The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1890-02-07
BROKER ARRESTED,
Broker Pell. in Default of
Bondsmen, Now Reposes in
Ludlow Street Jail.
He is Charged With Empezzle.
ment and Misappropria.
ton of Funds.

NEW YORK, Special.-Georgc II. Pell, the
broker who was arrested for the part he
took In disposing of the gil.tedged securities
ofthe Sixth National bank, was taken be.
fore United States Commissioner Shields to-
day and held in $4,000 bail for examina-
ton on Thursday next. Being unable to
procure bondsmen he was committed to
jail. About o'cock President Claasen ap-
pearcd before the United States commits
sioner with his counsel, and the warrant
charging him with embczzlcmcnt and mis-
appropriation of funds was read to him.
1t was arranged that Mr.. Claascn's
examination should tako place
At l0a. m. tomorrow, and meanwhile he
was pafoled IN custody of two deputy
marshals and his counsel in accordance
with an arrangement made in advance that
ifClaasen would give himself up he should
not be put in Jail tonight. President
Clsasen made statement to-day to the
public. He denies that he was member of
the syndicate which purchased the control
Qfthe Sixth National bank, or that he had
ever met ex-P President Leland until the sale
was completed. He claims that 1t was at
the suggestion Of Cashier Colson, and with
the consent Of the board of directors, that
he arranged to sell the sG5O,OOO in bonds
held by the bank. and that it was for the
purpose of providing more available cash,
SO that the discount business might be i'm
creased, that
THIS STEP WAS DECIDED UpON.
He denied that any of the funds of the bank
were used by the syndicate to pay fer Lc-
lands stock, and claims that had the bank
examiner not refused to accept the certified
chocks offered bv Pcll there would have
been no trouble. All day long it was ex-
pected that President Tallinan would call
at the Equitable bank and furnish the $JO,-
GOO necessary to resume business, but he
did not appear, and the doors remained
closed. A great many dcpositors called
at the bank during the after
noon, and were told that the bust
ness of the bank would be resumed in
few days, that the affairs of the institu-
ton were all right and that it was only
closed because the examination is III prog
ress. The examiners worked all day ut the
Lenox Hill bank. They expected to give
some statement, but it was not found pos
stble to tell anything about the work until
q late hour. When the afternoon had
nearly passed the remaining securities OF
the Sixth National bank were carried to
aofftc nary aelNslG Wy elAcr al Examiner
Hepburn. Reporters were not admitted to
the bank, and it was with some difficulty
that information was obtained. lIe
said he would probably finish his
work before morning and would
make no statement to tho press, but
that he would Immediately forward his re-
port to the controller at Washington. Dur
Ing the afternoon the bank was bcsicgcd
BY depositors, who were very anxious about
their money. All were told that their funds
were safe. The examiner said the bank
would not lose more than $75O,OOO. Oftlis
amount 500, 900 was represented by bonds
and securietics which had already. been
checks which are held against the Equitable
aud LenOx Hill banks. AT meeting of the
Clearing House association to-day the Sixth
NaH6n4l Under its present ownership, was
pnanip ouslY expelled from Tic association