Waterbury evening Democrat. [volume] (Waterbury, Conn.) 1887-1895, 1890-02-01
THE BANK pL0TTERS
President Claassen Arrested
After a Long Chase.
HE CLAIMS He IS INNOCENT.
Examiner Hepburn Has Pound Affairs
Worse Than He Supposed.

"A Report to He Made to the Cornptr OIL
Ter To-Day-The Equitable Forced to
Close Its Doors-Ex-President Leland
Says that Deposttors Will he Paid
In Full.
New YORK, Feb. 1.-Another bank
gone up, President Claassen, of the
Sixth National, arrested and Broker
Pell held in $25, 600 bail for trial form
the chief developments in the bank
sensa lions Of the past few days.
Bank Examiner Hepburn has TO und
affairs at the Sixth National Bank even
worse than he supposed. 1t was dis
covered that heavy loans aggregating
nearly 500, 900 had been made by the
bank ON worthless stock of the Lenox
Hill and Equitable banks.
CIaassen in custody.
President Claassen walked into the
Office of United States Com mission err
Shields in company with Mr.. Ashley
Agency, Gen. Benjamin Il. Foster and
Deputy United States Marshals Bern
hard and Holmes
Commissioner Shields and Marshal
Jacobus were expecting the arrival of
the party.
Claassen said that he wanted to
make a statement, and said that if
there was warrant out for him he
would surrender himself. He desired
to be spared the humiliation of being
arrested.
He asked Mr.. Cole what amount of
bail would be required, and Mr.. Cole
told him that he thought SO, 900; the
same as in the Pell case.
Claassen said: II do not want to sur
render myself until l have my bonds
men at hand. l don't want to be locked
| up as Pell has been"
| l0,, S,{o cod ctp 70, 1v,k 70
Mr.. Cole, which he afterward signed.
! In the statement Mr.. Claassen says
he is not member Of the syndicate
that purchased the controlling interest
IN the Sixth National Bank and that
he did not make any loan in the bank.
| lie says he checked on his other per-
sonal bank accounts and has deposited
to his credit in the Sixth National
Bank and has not checked one cent
against it.
1t is reported that warrants have
been issued for the arrest of James A.
Wrecker-in-C Chief Claassen. Certa in
other persons were reported to have
left the city on account of the disclos
uros that arc being made in connection
with the bank w ccking investigation.
The Clearing House Association met
and adopted resolution expelling the
| Sixth National Bank from Nom OerShip.
Every hour it grows more apparent
that the syndicate entered upon de-
libcrate plot to wreck the sixth Ma
tional Bank, and that they first OBJ
tanned control of tho Equitable and
Lcnox Hill banks with that definite
purpose in view.
rho Equitable CLOSES Its Doors.
Early in the morning small card was
placed on the front door Of the Equita-
bic Bank bearing the announcement:
This bank is temporarily closed"
1t was reluctantly placed there by
Cashier Courton, who had been hoping
against hope all the morning that tho
bank could romain open for business.
Drpositors liz he Paid in Full.
There is every Indication that the de-
posltors of the Sixth National, the
Lenox Hill and the Equitable Banks
will receive in full the money due them.
, Bank Examiner Hepburn would not
be interviewed about tho affairs of the
Sixth National His representative
said Mr. Hepburn was hard at work
preparing the detailed statement viii h
he will forward to the Comptroller
of the Currency at Washington
lie corroborated the report that
Mr.. Charles II. Leland. the late presi
/ dent Of the bank, had given a guarantee
to Mr.. Hepburn that he would see thai
the depositorS were all paid in full.
, Poor Outlook for the Lenox.
The president and directors OF the
\ LenoX Hill Bank are keeping away
from the institut ton and the only per
son there to give any information wa:
Cashier Van Zandt. He said "A
few days after l assumed con
S troll as cashier l was Ia ken sick with
: pneumonia and have only been back
0 four days. | have had no chance te
examine into the banks affairs. The
two certified checks for S55, 900 which
. l could not pay Thursday were MOI
g certified by me, but by the paying
: teller. Mr.. Chadwick, who was Endorsed
= to do SO by the president, and you know
that in a State bank the president ha:
supreme authority, and every EN-
ployer of the institution is bounc
t to obey him or get out. Wher
v l knew these checks had been certified
o l supposed they were all right as the
f collateral was supposed to be in the
G Safe Deposit Company's vaults in the
t hands of the president. From informa
t ton have received since last night dc
0 not believe that they will resume
\ Recruit Commits Suicide.