Morris tribune., 1890-02-19
\ Ennh NYrcch;nn Syndicate.

The ambitious American boy has an
other lesson on how tomake n great fort
une in a short time. The illustrious
deeds Of some more Napoleons of finance
are to be chronicicd.
If you would learn the bank wreckiug
business, listen: In December Z. j.
Claassen, George H. Pell and one or two
other persons obtained control of n small
Hill bank. The real brains of the party
were said to be i'll the skull of James A.
Simmons, an Euglishman. They called
themselves Syndicate" and speedily
orS"l.i=od q nc~ state bank, the Equita-
ble. The Lenox Hill had some assets,
the other almost none at all, but that
was of no consequence to syndicate
with unlimited cheek.
The conSpirators were bravely launch
ed now, with two banks at their beck
They went to the president of the Sixth
National bank, an old and solid institu-
ton, and offered to buy him out. The
president of the Sixth National, Charles
}. Leland, owned majority of its stock,
which was worth $3.50 share and paid
s per cent. year in and year out. The
Napoleons offered President Leland $3.50
share. Leland declares that he never
suspected anything wrong even when
this absurdly extravagant price was Of
fered. He sold the bank and delivered
the goods.
The Napoleons paid for the Sixth Ma
tional stock with certified checks on
their two other banks, the Lenox Hill
and Equitable, the checks being certifi-
Gates of cash that did not exist They
knew the checks would be presented for
payment next day, as in fact was the
case. But in the safe of the Sixth Ma
tional lay securities that were as good as
United States bonds to the amount of
S800,000. 1t did not take more than fif-
teen minutes for the new syndicate to
elect themselves bank directors. Then
they got into that $S00,000 as a mouse
invades q cream cheese. They replaced
the good paper with worthless securities
Of their own. and sold the stock on.
which the Sixth National depended for
its existence. When the checks they had
given to ex-President Leland came in for
payment they met them. All this splen-
did financiering was accomplished in
twentyfour hours.
The conspirators had thus wrecked
three banks Enough Of the plunder
was left over even after paying Leland
to net them a comfortable sum. What
they meant to do is not clear. They
would have had time to join long line
of illustrious predecessors in Canada in
a few hours more.
But connected with the Sixth National
bank was a faithful cashier of long
standing, Andrew J. Colsen. The new
management governed the bank five
days. On the fourth day Cashier Col
sen went to the manager of the New
York clearing house and told him the
oSO1 liSO II1Ste Vic Ilt" DtLh
had gone into Office without one of them
taking the oath prescribed by law to
bank directors. This oath requires that
they shall faithfully protect the interests
of stockholders and 'tepositors and that
they shall certify correctly to the condi-
ton of the bank.
Colsen's information was acted on at
once. Next day saw three banks with
their doors closed and their shutters up
and Claassen and Pell arrested. This
story teaches the ease with which clever
knaves can fool old business men who
want to make little more money.