New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-04
REOPENING THE BANKS.
THE SIXTH NATIONAL WILL BEGIN BUsI.
NESS TO-DAY.
CHARLES H. LELAND CHOSEN PRESIDENT ArrR
MAKING GOOD THE DEFICIENCY IN THE
FUNDs-ExPECTATIoN THAT THE EoCI.
TABLE AND LENox HILL WILL RE-
sUME ALso-JAMEs A. SIN.
MONS TALKS WITH
TRIBUNE RE-


The reorganization Of the Sixth National Bank.
which fell into the hands of the Simmons Claassen
syndicate, was effected yesterday and its resump-
tion of business to-day is assured. Charles II.
Leland, the former president, has made full
contributions of money required to place the
institution in solvent condition and he has
resumed ownership of the stock which he sold.
The services of the five banks which on Saturday
united TO guarantee the protection of depositors
in the Sixth National, under a money guarantee
from Mr. Leland, will not now be required.
Last night a conference held at the Fifth
Avenue Hotel between Conrad ~ Jordan Rich
ard s. Newcombe, Bank Superintendent Charles
III. Preston and Judge Maynard Assistant Attor-
ney-General, which will result in the opening
of the Equitable Bank to-day and the probable
resumption of business by the LenoX Hill Bank
within short time.
The notifications in the original plan for re-
organizing and restoring the last mentioned in
stitution were the result of conferences which
were held on Saturday night and most of Sunday.
ending at an early hour yesterday morning. The
meetings were held at the New-YOrk Club and at
the houses of some of the bank officers who have
interested themselves in arranging a settlement
with the least amount of friction. Among those
in consultation were legal representatives of Mr..
Leland and James A. Simmons, the largest pur-
chaser of the Leland stock; Conrad n. Jordan,
president of the Western National Bank; Z. ID.
Tappen president of the Gaatin National Bank 4,
Henry w. Cannon, president of the Chase Ma
tional, who originally suggested the plan To
enable the Sixth National to resume; National
Bank Examiner Hepburn and others interested
in settlement. Further conferences yesterday
completed the details, which received the ap-
proval of the Controller of the Currency by
telegraph.
HOW THE ADJUSTMENT WAS MADE.
The principles of the adjustment simple
Mr. Leland deposited funds in the Sixth
National to an amount between $3.50, 900 and
$500, ,OOO thereby making up to the bank the
loss suffered by the abstraction of its railway
bonds and the worthlessness of the certified checks
which the Summons syndicate had given to it.
The Western National Bank, which had the Gus
tody of the ,035 shares of Sixth National stock,
restored these shares to Mr.. Leland. meeting OF
the minority stockholders in the Sixth National
was held uptown, at which MIR. Leland was
asked to resume the presidency. Directors were
chosen as follows Charles IL. Leland Charles U.
Iandon, of G. q. Landon N Co, importers at No.
42I Broome-st; w. j. Quinlan, jr., cashier of
the Chemical Bank, formerly a director; +. ID.
Tappen, president of the Gallatin, and joseph
Park, Of Park e. Tilford Then the directors
dent and Mr.. Landon as vce-president, the old
cashier, Andrew C. Coson, of course, holding his
place
The last meeting was held at the Gallatin Bank,
Mr.. Hepburn being present, and W. Cryder Wet
more acting as counsel for Mr.. Leland. To
Tribune reporter Mr. Wetmore said
Mr.. Leland will return to the Sixth Ma
tional Bank every dollar of the money
that was taken by Simmons, Claassen and the
others He had already handed over S5OOOOO as
has been published, and has also handed over
the cash to cover the rest Of the loss. just how
much Simmons and the rest secured is not yee
known. but the will be between S66OOOO
and 100000. The exact amount will be learned
Tomorrow when the value OF certain securities
lest by Claassen is determined Mr.. Leland has
replaced every dollar of the missing FUNDS ana
the bank is in precisely the same condition as
il was in on January %, when the bank was
turned over to the purchasers. The new board
of directors are strong men, who ought 10 COM
nand the confidence of the community.
HOW DID THE WESTERN GET THE STOCKS
The story of how the Western National Bank
came into the custody of the Leland stock needs
the illumination of statements from the officers
of the bank and of Mr. Simmons. The former
refused to talk to reporters, aud Mr.. Simmons
was invisible except TO the persons whom he mas
assisted in the work Of bringing ABOUT a com
promise IL is believed that the Western National
held the bulk of the stock to- secure itseIi
AGAINST either loans to Simmons or for clearing
the checks on the Equitable, whlch
were certified by that bank Improperly. Inc
other banks or firms who concentrated the oNen
National stock which they held In the hands oI
the Western National are thought TO De ihVo'eo
similarly, and the concentration was mace 70
facilitate negotiations for settlement. liow 'he
release of the stock held by the Western National
was effected could not be learned from its oficers
II is thought that about $1,000 was raised on
the ,0S5 shares, forming only small part OF one
800 900 made good to the Sixth National yester-
dov bv Mr. Leland A well-informed banker said
that while the Sixth National had been restored TO
soIvency by Mr. Leland's action, there was doubt
less an actual loss Of S250,000 to 100000 which
would he so distributed among the institutions
having dealings with Mr.. Simmons as TO have no
important effect, even if it were not all assumed
by him. Bank officers express doubt whether Mr..
Simmons has performed any acts that would rem
der him liable crimnally. His friends assert that
this is the case but little doubt is expressed on
the question of the responsibility OF General
Claassen and Pell for their conduct.
There is still about $4,000 OF the good securi-
ties which were taken from the Sixth Nationals
treasury and hypothecated which have not been
recovered Where these securities are pledged 10
information which the representatives of Mr.. Le-
land and others concerned will not divulge. Mr..
Hepburn says that all the assets of the Sixth
National are in sight, and can and will he recov-
cred" Wall Street bankers interpret this as
meaning that good grounds exist for legal pro-
cecdings if the securities are not surrendered vol
UNFAIRLY, and the process OF peaceabe relinquish-
ment it is believed will be facilitated By the re-
luctance of those persons institutions who lent
money upon them or bought them outright to
achieve notorety being connected with the
scandal of the three suspensions. However slowly
or privately the complete clearing up Of the stua-
ton may he conducted, the sentiment in Wall
aofor hat han froi