New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-01

nt the Office. and Assistant District-AttOrney Rose
examined them az TO the amount oil real estate
which they owned. \ sufficient number OF salts
factory bondsnen had not reported when the Dis
trict- Attorneys Office closed. and Pell was taken
back to Ludlow Street JAN
WALL STREET OPINION UNCHANGED.
CHARLES II. LELAND SEVERELY CRITICIsED-HE
AND cLAAssEN MAKE STATEMENTS,
The shower of explanations and apologies about
the failure of the Sixth National Bank, which
fell on Wall Street yesterday without effect.
The arid facts are that the president ard prin-
cipal owner of the bank sold control of 1t 10
strangers at q price SO absurdly high that he is
now unable TO make a valid defence. That his
suspicious should have been aroused by the offer
is considered so plain that his acceptance was
still condemned with the utmost severity. The
high reputation of the bank the long experience
of the president in Wall Street, and the character
of the Intermediary in the change Of ownership
were arguments which should have prevented the
transfer.
The natural presumption seems 70 be that
Charles H. Leland received an offer which lie was
not strong enough to resist. If the buyers had
been less prccipItalc in dividing the "swas' the
transfer might have passed without notice. The
footing began at once and the price OF tic he
trayal OF confidence can be easily calculated.
The highest price which the stock of the Sixth
National Hanl; touched in the open market was
$3.50 a share The price which Mr. Leland ac-
ccptcd was $3.50 share. Il is 4 matter OF
record that Ae took the money, and to prove
his confidence IN the new management deposited
il in another institution The gO-between' was
an outside broker who was within three years
the junior partner Of Stock Exchange firm
which made a disastrous failure The clrcum-
stances were such that the Stock Exchange
was forced II declare the Board member forever
Ineligible for reelection. The assignee OF the firm
has been unable since the failure to gather
sufficient assets pay his legal fees. The slight
EST inquiry at the Stock EXchanreewoud lave
I demonstrated these facts. even if Mr.. Leland
had not been a member of the Exchange for more
than twenty years Moreover. the buyers, who
took immediate possession Of the bank, were UNI
known except as bank prospectors. That Mr..
Leland should promise al once 10 protect the de-
postors of tire bank is natural debt 10 be paid
TO family prlre.
M. Leland attracted GepositoIs L. Lis bank by
his fathers reputation lie WAS tie guardian not
only of the dcpoaitors but also 81 the stock
holders, and his sale of the control was plain
breach OF tIuS,.'
Other bankers in Wall Street and some who
knew Nh Leland well, said that the only honor
able course for him 10 pursue was 10 restore the
bank TO the financial position u occupied before
the transfer. l. was aTrucd thar as he had re-
ccivcd cash for lis stock ne would lose nothing bV
returning tie money. In this opinion, one or
two bank officers, who are supposed % have
loaned S0n.ctSlug on The stock OF tie bank we've
not positive. The present resting place Of the
securities and stock Of the bank cannot bc as
ccrtaiEcd The losses which may he suffered,
however, are distributed So widely that 10 IL
sttution will be incouvenenced. The effect Of
the failure on the money and stock markets wos
moons dcreble. 4 slight furry in rates for call
loans carried them 10 10 per cent, but II was the
ii. ,,.f'
as the month.
The following statement WAS made in the after
noon through Kcrnau'S News Agency by PrcSi.
dent ClaaSsen, Of the Sixth National Bank, before
his arrest:
To the public: As president Of the Sixth National
Eeus the city Il NowYoI&, desire to mako state
ncnt that deem duo to my family to my friends and TO
myself
u is no, true that was a member Of the syndicatc
TIA. purchased the controlling interest in the Sixth Ma
toua Bank. It not true that made any loan o.
myself I'm said bank On the contrary, l have checked
other personal bank accounts ia this city and have
deposited NY credit The Sixth National Bank, and
have not checked one cent against 1t.
Is due M friend. General james Jourdan, for NJ
O. say ua. De consented become director M the SIKH
Na.ola a- my urcea, request. He has not qualified
such dItco-, nor has ne e'cr ATTENDED any mcetn-
the bank whatever. He finding, rom his engage
Incnt, That ne would not De able T., 90 far uptown
when De would Dee needed, sent ne his resignation a
dircc,0. 20 last Tuesday. The may be lad as q
the position Of .IT Horny c. Cutcc, with tar exception
that hc 3, M >iumon.o friend instead Of mine, gen
eral Jou dan is.
T., first time that l ever saw Mr.. leland. the lat,
president Of the Sixth National Bank January 22
Of II a when testified checks rendered to him auc
accepted by him. amounting 70 300 600, for which Do
TUNED control % S.Nth NltOns
Bank. iaesc checks wore deposited by him in tai
Union Trust Company and were pad. Hence. l was no
member Of Tine purchasing syn1catct the terms had
been arranged and o2-,cd TO loiorc / c>ec met him.
M-1"aId, rIs payment being satisfactory to Mr.
10 Of q