New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-28
THE INDICTMENTS FOUND.
ACTION OF THE GRAND JURY.
NINE MEN TO STAND TRIAL FOR WRECKING
THE MADISON SQUARE BANK.

THE MADISON SQUARE BANK.
IMMUNITY TO LEWIS THOMPSON AND FREDERICK
UHLMAyN-Two NEW MEN IMPLICATED
ELEVEN CHARGES AGAINST PRESIDENT
ELAUT, INCLUDING TWO OF PER-
JURy-NINE TRUE BILLS
AGAINST M'DoNALD.
The lightning has struck In the Madison
Square Bank cases Yesterday the Grand Jury
announced it's decision that the affairs OF this
pet bank Of the Democratic State ring had been
criminally mismanaged. Thirty-ive indictments
were found against nine persons. These are seven
directors, including the president, and two men
who severed their connection with the bank
some time ago Two directors were not indicted
They were Lewis Thompson, cashier. and
Frederick Uhlmann both of whom will be Inn
portant witnesses for the State True bills were
found against the seven others. who were
arrested several weeks ago. They are Joseph
+. Blaut. president: Ronald I. Mcdonald
Charles +. Selover. A. l.. Souard. Frederick
A. Kursheedt, A. S. Kalscher and Simon Often
berg. directors.
The Grand Jury began its session at ii O'Clock,
and examined six witnesses most OF whom mad
been before IL last week. These were George H.
l.. Morton. discount clerk Of the bank; Lewis
Thompson. the cashier Henry Twombly, OF the
law firm Of Putncy & Bishop. counsel for r. T.
Mcdonald: William II. Jenner. Of wetmore &
Jenner counsel for Uhlmann; Charles M
Preston. Superintendent of the State Bank
ing Department; Robert McGill notary. and
Charles r. Willis, from the County Clerks Of
fee who testified regarding the incorporation
of the bank.
BY l:25 o'clock the Grand Jury had decided
what indictments to find, and Henry c. Ward. the
foreman. had signed the true bills The jurors
then filed into Part of the Court. where Mr.
Ward handed the batch of documents to the
clerk Mr.. Hail. who passed them to Recorder
smytn. The roll was called. and the Grand Jury
retired. its share OF the work being done.
TWO NEW MEN IMPLICATED.
The Recorder then signed bench warrants for
the arrest OF the two men who are not on bail
One OF these two Emil Frankel. an ex-
director; the other was understood to be W. Wet
more Cryder. who preceded Blaut as president.
They are accused Of parti ,pation in the NAL
administration which ended In the wrecking Of
the institution. Mr.. Cryder now lives In Wash
ington.
Directly after the warrant for Frankels arrest
had been signed a court officer FASTENED to
Police Headquarters and put 1t in the hands
OF Inspector Mclaughlin. The address In the
warrant was No 203 West Forty-ifth-st.. and
Detectives Won Gerichten and Reilly. leaving
Mulberry-st at 4 O'Clock. made for that house
But Franke was not there. and II was only
after a hunt of an hour and ten minutes that
they finally found him. at No. III East Eighty
third-st. where he now lives FrankeI submit
ted silently TO arrest. and was taken to Police
Headquarters Later he was escorted to the
General Sessions Building where he gave bail
In 10000 before Judge MARITIME. His bondsman
Is James Stern. OF No. l4S East Sixteth-st.
Frankel II thirty-eight years old and an insur-
ance broker He said he had no idea what
offence he committed.
Eleven OF the indictments are against Blaut
Two charge him with perjury for falsely swear
ing to the correctness OF two annual reports OF
the bank to the State Banking Department
These reports made in June. 1892
and in June. 1898. They declared that
the capital stock OF the bank was $780,
O00 all Of which was paid In As matter
Of fact, several persons had bought their stock
with money obtained from the bank itself on
their personal notes. The indictments also al
lcgc that the reports were false In regard to the
amount Of stocks and bonds held by the bank
and I'm regard to the loans made to directors or
indorscd by them and that Blaut knew them to
be untrue on these points. The maximum PEN
atty for perjury Is imprisonment for'ten years.
ANOTHER SET or INDICTMENTS.
Eight indictments were found against each Of
three drectors-Blaut, Mcdonald and Souard-
for receiving deposits aiding and abetting in
receiving deposits after the bank was insolvent
and they knew that 1t was insolvent. 1t is
charged that on Saturday. August 3. these three
and Uhlmann were at the bank and knew that
Il was insolvent. Uhlmann protested that the
hank should be closed. but the other three over
ruled him. doubtlessy 10 give State Treasurer
Elliot Danforth time to rescue the States de-
posit Uhlmahn therefore escaped indictment on
this charge. He will probably testify against
his companions
On August and August the bank continued
TO receive deposits Seven sums are referred
tn in these indictments. The depostors
Herman JantZcn. Walter J. Lee John Ireland
and Davis & Sanford, three OF whom made
deposits on both these days Each Indictment
has seven counts. covering the seven deposits
Each of the indictments regards the transac-
tons from different light: the distinctions are
so finely drawn that only the trained legal
mind can grasp them. The directors are ac-
cused of receiving deposits OF aiding and abet-
ting the receiving Of deposits. OF receiving the
deposits as sseS or s"e ere all al
mIsdcmeanors punishable with imprisonment
for one year and "A tne OF $500.
FRAUDULENT INSOLVENCY.
There Is still another batch OF indictments
These are against seven directors. Baut Sell
over. Souard. Kursheedt. Kalischer. Mcdonald
and Ottcnburg. who are accused OF causing inc
fraudulent insolvency OF the bank by maladmih-
istration OF it's affairs This Is also a misde-
meanor Lewis Thompson. the cashier. escaped
because he has given Assistant Dstrict.Attor-
ney Vernon M. Davis valuable aid In ms III
vestigation OF the banks affairs. and VIII tes-
tify on the trials Thompson was poor man.
on n small salary. and carried out Blauts III
structions merely to retain his position A..
Distrct-Attorney Nicoll sent word to III III
counsel of the seven directors to have their
clients In court this morning so that they couIa on
renew their bail. Blaut's ball Is now sioyvv.
and will be increased The others are .,n unus' oon
s5 900 bond and will be compelled to give $iVooo