The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-02-01
THE BANK FAILURES.
Arrest Of = President and the
Broker.
THE EouIrAsLE IS CLOSED.


bank and LeEox Hill hank were closed this
morning. and notice was posted On the
door Of the Equitable which stated that
the bank was closed temporarily.
George II. Pell. the broker arrested last
night for the part he took In dispoeing Of
securities Of the sixth National bank. Vas
today held in $4,000 bail for examination
Thursday next.
Il is rumored that Cashier vansandt. of
Lennon Hill bank, Is being watched By the
police. and il Was thought he would be
arrested as soon as the statement now BE-
ing prepared Is ready
Examiner Hepburn, when seen at the
Sixth National hank at noon. said the hank
would not lose more than $50 900. OF this
and securities which had been already sold.
and the other $4,000 is represented by
checks which are held against the Equitable
and Lenncx Hill hanks.
The United States district attorney this
afternoon issued q warrant for the arrest of
James A. Lannon's. and ofiicers are look
ing for him.
Peter Ciausen, president OF the Sixth Ma
ti0nal bank, made statement in which he
says:
1t n not true that was . member Of the syn
dictate that purchased controlling intesest in
the Sixth Naiioaai bank. 1t IL not true made
any loan 10 myself in said bank. On the con-
trary, l have checked on my other personal
bank account in this city and have deposited it
70 my credit in the Sixth National, and have
checked not cent against u
The first time saw Leland, the late president
OF the Sixth National bank. was January -
when certified checks were rendered to him and
accepted by him. amounting to e6s0.oo0. for
which he turned over control Of the stock OF the
bank. These checks were deposited by him in
the Union Trust Company and paid, hence was
not member OF the purchasing syndicate All
the terms had been arranged and agreed before
I ever met him. Thereup0n Leland rendered
his resignation % president and was elected
unanimously in his place.
On the morning of the sd met Leland at the
National Park vaults, where he turned over 70
me securities belonging to the sixth National
bank. and J. dnding them correct recespted
therefor. In conference with Cashier Coulsen,
learned the bank lacked cash means. He sug-
gesfed. and concurred with him. that it would
be well to OPPOSE CT iron 10000 TO 100000
worth Of high premium bonds and have cash for
the use of customers Of our hank
Ny intentions were TO raise the surplus Of the
bank up TO At least $o500oo, aud so be able 70
accommodate depositing customerG stated to
the cashier that Before ! would sell any Of
these securities would have . con-
sultstiOn with the directors, g well q
with gentlemez who owned at least
50 per cent Of the controlling stock purchased.
did % consult them. They also fully con-
CURED in the plan. and wss requested to en-
xuss the sale to Pe1l. wallack Co, who re-
cefved therefrom ts22. 900, pr value. for which
they gave receipt 70 the bank. whicn duly
turned over 70 the cashier.
Subsequently 20l of these bonds were returned
and $4,000 in cab vas paid and fos the balance
Fell. WnIlack 4 Co gave check& On last Tues-
day, January =. the hank examiner ~ well ~
the clearing house commissioner declined to
accept these checks - payment About
$780, 400 OF these checks were ceriifed by banks
upon which they were drawn. twill be seen
that the banks assets were not used 70 purchase
stock. further desire TO say am not direc-
tor nor president OF the Equitable bank nor am
such in the Lennox Hill bank.
All day long 1t was expected President
Tallman would call at the Equitable bank
and furnish the $4,000 necessary to re-
sumo business. but he did not appear and
the doors remained closed. Many de-
positors called during the afternoon, and
were told the bank would resume in few
DAYS, that the affairs were all right and il
was only closed because examination was
in progress.
Late in the afternoon. by order of the
United States bank examiner. all remain
ing securities and funds OF the sixth Ma
tionaI bank were carried away from that
institution and placed in deposit vault.
Examiner Hepburn told reporters he
would probably finish his work tonight.
bnt would make no further statement TO
the press.
During the afternoon the bank was be-
sieged by depositors who were anxious
about their money. Many ladies were
among them ane all were told their funds
we're safe
George II. Pell was taken TO the o. s.
marshai's Office TO give his friends oppor-
tunify 10 secure bail. There were alto
gesher five applications to become bail for
PelI. but none OF them qualified. and about
5 .. N. Peil, in charge OF deputies, was
taken to Ludlow street jail.
About 8 o'clock this evening President
clausen, of the Sixth National Bank. APP
peared in United States Commissioner
shields Office. accompanied by counsel and
two deputy marshals. The warrant was
read TO him ch arging him with einbezxiing
and misappropriasing banks funds and ex-
animation set for tomorrow.
0aasen gave himself up to the marshals
on the condition that he would no; be re-
quired to spend the night in Jail. Accord.
ingIy he is quartered at the Astor house
under guard He asserts bis thorough In
nocence Of wrong doing. and denies any
misappropriation or embezz.ement
THE WORLDS FAIR