Waterbury evening Democrat. [volume] (Waterbury, Conn.) 1887-1895, 1893-10-24
BANK OFFICERS IN JAIL.
President, Cashier and Directors
of a Bank Arrested.
CHARGE Is FORGERY AND FRAUD.
1t Is Claimed That the Defunot Madison
Square Bank Was InsOIyent Long Before
the Final Crash Came-PresIdent Blaut's
DIg Personal Loan.

NEW YORK, Oct 2E-Joseph F. Blaut,
president; Lewis Thompson, cashier, and
Ronald T. Mcdonald, director, of the de-
funct Madison Square bank, were arrested
at the Hoffman House while attending a
meeting of the directors and taken to po-
lice headquarters. They took their arrest
very coolly, and after their names and adj
dresses had been recorded they boarded a
Fourth avenue car and were taken down to
general sessions, where Judge MARITIME in
chambers was awaiting their arrival, &C
companied by District Attorney Nicoll.
They had barely reached the court when
they were Joined by Edward T. Stokes,
who qualified in ~, 600 for Mcdonald, and
his bond was accepted. A DIR. TUFTS pre-
sented himself as bail for Thompson, but
as he was not personally known to the
judge and no one in court could identify
him his bail was refused. No one appeared
to bail out Blaut, and the judge told Mr..
Grady, their counsel, that he would open
court early today to receive bail Melon
aid went off with Stokes, and the others
were escorted to police headquarters.
The charge against them is forgery in the
third degree in altering promissory note
issued by the Fort Wayne Electric Light
company, drawn on June 5, for $40, 500. %,
by feloniously adding to the Endorsement
the words, Not negotiable unless in ac-
cordance with contract under which notes
have been made"
The judge stated that he had signed war
rants for several other officers. - Later in
the night Adolph Kaliche, another director
of the Madison Square bank, was taken
before Judge MARITIME, charged as a director
with fraudulent bankruptcy" Bail was
furnished in 5000.
They May Go to Prison.
Even though the luckless depositors of
the Madison Square bank are likely to
wait n long time before they receive their
percentage of the assets, their burden of
woe may be lightened to some extent by
the news that some of the officers of the
wrecked concsrn stand fair chance of go
ing to prison for their questionable meth
DDS of financiering
Lawyer Untermycr, counsel for the re
ceivers of the bank, had secret confer
ence with Assistant District Attorney
Lindsay to this end, and while Mr. Lind
say declined TO make public all the facts
submitted he did say that the evidence
in his possession is SO strong that he will
present it to the grand jury tomorrow. He
refused to mention the names of the Rc-
cused officers. 1t is understood, however,
that he will ask the grand jury to find in
dictments against ut least two officers for
forgery in the second degree.
The counsel for the receivers informed
b lslnuSaN InaI btlWttn
600 had been Illegally taken from the bank
and that the persons who did il are guilty
of forgery. Mr.. Cntermyer t,,ut Mr..
Lindsay had assured him -..r IrOof
submitted was ample Ia l. ..dict-
ment of the accused.
BIaut's PcrsunHl
After the assistant di-tri,. ..i.ulu,y eN-
amined the books and pap, r. shown by
Mr.. Untermyer he exclaimed, "MhS, this
bank has been insolvent for the last six
months Yet the public failure came
only in August. Everything went to smash,
and the depositors are still clamoring for
their money. Nothing has been paid to
them.
1t is alleged that Blaut used the bonds as
collateral for personal loan of $50, 600
from the bank of which he is president.
These bonds are of the Prescott and Ari-
iona Central railroad. 1t is charged that
the bank carried the block of $4,000 in
| Prescott and Arizona Central railroad
bonds on its books as good assets and Sc
helped to make up the apparently large
| surplus the bank had. The Prescott and
! Arizona Central railroad is in the hands OF
| Receiver w y Kelly