The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1890-02-07
BANK WRECKERS' WORK.
Two New York Institutions
Have Been Closed.
"ANOTHER IvEs.sTAYNER CAsE.r

New YoRK, Jan 3l.-A most startling
condition of affairs has been brought to
light by United States Bank Commissioner
A. b. Hepburn, who took possession of the
Sixth National bank at Thirty-fourth street
and Broadway, and was busy examining its
accounts all day. 1t has been discovered
that the new president of the bank, z. j.
Classen, who went into Office only two days
ago, has since attempted to dispose Of $622,-
600 of the banks securities, consisting Of
gilt edged bonds of market value of over
Ss00000 All but $250,OO0 of these bonds
have been sold, and whore the money has
gone is yet unknown Mr.. Classen repre-
sents the syndicate which last week bought
out the interest of Charles H. Leland, the
former president of the bank, and assumed
control on Tuesday.
Significant Notice.
In the morning the bank was closed and
the following notice written on a sheet of
note paper was tackled to the door:
have taken possession Of this bank as United
States bank examiner in behalf of the controller
of the currency at Washington, d. C., who will
give such further orders as may be necessary A
careful examination is being made Of the assets
and liabilities. A. b. HEPBURN,
United States Bank Commissioner.
The doors of the bank were surrounded by
a crowd of panic stricken depositors all the
morning, and very little information could
be Cleaned from the bank commissioner and
his assistants, who were at work inside as to
the actual situation. At 80 o'clock Com.
missioner Hepburn issued the following pre-
liminary statement:
Examiner Hepburn's Statement.
"Mr. Leland sold l,035 shares of stock,
controlling interest, to the parties at present
in control of the bank, at $50, and gave them
possession Jan. %. On Jan. %, $622, 900 par
value Of high priced bonds belonging to the
bank were delivered to Pell, Wallace & Co..
and recent taken reading as follows:
"'ReceIved, New York, Jan. %, $780, of
the sixth National bank of New York, the
following named bonds, to be sold for ac-
count Of said bank and accounted for to its
president as he may demand
There was no entry on the books of the
bank to show any disposition of the bonds.
The stock book called for the original
amount l found the $622, 900 bonds gone
and demanded their restoration, or funds to
represent their market value l went with
the president, p. ]. Classen, to Pell, Wal
lace & Co., who said that about $4OO, 600 Of
the bonds had been sold and checks sent to
tne pdhh, budb bue IeIlblullk DOuuS
were with different brokers for sale, and
that they would get and return them.
Nipped in the bud.
"They brought to me S20l 900 of the
bonds. The checks offered for the balance
could not be accepted. The above, together
with other matters affecting the bank, rem
dered the temporary closing of the bank
imperative. If the gentlemen in charge
carry out the promises or assurances given
the controller will undoubtedly reopen the
bank. l do not think depositors will lose
| anything. The object in taking possession
was to insure that. Gentlemen, that is all"
In addition to this Mr.. Hepburn stated
| that the situation was further complicated
| by the fact that not one of the new directors
had yet qualified by taking the oath of office
as required by law.
| History of the Bank.
The Sixth National bank was organized in
1854, and last week Mr.. Leland, the presi-
dent disposed Of his interest to the syndi-
| cate which has been In control for the last
| two days. The new board consists of p j.
Classen, stock broker, of No. 45 Broad
way; d. M. Ripley, president of the Kings
County Elevated road; j. Kenneth Watson
and H. I. Cutter, who recently bought out
the drug store of Alexander Hudnut in
Broadway. The bank was regarded as one
of the soundest financial concerns in the
city, and had very large surplus, accord
ing to it's last report. Its stock very re-
Gently sold as high as $3.50 n share in the
market.
| Discovered by the Cashier.
| Ardrou n CoIoor ,ybo hoe hoo,, ,as,,ior
of the hank for tyye,ty-two years yvas tta
6rst 10 discovar that INV irroorIo,,itias ha a
hoon roino, on bis s,snioinrs -, n,.o,,aad
bv sealing the rncaint which ia maptinneJ IN
Commissioner Hepburn,s statement He AZ
once notified the commissioner.
r,, ,yo, .,,.o, ,,, xyu.,.
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.ot th,,a snr 49, ,i,i"ai 1',.' .ao. 7ii nisa
ma sav oan sne oonus' ,e' par 'aiu'
r,i,a;,'' Taano ,a 49, S,eo noo sn.
hsnu i9ss 81. iIano VI sloo,oov, io'
Ti1a.n sno a1.o sSs oon as ,.a - VIZ uuuiouS as
pei a. aloo Vi pio.ee'eu ho'es o
M ~ pAei oeui % a. oi,; %no 10 sdiu oy SOM ON
,,. " % me- '.o ' "no1 III
-, 'eS>,-,.. =. - .ue Aiep
ou' III III " sho .ite oi 'ne cur
,oinf fuont of n racaivar lii snaodiI,, fol,1,
He saws it was the most audacious case q
bank wreckine in the history of this citv
Tho Ianox u,, p.n,, pau.
,,...s -.
ihe ne" uiieeooiy oi gpe oiAIn Na'ioha
nis ~ 'eeUeu III 'Ie lenoA mn oahk
',ilt ~ sN ~ iu.noe Vi ~ "
usnIau 'D IN, asi,. panA "a .a .ne L Leno1 ~ rii
tsi. ~ c.rIe II Wn',s,' y. '"e henoA -,
,".n1 IS, 20 MdtT "aiA, son oi .n
La 20 hi.a. e Nv "enS NJ ~ ~ WIN W, VI
was $40 900 cash on hand when the ban
opened in the morning. By great effol
$50, 600 more was procured The entire $50
900 had been paid out to depositors by moo
and the cashier closed the doors
The Banks Condition.
The financial condition of the bank
about as follows. Deposits s27O OOo. CAN'T,
maid in. 500 coo. loans and discounts s9OC
600. emount due other hanks $40 OOo m
directors are liable for twice the amount
their shares. 1t is stated that at the san
time the Lenox Hill bank changed hands
syndicate acquired control of four institl
tlons-the Lenox Hlll, sixth National, Equ
table and 81 Nicholas banks J. A. Sin
mons VINO obtained controlling interest
the Lexon hlll bank, was prime mover
"Another Iyes-stavnar c...n
Frederick n Tsnnan nresidant ~ :,
Gallatin National bank and a rernher ,