Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1890-02-01
THE EQUITABLE CLOSES.
1t Follows the Sixth National
and Lenox Banks.
PRESIDENT cLAssEN ARRESTED.


Twenty-eighth street suspended yesterday.
It was hoped and believed that this bank
would be able TO weather the storm which
has involved the Sixth National and the
Lenox Hill banks in ruin.
A meeting OF the directors was keld last
ing after midnight, Chief Bank Examiner
Cahill, from Albany. being present at the
conference. A partial examination Of the
affairs OF the bank showed that, although IL
was heavily involved by the operations Of
r. J. Classen, its late vice president and his
gang. a comparatively small amount Of ready
cash would enable it to tide over its present
! difficulties.
The Equitable Closes It's Doors.
John b. Tallman, it's president, who is
known to be very wealthy man, promised
that he would have this sum, which was
fixed by Examiner Cahill at the bank before
opening time, but failed TO do so. and the
bank was "closed temporarily by Superin-
tendent Of Banks Preston. Indignant do
positors held a meeting and denounced the
whole management Of the bank as a gang
Of robbers and highwaymen.
Situation at tho Sixth National.
At the Sixth National bank the examina.
ton Of the banks accounts has not yet been
completed, and it is said that further inves-
tigation has shown the situati on to be more
serious than was at first su pposed. Heavy
loans had been made by the bank aggre-
eating nearly 5000, 600 on stock Of the Lenox
Hill and Equitable banks which is now
practically worthless. A large number Of
other worthless securities to secure loans
al
which were substituted for the gilt edged
bonds formerly held by the Sixth National.
Vaults Completely Gutted.
! In fact the vaults have been completely
gutted by the wreckers during the few days
that they were in possession. and it will be
some time yet before the bank examiner
will be able TO make a complete statement
of assets and liabilities The promise of
the late president, Charles H. Leland, TO
make good any deficit 50 that all depositors
may be secured is regarded with some in
credulity by the persons most interested.
President Classen's letter to President
George S, Coe, of the American Exchange
bank, in which he states that Mr.. Leland
sold his interest at the high figures he re-
ceived for it with the understanding that
he was to be paid for il out of the banks
securities, and that in fact he did receive
in part payment a number of per cent.
New York Central and Hudson River rail-
road bonds, has turned public suspicion
very strongly against Mr.. Leland.
President CIassen's Statement.
Peter J. Classen, of the Sixth National
. bank, made brief appearance in Wall
street and made the following statement:
cit is not true that was a member Of the
syndicate that purchased controlling in
, terest in the Sixth National bank. II is not
true that made any loans 10 myself in said
bank On the contrary, have checked on
. my other personal bank accounts in this
e city and have deposited TO my credit in the
Sixth National bank and have not checked
one cent against it. The first time that
ever saw Mr.. Leland was on Jan. 20, at II
a. m Certified checks were rendered to and
o accepted by him, amounting to S650,0
5 He deposited them with the Union Trust
b company. Hence / was not a member of the
n purchasing syndicate. All terms and ar
rangements were agreed upon before met
p him.
4 After this Leland procured the resigna-
= tions, seriatim. OF the old board of directors
4 The new board took their places On the
y morning Of the 23d, by arrangement with
y Mr.. Leland, / met him between 10 aud IL
u O'clock at the National Park bank vaults,
and there he turned over TO me the securi-
y ties Either the same afternoon or the fol
= lowing day, in conversation with the cashier
q Mr.. Colson, | learned that the bank lacked
4 cash means, and he suggested and l con
= Cured with him, that it would be we'll &
y dispose of say s50O,O0O TO 100000 Of the
. high premium bonds and have the casl
10 therefor for the use Of our customers. The
directors fully concurred in the plan, a nd
Is was requested to entrust the sale of thesl
bonds by these gentlemen to Messrs Pell
Wallack a. Co.. who received thereupoI
S622 900, the par .valne Of the bonds 70 b.
sold, for which they gave their receipts L
% the bank, which l duly turned over to the
A cashier.
3 subsequently 20l Of these bonds were re
j turned, $4,000 in cash was paid and for thi
balance Messrs. Peil, Wallack g. Co. CAV
checks, mostly certified, to the bank. Abou
$500, 600 OF these checks we're certified by tn
banks upon which they were drawn ha,
no proceeds from these bonds that did no
account for, and the checks thus far not re
covered by Pell, Walack a Co. are still du
a to the Sixth National bank. IL WILL there
fore, also be seen that the banks assets wer
not used to purchase the stock. / furthe
desire 10 say that am not director no
w vice president Of the Equitable bank Of thl
" city, nor am l such in the Lenox Hi
Tia bank
ld What Ex-President LELAND Says.
'is Mr.. Charles II. Leland. former presider
ID; Of the Sixth National bank, has issued
of statement declaring that he had considere
20 20 the stock Of the bank TO be worth in Ii
* neighborhood Of $3.50 for the last three Z
for four years OF the sale. Mr.. Leland say
Vs. 81 made the sale believing that the pu
on chasers not only had strong financial SUI
sng port, but large connections, which woul
ne result largely to the advantage Of the ban
he he and its stockholders The purchasers mt
Of me at the bank Jan. p at noon, and paid n
els the entire purchase price in certified checl
'n' as agreed, and my stock was at once tran
!. ferred and the board Of directors reorga
- iEed. deposited my checks on the same da
and they were paid in due course It WI
not until the following day that delivers
70 Mr.. Classen, in the presence Of two vi
nesses the keys Of the safety box vault co
tanning the securitiesn In conclusion
. denies all knowledge Of the fraud.
CIassen Under Arrest.
About 6 O'Clock last night President Cls
Ia. sen appeared before the United States cor
missioner with his counsel and two depu
United States marshals. and the warra
. charging him with embezzlement and m
- appropriation Of funds read TO hiI
He vas paroled in the custody of the ms
or shals and his counsel This was in accor
anes will arrangement made in advan'