The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1890-02-06
CROOKED FINANCES.

How They Secured Control Oe $50
wrecked several New York Bsnk>-Ths
sixth National sad the Lemon Hu
Closed. while the Equitable 10 II .
6haky Condition.
NEW York, Jan. 31.-A worthy sue
cessor Of Henry 8. Ives has arisen in
the person Of p. J. Claassen, president
OF the Sixth National Bank Of this city,
and as q result the Sixth National.
heretofore considered one Of the strong
est financial institutions in the city,
II in the hands OF the National
Bank Examiner, and the Lenox
Hill Bank, which WAS controlled
by the men in power at the Sixth
National, has closed its doors.
Rumors have impeached the integrity
Of the Equitable, but its president
makes the following statement: Tho
owners Of the Sixth National
have only . minority interest in
the Equitable, and the bank IL
not affected" President Claassen
cf the sixth National Is charged with
having deliberately wrecked thai bank
and warrants were issued Thursday aft
ernoon for his arrest and that Of George
H. Pell, . broker, who is charged with
having aided him in the commission
Of the crime. Pell was arrested
Thursday night 1T his home in Fifty
fifth street and locked up in Ludlow
street jail. A rumor was current in the
afternoon that the st. Nicholas Bank in
the Equitable Life building on Broad
way was also affected. but denial was
made by w. J. Gardner, the cashier
of that institution.
The methods by which the Sixth Ma
tional Bank was wrecked are almost
identical with those used BY Henry s.
Ives in his dealings with the Cincinnati,
Hamilton & Dayton railroad. A few
days ago, through negotiations conduct
ed by Pell, Claassen and others bought
controlling interest in the Sixth Ma
tional by purchasing the interest Of the
president, Charles D. Leland, at $50.
Frederick D. Tappen, president OF the
Gallatin National Bank, tells the story
of the wrecking as follows:
AFTER Mr. Leland had sold his interest In the
Sixth National Bank the directors were 70.
quested to resign, which they did, one BY one,
the vacancies being filled By other men. The
board OF directors, however, has not been
legally organized since. They could not legal
ly elect . president, because none Of the
new directors had taken the oath Of once
The election of p. J. Clsassen Was there
fore void Immediately on assuming the
once Of president Of the bank Mr.. Claassen
made three loans OF 1000 each, secured by the
stock Of the Lenox Hill Bank-a very poor 50
curity-and then went down to the safe
deposit vaults Of the National Parl
Bank and distracted therefrom first class
railroad bonds of the par value Of o6s2O00
These bonds he placed In the hands ol
George H. Pell for sale. Pell was formerly 1
partner In the frm Of Grovestcen Pell. stock
brokers. who failed in August. 1877. The cash
ier Of the Sixth National Bank. Mr.. COlscn. be
came alarmed 1t the extraordinary proceeding.
of the new president and directors and he camt
down to the clearing house and gave then
the startling information narrated Aftel
careful deliberatiOn on the whole
matter the clearing house committee imme
should bc placed In the hands Of . Government
onicial At once. A. b. Hepburn. the Nationa
Bank Examiner, was sent for and the facts com
municatcd to him, with the request that b,
| would take charge Of the concern the following
morning and investigate the charges made b,
Mr.. Colsen, the cashier. against the officers ant
directors. This examination took place yestcr
day and fully confirmed the statements mad,
| by the cashier. The clearing house commit
4 tee visited the Sixth National Bank late yes
terday afternoon, and after having verifies
! by personal examination the facts rs alread,
| stated telegraphed TO the Comptroller o
the Currency at Washington that the banl
4 would not be permitted to exchange through
| the clearing house this morning and that tn,
new board Of directors should have no furthe
control over the assets Of that institution. +
sum up the case, 1t may be said that tn
purchasers OF Mr.. Leland's stock paid 70
It, evidently. with the money belong
| IN the hanlx