The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1890-01-31
HEPBURN CALLS IT BANK WRECKING
And Warrants Are Out For the Men
Behind the Scheme.
A Crisis In the Affairs Of TWO New
York Institutions.
An Anxious Crowd OF Deposltors
Stand Before Closed Doors.

New YORK, January 3O.-Thera was So
great a crowd Of people In front Of the Sixth
National Bank, at Broadway and SD street
today that two policemen were summoned
from the 3Oth street station TO keep order
Among the crowd were men and women de-
positOrs who were alarmed for the safety Of
their funds by the published statement that
Bank Examiner Hepburn had taken posses
sion Of the bank. The doors were kept
tightly closed and 70 one was admitted ex-
cept the bank officials. The demands OF
anxious depOsitors for information became
so pressing that finally a representative OF
Bank Examiner Hepburn opened the front
door about six inches and made an oral state
ment 10 the effect that the examination
would soon be completed. He stated that
sufficient was known to assure the deposit
tors that they would all be paid in full, and
that there was possibility that the bank
would resume business In few days. He
further stated that he would have a state
ment ready for publication later in the day.
The irregular ties were connected with
scheme to secure control Of three banks,
the Sixth National, the Lenox Hill and the
Equitable. The Lenox Hill Bank shut its
doors at 11.3J a. m., being unable TO meet its
obligations.
The President of the Lenox Hill Bank,
Charles Z. w lack, went In with the new
boardlof dir ct December 10 There was
$4,000 IN cash ON hand when The bank OPP
ened this m0raing. BY great effort, $4,000
more was procured. The entire $4,000 was
paid out to deuOsitOrs by noon and the cash
Ter closed the doors. The financial condition
of the bank is about as follows:
Deposits. $1,000
Capital paid y U, 100
Looms and discounts. ......s.............. 3O0OOO
Amount due other banks. .............., 5000
The directors are liable for twice the
amount Of the shares: IL Is stated that at
the time the Lenox Hill Bank changed hands
a syndicate acquired control Of four instltu-
tions, the LenOx Hill, Sixth National, Equit-
able and st. Nicholas banks. j. A. Sim
mons, who obtained a controlling Interest In
the Len0x Hill Bank was the prime mover In
the syndicate. Frederick ID. Tappan, presi-
dent of the Gallatin National Bank, and
member of the clearing house committee.
said today that the proceeds OF the sale OF
the stocks and securities belonging to the
Sixth National Bank were used to pay certi-
fed checks given Mr.. Leland, ths former
president, for his stock. These checks were
drawn upon several banks, including the
Lenox Hill and Equitable. Mr. Tappan de-
nounced the transaction as another Ives
OldyutI CdSts I1C CADidAuCu budb buO pul-
chasers were given possession Of the bank
on the payment Of certified checks,
and then sold the securities found
10 the vaults, and deposited the proceeds.
United States Bank Examiner A. z. Hep
burn said this afternoon in reference to the
closing OF the Sixth National Bank: SEX
President Leland sold 1895 shares OF the
bank stock, controlling interest, to the par
ties at present in control OF the bank OF 5000
per share and gave them eoS oc on jan
high priced bonds belonging to the bank
were delivered to Pell, Wallack & Co., and
receipt taken, reading as follows:
Received, New York, January 90. 1890, the fol-
T said bank S and sS"Stsd for to its President as
he may demand.
"rhere was me
bank to show
The stock be
amuHnt. fol
and demanded their .os.Jras. -. IuIu.
represent their market value. 1 went with
the President. Mr.. p. l. Claassen, to Pell,
Wallack IL Co., who said about 100000
Of bonds had 6eep s0,d ana n cnecKs sent 6a1d 70
were with different brokers for sale, and
they would get and return them. They
brought to me S20l, goo OF the bonds. The
checks offered for the balance could not be
"The above together with other matters
affecting the bank. made the temporary
closing of the hank imperative. II the
gentlemeHH-!iH n charge carry out tne promises
or assurances given yeSf gay the CynpTr
do not think denositors vii hing.
The object in taking pos
insure that"
The s xth National BanL
representative of the Lenox in tue
House, and the report OF the return Of
number of is checks temporarily embarrassed
the bank. The Lenox will probly open
again tomorrow.
LATER.
The clearing house Committee asked the
district attornev to take criminal action in
the matter Of the Sixth National and this af-
teraoon warrants were issued by the United
States district attorney for the arrest OF
President CaaSsen and Broker Pell.
Commissioner Hepburn stated tonight that
thus far bonds to the par value Of $4,000
were sill missing. There were loans OF $3.50
900, for which the security on hand was very
dubious, and SSS,000 in protested notes Of
Broker Pell, who Is said. by some, TO have
schemed the whole transaction. Other as
sets seem all right The commissioner
thinks depositors will be paid in full. lie
saws 1t Is the most audacious piece of bank
wfecking in the history OF this city.