New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-22
DANFORTH WAS WAKNEO'
HE KNEW THE FLIGHT OF THE MADlsoN
SQUARE BANK
HIS PRESENCE AT THE MEETING OF DIRE
rrer BEFORE TIE srspEysIoN-ThE
EAST RIVER BRIDGE COMPANY

urer Elliot Danforth. knew a great dea, - a.,
the affairs of the Madison Square BANK -.
susnension than he has been willing 10 "
storv appeared yesterday which resulted III A.
inc a statement from one of the directors " -
hank which shows how close Mr.. Danior'" -,
the management Of the institution II "d9 :,
IN this article that Frederic T. Uhlmann' on. y.
the directors OF the bank. had received i"''' hd
in advance that the bank was in dncul'S ',,od
drawn out $4,000 on the day that 1t was w :.
tina, the bank should suspend 1t was said ,i''' ~
received this information from X. l. wv
the president of the Fort Wayne ElectriO
who is a director in the bank. -
Mr. Ihlmann FASTENED to deny this repo'.
terday Immediately after it had secured Gil ~,
in wall Street He declared that he kept o"'S ','
personal account there. and that the idS'
that he drew upon the bank had been 10 pay
board bill at the Hotel Savoy. Mr.. Ohiin"i''
said that he knew almost nothing OF ''' :.
affairs as he took part In the mahase"
was from Mr. Mcdonald that the informauo" We"
secured which shows that Mr.. Danforth was iu'y
Informed Of the banks condition ana that Il"
ample time to withdraw the States deposit 'o"7 W
fore he did. If he had cared to do so.
Mr. Mcdonald was seen by reporter !fs'e''a'
afternoon at his office in the Edison Buiidihe' III
proads, REGARDING the story relating To MI
Uhlmann he said to reporter:
MIR Uhlmann did not have a large persona, az
count in the bank. but as a director IN ,he r-1S'
River Fridge COMPANY he was instrumental III See
Ing that the amount named. $4,000 was drawn ou''
on the morning previous to the day Wheh NV wv
was posted saying that the bank hau SuSP'.'
Mr. Danforth called upon me ana asker nv ANU"
IN, bank told him that thought that IL was an
right This the second time that ma" "i''
him I met him once before that In the lioIiiHd"
House. when he was introduced to me. A''e, ''''
forth had talked with me he went over W
President Graves of the st. Nicholas i'ahN' ! Wv
not know what was talked about there pu' "o'"'
I
phone message from Cashier thompson vi '"e
Madison Square Bank. He said that the members
of the Clearing House Committee were then AT 'h'
bank and examining its AFFAIRS.
Il teephoned Immediately TO Mr.. Uhlmann. ana
we took n carriage a few moments later for the
hank We reached there about 40 O'CLOCK can
not say whether or not Mr.. Danforth was there
then but Of this | am sure: | saw him there
few minutes after our arrival The Clearing House
Committee in session In "A room al u'e wv
of the entrance. and the directors were III ses
sion in another room. Mr.. Dlnforth constantly
was going in and out OF the room ""eie "'o
directors meeting
"Did Won tell Mr. Danforth that the bank was
likely 10 close and that he would better draw out
the State deposit?' WAS asked
Il cannot say whether or not did MY i"'-
pression is that | did. lie would have been 1901
under the circumstances. knowing what ne u'n,
not to have been aware that there was trouble anu
believe that he did a very sensible thing TO draw
the money out as he did. At o'clock In the even
ing Mr. Danfor,h picked ny his satchel ana SHOOK
hands with me AT the Broadway entrance 10 the
bank ! presume that he went TO Albany 90 not
know The officials Of the bank did not know mat
the ST Nicholas Bank had refused to clear Tor II
until a reporter Informed them OF H. There were
three notes OF Danforths in the bank making
total of about 5000 All OF them were discounted
within the last six weeks. | think that the state
account had been In the bank for the last TWO
years.
II was within the last six weeks that the state
Rank Examiner went through the Madison square
Bank and reported that the institution had
large number Of badly secured loans outstanding
II is almost certain that the State Treasurer knew
~ This when he went 10 the BANK and secured
tho advances which he did. II Is c"rthin now
ever from the statement Of Mr.. Mcdonald. mat ne
,vas here in the city and acquainted with the
condition OF the affairs Of the Madison square
rank before the notice Of It's suspension was posted
lie was so familiar with the bank ana liz ON
Gers that he was running In and out OF the
directors room when the members of the Gear
ing House Committee were in session In the same
building and he had been In consultation several
hours before that with the directors OF TINS hsu'u-
ton.
Mile. NJ O'Bren and James g. Cannon the TWO
receivers Of the bank. had their bonds approved
Yesterday by the Judge OF the court In which they
rere Amounted The bonds are for S2oo."p each
Both of the receivers went to the bank yesterday
afternoon to take charge Of g. but hey were IN
RAJ he was not ready for them TINS answer
was thought TO be an extremely strahs" ON ~, ~" e.
rbich do make his examination While neither %
the receivers cared 10 be quoted DIim queer
looked upon his action as an Aa'' ,aSssegss,on
proceeding. They will probably take poSseSS'o"
W. vas said Yesterday on excellent authority that
the bank would not resume. II was also sal1 ,h INA
the stockholders would not be asS"sse' anu '''"'
The depositors would be paid In fu
The attitude which President Blaut has assumed
has been severely criticised by many persons VINO
are Interested In the bank Instead ." ,yhs l." az
law the dstrust felt in the bank. he has steadily
refused to make any statement OF It's antns' "n
to indicate in any way that ne whs hlakiis 49,, ~,
effort 10 bring about favorable settlement ol me
banks affairs In consequence there nave br'h an
sorts OF rumors aioat. many OF mem PERHAPS u'l.
founded which have gained cr"dencc from not
being denied. Some Of them are Of particularly
damaging character. and should nave been promptly
disproved If they were untrue. Tribune re-
porter called at Nh Blauts home No. - East
Seventy -thirl-st. several times yesterday, but was
unable TO gee him
A. l.. soulard. president OF the German american
Real Estate Title and Guarantee Company. 40 -
Nassau-st.. one Of the directors Of tho bank re
ceived Tribune reporter at his ONCE yesterday
~ much surnrsed" he s% ,tI. TO learn int
course in making no statement as to IT, affairs is
! unwse lie should be frank lie would gain sym,
pathy by so doing If the bank IS really in bad
III has been reported" said the reporter, that
Mr. Blaut has obtained about $Nl.c0O from the bank
on practically worthless security. and that you
have obtained $4,000. Are these statements cor
rcCtY'
mo so far ! concerned. | do not owe
the bank $500 do not owe it one-half of $se"
| DO owe IL some money. for which the bank holds
ample security. | shall take pleasure In rcpayins
the loan at the proper time As for Mr.. Bauts
loans | know nothing about them. ! sure
that he could not have secured the sum of $4,000
I'm one lump. If he got much that IL must
have been In small sums Of few thousands each.
Tho directors might have passed number Of such
small notes without noticing that the total WAS IA
| large figure"
ON THE LONDON STOCK EXCHANGE
| London. Aug 2I.-Ancr the opening Of the stock
| Exchange to-day the market became ak and stag
| nant on the p<,sprct Of d"ar'r money and the de
vclopm' n,s In the stIh" Of the coal miners. Near
| the close hoyyovnr tlr nl1rk. became active and