New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-06

THE SHERMAN TO ABSORB 1T.
ALL LIABILITIES OF THE MADISON SQUARE
BANK WILL BE ASSUMED.

Di@
HOLDERS RELIEVED FROM FEAR OF ASSESS
MEXT-THE SUSPENDED INSTITUTION 10
LOSE ENTIRELY ITS IDENTITY
It is officially announced that the Sherman
Bank at Eighteenth-st. and Broadway. upon
the funment Of certain conditions whose ar
rangement is practically certain. will completely
absorb the suspended Madison Square Bank;
will assume all its assets and all its liabilities;
and will. hereafter. carry on all the business
formerly pertaining to the Madison Square
Bank. The absorption will be absolute and no
officer or director Of the suspended bank VIII
have the slightest official connection with the
Sherman Bank after its absorption OF the other
institution Even the name of the suspended
bank will be entirely dropped out
For some time there have been rumors that
the Madison Square Bank has been making
overtures for consolidation to bank In its
near neighborhood In positive confirmation
f. y. Howell president Of the sherman Bank,
announced yesterday afternoon to "A Tribune
reporter that the arrangement had been prac-
tically settled. He said:
A DEFINITE OFFER MADE
ut is true that some time ago we received
overtures from the Madison Square Bank peo-
pie looking to "A consolidation. made them an
offer yesterday. by which the depositors VIII
be paid in full and at once and the STOCK
holders relieved Of the possibility OF assess
ment if upon examination the aggregate Of the
assets is satisfactory to us.
81 want it to be distinctly understood, how
ever that the Sherman Bank will retain It's
name its officers and present Board of Direc-
tors and the old management Of the Madison
Square Bank, individually, collectively. directly
or Indirectly. is not to become interested with
us in any way whatever.
"Whether we will remain at present loca-
ton or go to theirs is "A question of detail. to
be decided later with other matters. We have
been advancing 30 per cent to depositors hav-
ing balances in the Madison Square Bank for
some time. and have opened "A large number Of
accounts Consequently the transfer coud De
effected without any friction.
The practical consummation Of the plan was
made several days ago. when President Howell
outlined his offer as above given to the Mad
ison Square Bank people At first the people
interested i'm that institution showed reluctance
that their bank should completely lose its
identity. and that its officials should bear alb
solutelv no voice in the consolidated institution
The Sherman Bank people however. were lrinly
resolved to have nothing whatever to do with
the former methods Of the Madison Square
Bank management. who finally decided To ac-
cept the offer 1t was the best and most feasI-
bic that had been made. and the friends OF the
institutions on both sides arc pleased that so
advantageous an arrangement could be eHec'e''
PRIVATE LOANS MUST BE PAID Nr ONCE.
President Howell in speaking further Of the
matter Yesterday. said that his offer was on
the condition that the assets Of the Madison
Souare Bank would amount 10 what they had
been stated to him. and on the further condi-
tiou that large loans from the Madison Square
Bank to private individuals must be paid at
once: and he said that he had direct promises
that these payments would be made.
Though Mr. Howell would not state definitely
who the "ndviduals' with large loans Were
II u.s. Of course understood that they are Joseph
f. Blaut the president OF the Madison square
Bank. and the other men who IL u salu'
got loans. Elliot Daniorihs not" Tor S.''VvV'
which hc secured just after helping inc MAJ
isnn Squarc Bank with "A deposit oi $-""vVo oi
the States money. has been pad. :" thit VIII
not come in the list of individual loans 10 DC
paid at once.
TIL NECESSARY FUNDS READY.
"Au the money for the plan Of assuming the
Madison Square Banks Liabilities has been
raised" said President Howell. He did not
care To tell the names Of the men VINO had put
up the money for the plan but ne saiu 'h"t
there was not the slightest doubt In that part
Of the matter and that the Sherman Bank
would be fully able to carry out its part of the
contract The details of the plan, such
as the possible change in the site
of the Sherman Bank, with lts increase
business had not been arranged, Mr. hoWell
said. The officers Of the Sherman Bank would
have full control, and the institution would
clear as IT has done for the last two months
through the Central National Bank.
A meeting Of the stockholders Of the Madison
Souare Bank was held yesterday afternoon at
the law Office of Hoady, Lautcrbach John-
son I'm William-st. The stockholders had been
told that "A definite plan was under consldera-
ton but at the time of the meeting yesterday
they had not been enlightened as To the bank
which made it, and the conference was largely
routine The receivers of the Madison square
Rank are il Is understood, greatly relieved AT
the turn affairs have taken. They realize that
the Sherman Bank will be able To nurse the
assets of the suspended institution much better
than the receivers who invariably have to
sacrifice something. The legal steps trans
ference Of papers. et., will be taken next week.