St. Paul daily globe., 1890-02-01
Boss Wreekep GLEASON and
His Confederate, Pell, Are
Under Arrest.
Every One Implicated In the
Financial Fraud Claims to
Be Innocent.
Depositors May Not Lose Any
thing, but the Banks Will
Not Resume.


closed temporarily. At about noon
well-dressed man walked into Kiernan's
news agency, on Broad street. He had
a shrewd but disagreeabIe face. He
was apparently about forty-flve years
old. He announced himself as Peter
j. Claasen, president of the Sixth Ma
tional bank, and told the group of as
tonished employees that he had state
ment to make. He dictated the follow
ing, after which he calmly walked out
of the Office:
the Sixth National Bank of the City of
New York, desire to make statement
that l deem due to my family, my
friends and myself. 1t is not true that
l was member of the sydicate that
purchased controlling interest in the
Sixth National bank. 1t is not true that
made any loan to myself in said bank.
On the contrary, have checked on my
other personal bank accounts in this
city. and have deposited TO my credit in
the Sixth National bank. and have
checked not one cent against it. 1t is
due to my friend, Gen. James Jourdan,
for me to say that he consented to be-.
come director ill the Sixth National
bank at my urgent request. He has not
qualified as such director, nor has he
attended any meetings at the bank
whatever. He, finding from his en-
gagements that he would not be able to
20 so far up town when he would be
needed,
SENT Me HIS RESIGNATION
as director on last Tuesday. The same
may I've said as to the position of Henry
Q. Cutter, with the exception that he is
AIs. f.,., Il
as Gen. Jourdan is. The first time that |
saw Mr.. Leland, the late president of
the Sixth National bank, was on Jan. %
at II a. m., when certified checks were
rendered to and accepted by him
amounting to S650.0U0, for which he
turnt d over the control of the stock of
the bank. These checks were deposited
by him in the Union Trust company and
were paid. Hence | was not member
of the purchasing syndicate. Ali the
terms had been arran red and agreed to
before l met him. AfterWard. this pay
ment being satisfactory to MIR. Leland,
ne procured. the resignation, serlatim.
Of the old board Of directors,
and as they resigned the new board
took their places, seriatim, one member
at a time. Thereupon, MIR. Leland
rendered his resignation as president,
and was elected, unanimously, in his
place. On the morning OF the 23d, by
an arrangement with Mr.. Leland. met
him between 10 and IL a. m. at the Ma
tional Park bank vaults, here he turned
over to me the securities belonging to
the Sixth National bank. and [, finding
them correct, receipted therefor.
Either the same afternoon or on the
following day, in conference with the
cashier, Mr.. ColSon, / learned that the
hank laHkpd aacb snpanS and 10 cur-
geSted, and concurred with him, that
it would be well to dispose of say from
100000 to S600,000 worth of the high
premium bonds and have the cash
therefor, for the use of the customers
of our bank. My intentions were to
raise the surplus of the bank up to at
least S250.000 and so be able to accom-
modate our depositing customers, with
ease to ourselves and with convenience
to them. l then stated to the cashier
that before would
SELL ANY OF THESE SECURITIES
l would nave to consult with the direc-
tors as we'll as with the gentlemen who
owned at least so per cent Of the con-
trolling stock purchased, and | did so
consult them. They also fully con-
Cured in the plan, and was requested
to entrust the sale of these bonds by
those gentlemen to Pell, Wallack d Co,
who received thereupon S622, 900 par
value of these bonds to be sold, for which
they gave their receipt to the bank,
which duly turned over to the cashier.
Subsequently 20l of these bonds were
returned, $4,000 in cash was paid, and
gave checks. mostly certified to the
bank on last Tuesday, Jan. IS; but the
ba k examiner, as well as the clear
ing house committee. declined to
accept these checks as payment.
About $4,000 of these checks We're
certified by the banks upon which they
were drawn. 1t subsequently deyei-
oped that had they been sent the clear
ing house in the usual course and order
OF business, they would have been paid.
1t will, therefore, readily appear that
had no proceeds from these bonds that
[ did not account for. and the checks
thus far not covered by Pell, Walack d
Co., are still due to the Sixth National
bank. 1t will also be seen that the
banks assets were not used to purchase
the stock. further desire to say that
am not director nor vice president Of
the Equitable bank, nor am | such in
the LenoX Hill bank.
P.J CLAAsEN,
President Sixth National Bank.
All day long it was. expected that
President Tallman would call at the
Equitable bank and furnish the $4,000
necessary to resume business, but he
did not appear, and the doors remained
closed, with big policeman on the one
side and colored porter on the other.
1t was given out In the morning that
Examiner Preston would make public
a statement during the afternoon, but
at O'Clock Mr. ColSon gave out the in
formation that no news could be given
until late at night. A great many de-
poSitorS called at the bank during the
afternoon, and were told that the busi-
ness of the bank would be resumed in a
few DAYS; that the affairs of the institu-
ton were all right, and that it was
only closed because the examina-
ton was in progress. The ex-
aminers worked all day at the
Lrnox Hill bank. They also expected
to give some statement, but it Was nut
found possible to tell anything about
the work until late hour. When the
afternoon had nearly passed the shades
of the Sixth National bank, which had
been down all day, were suddenly
pulled up. the doors were opened and
Mr. Colson, accompanied by three
clerks and policeman. stepped forth.
They carried number of
OLD vALISES AND CANVAS BAGS.
n carriage urOFc up TO the curD and, the
whole party getting in, drove rapidly
away. The whole transaction occupied
less than two minutes, and it was
learned later that the bags contained
the remaining securities of the bank,
which were being carried to some
safe deposit by order of Ex-
aminer Hepburn. Reporters were
not admitted to the bank and it
was with some difficulty that informa-
ton was obtained. He said he would
probably finish his work before MORN
ing and would make no statement to
the press, but that he would immedi-
ately forward his report to the comp
troller at Washington. During the
afternoon the bank was besieged by de-
poSltOrS who were very anxious about
their money. Many ladies were among
them. and all were told that their funds
were safe. DIR. W T Carmndv the