The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-02-02
LELAND TO THE RESCUE.
HE GUARANTEES THE EDEPOSITORB
AGAINST LOSS.

Ell5 OneCk lOE cOOOtOOC O6pOS1JoQ as
6ecurity-The Laws Hand or the
Men Who Did the Wrecking - A
Statement of the Condition OF the
Equitable.
NEW York. Feb. 1.-The president Of
the Sixth National Bank, Peter J. Claasen.
who surrendered himself last evening, was
held in $500 bail this afternoon by
United States Commissioner Shields.
Claasen's counsel and friends are now
trying to obtain bondsmsn. Meanwhile
Claasen will remain in the custody Of the
United States officers.
Bank Examiner Hepburn makes affidavis
under date of last night, In
which he says that on or
about Jan. %, 1890, Peter J. Caasen.
president and director of tho Sixth Ma
tional bank, did, for the use, benefit aud ad-
vantage of himself, unlawfully embezzle,
abstract, and willfully misapply large
sums of money and funds, aud credits Of
tae bank, amounting in the aggregate to
the sum of S432, 1865, with the intent to
injure and defraud the Sixth National
bank Of the city OF New York. This ar
davit was sworn TO before United States
Commissioner Shields.
AROUND THE BANKS.
The situation about tho Sixth National.
Equitable, and Lenox Hill Banks this
morning was practically unchanged, ex-
cept, indeed, that the depositors appeared
TO be out in large numbers. There were
many business men among them who still
INDUCED in the hope that some turn might
take place which would permit OF their re-
ceiving money enough TO pay off their en-
ployes. The ordinary depositors held their
ground, determined that il business men
got any money SO would they, and, as one
young lady put it. "They would see that
there was no making fish Of one and flesh
Of another"
SUPERINTENDENT PREsToN'S STATEMENT.
The superintendent Of the state bank de-
partment, when seen at the Lenox Hill
bank this morning, said he had charge Of
the investigation being made into the affairs
of the Lenox Hill and Equitable Bank.
dis statement was not ready and it would
not be, probably, before afternoon. With
regard to the probable arrest OF cashiers
VanZant OF the Lenox Hill Bank, and the
cashier of the Equitable, Mr.. Preston de-
clined TO express an opinion. In reply to a
number Of questions as TO whether or not
Mr.. Preston had discovered any additional
irregularities since yesterday, Mr.. Preston
declined to say.
LELAND PUTS UP MONEY.
The following notice was posted on q win
dow Of the Sixth National Bank at 11:45
o'clock:
Mr.. Leland has advanced funds sufficient to
guarantee the payment OF depositors In full al
as early date as proper Arrangements can ba
made for that purpose
A. r. HEPBURN Examiner
Late In the day George II. Pell was
brought down to the United States building
from the Ludlow street Jail. The counsel
for Pell, ex-Judge Donohue, said that he
would make a motion for a reduction of
bail before Commissioner Shields this after
noon.
LELAND DEFENDED.
President Edward King Of the Union
Trust Company made a statement this
afternoon, as follows: 'I desire TO stare
that, in my opinion, no one who knows Mr.,
Leland could question his entire good faith,
and honesty of purpose in the matter of the
sale Of the stock of the Sixth National
Bank. or course, as far as legal rights are
concerned, as owner of the stock he
felt that he had right to dis
posd OF it at such and for such
prices as might suit his own vi ws. He
feels, however, that the error of Judgment
committed in not receiving sufficient assur-
ances as to the standing aud capability Of
the parties to whom no sold, although a6
the time he did sell he. had perfect faith
that they we're as represented, and that
therefore, through this want of possible
care on his part, innocent parties have been
placed in a position to suffer loss; hence as
a man of integrity and honor, he feels
that it is proper for him to do all
in his power to save them fromIthe conse-
quences Of his act He sent for me last
evening and requested me to do what [
could to assist in effecting this object. The
first thing to be done is to pay depositors in
full, and this in process OF arrangement
Mr.. Leland has handed me blank check 20
my order to be filed for such amount as
deemed necessary in order to guarantee the
payment in full of the depositors Of the
bank, and at the suggestion of
Mr.. Tappan, who has taken
effective interest in the matter
i have filed it out for $500, 900, and havs
deposited that sum in the Gallatin National
Bank as guarantee to the syndicate which
has been formed to take the assets of the
banks, and to provide for the immediate
payment OF the depositors az soon as the
necessary formaiities at Washington can be
gone through. There remain ten minority
stockholders to bo considered, and, ELS | have
said, Mr.. Leland desired TO do all that
sensitive man Of honor can, AMI he says he
will be guided very largely by the advics Of
myself and other friends In relation TO this
matter"
CONDITION OF THE EQUITABLE.
Bank Examiner Cahill gave out tonight
a statement Of the condition of the Equita-
bic Bank, which shows a deficiency OF
$143, ,553. This does not include over-cer-
tification amounting to S150,000. which
does not appear on the books of the bank.
Bank Examiner Cahill also made public
a statement Of the condition Of the Lenox
Hill Bank, which shows a deficiency of
s176,6l6 Ia this bank were found Sl45, 900
in certified checks of James A. Simons, who
was associated with Pell and Classen in their
wrecking scheme. which the examiner de-
scribes as worthless
A NEWSPAPER CHANGE