The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-02-01
FROM BANK TO PRISON.
Two Of the Men Involved in the
New York Bank Failures in
the Laws Grasp,
Pell Spends the Night III Ludlow
jail and Claussen is Kept
Under Guard,
The president OF the sixth National Bank
Makes u statement. Declaring Tie Is
Innocent Of tuy Wrong-doing.

J MN York Jan. 3l.-1te Sixth National
/ bank and the l.rnrux Hill bank are closed.
rnd at 10 O'Clock notice was posted ON
the door of the Equitable which stated that
The bcnk was clos"d temporarily
L is rumorcd that Cashier Nnn Zandt, Of
the IcnnoX liill bank, Is being Watched by
the police. and !. IS thought that he would
be arrested ms soon as the statement now
being prepared was ready. Examiner Hep
burn, when seen at the Sixth National bank
r. noon, said the bank would not lose more
than Slt0.OO0. Of this amount 100000 WAS
represented hy bonds and securities. which
have been already sold, and the other
S3i0.0O0 is represented 10y checks, which are
held against the Equitable and l.enno1 Hill
banks.
George II. pell. broker, was arrested
last night for the part he took in disposine
of the securities Of the Sixth National
/ bank and WIS to-day held in S95O,00O bail
for examination on Thursday next. CLAUS
sen, president of the bank, for whose arrest a
warrant was issued at the same time as was
that Tor pell, is still az large.
The United States district attorney this
afternoon issued n warrant for the arrest
Of James A. Lannon's and officers arc
looking for him At news agency nbout
noon to-day. Peter Claussen. president Of
/ ile Sixth National bank. made Il statement
m which he saws; 1T is not true that was
a member of the syndicate that purchased
the controlling interest IN the Sixth Ma
( tionHl bank. IL IS not true that I made
any loans 10 myself in said bank. On the
contrary, ] hOVe checked ON my other
personal bank accounts IN this
city and have deposited To my
credit IN the Sixth National bank and
! have checked not one cent against IT,
/ The first time ! saw LELAND, the late presi-
dent of the Sixth National, was Jan. -
when certified checks we're rendered To
him and accepted by him amounting 10
S151,on, for which he turned over the cou.
troll of the stock Of the bank. These checks
were deposited 10y him in the Union Trust
company and pnid. Hence ! WAS not q
member of the purchasing syndicate. All
the terms had been arranged and agreed
upou before ! ever met him. Afterwnrd
this payment being satisfactory 10 Leland
hv proposed the resignation serlatim of the
Oh .plrd of directors and as they resigned
IL. h0nri i"fa thnIr rir - enri"is',
oilr member at q time. 1hereupon Leland
ihhAfi tiiN lNN4NiAttibn hN IifTihtltA anu
sas elected unanimously in his place. TN
the morning OF the sird met Leland NJ the
National Park bank vaults, where he turned
over 10 me the securities belonging ~ the
Sixth National bank, and |, linding them
correct, rcceipted therefor either, the same
afternoon or The following day. In u con-
ference with Cashier Colson learned the
bank lacked cash means. and he suggested,
and concurred with him. that IT would bs'
well 60 dispose of from SJNO.W0 20 xi0O.uO
worth OF nlgh-premium bonds, aud have
the cash therefor TO use for the customers
of our bank. My intentions were 20 raise
the surplus up To at least $3.50 COO and 80 he
able 10 accommodate depositinc customers.
lsiaied 30 the cashier that before | would
sell ANY of these securities would
have 10 consult with the directors.
rs well as with the gentlemen who owned at
least NJ per cent. of the controlling stock
purchased, hnd did 10 consult them. They
also fully concurrcd in the plan. and | was
requested 10 iutrusi the sale 10 pell, Wul-
lAck & Co., who received lheToupOn $50,
on, the par value of these bonds 10 be- sold,
for which they gave "A receipt to the bank,
which ! duly turned over 20 the cashier.
Subseq quently 2nI of these bonds were re-
turned, nnd SNON il cash was paid. and
for The balance pcll. Walnck A Co. gave
checks, mostly certified, 20 the bank on last
IuesGav January *, but the hunk
examiner, as we'll as he Clearinghouse
committee, declined to accept these checks
os payment. About :saN0p00 Of these
cheeks we're certified by the banks upon
which they we're drawn. II subsequently,
developed that had they been sent 10 the
clearing house in the usual c0ure and or.
der Ut business they would have been paid.
II will he stsn the banks assets were not
used ~ purchase stock. ! further desire TO
say am not % director or president Of the
Equitable bank, nor nm / such in the Lem
roA Ilill bank.
Al day long il WAS expected President
1alluau would call nt tic Equitable bank
and furnish the $4,000 necessary 10 resume
business. but Ae did not appeaTRnd the doUrs
remained closed. MANY drpositors called
during the afternoon and were told the
hnuk would resume in few days; that
affairs were nll right, aud It was only closed
because an examination WIS in progress.
HE cAnininers worked AL dag at tho Len
noX I'LL bank, and II was expected "a state
meii would bo gwen ont, but IL wis not
found possible e. tell ANYTHING about the
work until 70 late bODr this afternoon ~
order uf the United States bank examiner
all tie remaining securities and funds ui
tie Sixth National honL We're carried aNay
iruiu that institution and placed in snmo
NiAN NIFfrAA fWhtNs lfANNNAAifN lNflN EtAu
the reporters he would probably finish hi-
work tonight bal would liii,e no further
statement 30 the press His report will ho
forwarded 10 the Comptroller M washing.
ton.
During Tic afternoon tie bank WIS be-
siegcd ny dupusitors who were anxious
about their money. Many ladies were
among theu aud all we're told their funds
were sale. Among The depostors are DR..
Carnody, Veterinary Surgeon Thorby, the
Broadway florist, Rudolph ArOnsOn Bill
DAILY ami william JcMnhoL All vi them
eErresscd confidence "A the statement that
their money WGs safe.
hu,t has been commenced against the
lennOx Hill bank on behalf of a depositOr
for comparatively small sun. When the
proceedings IA relation 10 tbs bank troubles
before nited States Commissioner
shields were ended. George n.
Fell was taken 10 the United States
mRrshal's uiilre 20 give his friends an op.
purtuniy to secure bail. Among the friends
calling oil him io-dny WIS a man supposed
20 bo hig brother, Major Pell, Two others
who had seen tho prisoner announced TO
ited states Assistant District Attorney
Hose they Wcr' ready Ia give bail. They
we're not accepted however Ms their real
estate pos4esslpns did not satisfy Rose
Their names were kept secret. Thoro were
altogether five applications 10 become bnil
for Pell, but none Of them qualified. This
ended all attempts 10 get bail and abont .
y. n. Pell, in charge Of deputies, was taken
to ludlow street jlil.
About o'clock this evening President
Claussen of the Sixth National bank APP
peHred in United States Commissioner
Shields office accompanied by counsel aud
two deputy mArshals. warrant was read
10 him charging him with embezzling and
misappropriniing the banks funds, and the
examination ssi for tomorrow. Clausseu
gave himself up 10 the marshal on condition
that he would not be required 10 spend the