Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1890-01-31
RASCALS BLOCKED.
A Nice Scheme of Bank-Wreck.
ing Exposed.
TRIED TO COME THE IVES GAME.

Some "Napoleons of Finance" Get into
tie Capital. If You Don't Get Caught
Buying Bank and Making 1t Pay for
Itself-A Robbers Deal Fails to Make
Connection.
NEW YORK, Jan 3l-The suspension of
the Sixth National bank Thursday develops
into a story of bank wrecking which in bold
ness of conception and audacity of execution
must take rank above even the sublime
achievements of Napoleon Ives. With
the aid of comparatively small
working capital a gang of schemers gained
control of three banks-the Lenox Hill, the
Equitable, and the Sixth Newfoundland
stripped them of an amount equivalent to
twice their capital stock. The last bank to
be seized, the Sixth National, was paid for
out of the assets of the institution itself, by
using the other two banks to GRITTY falsely
checks to the amount of three times their
capital stock.
The Thieving Plot Exposed.
Before these fraudulent checks were pre-
sented sufficient money had been raised on
the assets of the Sixth National to meet
them. Discovery came through informa-
ton given by faithful employee of the ma
tional bank in time to save some portion
OF its property from the wreckers
Prompt action by the national
bank examiner and the authorities Sc
cured the recovery of a fraction of the stolen
securities and the prosecution of some of the
implicated persons. Two arrests were made
by United States deputy marshals last night,
,.~I o&l 81 c.. g..
pears the net amount stolen is about 500, 900
which nominally falls upon the Sixth Ma
tional bank. The Equitable and the Lenox
Hill are liable to the Sixth National in the
amount of $50, 900 and 500, 900 respectively
on checks which they falsely certified
Captured Part of the Swag.
The president of the Sixth National is P.
j. Classen and he is one of the leading spirits
in the fraud. The expose came when an at
tempt was made to dispose on Wall street
of 500, 900 of the bonds owned by the Sixth
National, broker named George H. Pell
being the man who tried to market the
bonds. Mr.. Cohlsen, cashier OF the bank,
reported the transaction to the clearing
house and an investigation was had, which
resulted in the closing also of the Sixth Ma
tional, the bank examiner then demanding
from Classen the return of the securities
The examiner by his prompt action, sue
ceeded in getting $20l, 900 of the bonds
Those Missing Bonds.
Commissioner Hepburn stated last night
that thus far the missing bonds-par value,
S+2l 600; market value, S4S2, 46b-are still
missing. There are loans of $3.50, 900, for
which the security on hand is very dubious
There are SIS, 900 of protested notes of Broker
Pell, who is said by some to have schemed
the whole transaction The other assets seem
to be all right. He says it is the most au-
dacious case of bank-wrecking in the history
of this city.
Leland Will Pay the Deficit
Mr. Tappan siad that counsel for Mr.
Leland has announced that any deficit in the
assets will be paid by Mr. Leland in full. He
| further stated that in his opinion the price
paid to Mr. Leland for his stock was exces-
sive The price received by President Ie-
land for his stock was $3.50 per share, though
the quoted market value was but 1850
Leland was the former owner of the Sixth
National, from whom Classen bought the
bank
George ii. Pell was arrested at his home
! last evening and taken to Ludlow street Jail,
where he was locked up.