
emptied its safe. A syndicate Of five pow
erful banks has come to the front, and will
make advances on the banks quick assets,
in the shape of bonds and other securities
now In the possession of A. B. Hepburn,
the National Bank Examiner. According
to the best authority the face value of these
securities is S1,774, 900, so that with the
aid of Mr.. Leland's check for $500, 900, it is
pretty certain that the obligations to the
depositors, amounting to 81, 800, 900, will be
met. 1t will take several months to bring
about this liquidation, and as it is scarcely
to be presumed that the syndicate of banks
has come to the rescue from purely philan-
thropic motives, it may be that Mr.. Leland
will be called on for further contribution.
A RECEIVER TO COME.
The Controller Of the Currency said at
Washington to-day that Examiner Hep
burn, in letter sent on Friday, had pro-
nounced the bank insolvent. and had ad-
Vised the appointment of a receiver. A re-
ceiyer would be appointed early next week,
alter the Controller had received Mr.. Hep
burns report, which will hardly reach him
before Monday. This was probably said,
however, before to-day's news had reached
the Controller, and it may be that the ex-
napcoQ of in Mill ha ouoidad
1t is not yet definitely known how the
minority stockholders will come out. Mr..
Leland and his friends say that everything
possible will be done for the stockholders
alter the depositors have been taken care of.
f. D. Tappen, President of the Gallatin
Bank, who says he has worn out set of
teeth talking about this case, is authority
for the statement that Mr.. Leland's check
for $5OO,00O is only preliminary, aud that
more will be forthcoming from him, if it is
necessary.
SOMETHING SOOTHING.
Early in the day there were indications at
the Sixth National that something inter-
esting and soothing was to happen. The
Bank Examiner had passed half the night
locked up in the bank with his assistants
and had completed his investigation and
sent his report to Washington. With him
at the bank, to-day, were Mr.. Tappen and
Mr. Wetmore, the latter counsel for Mr..
Leland, At 1l:30 this notice was put up:
lhr. Leland has advanced funds sufficient to
guarantee payments OF depositors in full, at as
early date as proper arrangements can be
made for that purpose.
A. B. HEPBURN, Bank Examiner.
The banks in the syndicate formed to take
the assets and pay depositOrs are the Galla-
tin, the American Exchange, the Chemical,
the Merchants and the Bank of Commerce
They are to make advances on the securi-
ties now in the possession of the Bank Ex-
aminer, taking the securities as collateral.
It is the intention that, as fast as the depos-
itors are paid, they shall sign arelease of all
claims against Mr.. Leland.
Mr.. Tappen says that under the arrange
ment, as at present agreed upon, Mr.. Le-
land will take everything that is left after
the syndicate has settled with the de-
positors, and the syndicate itself has been
settled with, and with other advances, if
necessary, from bis own bank account, make
a Just and equitable settlement with the
minority stockholders. Mr.. Tappen's fig
ures make the actual loss of the bank to be
500, 900, as it was given in The DISPATCH
on Friday.
MIDNIGHT STATEMENT.
At midnight the following statement of
the affairs of the Equitable Bank was given
out by Chief Examiner Lawrence F. Cahill:
1 find commercial paper, commonly called
loans and discounts, amounting to $15l.823,
portion of which seems to be secured by nomi-
nal collaterals, at the value Of which
have not yet determined. Also,
United States bonds deposited with the
banking department, as a guarantee of good
faith the market value of which is 81, ,240. The
cash on hand is 81 295, and the furniture and
fixtures, including the safe, estimated to be
worth $500. There is due from banks the sum
of S234 so, making a total assests of $l60.59S
There are said to be 800 shares of Sixth Ma
tional Bank stock hypothecated with another
bank, the par value OF which is $4,000. the
market value of which 1 have not vet de.
termined. This will make the total $3.50, ,593
The liabilities are: Capital, 0,000; certified
checks 81 ABS; due depositors. S3l, 1l8 due banks
(items not yet proven), S19S, 5e3 This shows a
deficit of Sl43, 553 There is also evidence of an
actual liability which does not appear on the
books of the bank of Sl5OO0 certihcation. The
examination is incomplete, and will be contin-
ued Monday.
LENoX BANK FIGURES.
At the same hour Examiner Henry G.
Covell announced that he had that evening
reported an examination Of the Lenox Hill
Bank. The liabilities are $549, ,292 So; the
total assets, $3.50, ,675 "a, leaving a deficit
of $17S,616 81. "The liabilities said Mr..
Covell, ''include the capital stock |
OF 100000. The assets on hand 1 have re-
duced to conservative point, and feel con-
fdent that the depositors will receive 70 to |
rs per cent on their claims. There have |
been found in the bank S145, 900 in checks |
made by James A. Simmons, and certified |
to by the Lenox Hill Bank, which 1 con-
slider worthless"
An Albany paper this evening says:
P.J. CLASS en-, the wrecker of the Sixth Ma |
tional Bank, in New York, is former Al |
banian, at one time keeping saloon on Upper |
Broadway, near the New York Central Rail- |
road viaduct When he went to New York
some 20 years ago, he had little or no money. |
and gave no promise of unusual financial
genius.
WOMEN AT WEDDINGS.