The evening world., 1902-05-08

Pell-Simmons syndicate of bank wreck.
ers.
i, Had n Canal scheme.
when the syndicate began operations
Simmons was connected with a con
tracing firm that had a scheme TO build
a canal that would cut of i2D miles Of
the distance by water from New Or
leans to the mouth of tho Mississippi
River.
simmons and Pell got together In 1889
ana organized the Equitable Bank, al
M. ) West Twtntyy eighth street, There
were plenty Of banks IN the neighbor-
hood at the time ana the need " a
new one was not apparent to tnanciers.
The Equitable was supposed to have a
capital stock of 100000.
simmons was Nicc-Prcsident u the
bank, but neither he nor Pell figured
in the directorate. one II the directors
was Sigmund r. Meyer, and the nsten-
slble head of the institution was an
aged and eminen:ly respectable gentle
man. Of wealth, VINO felt considerably
Inflated over being chosen to conduct It
banking institution.
Used Several Banks.
"llH W.T. ElbANdbIN hlN 'IHdllE'"i
the schemers saw their way clear to-
begin operations They made deposits
with hrst-class banks downtown and
I made preparations to get together n
chain Of financial institutions on the
money Of other people.
Up at the corner Of Scventy-second
street and Third avenue there was a
solid little bank known as the Lenox
Hill, OF which Arthur l., Meyer was a
director. Simmons determined that he
would buy this bank, He made over
lures TO the President and teller, and
some OF the directors, Offering them Sl6'
n share for a controlling interest In the
stock.
The men approached bought n con-
trolling interest from other stockholders
for $40 a share and pockctol the DIFF
ference. Then they turned the bank
over to the syndicate, and this Is how
the syndicate paid for 1t:
Checks to ;he amount OF the deposit
money were drawn on the Equitable
Bank and certified by hat institution.
Agents of pell and Simmons took these
certified checks To the solid institutions
downtown with which the schcmers
were doing business, deposited them ana
received In return certified checks of
these respectable and undoubtedly re-
liable institutions. With these good
checks, worth 100 cents on the dollar, ,
they hustled up and bought the Lenox
iIill stock.
Scarcely pausinE TO draw breath after
their Lenox lIill coup. thev made over
lures for the purchase OF the Sixth Ma
tlonal Bank. At Thirty-third street and
broadway.
Bought Another Bank.
Charles 4. Leland waE resident. and
he was willing to sell control for
S613,C1 Certified checks on the ;quitl-
BILE aud l.enox Hin banks were drawn
and traded for checks on reputable
do vntown banks, Twelve Of these
checks. every one OF them worth 100
cents on the dollar, were given 10 Mr., :
Leland for the Sixth National. and he
stepped out in lees than ten minutes af-
ter the bargain was concluded. :
In less than ten minutes more Gen. ,
Cladsen stepped In as President, and IN /;
less than an hOur ne had turned over to
the schem,rs SG22. 600 worth of securities
from the strong boxes OF the bIuk ana
had loaned Simmons and Pell ;lsn,oJo.
M ihc securities E122,OD worth
were given to Arthur L., Meyers
brother Philip to lie sold. Philip
disDohcd of them through Arthur
1" nnH thc firm of y, n. Meyer a
son. Loans made by the Sixth
National In the shape of checks 90
Pcll a NaIlHck were also tuken
car" Of by Arthur J." Meyer and his
firm.
When Ciuiseu, simmons and Pen were
ploueht 10 iiiil NdIlack turned stat
evidence hnd disclosed tht inHIda work ,
ms pt the syndicate. He was one II
anything
m Meyers, On the stand. admitted
n'ihlnS but What siar,d them I'm the
Ms c"ii"i for, Arthur l.. Meyer testl-
ga mat another Meyer 1ul lost IL In a
IN .,r1u' - rain
E'tn'4Ti' NE sisth N%ationa, and
lupihg Interest died Out, defraad.d
si1'Ehu.tefs appeared TO b. satisfied
VAIN lH" punishment Of Illlscn. SIM
nl,.s 'nI I"Il. aud ne o'tlrr- wnU us-
urea went their several ways,
M"Irr Owed 100000.
ln August 1891. Bank Exaayncr "a.
mn discovered liza The LenuA m
Bank Was In difficulties again lie NlB
f'tI.r Zoo Nipst lhr INSTITUTION when H.
pm spirited s~tockho!i"r stepped Boz
ana Eo.untr"red 20 raise the money
lectrshri 70 save the bank from ruin
lhrf. wls NtO0D owing 10 d-p0sltlrs.
ana tNN"" in ply IN NItl ri, Nulkz'
,h'Gru MA. Arthur l. Meyer had owed
NJ, bank tb0lul fof iWu wears
The publlN apIIllru s.u. kholdsr made
t'"d DIE prlWlr, and mo IenaA nm
h"nI Mas NOT closed abruptly. bui