New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-01-31


committee. he neither agreed to make good the
deficiency in the funds of the bank nor to re-
cover. If possibe, control of the stock. Ills
legal liability is said TO be nice question for the
courts but there are few differences OF opinion
about his moral obligation. In his oehaIl ~ ~ IL ,
said that at the time of the sale ne Dene .cu ou
purchasers represented an English sShulcaG ns ams
although the price was high one that III was
not much more than had been offered snore
time before. . =.
To add to the confusion the new directors Oh
the Sixth National did not comply with the Na-
tonal banking law and therefore hold ther
places Illegally The election of Mr. Claassen
to the presidency was said TO be VOID on this ac
count I'm some quarters il was put IN thls way ;
"Mr. Leland sold his stock, took the money anu
walked out of the bank, leaving IT IN the hanuS 1e
Of strangers who, by ignorance or deslgn. laiieu
to comply with the law
Not all the directors under the new c9nlrol
had accepted the position. General James
ourdan finally consented to ns at tle
whom he had known for many years,
but on Monday. when he received notice Of
meeting, he reconsidered his action. HIS reason
was that he had not time TO engage IN the con-
duct of an uptown bank. His statement OF his
connection with the bank is as f9lIoWs tho. am
director Of the Sixth National Bank, desire to say
that have never qualified or acted as s1Cm G
accept office as a director demurred and finally con-
sented, but Monday last on receiving hotlce 10
attend meeting and qualify sent up IN my agv %ar
qualified. Mr. Claassen has been favorably known to
me for many years, and requested me 10 ACT as
Il is due to Mr. Claassen to say that my resigns
on was in no way prompted by any rnmoFs G sr
upon second thought, in view Of pressure of other
duties concluded il would be impossible for me to
attend, felt 1t would be my duty 10 oo' 0he
meetings OF the directors.
A TALK WITH GENERAL JoURDAN.
General Jourdan, who is president of the Kings
County Elevated Railroad, Brooklyn, was seen at
his home, No. ia Washington Park, last even
ing by Tribune reporter. General Jourdan
talked freely about his connection with the Sixth
National Bank, which was extremely short.
"A few days ago, said he, ." think about the
21st inst | was visited at my office In this city
by General p j. Claassen whom had known long
and favorably, He requested my assent TO serve
as director Of the Sixth National Bank OF New
York City, of which institution he represented 10
me that he had just been elected president
felt strongly disinclined to assume any further
business cares or responsibilities, Dut upon ms
statement that my service In such relationship
would afford him much qualification and confer
great personal favor, l finally accorded my reluc
tant assent, with the reservation, however, that
should | find it impracticable to spare time Tor
proper attendance at the meetings OF tne ooaru,
and having no stock or part in the concern, nor
contemplating any beyond, perhaps, the small
portion of his holdings necessary, to qualify me
for dictatorship which was to obtain from MN MN
at the same price that he paid Tor IL, should
consider myself free TO withdraw at any tme
Il have never had any stock in or connection
with the bank, and my whole ase interest," 81
oblige General Claassen, who was, with
the exception of one other with whom
| had Slight personal acquaintance, the only
individual connected with the bank OF whom
On the Esd inst / received notice of my
election as a director. On the 25th had nouce
TO attend meeting in order to qualify as
director, the meeting to be held on the following
Monday at D. m. Circumstances rendered 1T
impossible for me to attend at that time, ana
reflection causing me further to doubt my apilty
to give proper attention to the duties, concluded
to reconsider my consent to act and dispatched
note to General Claassen in order to reach MN
before the meeting, withdrawing from the dlrec-
torship. The mail Of the 2Sth inst, nevertheless,
brought me a note from General Claassen, ac-
l>powledging receipt of my note OF wlthdrawai.
but requesting me TO attend a meeting at p. M
the following day. to which / replied by telegram
that | could not do so. All further knowledge
that have of the affair has been derived from my
perusal of the accounts published IN the news
papers to-day"
NO CONNECTION WITH THE OTHER BANKS.
General Jourdan in reply to questions said that
he had never heard of the Lenox Hill or Equitable
banks and did not know of their existence until
to-day He was extremely annoyed, he said,
at having his name associated with such an affair,
particularly as his only object had been to oblige
a friend whom he had known for twenty-five
wears. Ordinarily ut udu Icluotu w dNOCPO Univ
torships in corporations unless he could consci-
entiously attend to the duties incident to the Of
flee. but in this case he had varied from his rule
to help friend. lie had withdrawn, too, he said,
not because he had heard of anything wrong IN
connection with the bank, but simply because he
did not think it right that he should be director
in name only. He had always regarded General
ClaaSen as a respectable and reputable cltlzcn.
They had been officers in the same brigade, IN the
army during the war, put after the war dld hoU
four years they had met frequently. but they
had never had any business transactions together
HOPES FOR THE DEPosrToRs.
The examination of the bank has not been
completed. but it was believed yesterday that the
depositors would be paid in full, although they
might have to wait for their money little while.
The recovery of over 100000 bonds of the $685.
600 sold by the bank will make the net loss less
than the surplus fund, even if no other recov-
cries should be made. The losses that may be
suffered by complications with the Lenox Hill and
the Equitable Banks were not supposed to be
large but, altogether. the stock OF the Dank Is
said by those who have looked at the books TO
be practically eXtinguished. This Will be the
result in the worst event. while the recovery OF
other securities and any restoration by MT. Leland
on account of his connection with the bank, would
make n still more favorable showing. AS the
bulk of the stock is held by the new manage
ment the safety of the deposits, which amount
TO about S2,00O,OOO, is the important question IN
the examination. Aside from the effect on the
two small banks held by the same interests, the
failure caused no disturbance in Wall Street.
4 few banks will lose small amounts but in no
case We're these losses considered large enough
TO cause inconvenience.
SPECULATIVE RUNfoRS AFLoAT.
Rumors of further troubles were nothing more
than speculative. The bear" faction in the
stock market attempted to make capital out of
tbe disaster but their efforts were not highly
successful. The bank officers who were most IA
miliar with the result of the examination agreed
in the opinion that the closing of the bank was
an incident which was not likely to have con-
sequences not already known. No other institu-
tions were invoked to dangerous extent, they
said, and the celerity with which the robbing
wide entanglements. Members of the Clearing
iIiouse Committed expressed satisfaction thai
prompt action had ended the conversion OF the