The Providence news. (Providence [R.I.]) 1891-1906, 1893-10-24
THEY ruined THE BANK.
OnuH Of tho Madison Square hs
Und'f Arrest
ARE CHARGED WITH FORGERY.
Between saoo. 900 ana s4oo, 900 Illegally
Cbtsiusd from the Bsnk-The Arrests
wsrs Made Last Night at the Hon-
man House.

NEW YORK, Oct M--The grand jury
will consider charges Of forgery against
officers Of the defunct Madison Square
bank. The proposed action leaked out
through the visit Ct Lawyer Untermeyer,
counsel for the receivers of the Madison
Square bank. to Assistant DISCREET Attor-
ney Lindsay yesterday afternoon. To-
gether they went over the failure OF the
bank and discussed at length the criminal
liability Of some of the banks officers
Mr.. Untermeyer told Mr.. Lindsay that
between t2O0, ,000 and t400, ,000 had been
illegally obtained from the bank. and that
some one was guilty Of forgery. The
proofs of bis statement he gave to Mr..
Lindsay and also gave him a list OF the
directors Of the defunct Institution.
Mr.. Lindsay informed Lawyer Inter
meyer that to his knowledge the Madison
Square bank had been insolvent for the
past six months. After examining the
proofs submitted to him. Mr.. Lindsay
pronounced It clear case Of forgery. He
said he would go before the grand jury
and lay the facts before that body. Vice
President Cannon Of the Fourth National
bank, who Is one of the receivers OF Madi-
son Square bank, declined to discuss the
action of Mr.. Untermeyer. Mr.. Cannon
said that Mr.. Untermeyer had full power
In the matter, and that q criminal action
had been decided upon.
The directors of the bank, as given In
the copartnership directory. are Frederick
A. Kurshedt, Emil Frenkel, A. s. Kalis-
cher, James ID. Leary, Ronald 7. Often
berg, Andrew Soulard. Joseph H. blaut,
Lewis Thompson aud Charles +. Zelover.
President Blaut began bis business career
in this city a. waiter and part owner In
o Third avenue enting house.
Tho ArrestA
Joseph r. Blaut, president; Lewis
Thompson, cashier, and Ronald Z. Nc
Donald, n director of the defunct Madison
Square bank, were arrested at the Hoff-
man House last night, whilst attending
meeting of the directors They were
taken down to general sessions, where
Judge MARITIME, In chambers, was awaiting
their arrival.
They hpd barely reached the court when
they were Joined by Edward Il. Stokes,
who qualified in so coo for Mcdonald and
his bond was accepted. A DIR. TUFTS pre-
sented himself as bail for Thompson, but
as he was not personally known to the
Judge and no one In court could identify
him his bail was refunded. No one ap-
peared to bail out Blaut. and the judge
told Mr.. Grady, their counsel, that he
would open court early In the morning to
receive pail.
The charge against them Is forgery In
the third degree in altering q proinissory
note issued by the Fort Wayne Electric
company, drawn in June, 1893. for $40,-
500. 70, by feloniously adding 20 the en-
dorsement the words mot negotiable only
I'm accordance with contract under which
notes have been made"
The judge stated ne had signed war
rants for several others of the banks off,
GERS. At 1880 p. m. Adolph Kaleche. an.
other director OF the bank, was taken before
Judge MARITIME, charged with fraudulent
bankruptcy" Max Danziger Of IL East
Seventy ninth street qualified as his bonds
man In sb0u0.
Frederick Uhlman, another director OF
the bank accused OF fraudulent insolvency,
went to the general sessions and surrsn-
dered himself. He was accompanied by q
bondsman and was free again In few
minutes.
II is learned that the grand jury has
found against the accused bank officers al
follows: President Blaut is indicted for per
jury; Cashier Thompson, misdemeanor;
Director Mcdonald, forgery In the third
degree and misdemeanor; Directors kal.
ischer and Uhlman, misdemeanor.