New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-07
WAITING FOR AN OFFER.
TIE TRANSFER OF THE MADISON SQUARE
BANK NOT YET COMPLETED.
COUNSEL FOR THE RECEIVERS HAVE LEARNED
NOTHING DEFINITE ABOUT FISHERMAN
BANK DIRECTORS AGBEE WITT
THEIR PRESIDENT

BANK DIRECTORS AGBEE WITH
THEIR PRESIDENT.
The news Of the absorption OF the Madison
Souare Bank by the Sherman Bank when was
announced exclusively in The Tribune yesterday
morning caused much surprise and comment IN
business and banking circles the more so because
the arrangements therefor had been made Win
so much secrecy that scarcely any one except 'hoSN
directly concerned had suspicion mat 'he
troubles OF the Madison Square Bank wonid De
ended in that way.
Tho idea of absorbing the business and assets
and assuming the obligations Of the Madison Square
Bank originated with A. y. Howell. president OF
the sherman Bank. The arrangements have NOT
all been completed yet but it is probable that
they will be nnished in few days.
The directors of the Sherman Bank took formal
action on the subject at a meeting yesterday, ana
fully concurred in the proposition Of Mr. Howell
and authorized him to proceed with hnai ar
rangements Mr. Howell yesterday SAID TO
Tribune reporter who called upon him at his office
in the bank Eighteenth-st. and Broadway. Il nave
received further satisfactory assurances to-day
from the Madison Square Bank people. and the
absorption Of that bank by the Sherman Bank
will take place before long. The receivers in charge
of the affairs of the Madison Square Bank nave
cautiously offered to allow me TO examine the
assets of the bank. I shall make a thorough per-
sonal investigation. You may be sure that the
orr careful and accurate knowledge. but boseve
that the affairs Of the Madison Square Ma scare
in such a shape that can safely take charge
Of them
81 hope 1t will be distinctly understood that
this union of the two banks is not consoda-
ton the merging OF two banks and two manage
ments in one The Madison Square Bank Is 10
go out Of existence. while we take It's business
and its assets, and assume its liabilities. Ihere
will be no change In the management or III the
Board OF Directors Of the sherman Bank and no
additions to the board. The capital VIII pfooaoV
be Increased from 100000 TO 100000
Mr. Howell has the choice of locations. either
that at present occupied by the Sherman Bank or
the rooms Of the Madison Square Bank The III
rectors Of the Sherman Bank are william j.
Arkell Jacob D. Butler, William 'rawtoru reorRe
G. Flint Louis c. Fuller. George b. jacques George
I, 1ohnson Even Mcintyre. John Mclaughlin,
Ludwig Nissen Henry d. Northrop, George j.
sheldon. William r. Smith, benjamin b. van
Derveer.
Mr. Intern,ver. of Guggenheimer & Untermyer'
counsel for Messrs. O'Bren and Cannon, receivers
OF the Madison Square Bank said:
THE receivers have not received any dehh''e
nlan by which the proposed transfer OF assets
and assumption OF liabilities of the bank can be
carried out BY the Sherman Bank There mas Deeh
some unofficial irresponsible discussion OF the SUD
iect but nothing has yet been done looking toward
a definite agreement There is truth in the
statement that the transaction will be contaminated
next week as reported. except that II next week OF
at any other time any responsible person o" cor
poration should to the receivers OF the Mad
ison Square Bank and give them enough money
TO pay depositors and offer TO assume the iaDit"s
and take care OF the stockholders. the receivers
woud feel very much relieved and would lose no
time in accepting such an offer. In the mean time
the receivers are making very thorough inVestl-
CATION of the peculiar methods by when the d.
rectors and officers OF the Madison Square Bank
managed to borrow for their own purposes almost
the entire assets of the bank. and have no douDt
the officers and directors will use every enort TO
get rid Of the Madison Square Bank creditors ana
stockholders as from the revelations that have
come to my knowledge recently. II would be very
much to their advantage TO do so without delay