New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-11
TWO RECEIVERS FOR THE BANK
THE MADISON SQUARE IN THEIR HANDS
STATEMENTS THAT THE BANK Is SOLVENT AND
WILL RESUME BUSINESS.

WILL RESUME BUSINESS.
Justice O'Brlen I'm the Supreme Court. Cham
bers. yesterday appointed Peter F. Meyer ana Mics
W. O'Brien receivers OF the Madison Square hahN'
The application for the appointment OF receivers WI"
made by the Attorney General who was represent"
| by deputies. William J. Landner and Johi W.
| Hogan. william B Putney appeared for the ui'',
tors OF the bank, but he did not make any opposi'
ton TO the motion. lie thought that two receivers
ought TO be appointed. however. The ATTORNEY
| General made 10 objection 10 this.
The application based the anidaNH Vi
| Albert c. Judson, who is an examiner In the b'hN
ing Department. lie said that examination OIL
the banks books showed impairment OF It's cap'-
tai to the extent Of $4,000.
Mr.. Putncy told the Court that n meeting OF 'he
directors had been held in his office on Wednesday
and he authorized as much any one could DO
at present TO say that the liabilities OF the bank eN
ceedcd the rs sets by 800 900.
The only question for the Court TO consider was the
names Of the receivers. At . O'Clock he took the
papers and hour later he announced the appoint
mcnt OF the named.
The Deputy Attorney General said that It was not
possible TO tell exactly how the affairs OF me
bank stood. 4 further examination must be maze
before any detailed statement could be made Mt.
Putncy declared that the deposItors wonld be paid
in full.
state Bank Examiner Judson Is still at work on
the books. No statement, he said, would Dc niauc
before next week.
IT was understood that a meeting OF the directors
and officers OF the bank To take place at the
Office Of the counsel. Putncy. Bishop & Slade, No.
10 Broadway, yesterday morning, but such meet
ing held. Mr. Putncy said Matters have gone
so far now that II may be- time before business
will BE- resumed. but 1t will be continued ana de-
postors may feel that their money Is SAFE
Mr.. Baut. the president. said that the bank wss
Ina and wnuld npdOuhtcdlV
business. lie said that the directors had pledged
$4,000 to aid the bank through its difficulty the
day the Clearing House Committee MADE Its 1hVesu-
CATION He thought that no trouble would have oc-
CURED had not the st. Nicholas Bank refused to clear
for the Madison square
The dealings OF state Treasurer Danforth with the
bank appear now beyond doubt to have been the
original cause OF the banks suspension. The heavy
loan to Danforth without security was sufficient In
itself to make the Clearing House Committee sns-
picious Of the stability Of the bank. Other loans
for less amounts, but also unsecured, made the sua
ton still more embarrassing. The difficulty might
have been stcnmci over however and the bank
gone with Its business In short time lmd not
Danforth withdrawn the $3.50 900 OF state funds.
Bank Examiner Judscn made the following state
ment 10 Tribune reporter concerning Treasurer Dan
forth's dealings with the bank
ION July - | came 10 the Madison square Bank
examine It's condition. | did not suspect that
there was ANtlnhg wrong. NY NIhlJ "do ai"'P''
my regular examination. In the course OF that
examination 1t developed that the bank had loaned
n considerable amount OF money without any So
curiiy including several loans Ia Mr. Daniortl. Iney
had Lcrn made M different times and we're Tor dliier
amounts, aggregating $4,000. at once sought
Mr. Baut, the president OF the hank, ana criticised
the oinnc Of funds without security. Particularly
| poInted out The loans TO Mr.. Danforth. / did
this. that doubted Danforths ability 10 pay on
demand the money H." had borrowed, but because
under the circumstances. n any troubles should
occur In tho bank which seemed TO me then more
than probable Mr. Danforth would appear TO the
public In very unpleasant Hight, being, as he was
I'm his official paclty OF state Treasurer, depost0r
I'm the bank 10 the extent $780, oD and personally
and privately borrower OF $4,000. for which no
security had been asked.
Mr. Blau said he understood that Mr.. Danforh
meant pay the loans materially 10 lessen tleIn
within few days"
Mr.. Judson has been criticised for not notifying
10 the Treasurer the depleted state Of the banks
finances Immediately on his discovery OF that fact.
on July %. TO this Mr.. Judson replied
81 felt more Interested IN the numerous small
drT-,-i,or- In the hank than did In the states de
posit simply for the that the States deposit
was amply secured by the bonds Of mon Of large
mcant and thus there possibility In case the
bank suspended, Of the state suffering any loss