Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-05-10
A BANKER ON TRIAL.
President Claassen Under Fire in the
United States Court for
WRECKING THE SIXTH NATIONAL
Checks for Large Amounts Of Money
Loaned to Various Parties
WITHOUT COLLATERAL BEING GIVEN.
The Prisoner Charged With Emptying the Banks
Strong Box. =

President Claassen, who is charged with
wrecking the Sixth National Bank of New
York, is now on trial in the United States
Court under an indictment for embezzle-
ment, misappropriation and making false
entries.
NEW YORK. May 9.-The trial of Peter
j. Claassen, the ex-President of the Sixth
National Bank, under the indictment
charging him with embezzlement, misap-
preparation and making false entries, was
begun in earnest before Judge Benedict in
the United States Circuit Court to-day.
The defendants wife and daughters sat be-
side him.
Chas. 81. Leland, from whom Claassen
bought the controlling interest IN the bank
and who afterward purchased his stock
back, was the first witness called. He went
over the details of the transaction which
preceded his surrendering the stock to
Claassen, under an agreement. Mr.. Leland
went on to say that after the preliminaries
had been attended to he introduced Claassen
to the officers of the Park Bank as his success
sor and gave him the key to the "strong box"
containing the bank gilt-edged securities.
THOUGHT HE WAS A GOOD MAN.
Evidence was next introduced to show
that as soon as Claassen secured possession
of the banks assets, he, through his agents,
turned them over to parties who paid the
checks with which the bank was bought.
Witness declared that, when he turned over
the bank to defendant, he had every reason
to believe that Claassen had qualified as his
successr to the presidency.
Hols Ea nf
the bank on the 22d of January, 1890. It
was the Sixth National Bank. On that day
the assets of the bank amounted to g.
569, 900. The surplus was between $780,
900 and $500,0O0 The capital stock was
$500, 900. On January 25 President Claas-
sen handed witness a slip on the bank of
which were written instructions for the wit
ness to transfer 1851 shares of stock of
bank as directed to-wit: Two hundred shares
to Claassen and 1851 shares to James A.
Simmons. Immediately after Mr.. Claassen
was elected President he said to witness: II
have loaned S1S0,OO0 already. You make
out three checks for $50, 900 each, payable
to Pell, Wallack & Co.. John Satterlee. &
Co., and James A. Simmons"
LOANS WITHOUT SECURITY.
These checks were signed by the witness
as cashier, and by Claassen as President.
Claassen said they would get as security for
the loans New York Central and Delaware,
Lackawanna and Western, while as ma
ter of fact no security was received until
five DAYS later, and then it was not that
mentioned by Mr.. Claassen. The $622, 900
bond which Claassen gave Pell, Wallack &
Co. were taken without the witness knowl-
edge. This is the 1922 900 mentioned in
first count of the indictment charging
Claassen with embezzlement. There was no
entry in books of bank of delivery of the
S622, 900 bonds to Pell, WaIlack s. Co.
Bank Examiner A. B. Hepburn was the
last witness for the DAY. He testified as to
facts already testified to showing how he
discovered that the securities of the bank
were missing and the subsequent recovery
of portion of them. !.