Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1890-01-31
A RUINED BANK.
Host Audacious Bank WreCkinS
Ever Known.
Psesidort Hsuison's House Burglar.
issd-Ohio Democratic Lieut. Cover.
nor Seated by . Party Vote.

| NV YoRK, Jan. S0.-The Sixth National
Bank. At Broadway aud Thirty bird street
which recently passed iuso new hands. hss
been closed BY U. :. Bank Commissioner
Hepburn, owing to irregularities ia its man
ssemen'. The clearing house committee
asked the district attorney to tsks criminal
action In the matter and elosed the Sixth
National Bank. This afternoon warrants
we're issued BY the United States district
attorney for the arrest Of President Claas
sen and Broker P.ll.
The sct ems vas to secure control Of
three banks. the S'xth National. the Len.
nox Hill and the Equitable. The Lennon
Hill bank Of this city, shut iss doors .,
II so A. NJ today. being unable to NEE,
| its obligations.
The Presiient Of Lenox Hill Bank which
suspended today charges Z. Wsllaek Who
went in With the new board Of directors
Dec. mber -. with being In the plot
Forty thousand dollars cash on hand
great effort $4,000 more were procured.
itors BY poon and the cashier closed the
doors.
The financial condition Of the hank is
uuOub - IOuONu. DfpOstth,
capital paid in. 800 600; loans aud dis
c"unts. 5000 o; amount due other banks.
$50 900. Directors are liable for twice
the amount OF shsres.
Il 10 sta'sd At the time the Lenox Hill
bank changed hands. = syndicate acquired
control Of the following | :stitutions; Len
OK lIill. Slxth Na 10 al. Equitable, snd
81. Nichoi.s banks. J. A. Simmonds. who
obtained the controlling int. rest In the
Lenox Hill bank vas prime mover In the
syndicate.
Frederick d. Tappan. president Of the
GailAtin National Na.ionai bank. and .
member Of the clearing house committee
said today the proceeds Of sale stocks and
securities belonging to tho Sixth National
bank we're used to pay ceruned check.
gwen Leland the former president, for his
stock. These che drawn upon several
banks, including Lenox Hill and Equi able.
Tappan denounced the transaction -
another Ives-S'ayner case" He explain
ed that h. purchasers were given posses
sion Of the bank on the payment Of CERT
fed checks, then sold the securities found
in the vaults. deposiled the proceeds in the
clearing house to met the certified ch-cks
Tsppan adjed that counsel for Leland had
announced that any deficit the assets
would be paid by Leland in full.
Commissionef Hepburn stated tonight
that thus far missing bonds to the par
value Of t42l 900 are still missing. There
are loans Of eisO. 900 for which the secur
ity on hand 10 very dubious. and eSS, 900
of the protested notes Of Broker Pell. who
10 said by one 10 have sche med the whole
transaction. The other assets seem all
right The commissioner ,hinks that the
depositors will be paid in fnii. tie says II
is the most au iscious cas- of bank wreck
iog in the his ory Of the city.
The State examiners said tonight the
Equitable bank would probably be allowed
to conti' ne business. The statement that
the st. Nicholas bank was implicated With
The ,yndicate 10 positively denied BY the
t fficials Of that institution.
The price received by President Leland
for stocxs ~as $3.50 per thsre though The
quoted market value was but $3.50
George II. Pell was arrested at his house
tonig 1t, and lockei up in Ludlow street
Jail.