New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-14
ANFORTH'S EXPLANATIONS.
THEY MULTIPLY UNDER STRESS OF CIRCuM-
STAN( ES.
HE TELLS AGAIN HOW HE LEARNED OF TIE
MADISON SQUARE BANKS CONDITION. But
VIII, ,pOr-r TIL 1T $40 oo0 NOTE7


WHAT ABOUT THAT $50 900 NOTE2
Albany Aug 1s (SpecaD.-State Treasurer Dam
forth has gone to schroon Lake, in the Adirondack
woods hoping that while he Is in the wilderness
the storm will blow over in relation to his deposit
of $4,000 in the Madison Square Bank or New
York and his simultaneous withdrawal OF S'o"
from that bank for his personal use upon an u"-
secured note But the storm does not abate ol
the contrary, the demand comes from every part
of the State that Mr.. Danforth should be suS-
pended from Office. Governor Flower thus far mas
not taken any steps toward removing Mr. Dan
forth. Mr. Flower. however. processes TO be nll'u
with admiration because Mr.. Danforth successfully
extricated the States money from the bank. ana Is
blind to the latter's conduct in asking III" bank 10
loan him $4,000 without security. Mr. Flower as
a banker, would see relation between the
action of a State officer in stuffng a bank with
State money and then obtaining personal loans
without collateral. but Democratic politician
of the modern school he will not criticise such
action
Mr. Danforth has put forth another account Oh
his discovery that the Madison Square Bank was
insolvent and therefore that the States deposit oil
$4,000 was in danger. This last confession was
made public here to-day. Danforth still sticks TO
his denial Of the statement that Bank Examiner
Judson informed him early as july "A OF the
banks unsafe condition and that he permitted the
States money to remain in its possession iort-
night longer What he does say Is that MS us
covcry that the Madison Square Bank was in an
unsound condition made accidentally. as late
as Tuesday last. in New-York City. He says he
was seated In the room Of the president or the
Chase National Bank that day attending 10 private
business. when the president was called from the
room for a few moments. While he was absent
the cashier entered the room and put upon the
presidents desk. face upward Il circular letter
from the St Nicholas Bank. stating that 1t would
no longer the Clearing House agent or the
Madison Square Rank.
The notice was put directly before Mr.. Danforth's
eyes and naturally startled him. When the presi-
dent of the bank returned to the room Mr.. Dan
forth asked him when the notice would 10 into
effect The president replied that it would take
effect the following day soon az banking busi-
ness began Mr. Danforth Immediately took the
first train for Albany. lie arrived here at 10
o'clock in the evening and going To the state
Treasurers office in the State House made out
check for $250"0 drawn upon the Madison Square
Bank Then at midnight he took "A train for New
York He passed this check through the Clearing
House "by a friendly bank at just 10 O'Clock in
the morning and II was hOnored by the 81.
Nicholas Luckily for the State the st. Nicholas.
before sending out it's notice that 1t would no
longer clear for the Madison Square Bank had
drawn SDoe0 from the Madison Square Bank
Moreover. the St Nicholas had good reasons for
desiring to aid Mr. Danforth, as he had deposited
$4,000 of the states money with IT, The Madi-
son Square and the -. Nicholas indeed had the
largest amount OF State deposits Of the banks In
New-York.
While he was absent in New-York that Wedn"s-
dav there was great agitation among the Demo
cratic state officials over the matter Lieutenant
Governor Shechan. on arriving from Buffalo and
learning the state Of the case. gasped out: why,
this note Of Danforth's must be paid M at once
or we shall have no chance Of clecting our state
ticket this fan"
Mr. Shechan. with his customary energy. be
stirred himself \ council OF war WAS held at
the Executive Mansion. Those who attended II
were Governor Flower Lieutenant Governor Shee-
han. Controller Campbell and Secretary II state
Rice The result Of this conference WAS seen ~"
following day in Ncw-York when tho Madison
square Bank WAS paid the &1"" which Danforth
owed. Who tho man or the men who raised
this SDpo? The belief ia Albany Is that q Dan
forth pool" WAS formed. to which Governor
Flower. Richard Croker Edward Murphy jr con
troller Campbell. Anthony Brady. and other
wealthy Democrats subscribed, ana that thus IN"
money WAS obtained. Perhaps William J.. Sh"'hHn
also subscribed some money toward this benevolent
$0D0 in the fall Of 1872 by fOllowinh the aiNi,"
of William g. Whitney In some sp"cuatons III
what use did Sir Danforth make Of the &o.go
he borrowed from the Madison S1uarc Bank He
to-day that llr Danforth bought stocks Luckily.
said the nnancler "he did not buy upon margin.
l
to defend Mr.. Danforth by saving that he had Oh
tanned the $4,000 for the use Of his bank at BAN
bridge hut the truth OF this statement - denied 10y
George H. Church. Deputy state Treasurer MI.
Church certainly s good authority. lie UNDERSTANDS
Mr.. DanfOrths private financial transactions More
over. It was Mr.. Church's SON only twenty y-one
years old. who signed MIR DanfOrths unsecured
mote. Having sucn family relation To the affair.
Mr.. Church must be believed when he says the
bank I'm Cambridge Is not concerned in the matter.
If Mr.. Danforth has been specnlating in stocks
he has only been following the example of other
Democratic State officers and Of prominent Demo
cratic members Of the LEGISLATURE IN" last TWO
years Ever since the Legislature" Of 1872 passed.
and Governor Flower approved. that royal
grant the franchise Of the 'nion Hallway of New
York usually termed the "Iiuckl"bcrry" Railway.
and $2,eD00O was made by It's promoters. there has
been a rage among the leading Democrats AT the
State Capital to make money by the use Of their
powers in the Democratic Legislature. There was
"A large amount Of speculation last winter 10y them
i'm the stock Of the Manhattan Elevated Railway.
Every man Of prominence had the Zip that moth
ing adverse to the interests of that railway would
become a law. Then charters We're passed for
various new corporations. charter was granted
10 the Queen city Gas Company Of Buffalo. a new
II Is reported tonight that the Bank Superin-
tendent on July - formally notified State Treas
urcr Danforth and Controller Campbell that the
capital Of the Madison Square Bank impaired
II This report Is Mr.. DanfOrth Will have TO