The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-11-25
MADISON SQUARE BANK NEWS
Receivers O'Brien and Cannon Tell OF Their
Negotiation. with Debtors.

Negotiation. with Debtors.
The Grand Jury met at 10 o'clock yesterday
morning. an hour earlier than usual. to COM
plete the investigation Of the AFFAIRS OF the
Madison Square Bank. II possible. before tho
close OF the day. At o'clock they adjourned
until Monday District Attorney Nicoll said
that they had not found any indictments. and
that he did not expect them to find any until
Monday.
Soon after the adjournment OF the Grand
Jury Mcdonald and Frederick Uhlmann Of the
Madison Square Bank and their counsel called
upon Mr.. Nicoll and spent nearly an hour with
him. The subject Of conversation. 1t is under
stood. was the alleged effort to force financial
settlem emit before the affairs OF the bank were
brought to Mr. Nicolps attention. 1t Is re-
ported that Mr. Uhlmann told Mr.. Nicoll that
at the suggestion OK Lawyer Samuel INTER-
myer. counsel for receivers Miles O'Bren
and James G. Cannon. he. Uhlmann.
offered to pay $4,000 in settlement OF
the receivers claims against President Blaut,
aud take the securities that they held as col
lateral for Blapt. 1t Is also reported that Uhl-
mann said to Mr.. Nicoll that at a later inter-
view between the receivers. Lawyer Inter
myer. and himself. Lawyer Untermyer pro-
posed to Uhlmann to settle the receivers
claims against President Baut by the pay
ment OF $SS. 500. tho face value Of the claims
against Mr.. Blaut This proposition Uhlmann
declined. He offered. however. to pay
$50. 600 in settlement Of the receivers civil
claims against President Blaut Thereupon
the receivers. according to Mr.. Uhl-
mann's reported statement to Mr.. Nico
raised their figure to 1925. 600. Offering to in
clude in the settlement for this amount all
claims not only against President Blaut. but
against Uhlmann. Uhlmann declined this
hrp plahNnl ma
collateral for, President Blaut's loans were
afterward sold for Si7,247; Of WHICH he. Mr.;
is reported. District Attorney NlcoIl will 20
before the Grand Jury with this statement.
1t IS expected both Mcdonald and Uhlmann
II 10 admitted that conversations OF the
to have detailed to the District Attorney have
taken place. looking to the recovery OF the
moneys due from President Blaut and Direc.
tor Uhlmnnn. for tho benefit OF the banks
creditors. but both Sir. Canno and Mr. O'Brien
say that 1t is absurd to imply that there was
any understanding that such payments should
carry with them immunity from criminal pro-
w Soss became one Q. the EsSeiyers q the the
night. / have never considered It any part OF
my duty to speak through the press on matters
court appointed me to SLIT all the AFFAIRS Of the
bank to the utmost OF my ability; This have
asssts IN % sSss %a every 1S y % we
tors My time. as In tho interests OF
the receivers. has been employed in this way:
but when such a statement is presented to me
as coming from Mr. Uhlmann. consider 1t my
scented or would consent to any arrangement
where should agree to ACCEPT any
amount from Mr.. Uhlmann or MIR.
B!aut. with any condition attached
whereby / would have to ignore my duty
as an officer Of the court. in presenting to the
court all the facts that came into my possess
sion in connection with the examination Of tho
affairs o. the bank. Any conversation held
With Mr. 1 Uhlmshn was In the dnaGS
Mr.. Untermyer. Mr.. lauterbach. who
was acting as Mr.. Uhlmann's attor-
l say that neither Mr. Cannon nor myself
would consider any proposition as to the &C.
Uhlmann. except with the distinct under
standing that We would place all the facts In
our knowledgs before, not only the courts. but
Mr., Cannon said that this also expressed
what he had to say about the matter