The evening world., 1893-11-27
SEVEN Are INDICTED.
Grad Jury Acssin Madison Square
Bank officials Gases.
-a--a-----
Eleven ments Made Against
President Blaut.
Il Is said that Other L, ople VIII
BE implicated.

rlirty = t!ros !na' II ca'' wcrc pro-
r"nttl h. ito G"."d lvry III. rf'c"l.su
n]r-inrt sertH &C. to ,r'as"r 81 tie do
fnHst Madison 2luaro DGpk put Of tie
HIE who wGfg arrested Il mIrlh &
o~Nurget WIKI wroaliuR that ,ur'itv.'on.
fNe only tW;O members Of thc lio-r1 Of
Directors who escaped were FrclcriC,t
ihlTsun nTI Lewis Thpmp,on, tan
c~'aaler. Tie reason why no inG!.tment
was found against lhlinann, according
t. Assistant Distrlct-tttorncy Davis. wa.
TINT ti:crG wnH 30 evidence OF wrong
doing Oh his Part.
Cashier Thompson was let of becausn
he turned States evidence and gave val
liable Information t. the Grand Jury in
!ts investigation OF the affairs Of the
bank. He viii be one of the leading
witnesses OF the prosecution in the trial
Of the indicted directors.
Several other Indictments In connec-
tion with the wrecking Of the bank
were handed In, but tlIcy were not made
public this afternoon. 1t is stated at
the Dlstrict-Attorney's office that they
implicate other persons Than those who
have already been arrested. but who were
connected with the bank in an official
capacity before the last Board of Di-
rectors was elected, and who were in a
measure responsible for the bank's in
solveucy.
1t Is understood that Recorder Smyth
Issued bench warrants for tho arrest Of
those persons Immediately after the in
dictmeuts We're handed in. and that
they were given TO Detectives Reilly
and Won Gc"ichten, of the Dlstrict-At-
torney's Office to serve.
Apparently the search Of the detoc-
tives was unsuccessful. for they re-
turned after two hours absence without
any prisoners, end when questioned they
were very reticent.
The two most important Indictments
hanird IN to-day were against President
joseph +. Blaut. charging perjury. The
Sist OF the first OF these indictments is
mat the President swore falsely to the
quarterly repor which he vas required
TO MAKE to the State Bank Superinten-
dent on June l, 1891. In this he falsely
swore that the capital stock of the bank
was fully paid up In cash, and he also
made a false statement in regard to the
mount OF loans and discounts.
The second indictment for perjury
charges the SAM things suostGntially
with regard to his report to the Bank
superintendent submitted in June. 1882.
Following these were eight indictments
each against President hlaut and III
~rectors Ronald 7. McDonal! ana Andrew
Soulard. charging them with receiving de-
posts after they knew of the insJlvent
condition of the bank, which Is "A INSIDE
meanor. Each of these Indictments rep
~r"SentS a separate deposit, all three Of
these men being In complete charge of the
btnk during the last few days before its
doors Were closed.
Insolvency was found against each of the
directors, including President Rlaut, X. r.
MGt,3GMald, An9re% Ss9ul1rdi Fre!erick a.
Gutenberg and Charles L. Selover.
This Is a misdemeanor. and includes all
arts done or suffered u be done which
may, be designated under tte head of
reckless M careless management. and
which resulted in wasting the assets Of
the bank.
The making Of loans on insufficient
security, discuuntinS of notes for large
AMOUNTS for directors and others upon
collateral that anT careful banker would
recognize at once as worthless and va
rloNs other acts of negligence form the
basis Of these indictments.
,,Ihe ground upon which the other in
dictments mentioned We're found have
not been disclosed, and will not be until
the persons against whom the are
issued have been placed under arrest.
The witnesses VINO appeared before the
Gran! Jury and upon who's" testimony
,h% "Soye in4ictmentS were framed,
count clerk Of the Madison square Bank;
Lewis Thompson, the cashier; W. 4,
inner. counsel for Frederick L'hlnann;
ti"brrt Mc,iill. Il notary public con
n""tad with the bank; Charles II. Willis.
Bank Suut Charles N. Preston, and
Lawyer Henry T~wombley, OF the firm
Of Iutney ~ Bishop, counsel for Dirrc-
tor Mcdonald.
1t Is also probable that they will an
getr az witnesses at III" trial If tn.
directors. II could not be asrertained
tins afternoon when the indicted bank
"'i,inI#. would b" summoned to plead t.
IN" Indictment, but II Win probably be
i1-i1urroW or the day following.
They, are each under Sj5.U bali, and 1t
is SAID are all In town ana can hc
r"Li1!" produced when obey are nceicl.