St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-01-31

and that complete examination of its
affairs would be made tomorrow. In
regard to the Equitable bank. the prob
abilities that it would be able to go do
ing business tomorrow as usual. The
examiners saw President Jacob B.
Tallman and his directors. They said
they were able to take care of all of the
banks paper. They announced 10 the
examiners that they expected to raise
$4,000 to put in the bank, and that they
could secure a release from the Western
National bank which did their clearing
business. 1t this is done, then to-mor-
row everything
WILL BE WORKING SMOOTHLY
at the Equitable bank. During the
evening gentleman named P. F. Nc
Donald called upon Mr.. Hepburn. The
reporters were Informed upon good
authority that he was the man who
negotiated the sale of the Sixth National
bank stock between the then president,
Charles 81. Leland, and the alleged
syndicate. Mr.. Hepburn said that
the object of Mr.. McDonald's
visit was to ascertain for Mr..
Leland how matters in the
bank stood, and if it was necessary for
hlm to produce any funds to make good
the deficit in the depoSitorS' accounts.
A report was started during the after
noon that the st. Nicholas bank in the
Equitable Life building on Broadway
was also mixed up in the transaction,
but a denial was made by W. j. Gard
ner, the cashier of that institution. He
said that the statement that 900 in
protested checks of George FL. Pell q
20. III the st. Nicholas bank was given
IN lieu of abstracted bonds to the
examiner at the Sixth National is not
true. as the amount had been paid by
the Sixth National bank on Wednesday.
A number of checks on the Lenox Hill
bank had been presented to the st
Nicholas, but they were refused. In
banking circles to-day it was re-
lated that some of the parties concerned
III the transaction of the Sixth National
attempted some time ago to eStabliSl
bank under the name of the KnicKer-
booker. The scheme fell through, how
ever, as some of the pledged sub
scrlbers failed to materialize, and
also because the st. Nicholas bank
refused to clear for it. 1t has been
said that out Of the ruins of the scheme
the Equitable was raised, and that the
Western National bank took up the
clearing business. Mr.. Leland was
seen with much difficulty, but said that
the price of $3.50 share. paid for his
stock in the Sixth National, was moth
ing extraordinary, as negotiations for
the purchase of the stock at that price
had been made three years ago. At
that price he said it
WOULD PAY SIX PER CENT.
James A. Simmons, said to be one of
the principal stockholders in the bank,
could not be seen. His office is at No.
45 Broadway. A deputy United States
marshal found George II. Pell this
evening, at his house on Fifty-ffth
street, and arrested him, and took him
before Marshal Jacobus, who directed
that he be locked up in Ludlow street
Jail, where he was incarcerated later.
The president of the Lenox Hill bank,
which suspended to-day, is Charles E.
Wallack, son of the late Chester
Wallack. He went in with the new
boa dof directors Dec.19 There was $40,-
600 cash on hand when the bank opened
this morning. By great efforts $4,000
more was procured. The entire 100000
had been paid out to depositors by
noon, and the cashier closed the doors.
The financial condition of the bank is
about as follows: Deposits. S270.0O0;
capital paid in 100000; loans and dis
counts, S300,000; amount due other
banks, $4,000. 1t is stated that at the
same time the LenoX Hill bank changed
hands a syndicate acquired control of
four institutions-th Lenox Hill, Sixth
National. Equitable and St. Nicholas
banks. j. A. Simmons, who obtained
controlling interest in the Lenox Hill
bunk, was prime mover in the syndi-
cate. Frederick D. Tappan, president
of the Gallatin National bank and
member uf the clearing house commit
tee, said to-day the proceeds of the sale
of stocks and securities belonging to the
Sixth Natioual bank were used to pay
the cert fed checks which had been
given to Mr.. Leland, the former presl-
dent. for his 1,035 shares of stock. These
checks were drawn upon several banks,
including the Lenox Hill and Equitable.
Mr.. Tappan denounced the transac-
tion as
ANOTHER IVES-STAYNER CASE"
He explained that the purchasers
were given possession of the bank on
payment of the certified checks and
then sold the securities they found in
the vaults and deposited the proceeds in
the clearing honse to meet the certified
checks. Mr.. Tappan further stated
that, 10 his opinion, the price paid to
Mr.. Leland for his stock was excessive.