New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-12
TO DANFORTH'S RESCUE.
HIS UNSECURED LOAN PAID.
THIS WAS DONE AFTER MESSRS. HILL, CAMP
BELL AND SHEEHAN CONFERRED.
THEY HAD TO HELP HIM OUT OF HIS DIS
GRACEFUL PLIGHT-THE MADISON SQUARE
BANK GAINS AN UNEXPECTED AS
SET AND MAY RESUME.

BANK GAINS AN UNEXPECTED AS
SET AND NAY RESUME.
! There has been hurrying ana skurrylng ana
worrying among the Democratic leaders IN THIS
State during the last few days The revelations
Of the dealings of State Treasurer Danforth with
the Madison Souare Bank did not please them
any In fact they were alarmed at the storm OF
public consnre which was aroused when the iacts
became known that one of their NUMBER WHO was
intrusted with the public purse had oeposl'eu
81 20, 600 of public money in the Madison SQUARE
Banl< had kept it there after he hah been "arheu
that the bank was in an unsafe cohdi'ioh anu
had incidentally secured priva" unsecureu loan
OF $50 900 from the same institution
H. is not likely that they seriously disapproved
the "politcs, of the affair. but the dlscredi' ana
daro.r % tboir mower which the publicity inev-
i,ablv brought were not TO be ignored and trcate'
with the same contempt which they were hccus-
toned TO bestow upon exposures OF leSser i'i'-
portancc ,,
Danforth's queer transactions were discoVcreu
upon the examination Of the affairs OF the oaiik iol
lowing its suspension on "Wednesday. Dhhior'n II
saved the State funds by rushing an offlciai checN
through the Clearing House at the eleventh hour'
Until Yesterday he continued TO owe the bahK 'he
$50, 900. State Controller Campbell had 'aik
with him at Albany on Thursday linen 'h'
Controller came to this city. Lientenaht-"oV-
crnor William +. Shcchan also arrived IN this Guy
on Thursday ON business he said. Another
arrival on the day was Senator HILL
Friendly calls" were nterchangcd.
Yesterday afternoon Bank Examiner Oharle' w.
Dickinson, who is inspecting the banks alairs
with Bank Examiner Judson, gave ont the follow
ing written statement
"Mr Judson requests mo TO ataf" that treas
urer Danforth has paid in cash his entire lndeo'-
cdncss 30 the Madison Square Bank, amounting 10
S53,s2s % in full with interest.
Mr. Dickinson said that the money had neeh
paid in the morning chiefly in large bllls' lie
would not say who paid il or how or by whom II
had been brought TO the bank II was sa/i now
ever, that Mr. Danforth did not bring 1t in person
Controller Campbell knew all about It as soon
as the money was paid. He stouty dcienhed
Treasurer Danforth. but would not say whether
he had any connection with the paying OF 'he
money. IL was evident. however, that strong
pressure had been brought 10 bear on Treasurer
Danforth by his political friends, and beyond a
doubt they actually assisted him 10 raise the
money.
In the forenoon Lirutenant-Governor Shechan
and Controller Campbell had long conierenc"
The subject Of the conference could not b" learned
hut the announcement that Treasurer Danforth :
note had been paid followed close after II.
The investigation of the affairs OF the hanK
bv the State Examiners was continued all day
Yesterday Mr.. Dickinson said late in the alter
r,on that 10 vouif require nti tsry to-day and
nerhaps part Of Monday 10 complet" the IN
yestication II was not probable. he sad, that
a statement of the banks condition could NJ
made before Monday. Until such "A statement
vas nrcpared the receivers would not take charge.
He sail that the officers and directors of the
bank were ,till hopeful that it would he opened
again. Danforth's money would aid in thus.
Others in s.'mi-ofcial positions said that we'll
knoyn business, mon had engaged TO advance
money for the bank to meet lis oplIgationS ana
10 resume business on safe basls. II was also
said that there would probably h. change OF
officers if the bank opened again
All the clerks connected with the BANK nave
received notice 10 report for duty IL two weeks
President Blant was making arrangements yes
tcrdav for "A meeting of Stockholders 10 consider
a proposition 10 rchIn" business
Justice OIIricn in the Supreme Court Cham-
bcrs. Yesterday signed the order appointing Peter
f. Never and Miles VI O'Bricn receivers of tl"
Madison Sauar.. Rank, and fixed the bond al 1900
600 The Farmers Loan and Trust Company. the
State Trust Company, tn" Broadway National
Bank and the National Union Bank are named aS
repositories for all money coming into the hands
of the receivers.