Article Text
New York Bank Suspended. NEW YORK, January 30.-The Lenox Hill bank has just suspended payment.
16079. Lenox Hill bank (New York, NY)
Bank Information
- Episode Type
- Run → Suspension → Reopening
- Bank Type
- state
- Start Date
- January 30, 1890
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
e64a3d59
Response Measures
Full suspension, Books examined
Other: Bank examiner closed Sixth National which triggered run on Lenox Hill; arrest warrants and recovery actions described.
Description
Multiple dispatches report that knowledge of the Lenox Hill bank's relation to the troubled Sixth National caused a run which it could not meet; bank suspended Jan 30, 1890 and resumed business Feb 7, 1890. Articles identify Lenox Hill as a state institution.
Events (3)
1.
January 30, 1890
Run
- Cause
- Local Banks
- Cause Details
- Depositor panic triggered by disclosure of Lenox Hill's connection to the troubled Sixth National bank (misconduct/closure at Sixth National).
- Measures
- President attempted to obtain funds in Wall Street to continue payments but was unsuccessful.
- Newspaper Excerpt
- Knowledge of the relation of the two institutions caused a run on the Lenox which it was unable to meet.
- Source
- newspapers
2.
January 30, 1890
Suspension
- Cause
- Local Banks
- Cause Details
- Suspension followed heavy withdrawals after the relation to the closed Sixth National became known; examiner closed the bank.
- Newspaper Excerpt
- The Lenox Hill bank has just suspended payment.
- Source
- newspapers
3.
February 7, 1890
Reopening
- Newspaper Excerpt
- The recently suspended Lenox Hill bank at New York City resumed business on the 7th.
- Source
- newspapers
Newspaper Articles (9)
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A Bank Scandal. NEW YORK, Jan. 30.-The Lenox Hill bank has just suspended payment. It is controlled by the same parties who last week bought control of the Sixth National bank of this city which had already been closed by the bank examiner. Knowledge of the relation of the two institutions caused a run on the Lenox which it was unable to meet. The Clearing House Association to day acted on the Sixth National and decided to drop it from the association. It is rumored in regard to the Sixth National that its new officers who have only been in charge a few days had sold out its securities as soon as they obtained possession. President P.J. Claassen is said to have been connected with mining schemes in Leadville a number of years ago. D₃positors will be paid in full.
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Suspension of a Bank. NEW YORK, January 30.-The Lenox Hill bank suspended payments. It is controlled by some parties who last week bought control of the Sixth National bank of this city which had already been closed by the bank examiner. The knowledge of the relation of the two institutions caused a run on Lenox which it was unable to meet.
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TWO BANKS WRECKED By the Dishonest Practices of the President-Order of Arrest Issued. NEW YORK, Jan. 30.-The Lenox Hill bank has suspended payments. It is controlled by the same parties, who last week bought the control of the Sixth National bank of this city, which had already been closed by the examiner. The knowledge of the relation of the one uo uns B cansed OM1 Lenox, which it was unable to meet. The President is said to have made an attempt to obtain funds in Wall street to continue payments, but was unsuccessful. The Clearance House Association today acted on the Sixth National and decided to drop it from the association. There are all kinds of rumors in regard Sujeq euo Lund National TXIS our of that its new officers, who have only been in charge a few days, had sold out its NOcurities as soon as they obtained possession. Its president, P. J. Glassen, is said to have been connected with mining schemes in Leadville a number of years ago. The representatives of the Bank Examiner say that depositors will certainly be paid in full. The Equitable Bank has also been mentioned in connection with the other two institutions. Its President makes the following statement: "The owners of the Sixth National have a minority interest in the Equitable only, and the bank is not affected.' The suspension of the two banks was widely discussed on Wall street, but brokers appeared to think that the effect would be confined to stockholders' losses, and although the bear traders depressed stocks at the opening, the market easily recovered and stocks made decided advances. Wall street this afternoon looks upon the attempt to dispose of the $600,000 in bonds owned by the Sixth National Bank as simply a case of highway robbery. It seems that President Classen, after abstracting the bonds from thesafe deposit vault, turned them over to George H. Pell, a broker of unsavory reputation, who attempted to dispose of them on the street, representing them to be the property of his wife. Mr. Colsen, cashier of the bank, learning of the action of Classen, notified the Clearing House and Bank Examiner. The latter began an investigation yesterday afternoon. He soon learned enough to cause him to close the bank and call on Classen for the return of the $622,000 in securities. The Examiner, by his prompt action, succeeded in getting back $201,000 of the bonds. On account of the rest of the abstracted bonds Classen handed the Bank Examiner checks for $382,000. These checks fell short of the market value of the abstracted securities $140,000. None of the checks, however, have been paid, and they are being protested. The Comptroller of the Currency will appoint a receiver, and all the facts in the case will be laid before the District Attorney. Later in the day the District Attorney issued an order for the arrest of Classen and broker Peli for their connection with wrecking the Sixth National bank. BANK EXAMINER'S STATEMENT. Mr. Hepburn, Bank Examiner was at the bank early this morning and was at work examining into the securities and business. About noon he made the following statement to the reporters who had asked for it: Mr. Leland sold 1,035 shares of stock, a controlling interest, to the parties at present in control of the bank and gave the possession January 22. January 23, $622,000, the par value of high priced bonds belonging to the bank were delivered to Pell, Wallack & Co., and a receipt taken, reading as follows: Received, New York, January 23, 1890, of the Sixth National Bank of New York, the following named bonds to be sold for account of said bank, and accounted for to its president as he may demand. T Classen the Prosident
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EASTERN HAPPENINGS. Two Big Banks Wrecked in Gotham. DUDE WILLIAMS GETS HIS DUES. Six Years in the Pen-Lampson Ousted from the LieutenantGovernorship of Ohio. Associated Press Dispatches to the HERALD New YORK, January 30.-The Lenox Hill bank has suspended payment. It is controlled by the same parties who last week bought control of the Sixth National Bank of this city, which had already been closed by the Bank Examiner. Knowledge of the relation between the two institutions caused a run on the Lenox, which it was unable to meet. The Clearing House Association today acted on the Sixth National, and decided to drop it from the association. It is rumored in regard to the Sixth National that its new officers, who have only been in charge a few days, sold out ite securities as soon as they obtained possession. President P. J. Classen is said to have been connected with mining schemes in Leadville a number of years ago. The depositors will be paid in full. President Tappen, member of the clearing committee, and President Gallatin, of a National bank, this afternoon said it seems that after Leland sold his interest in the Sixth National, the directors were requested to resign, which they did. The new directors, without being legally organized, elected P. J. Claasen president. Claasen made three loans of $60,000 each, secured by stock in the Lenox Hill bank (very poor security), and then went to the safe deposit vault of the National Bank and abstracted railroad securities valued at $622,000, which he placed in the hands of George Pell for sale. Cashier Colsen, becoming alarmed, notified the clearing house, which in turn notified Bank Examiner Hepburn. The latter's examination fully confirmed the statements of Colsen. Tappen added that Colsen behaved throughout in an admirable manner. The purchasers of Leland's stock, Tap. pen said, evidently paid for it with the bank's money. The Lenox Hill and the Equitable Banks are State institutions, and will probably be closed up. Bank Examiner Hepburn told a reporter of his examination of the books. There was no record to show what dispcsition had been made of the $622,000 in bonds. He demanded their restitution or their equivalent. The president b went with him to Pell, Wallack & Co., who said $490,000 worth had been sold. e They brought $201,000, and they offered t checks for the balance. These checks n the examiner refused to accept. This with other complications decided him in a closing the bank. If the gentlemen carry out their promises the Comptroller will undoubtedly reopen it. The examiner doesn't think a the depositors will lose anything now. Cashier Colsen said he had been conle nected with the Sixth National for twenty g years, and he did not propose to stand by Cand see his friends and the depositors e swindled. He was not going to res e until some one was brought to justice. e Claasen, the new president of the Sixth t National, is a broker at 45 Broadway y Wallack, yresident of the Lenox Hill 8 Bank, is a son of the late Leater Wallack f and has an office in the same building Wallack was also a partner of Pell & Wallack, who negotiated the sale of the d securities. The methods used are identie cal with those of Ives in the Cincinnati Hamilton and Dayton case.
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Bank Suspended. NEW YORK, Jan. 30.-The Lenox Hill bank hasjust su-pended payment. It is controlled by the same parties w ho last week bought control of the Six h National bank in this city, which had already been closed by the bank examiner. Knowledge of the relation of the two institutions cause d a run ou the Lenox which 11 was unable to meet. The president is said to have made attempts obban funds in Wall etreet to continue payments, but was unsuecereful. The clearing hou-e association to-day acted on the Six h National and d. elded to drop it from the associa. tion. There are all kinds of rumors in regard to the Sixth National bank, one being that its new officers, who have been in charge a few days. had sold out its securities as soon as they obtained possession. Its president, P. J. Claussen, was said to be connected with mining schemes in Leadville a number of years ago. A representstive of the bank examiner said the state depositors will certainly be paid in full.
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REE BANKS WRECKED 7 YORK'S BRILLIANT " NAPOLEON "TONVNIA 40 . Claassen Fairly Entitled to That pellation - He Causes the Suspenn of the Sixth National, the Lenox 1, and the Equitable Institutions. w York dispatch: A worthy sucor of Napoleon Ives has arisen in the on of P. J. Claassen, president of the h national bank of this city, and as sult the Sixth national, heretofore idered one of the strongest financial tutions in the city, is in the hands e national bank examiner, and the ox Hill bank, which was controlled en in power at the Sixth national, closed its doors, and the Equitable also suspended payment, under acvledged embarrassment. President ssen of the Sixth national is charged having deliberately wrecked that c, and warrants have been isfor his arrest and that eorge H. Pell, a broker, who is ged with having aided him in the mission of the crime. Pell and Clashave both been arrested and the street up dn Iooked si J in default of $25,000 bail. umor was current that the St. olas bank in the Equitable Life ding on Broadway was also affected, a denial was made by W. J. Gardthe cashier of that institution. He that a statement that $40,000 in ested checks of George H. Pell & in the St. Nicholas bank was given, eu of abstracted bonds, to the exher at the Sixth national was not . as the amount had been paid the h national bank. A number of checks he Lenox Hill bank had been preed to the St. Nicholas for payment, they were refused. he methods by which the Sixth onal bank was wrecked are almost tical with those used by Henry S. in his dealings with the Cincinnati, ilton & Dayton railroad. A few $ ago, through negotiations conducty Pell, Claassen and others bought a rolling interest in the Sixth nationy purchasing the interest of the ident, Charles D. Leland. FrederD. Tappen, president of the Gallatin onal bank, tells the story of the cking as follows: After Mr. Leland had sold his interin the Sixth National Bank
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WOOSTER, On Jan. 81,-Karl Merz, di rector of the musical department Wooster University, died yesterday after noon at 4:20 o'clock of pneumonia, H was taken down on Saturday with grippe, which rapidly developed into the fatal disease, Neither of his children, Dr Charles H. Merz, of Sandusky and Mis Bessie Merz, of St. Charles, Mo., were a home. His sudden death has caused profound sensation. COLUMBUS, Jan. 81,-[Special.]-The verdiet of the coroner's jury on the five victims of the recent gasexplosion charges it was due to gross negligence of the con tractor, J. C. Gibney, in leaving one joint in the pipes uncalked. ST. LOUIS, Mo., Jan. 31,-[Special.] Mrs. Nora Dunn of this city and Captain James Cargbett of Gardner, Maine, were remarried here this morning after a seperation of 45 years. He married her near ly half a century ago at Gardner, Maine, and then went to sea, He was reported lost. She married again. After a long time he returned and married again. Her husband and his wife have since died. Both are very wealthy. NEW YORK, ner Hessburn is still in possession of the Sixth National Bank. No receiver has yet been appointed. The numbers on the bonds missing from the bank cannot be ascertained as no entry was made on the books. If nothing can be collected from the protested notes the total loss will be about $750,000. It is believed that President Classen, of the Sixth National, and President Walter, of the Lenox Hill bank, have both skipped. LONDON, Jan. 81.-1 Special. ]-The French Line steamer La Normandie, from Havre for New York, January 25, was sighted three days later in 49 degrees northern latitude 23 degrees west longitude with her machinery partly disabled. She did not signal for assistance. COLUMBUS, Jan. was no trouble in the senate this morning. President pro tem Adams took the chair in the absence of Lieut. Gov. Marquis. Lampson did not try to take the chair as he said he would last night. Later he left for his home in Asthabula. KANSAS CITY, Mo., Jan. 31 [Special.] During his absence from home last evenmasked burglars bound and gagged the wife of Charles Roonan on Mercier street. They tied her by the neck to a bedpost and then robbed the house. The woman is in a precarious condition. Not much booty was secured. SAN FRANCISCO, Jan. 31.-[Special.]The amount realized from the sale of single season tickets to the Patti opera season, of two weeks, aggregated $25.000. This, with the amount realized from the box sales, makes a total of $34,000. CHARLESTON, West Va., Feb. 1,-[Spe cial.]-Delegate Horr, of the Union-Labor party created a great sensation here today in the Legislative Court investigation involving the question of the election of Governor, by filing a written statement that he had been offered a bribe of $1,800 and the State Mine Inspectorship, if he would vote for Goff (Rep for Governor of West Virginia. The affair has created a most profound sensation, as Horr in believed to be an honorable man. An investigating committee of five has been appointed to hunt the rascals down. WASHINGTON, Feb. 1. Special. World's Fair Committee of the Housemet to-day and concluded two bills as proposed by the sub-committee, and while they did not complete the work, they progressed sufficiently to show that two bills will be reported. One making no appropriation and leaving the place for holding the Exposition blank, to be filled by the House, and the other making an appropriation and providing for holding the Exposition at Washington. WASHINGTON, February [Special.] There was a great crowd at the Capitol to-day. The House galleries filled early and the crowd overflowed into the corridors of the main floor. On the conclusion of the reading of the Journal McKinney moved its approval and pending that motion Springer of Illinois moved an adjournment and demanded a roll call on his motion. It is evident the Democrats intend to continue yesterday's tactics. The motion to adjourn was defeated yeas 135, nays 158. WICHITA, Kan., Feb. 1.-[Special.]George Black, a young man doing business here, became violently insane, a raving maniac, yesterday and attacked his sister with a poker inflicting probably fatal injuries. He thenattacked his brother-inlaw injuring him so that he will die. He was arrested only after a terrible fight with the officers. LOUISVILLE, Ky., Feb. 1.-[Special.] Bill Nye, the humorist, and James Whitcomb Riley, the poet, havedissolved partnership, owing, it is said, to the convivial habits of the latter. Riley broke loose on a bender yesterday and he has since been in a dazed condition. YOUNGSTOWN, Jan. 31.-The series of meetings being held here under the auspices of Evangelist C. H. Yatman have been very successful, and $40,000 of the which he started out to raise for building for the Young Men's Christian Association has already been subscribed. WASHINGTON, Feb. 1.-[Special.]-ExSergeant-at-Arms Leedom has received a dispatch from the Mayor of Gerrelbonne, Canada, denying that Silcott is or has been in that place as reported. KANSAS CIUY, Feb. 1,- Special.]-The plant of the Kansas City Packing and Provision house was destroyed by fire last night. The loss is $200,000, insurance $300,000. WASHINGTON, Feb. 1.-[Special.]-The condition of Mrs. Coppinger, Secretary Blaine's daughter, is reported greatly improved to-day, and she will probably recover. WASHINGTON, Jan. 31.-The Washington Post, the Republican newspaper of the capital, edited by Frank Hatton, the Postmaster General of a former Republican administration, has a double-leaded leading editorial in which it calls loudly for precisely what the Democrats in the House of Representatives have been calling for, namely, rules of procedure. Under the heading, "Report the Rules," the editorial says: There is one way out of the disgraceful tangle in which the House found itself yesterday, and that is for the committee charged with the duty of formulating the rules for the government of that body to make a prompt report. Rules are what is needed-rules that give to the majority every right it is entitled to, and rules that protect to the fullest extent the rights of the minority. Until this is done there is little show for the harmonious and effective prosecution of public business. Precedents, to apply to the House of Representatives, should be found inside and not outside of that body. The country at large has rights in this controversy that rise superior to the wild and frantic antics of partisanship. The people know what is right, aud they will be satisfled with nothing short of what is right. Let the rules be reported. Let them be fair and just to both majority and minority. The sooner this is done the more creditable it will be
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delphia letter carrier, while intoxicated, threw his bag of letters into the fire, where most of them were burned before theycould be rescued. He was arrestęd. The Pennsylvania & Reading Coal and Iron Company's largest colliery at Mt. Carmel, Pa.-the Alaska shaft-closed indefinitely on the 7th. One thousand hands are thrown out of employment. The recently suspended Lenox Hill bank at New York City resumed business on the 7th. The New York Legislature will inves. tigate Judge Bookstaver's relations to the Flack divoice case. After several years of idleness, Furnace No. 2 of the Chestnut Ilill Iron Ore Company at Lancaster, Pa., has resumed operations. The firm will manulacture Bessemer pig iion. A two-thirds interest in Forepaugh's eircus has been sold to an English syn. dicate. The show will remain in this country. The libel suit of Rev. Dr. Ball against the New York Evening Post ended at Buffalo, N. Y., on the 7th, the jury returning a verdict of "no cause foi action." At Rhinebeck, N. Y., on the 7th Sam Morgan was blown into such small frag. ments by the explosion of dynamite that no part of his body could be found. A Pittsburgh dispatch of the 9th says the coke scale has been agreed upon, the men getting an advance of twenty-five or thirty per cent. This is the highest scale of wages ever paid in the Connells. ville coke region. Two hundred and twenty-five girls employed in the corset factory of Mayer, Strouse & Co., of New Haven, Conn., struck work on the 8th owing toa reduction of ten per cent. in wages. They have been making from $4 to $7 per week. Colonel L. C. Turtlot died at Woonsocket, R. I., on the 8th. He was the oldest cotton manufacture r in the country, and served during the war as captain of the Third Rhode Island Artillery. George Fleming, alias Will Morris, alias "The Pin." who is wanted for burglary and other crimes committed in Ohio and Michigan, has been arrested at Southbridge, Mass., where he was working at the trade of cigarmaker. Five miners were seriously burned by the explosion of gas in the East Boston mine, near Luzerne, Pa., on the 8th. John McKechnie and his brother Charles will probably die from their injuries. The weekly statement of the New York associated banks, issued on the 8th, shows the following changes: Reserve decrease, $4,409,550; loans increase, $8,165,100; specie decrease, $1,781,900; legal tenders decrease, $2,204.900; depos, its increase. $2,411,000; circulation increase, $35,400. The banks held $9,658,850 in exce8s of the twenty-five per cent. rule. Washington Hall, an immense threestructure at Patterson, N. J., burned on the 8th. The first floor was occupied as stores and offices. The armory of the First Battalion New Jersey National Guard and a ball room were on the second floor. A ball was in progress at the time, but all the guests got out safely. The loss is estimated at $300,000. General W. T. Sherman celebrated his seventieth birthday on the 8th, by giving a private dinner party to a few intimate friends. Wingate Hall, one of the buildings the State college at Orono, Me., burned on the 9th. The students, a number of whom lost their effects, were church in the village at the time. Loss, $ E.). The Massachusetts Humane Society has awarded a gold medal tc Captain Norman H. Farquhar, of the stoemer Trenton, for bravery displayed in the rescue of 140 of the officers and crew of the United States steamer Vandalia at Apia, Samoa, last March.