The Helena independent., 1890-01-31
GONE OUT OF BUSINESS.
Two New York Banks suspend within
Tew Days OF Zach other.

Two New lurk Banks suspend Niulh -
Fow Days Of Zach other.
NEw YoRA, Jan. 3o.-The Leno1 HiE bank
has just suspended payment. Il is conuoll-
ed 10y the shme parties who last week bought
eoutrol IT the Sixth National bank Of this
city. which had alresdy been closed by the
bank examiner. knowledge of the relation
OF the two institutions caused run on the
Lemon, which It was unable TO meet.
The Clearing House Rssocistion to-day
acted on the Sixth National and decided 20
drop il from the association. II Is rumored
in regard 10 the Sixth National that lts new
oifcere, who have only been in charge few
days, had sold out its securities as soon as
they obtained possession,
President p j. Classen is said TO have
been connected with mining scheme IN
Leadyille a number Of years ago. The dc.
posltors will be paid in full.
AT seems said President Taplen. OF the
Gnllatiu National bank unG member Of
the clearing house committee. that after
Leland had sold his interest in the Sixth
National bank, the directors were requested
20 resign, which they did. The new
directors without being legally organized
elected 4. j, Classeu, president, On as.
snmlng Office, Clnssen made three loans
Of SG000O each, secured by The stock
of tile LcunoN Hill bank very poor secnr-
ity and then went down to the safe deposit
yault Of the National Park bank and alb
stracted railroad securities 10 the value Of
$4,000 and placed them in tue hands of
Geo. II. pell. for SALE Cashier Colson,
Of the Sixth National, became alarmed, no
/ tilted the clearing house committee. which
notified Bank Examiner Hepburn. The lat
ter's examination fully confirmed the state
ment made 10y the cashier" Iappen added
that Colsun had acted throughout in an ad.
mlrHble manner and deserved high commen-
dation. The purchasers Of Leland's stock" "
said Happen, evidently paid for il with
the banks money. The Lennox Hill bank
and Equitable bank are state institutions y
| Bank Examiner Hepburn told reporter
of his examination OF the books, and said
there was no record 10 show the disposition
Of the S62200J in bonds. When he discov-
cred they were missing, he demanded their
restoration or an equivalent in funds. The
president went with him 90 Pell, Wallack 4
Co., who said about $4,000 of the bonds
had been sold, and the checks sent to the
bank. They brought in $20l 600 unsold and
offered checks for the balance, which the
examiner would not receive. This. together
with other matters affecting the bank. rem
dered the temporary closing imperative. II
the gentlemen IN charge carry out the
promises or assurances given yesterday, the
comptroller will undoubtedly reopen the
bank. ~ do not think the depositors
will lose anything. The object in
taking posseusiOn, was 10 insure that"
Cashier Colsen said to reporter; -Four
days ago knew this trouble WAS coming.
and sent TO Washington and TO the clearing
house for protection. ] have been twenty
years in the Sixth National. and did not
want 10 see the depositors and my friends
swindled out of their money. am not 90
ing To rest until somebody is brought 10
justice. Before this deal was finished
told Mr.. Leland he would rue the day when
be got into relations with these people
Classen, the new president Of the Sixth
National bank, is broker at IL Broadway,
and Wallack, who is president of the Len
nox Hill bank. and a son of the late Lester
Wallack, has an Office in the same building.
Wallack IL also n partner of Pell q Wal
lack, who appear 10 have negotiated the
sale of the assets of the Sixth National
The methods used are identical with those
used by Henry 5. Ives in his dealings with
the Cincinnati, Hamilton a Dayton rail.
road.
In mn interview this evening regarding the
matter, Bank Examiner Hepburn was very
strong in his remarks concerning the man.
ner IN which the steal was conoocted and
carried through. He said il WAS the most
scandalous case Of bank wrecking in tho
history Of finance in this city. The Sixtl
National bank was virtually gilt edge in
slitution and only week ago its surplu;
amounted To $4,000. The stockholder,
Of the bank are liable TO the amount ot
their stock and for an assessment
equal TO the par value OF thei
holding. While Hel burn was impRrtins
this information United States Marshal
Jacobns and Deputy Marshals Bernhard
and Kennedy entered the bank and held
private consultation. When the coiisulta
tion had ended the marshal WAS yer,
reticent regarding the object of his visit
but finally admitted lac had several war
rants. and he would catch the men the,
were issued for soon as possible. Who tn,
warrants were for be would not say. Ii
the afternoon State Bank Examiners Pres
ton and Trenholm came 10 th,
CITY 10 look into the affair
OF the Lennox Hill and Equitabl,
bank. The Lennox Hill bank WAS takel
possession of Immediately after il suspend
ed payment and a complete examination o
It's affairs will he made tomorrow. In re
gard to the Equitable bank, the probabili
. ties were 1t would be able 10 go on doinl
business tomorrow as usual. Presiden
Iallman and the directors said they wer
able to take care of all of the banks paper
They announced TO the examiners they ex
pected TO raise $4,000 TO put in the baul
and they could secure a release from tn
Western National bank, which did thei
clearing business II this is done then 10
morrow everything will be working smooth
ly NJ the Equitable bank