The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1890-01-31
TWOBANKS WRECKED
Daring Appropriation Of Re
serve Funds.
SEVERAL MEN IMPLICATED.
The Lenox Hin and sixth Natioaal Bank
Treasures D<pieted-A Sean
daleus steal.

NEw YoaK. Jan. 5a-The Lenox Hill
bank has Just Suspended payment. 1t is
controlled by the same parties who last
week bought control of the Sixth National
bank OF this city. which had already been
closed. The bank examiner Is new making
an examination Of the two institutions and
this caused ran on Lenox. which it was
unable to meet.
The Clearinghouse Association TO-DAY
acted cn the SIKH National and de-
eided to drop il from the association 1t
is rnmored in regard To the Sixth National
that its new officers, who have only been in
charge few days, had sold out its securi-
ties as soon as they obtained possession.
President P. j. Csassen is said 10 have
been connected with mining scheme in
Lcasiville number of years ago. The
depositors wisl be paid in full, so the
directors say.
''it seems, said President Tarpen. OF the
Galiafin National bank. and member of the
clearing house committee. that after Le-
land had sold his interest in the sixth Ma
tional bank the directors were requested to
resign, which they did. The new direc-
tors, without being legally organized.
elected r j. Claassen president. On as
sunaing office Csaassen made three loans Of
$50 900 each. secured By stock Of the Len
nox Hill bank (very poor security and
then went down to the safe deposit vaults
of the National Park bank and distracted
railroad securities valued at S62a 600 and
placed them in the hands of George II.
Peil for SALE
Cashier Co.son, of the Sixth National
bank. became alarmed and notified the
clearinghouse committee. which notified
Bank Examiner Hepburn. The iatter's
examination fully confirmed the state
nents made by Cashier Tappen, and added
that Colson had acted throuEhoutin in an ad-
mirabie manner and deserves high CONF
mendasion.
Purchasers OF Leland stock, . said Tap
pen. evidently paid for it with the hank 5
money"
Lennox Hill bank and the Equitable
bank are stats institutions. They will
probably be closed up. Bank ExaA-
iner Hepburn told . reporter of his
ord u show the disposition OF $622 600 OF
bonds. When il was discovered they we're
missing he demanded their restoration or
equivalent in funds. The president sent
him to PED. Wallack 4 Co., who said
about $490, 900 in bonds had been sold and
checks sent 70 the bank. They brought in
saol goo unsold and offered checks for the
balance. which the examiner would not
receive.
This, together with other matters affect
ing the bank, rendered temporary closing
imperative.
.sIf the gentlemen in charge carry ont
their promises Or assurances given yestes-
day, ~ cnnnpffolIef VII undcnh 1o5tY ~
go - hn1il B Z <1o ~ = ~ 7 = r -
VII lose anytime. Ths ebject IL taking
possession vas 70 insure thai"
Cashier Colson said to . reporter. -Four
days ago knew this trouble was coming
and sent to Washington and TO the clear
inghouse for protection. ! have been twenty
years in the sixth National bank and did
not want to see depOsitors and
friends swindled out Of their money.
/ am not going 10 rest till somebody is
brought to justice for this deed. told
Mr.. Leland he would rue the day when he
got into relations with these people.
Claassen. the new president OF the Sixth
National bank. is broker at IS Broadway.
and Wallack. who Is president OF the Len
nox Hill bank and son Of the late Lester
wallack, has An Office in the same building.
waliack is also partner OF PelI & Waliack.
who appear to have negotiated the sale<f
the assets of the sixth National bank.
The methods used are identical with
those used by Henry 8. Ives in his deal
ings with Cincinnati, Hamilton and Day
ton railroads.
In an interview this evening Examiner
Hepburn was very strong in his remarks
concerning the manner In which the
steal was concocted and carried
through. He said IL Was the most
scandalous case of bank wrecking in the
history OF finance in this city. The Sixth
National bank was virtually gilsredge in
ssitution. and only week ago its surplus
amounted 20 10000.
The stockholders of the bank are liable
10 the amount of their stock and for as
sessment of m amount equal TO the par
vslne of their holdings.
While Hepburn was imparting this
information United States Mar
shal Jacobus and Deputy Mar
the bank and had private consultation
When it was ended the marshal was very
reticent regarding the objects OF the visit.
but finally admitted he had several war
rants and be would catch the man they
were issued for soon as possible. Who the
warrants were for he would not say.
In the afternoon. il is stated, Bank Ex-
aninsrs Preston and Trenholm came 10
the city 70 look into the affairs os the Len.
nor HiIs and Equitable banks. Late In
the evening they said the Lennon
Hill bank Was taken possession Of imme-
dIatesy after il suspended payment, and .
complete examination Of lis affairs will be
10 ade tomorrow.
In regard TO the Equitable bsuk, the
probabilities were i; would be able To 80 on
doing business lcmorrow a. usual. Presi-
aeGt Taliman and directors said tDey we're
able 10 take care of all the banks papers
They announced 10 the examiners shaf they
expected TO raise $50 90 10 pEt IN the bank
and they could secure release from the
Western National bank which did their
esesring business.
During the evening P. T. Mcdonald
called upon Hepburn. The reporters were
informed upon good authority he Was the
nzn vho bGd negotiated Sixth National
bank stock between the then
president, H. Cloud. and an alleged
syndicate. Hepburn said the object Of
McDonAlsl's visit Was 70 ascertain
tar Cloud how matters IN the
hank stood. and il II was
necessary for him 10 produce any funds to
make good the deficit In depositoFs' &C
counts.
A rnuor started during The afternoon
thas the 81 Nichsias aA1k. IA The Lqaitanse