Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1890-02-01

EAST OF TIE ROCKIES.
Thrte New York Banks Ara Now
Closed Up.
PRESIDENT CLAASEN'S STORY.
Why English Capital Seeks Amer
lean Investment-The ST. Paul
Roads New Name.
IspRrrar nrgP Tcups tn Tsp RrcoRn.u,srorS
CLAAsEN's STORY.
IsrEGAL DISPATCHES TO TIE sEOOaD-usIOs.l
PELL HELD.
The slippery Broker Win be Examined
Next Week.

Pell, Drcker, VINO was arrested last nlSnl
for the part he took in disposing of the se-
curities of the Sixth National Bank, was
day held in S250,000 bail for examina.
ton Thursday next.
Claasen, the President of the bank, for
whose arrest warrant was issued at the
same time as was that for Pell, is still at
large.
The Sixth National Bank and the Len.
nox Hill Bank are still closed, and at
O'Clock note was posted on the door of the
Equitable, which stated that the bank was
closed temporarily. An official statement
of the condition of the three banks is ex-
pected this evening.
1t is rumored that Cashier Van of the
Lennox Hill Bank is being watched by the
police, and it was thought he would be ar
rested as soon as the statement now being
prepared was ready.
Examiner Hepburn, when seen at the
Sixth National Bank at noon said that the
bank would not lose more than $3.50 000
Of this amount S400, coo is represented by
already sold, and the other $3.50 900 repre-
sented checks which are held against the
Equitable and Lennox Hill banks.
The United States District Attorney this
afternoon issued warrant for the arrest of
James A. Sammons and officers are look
ing for him.
At news agency, about noon to-day,
Peter j. Claasen, President of the Sixth
National Bank, made statement, in
which he says ut is not true that | was a
member of the syndicate that purchased
the controlling interest in the Sixth Ma
tional Bank. 1t is not true that l made
any loan to myself in the said bank. On
the contrary, l have acted on my other
personal bank accounts on this side, and
have deposited to my credit in the Sixth
National Bank and have checked not one
cent against it. The first time | saw Le.
land, later President of the Sixth National
Bank, was on January 22d, when
certified checks were rendered to him
and accepted by him, amounting
to S650,000, for which be turned
over his control of the stock of the bank.
These checks were deposited by him in the
Union Trust Company and paid, hence
was not o member of the purchasing syn
dicate. All terms had been arranged and
agreed before l ever met him. Afterward.
this payment being satisfactorily to Leland,
he procured the resignation seriatim of the
old Board of Directors, and as they re-
signed new Board took their places
seriatim, one member at time. There
upon Leland rendered his resignation as
President, aud | was elected unanimously
in his place. On the morning of the 2Sd L
met Leland at the National Park Bark
vaults, where he turned over TO ME the
securities belonging to the Sixth National,
and [, finding them correct, receipted there
for. Either the came afternoon or the fol-
lowing day, in conference with Cashier
Colson, learned that the bank lacked cash
means, and he suggested, and l concurred
with him, that il would be well TO dispose
of from S500,000 TO 100000 worth of
high premium bonds, and have the cash
therefore, for the use of the customers of
our bank. My intentions were to raise the
surplus of the bank up to at least $25 600,
and so be able to accommoda depositing
customers. l stated to the Cashier that
before would sell any of these securities l
would have to consult with the Directors,
as well as with the gentlemen who owned
at least so per cent. of the controlling stock
purchased, and 1 did so consult them.
They also fully concurred in the plan, and
l was requested to entrust the sale TO Pell,
Wallack & Co, who received thereupon
1922 600 par value of these bonds, to
to the bank, which l duly turned
over to the Cashier. Subsequently some
of these bonds returned and $4,000 in
cash was paid, and for the balance Pell,
Waliack & Co. gave checks, mostly certi-
fed, to the bank on last Tuesday January
2Sth. But the Bank Examiner. as well as
the Clearing house Committee declined to
accept these checks as payment. About
$500 600 of these checks were certified by
the banks upon which they were drawn.
1t subsequently developed that had they
been sent to the clearinghouse in the
usual course and order of business, they
would have been paid. 1t will be seen
that the banks assets were not used to pur-
chase stock. l further desire to say that
am not Director, nor President of
the Equitable Bank, nor am I such in the
Lennox Hill Bank"
All day long it was expected that Presi-
dent Tallman would call at the Equitable
Bank and furnish the $4,000 neces ssary TO
resume business, but he did not appear,
and the doors remained closed. Many de-
positors called during the afternoon, and
were told that the bank would resume III a
few days; that. the affairs were all right,
and it was only closed because an exani-
nation was in progress.
The examiners worked all day at the
Lennox Hill Bank 1t was expected that
statement would be given out, but it was
found impossible to tell anything about
the work until late hour.
Late this afternoon, by order of the
United States Bank Examiner, all the re-
manning securities and funds Of the Sixth
National Bank were carried away from that
institution and placed in some safe-deposit
yault. The Examiner told reporter that
be would probably finish his work to-
night, but would make no further state
ment TO the press. His report will be for
warded to the Comptroller at Washington.
During the afternoon the bank was be-
sieged by depositors who were anxious
about their money. Many ladies were
among them, and all we're told that their
funds were safe. Among the depositors
are DR.. Carmody, the veterinary surgeon,
Thorby, the Broadway florist, Rudolph
Aronson, Bill Daley and William Nc
Mahon All of them expressed conf
dence in the statement that their money
was safe.
Suit has been menced against the
Lennox Hill Bank, in behalf of the depos-
itors, for small sum. When proceed
ings in relation to the bank troubles, be
fore United States Commissioners Shields
were ended, George H. Pen was taken tc
the United States Msrshalis office to give
| his friends an opportunity to secure bail
Among the friends calling on him dur
| ING the day was a man supposed to bi
his brother, Major Pell, Two others whC
! had seen the prisoner, announced tt
| Assistant United States District Attorney
| Rose that they were ready TO give, bail
! They were not accepted, however, as thei
| real estate possessions did not satisfy Rose
Their names were kept secret. Their
were altogether FIVE applicants 20 becom,
| bail for Pell, but none of them qualified
| This ended all the attempts to get bail
/ and about P N. Pell, in charge Of dep
uties, was taken TO Ludlow-street Jail.
| About o'clock this evening Presiden
| Claasen, of the Sixth National Bank, ap
| peared in United States Commissions
Shields office, accompanied by his ceunse
and two deputy Marshals. The warran
was read to him, charging him with EN-
bezzling and misappropriating the bank
funds, and the examinations were set 70