New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-19
CLOUDS OVER THE BANK.
MADISON SQUARE TROUBLES.
EXPOSURE OF ASTONISHING METHODS
THREATENED
PRESIDENT BLAUTS ADMTSSION
AFTER DENYING THAT HE HAD SECURED
LOAN FROM THE BANK, HE SAYS THAT
THE INSTITUTION Is AMPLY PROTECTED
FOR WHAT 1T LET HIM HAVE-wHY
IS THE REPORT OF 11 STATE
RANK EXAMINERS DELAYED1
BANK EXAMINERS DELAYED1


BANK EXAMINES DELAYEDi
Complications begin to cluster fast about the
Madison square Bank, which closed ITS doors
last week From the very night when the
Clearing House Committee made the examination
which revealed the unsound CONDITION oi 'he
institution things had queer look. The Of
iccrs were unusually, and II would scrm uh-
warrantably, rcticrnt. Then came out the facts
as to State Treasurer Danforths peculiar cohii'c-
tion with the bank how he had deposited S21o'-
600 of the States money there ana Iad op'aihe"
an unsecured personal loan of S5O,ooo ana now
he had withdrawn the States mohey ohy after
a midnight chase 10 Albany for m official checN.
Then crcpt ont the statement that uirec'oi Vi
thc bank had checked out personal deposits OF
900 on the day when III" criSh came anu
that this money was included in the amount
covered hv $500. .ooo of securities transferred TO
the st Nicholas Bank, the Clearing House agent
of the Madison Square.
The rcnort of the State Bank Examiners in
charge has been long expected and sev"ral times
announced hut i still held back. The clouds
are darkcnirg however and it seems certain that
4 storm is going to brc1l over that triangular
building at Broadway and Twenty l-iiith-st.' ana
that the Madison square failure may take lea /
ing place in the bank s"msations Of this city.
Just where the force OF the storm Will direct
itself cannot be forctold until Investigations are
completed. but il was predicted yesterday ny
bank official in position 10 know e\a''N WITH
he WIS talking about that som" one or more
Of the directors would hrd that they HAD 10
answer tho stern challenge Of the law
4 significant ntimation has been made that
Joseph D. Blaut, the president of III" Madison
Square Bank, had personal loans from the pahK
which were practically unsecured, inasmucA ~
the bonds or collateral pledged were practically
worthless day or 50 after the failure MT
Blaut was asked this question:
Has any OF the officers of the banK per-
sonal loan from 1t t''
Iii. reply was: Not 70 my knowledge.
Las, night reporter called at Mr.. Bants
home No SO East Scvcnty-third-St. young
woman answered the door bell. and said that
Mfr Rlaut was completely worn ont by tn"
cares which had been pressing upon HIM, ana
that he was suffering from nervous proatratloh
and could see no one. As II happened III" re-
no,tcr had seen MIR Blaut several times dnrin@
tho afternoon in or about the old D"lmohlco
restaurant, which runs through from Newest 10
Brond-st The reporter informed the young
woman, and she replied
Mr Blaut has been suffering from piostratoh
for a week, but, manlikc, he will 60 ont III the
mornings
She consented 10 bear any desired inquiries to
Mr. Iilaut and four questions w"r" gwen 10 net
She repeated them over in a bnslncs~liN" manner
and disappeared into an inner room. The qn'S-
tions addressed to Mr. liaft w"ic about as follows
is the Wall Street report correct that yon
have personal loan from th" Madison Squnr"
Bank which is unsecured or secured ohiN oy
bonds practically worthless
Have any Of the ether officers oi IN" nahN
secured such loans?
Is there any basis for tho intimatlon mat
lo,oI nroc.,dnr- may be- begun against I'll"
bank ofccrs? -
Is IL true that the bank officers or stock
hoIder. will sur the Clearing House Committ""
for the recovery of th" 100000 securities trans
ocrrcd ,o sncur,. the -. Nicho1s Bink|
Whom the young woman rcappcarcd sh" sald
Mr. Ilant saws that those statements ar"
absolutely without basis.
The reporter rskcl that a more specific denI'l
or statement bc given in answer to IN" 4u'rh"
- 10 whether Mr. Baut had any personal un-
secured loans. and whether other officers OF IN"
hank had any such ioans tn" young w"'h'h
again rorca'cd the questions to make sure 'Ia'
she had them right. and again withdrew Sh'
returned vi;h this anSw"" .,,.. oo,cors
"Nr Blaut says that ~ for the o'h"r "nl''IS
hc declines 10 speak. a. that Is their own hla
fer hut a, for himself his loans from III" bank
are fully secured a., ,td
Rank Examiner Judson was seen az IN" Nl'"-
-, S,,,. Rank late IN the afternoon ana was
Si,aJ aIout thn report that President Ilant hld
secured a considerable sum Of money from '"''
bank ON ninsy security. , :. ~
" :, tlo, story has been given ont mas II
,o ,aid Then he strokcd his whlNk"rs r'lc''-
i,clv Tor several minutes. .,.,,,,or, an
"Vcs and ON whl; is said To b" cN'rd'h, a'-
,hori,r said thc reporter 1T il matter OF ~"
orn,tc>i mrortanc. and publ" int rest am you
would bc doing the public service oy "Nih' '"'
Wr Iud.on continued to stroke his whi~kcis toI
i,,,, VT ,"',"" W. ,,vn more Then he said NJ.
,,,ii, misrcprcecntrd and mi- luot"d me-, ara
nadc ur nv mind several days ago 10 say moth
ins for publication ahc"t the Ga"E, r,,,"r nl'a'r'
"Wr JnIson stcadlastly adhered to his resolu-
ton
cUJL lDEPHIA ORDERED TO HONOLULU.