The sun., 1893-08-11
RECEIVERS FOR THE BANK.
pETIR r. MEYER AND MILES H
oDRRIES IN CHARGE


the II. B. Clann Company were yesterday
afternoon appointed receivers OF the Madison
Suuare Bank. The appointment was made by
Justice O 'Brien OF the Supreme Court on the
application OF Attorney General kosendale. 1t
was not opposed.
Mr.. Putnoy. for the bank. asked that two
receivers be appointed instead OF one. as sug-
pestod by Mr.. Hogan who appeared for the
Attorney General. Mr.. Hogan acquiesced.
suggesting only that the persons appointed
should not be In any way connected with the
bank.
The Attorney Gen erals aflldavits say among
other things that the banks liabilities exceed
it's assets by $50 900. and that it appears to the
Superintendent OF tho Banking Department
that the bank violated various provisions OF
It's charter and has been conducting its bust
ness In an unsafe and unauthorized manner.
and that 1t ia unsafe and inexpedent for 1t to
continue longer to transact business.
Albert Judson. the state Bank Examiner.
was asked yesterday about the paper repre-
senting loans to tho amount of $4,000 made
to State Treasurer Danforth. He said:
"As soon as 1t became evident that this
bank had been making loans without any So
curity. and making them to different persons.
the attention OF President Blaut was called TO
the fact. and at the same time the method OF
business and conduct Of the bank was criti-
cised enerally. The loans to Mr. Dapforth
were especially criticised. 1t wns pointed out
that should the bank become embarrassed 1t
would place Mr.. Danforth in an unpleasant
position. President Blnut was advised to have
that loan secured. together with all the other
unsec cured loans. This was not because OF any
doupt Of Mr.. Daniorth's ability to pay. but be-
cause 1t was unhusinesslike.'
Mr., Judson also said that his report OF tho
condition OF the bank on July "a had been put
mig i htRave htRd drawn the states money outDeiore
he did. He intimated that waiting until the
last minute ute, and nd then drawing the states de-.
bank than they otherwise would have been.
It was possible II the money Ind been left
tional capital they were on tho point,of raising.
would have been able to weather the storm.
President Blaut was caught by a SUN report
er as he was leaving the. bank to como down
to court, Ie was asked about q story, that
among the securities held by the bank for
loans were q lot oil worthless bonds OF an OHIO
:. It is not true. sir" he snid The bank
bank Is solvent and has always been solvent.
1t will resume business IN very short time"
loans such as those @ made TO M Danorth
every loan ths. has been made said NJ
Who are the endorsers 2"
and / cannot tell any OF his business"
Is It true. as Examiner Judson intimates.
that the sudden With, withdrawal OF the States
Of The banks tailure?"
There is no failure: but tho taking out OF
suspension. The "iiicers Of the b@nk an @ We're e ar
ranging for an advance OF S5UOOOO that would
St. Nicholas Bank struck It's blow; Then there
was nothing to do but to close the doors as a
matter Of protection for, all the depositors:
l tell you"
How large IN assessment will have. to be
II tell you. air. that il tho bank should not |
resume. and its affairs should be wound up.
dl ro5 dor or dollar os
their investment"
lawyer con nestsd With the bank said yes
rasy n nsh
the TSe a! "s ha
SiSGo02 Would t Iut the bank Ion, on Its feet; They
saSf5o H0qfS ~. in hank rvfs had esn s
rency. and this. with tho prospective de.
posits, OF the. morn ing. would have enabled |
arrived and put it on a solid basis. The Clear
Ing House % COMMITTEES; Ion their lawyer said.
next day. 1t was on that day that the States |
$3.50 900 was to DO Withdrawn by check that |
-.
the Stat deposit. the lawyer said |
that at the time tho deposit was made Mr.. |
money deposited. It was signed by President
Blaut by another officer of the bank. and By |
three responsible gentlemen not connected
ALBANY. Aug; 1o.-state Treasurer. Dantorth
erriyed here this morning by boat boat from New
q ssu Was d in he sGT Madison
Square Bank prior to the l st Of August was
0anOStt. n IN
to which after Aug, S25,0O0 was added. 1t |
vas all done In the ordinary course Of our
That | should So ect the Maids on squsre Bank
was also a Very natural thing, inasmuch ss my my
predecessor In this office, Mr.. Fitzgerald. is
Of the conm bia Bank. usfr Is frlend du Of
mine, They had desired to be remepbered
bond was met, which guarded the
The story Bank ESaminer 5ud!on any
e tse Ss5yk as {
ths sngeT spsd the States
intimation had oi the condition Of the Madi.
con sauare Bsnk was on ia last Tuesday: when
formation, Of course. / do not care to divulge.
! at once ca me to Albany. transfer checks wore
anu on W euneBday tAey went through |
the Clearing House In the regular way, and |
the. money WAS taken from the Madison SQUARE !
Bank and deposited with the Manhattan Trust
and the Chase National Bank.
As to the 10000 loan am said to have ne
gotiated with the Madison Square Bank on a
personal note. only desire to say had loan
from the bank. but do not care to state any
thing more regarding it either as to tho
emount. how ] secured It, or what it was for
II was 2 personal business matter in which
The story that | am seriously embarrassed
financially by the difflcultes OF the Madison
Square Bank is also emphatically not so. and I |
am not bankrupt nor in any financial strait"
Deputy state Treasurer George b. Church
who Is cognizant OF tho facts conpected with
the personal loan and note OF Danforth. said
about it:
There Is now no note"
=. When asked il it had been taken up he said
" Yes" As to whether he had a son named
Sanford i. Church. who signed the Danfortb
note. or whether he himself signed It. deputy
CHURCH would not say declaring with Treas-
sOnal matter.
GOV. Flower. Lieut.. Gov. Sheehan. Secretary
Of state Rice, and Comptroller Campbell unite
IN commanding Treasurer Danforth for his
promptness in preventing the tying up OF tho
States money. even IL 1t could not be lost by
reason OF the ST5O.OO0 bond.
,Nhhe the state Treasurer will say nothing
about his private transaction with tho bank
his friends here saw that tho Eirst Natinpoi