The sun. [volume] (Morris, Stevens County, Minn.) 1882-1895, 1890-01-23
BROKER ARRESTED.
Broker Pell, in Default of
BOndsmen. Now Reposes in
Ludlow Street Jail.
ne is Charged With EmDezzle-
ment and MisapprOpria-
ton of Funds.

New YORK Special-GeOrge II. Pell, the
broker who was arrested for the part lie
took in dispensing Of the gil.tcdged securities
of the Sixth National bank, was taken be-
fore United States Commissioner Shields to-
dav and held in 81, 600 bail for examine
ton on Thursday next. Being unable to
procure bOndSmen he was committed to
Jail. About O'Cock President ClaaSen APP
pearcd before the United States commits
sioner with his counsel, and the warrant
charging him with embeZZlCmCnt and mis-
appropriation of funds was read to him.
1t was arranged that Mr., Claascn's
examination should take place
at 10 a. m tomorrow, and meanwhile he
was paroled in custody of two deputy
marshals and his counsel in accordance
with an arrangement made in advance that
if Claasen would give himself up he should
not be put in Jail tonight. President
Cluasen made statement to-day to the
public He denies that he was member of
the syndicate which purchased the cnntE-Jl
of the, Sixth National bank, or that he had
ever met cx-Presidcnt Leland until the sale
was completed. He claims that it was at
| the suggestion of Cashier Colson, and with
the consent of the board Of directors, that
he arranged to sell the $65O,OOO in bonds
held by the bank. and that it was for the
purpose of providing more available cash,
so that the discount business might be in
creased, that
THIS STEP WAS DECIDED UPON.
| He denied that any of the funds of the bank
were used by the syndicate to pay for Lee
| lands stock, and claims that had the bank
examiner not refused to accept the certified
checks offered by Pell there would have
been no trouble All day long it was ex-
pected that President Tallman would call
at the Equitable bank and furnish the $50,
OOO necessary to resume business, but he
did not appear and the doors remained
closed. A great many depositors called
at the bank during the after
noon, and were told that the bust
ness of the bank would be resumed in
few days, that the affairs of the institu-
ton were all right and that it was only
closed because the examination is in prog
ress. The examiners worked all day at the
Lenox Hill bank. They expected to give
some statement, but it was not found pos
sible to tell anything about the work until
q late hour When the afternoon had
nearly passed the remaining securities Of
the Sixth National bank were carried tc
some safe deposit by order of Examiner
Hepburn. Reporters were not admitted tc
the bank, and it was with some difficulty
that information was obtained. He
said he would probably finish his
work before morning and would
make no statement to the press, but
that he would Immediately forward his re
port to the controller at Washington. Dur
ing the afternoon the bank was besiegeC
by depositors, who were very anxious about
their money. All were told that their fund:
were safe The examiner SAID the bank
would not lose more than $4,000 OfthiE
amount 100000 was represented by bonds
and securieties which had already beer
checks which are held against the Equitable
and Lenox Hill banks. At meeting of tht
Clearing House association to-day the Sixth
National, under its present ownership, was
unanimously expelled from the association