New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-25
TIE RECEIVERS HARD At WORK.
TRYING TO sTIAIGHTEN OFT THE TAN'hNp
AFFAIRS OF THE MADISON soUAEE-A
TALK WITH PRESIDENT HOWELL


Miles NJ. OBrien and James q. cannon INV ''
ceivers of the Madison Square Bank had H'ne
hours of hard labor yesterday. FROM an e"''S
hour in the morning until after I O'Clock at hish'
Mr. OBrien was pinned down to his desk IN '',e
directors room Of the bank scarcely iedNl"s
except for the bricfest possible interval Out III 'o
main office a large staff Of clerks were deep III 'ne
labor OF STRENGTHENING out the tangle. the WORK.
which is likely to occupy at least anothe' "ooN
will eliminate in a detailed official statement
Ever since the receivers assumed charge they
have been confronted 10y seemingly endless M
of white-faced. haggard and trembling deposi'oiS
each one OF whom had seen the savings OF "'7 nv
vanish in the crash. If all the conservative eS"-
mates of the situation can be trusted. the de-
positors will receive dividend Of at least ~ cents
on the dollar. and in the mean time II '''s
in immediate need Of money the sherman Damn
will lend them that amount on the value oi '"e"
balances
That we will save something from the wrrch
ls absolutely certain" said Mr.. OBrien yesterday
although would not like to say Just now niuo"
it will be. In ing over the accounts nav Dee"
brought face 10 face with a system OF pa"N'''1
which might have originated in an insane asylum.
ANY number Of the collateral securities are "orth-
less while many others are gilt-edged ON THESE
on the outstanding notes and on what We may ~.
from the stockholders-all OF whom. indvihuaiy
and collectively trlistworthy-we snail aSS"'e''
be able to declare fair dividend.
Turning To the statement Issued by Sahue'
rntermyer on Monday night. Mr.. O'Hrien saih'
at present there IS nothing that can add 10 ''S
story Every syllable is strictly ana htefals ""
so far as We have been able 10 judge from our
Investigations. Whether any fresh charges VIII ="
formulated against these people may pe So''e'
when we have finished our examination oi '"e
books | do not know just now when our state
ment will be ready. We are doing our best
Mr. Thompson the former cashier Of the bank.
called on Mr.. O'Hricn early In the afternoon anu
had a long talk with him. Referring to thompson
lie has my
From first 10 last he has been more OF "A victim
than any one else engaged In this business. ms
position was simply that Of servant ope!'"s
orders may say. for myself and my colleague
that we recognize friendship. no personal ties'
no politics. no sontment-in fact nothing III eNiS'
once hut the interests Of the depositors.
Samuel Untermyer the attorney Tor the re-
ceivers. had consultation with thcm ycs'e''"'
afternoon which lasted nearly an hour Inc re-
ceivers issued a statement. OF which the following
is a part:
The receivers have proceeded In the regular way t"
collect .uch Of the o, the bank are coerDe
ard t. investigate IT. affair. In The c"4T-" d" -N'' IN
yestrann certain facts have come 10 INC" h"""'''k'
connected with the administration % the p'h"
and they and uer counsel deemed II their duty {"
Law those facts before t.c prosecuting "h'"' "' "e
county This they have done without any pefsona Tee"
inc ny desire unduy e. Cypress anybody ana -u'tN J"
IN. performance what they reeAfdSs a. u'i' oN''
duty IN. pros~cafag attorney Las r"~" fa's ana
n. has acted upon them as he has dcfn'l DIST N'''
tho receivers nor their counsel have urged any prueu"
co,,.o OF action In respect these fats since II i not
Z, the lin. Of their duty 70 DO 30 That r'-po"'""',
u. Win m. pro,ecutlng attorney. Having di'ehafE1a
their duty they do not foe that they nave my '"' -
interest I'm the transaction. except ~ ohoet' VI ''' 80
rhcv are ready when called upon by The prosecuting
ooicer. to furnish proofs a. % the oe'.- W NV
,,,.arr,oos n. the records bank and The evidence
thew have been able collect nav justify ana LOT hA
purpose they the disposal Of the prosecuting '''
all times. ,Au.had
90 tho .noc, that since the failure collateral secur-
Ties had been distracted from me BANK vauS ,d no
absolutely false. They say uit ' nSrn ~, snch a
story 10 that effect ana never "'"'1 "
! charge. ., $500 l., ,h. uo0man House bar
e,riv last cycmng in company with Frederic thi-
mann another OF the inphcated diIeHto's ,d IN
take these people on their own ,o s' me
says that wrote on ,n %c,t IN connection with
coii.f.ral or in accordance with the contract un or
which these notes were made Why is IL wrong Igr
man 10 protect himself In such way? ! simpiy
did not want lose the good securities Tn lh,
had lodged payment for The stock ana "h Zen
were worth more than the val ue or the notes DE-
! sides the notes are not yet due. At, o,,
ment to the Endorsement after you had taken
! charge and knew that the bank was doomed waH
'@ .In say no more" said Mcdonald Wait until
! T am ready and you Will see what you shul s So
e. ''i Far the other side have done the talking The
depositors Will receive 100 cents on Ne and
| biS elerfric company had given certain notes for
loan Of $1,000 and AGAINST 1t i9ey had ds Mon
$500 s,',o 81 ,S hank was in trouble he informed
they had neoat@d ms ms TostS to tse Cashier
bank and drmande co ln inG noi IN ac
notes Snor Win the agreement that he had made
with the bank at the time he purchased ne STOCK
alt6ongh lying III in bed with liver complaint was
able 10 tell the reportcrs %nJ sa" % INV sfocI, in
me bank and that after he became director ne
nIuR"t hn management OF the bank. objected to
he collateral. ana I'D not want 10 De reelected 10
W. nnor health he would have taken An aggressive
mart i'm Strengthening out the affairs OF the BANK;
T., r. Tho course Of "A talk Yesterday explained the
position of his institution in reference to me prof.
counsel Bangs. Stetson. Tracy MaGNeagh. anu
our offer to consolidate with the Madison square
park was made In perfect good faith. But we
fomnS that Mr. Blaut. Mr. Mcdonald and Others
in the directorate owed the bank something IKE
made conditional on the payment Of this iebt.
rhay hut or the appoIned day IN" money was
not forthcoming. That ended The negotiations for
consolidation. But We are stu lending money ~, 10
their depositors at - cents on the dollar to the
amount Of their balances because we believe that
,rhcn All the available assets have been secured
the dividend will reach at least that amount. ana
it will not snrprise me II TIE , aepostorS Ts'r ony
! rate we are content TO take the risk. the ohly
to ms them" cn %"s employed ie BY
as has been asserted to rope In, the MadishoIn
sag@rs b Ss was iemporariiy out Of enpoymen
The first decided move toward the realization OF
|
Adrian H. Muller the aucioneer. OF No. III l'roau-
, wav will publicly sell the securities held by inc
| defunct bank. ,.o
When the receivers had finished the work or the
dav and had gone home. Mr.. Blaut who had been
: lifting M and down the Hoffman House corridor,
stroiled into the bank offices. and after steadily
ccntemplating the cashiers window. turned ana
walted away. All efforts 10 induce him TO talk
nm the subject Of his arrest were fritess Il hevr
nnthing TO saw" he answered. MY counsel VIII
talk for me when the time comes to do so.''
Tbr- registration In this city 40 fnr hns
been so light In districts where Rrpub'i-
| c.u. live that II Is evident that only a snnii
frnction of the Republican vote has been
made secure for the election. Remind all 81
xour Republican friends that II II their
; duty TO register. Ask them to Register o"
Friday!