The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-10-24
AN ALLEGED FORGERY
Three Directors of the Madison
Square Bank Arrested.
Charged with Altering Note for $780,
600 Given by the Fort Wayne
SCI Electric Company,
Special to the Indianapolis Journal.


NEW YORK. Oct. 23.-The arrest on GRIM
inal charges of three Of the directors Of the
Madison square Bank, and the issuance of
warrants for the arrest of two others, in
GLIDING, 1t is, said, on good authority, the
president, made to-day the sensational
sequel to the disastrous failure of that in
stitution. The directors arrested were
Ronald T. Mcdonald, Adolph Kalischer and
Lewis Thompson. Mcdonald is charged
with forgery and misdemeanor, Kalischer
is charged with misdemeanor only. The
charge against Thompson is not stated on
reliable authority. The three arrests were
made this evening. Mcdonald and Kali
ischer were taken to general sessions,
where Judge MARITIME held court. Judge Mar
tine admitted Mcdonald to $4,000 bail, which
was furnished by Ed S. Stokes, OF the
Hoffman House. Kalischer was admitted in
5000 bail, furnished by Max Danzlger, a
real-estate dealer. Both men are required
to be in Part L, General SESSIONS, at IL
o'clock tomorrow morning. The arrests
were made on warrants issued by Judge
MARITIME on the complaint Of the district
attorney. The men for whom rumors say
warrants are out but still urexecuted, are
Joseph +. Blaut, president Of the bank, and
Frederick Uhlman, director, and well
known as the head of the Brooklyn system
Of elevated railroads and the chief pro-
moter Of the scheme for building another
bridge over the East river. 1t was also
denied tonight that there were warrants
out for Uhlman. Stokes and Mcdonald left
the court quickly after bail had been ac-
1cepted.
The application for the warrant, or COM
plant, stripped of it's legal verbiage
charged Mcdonald with forgery in making
an addition to a promissory note for $4O,-
S6.73 after it had come into possession of
the .Aadison-square Bank and had been dis
counted. The note was made on Dec Q
1892, and read follows: ct promise to
pay to the order Of the Fort Wayne Elec-
trio Company s4o.S96.73, at the Madison
square Bank, with interest at per cent
for value received" 1t was signed by Nc
Donald and Endorsed Fort Wayne Electric
Company, per r. T. Mcdonald, treasurer"
Written across the Endorsement are the
words: mot negotiable, except In accord
ance with the contract under which the
note was made" 1t is this latter which
constitutes the alleged forgery. It is
charged that Mcdonald wrote on the note
June 5, 1893. presumably to protect 1t in
view of the banks impending insolvency.
1t Is safe to say that no bank compiled
tons since the days of Emo have aroused
the interest that to-days developments will.
The Madison-square Bank the failure of
which was at first called a suspension, has
been before the public, steadily increasing
In bad odor for months. Every week
brought forth new facts and rumors, until
at last 1T was conceded by those who
fought for a reorganization that the bank s
affairs were in such hopeless middle that
they would never be Strengthened out.
Late at night lawyer Untermeyer, coun-
sci for the receivers, was seen. He stated
POSITIVELY that President Blaut had been
arrested. He said that Blaut and Thomp-
son were charged with forgery. Mr.. Inter
meyer made q statement regarding the
banks affairs. He also said that other d.
rectors would be arrested, charged with
fraudulent insolvency. Mr.. Untermeyer
said: 1.-THE receivers have found that the
whole system by which the Madison-square
Bank was operated was rotten"