New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-10-28
THECOTRTGIVES MORE WEIR
RECEIVERS OF THE MADISON.SQUARE BANK
TO HAVE GREATER SCOPE.
THEIR AUTHORITY TO DE PERMANENT IN SOME
REspEcTs-ANOTHER SUIT AGAINST

THEIR AUTHORITY TO DE PERMANENT IN SOME
REspEcrs-ANoTmER SUIT AGAINST
PRESIDENT BLAUT.
1rdoo porro,t IN the Supreme Court. Chambers.
Yesterday signed an order giving Messrs. o Brien
and Cannon who were appointed temporary re-
ceivers OF the Madison Square bahk' 'he powers Oh
permanent receivers. In certain respects Inc APP
plication TO make the receiversh'p permanent was
made nv DENNY Attorney General Lardner. and
was opposed by Edward Lauterbach. on behalf OF
the directors Of the bank Mr.. Lauterbach opposed
the motion on the ground that there was good
reason to believe that the bank wouiu De apie 10
weather the storm and eventually resume business.
Mr.. Lauterbach at least wanted the appointment
postponed for thirty days. at the end OF which
time he thought the bank would be In solvent
condition. He also argued that, II the ad)ourh-
ment were granted many OF the securities would
be worth much more than II disposed of at forced
sale at the present time.
Judge Jarrett thought II would not be well to
leave the affairs of the institution in an uncertain
condition for so long time. and so ne granted
the application. The receivers may now go ahead
and DISPOSE of the securities which they want 10
SELL
Receivers O'Bren and Cannon had consulta-
ton with their counsel, Mr. Untermyer' at the
bank yesterday afternoon. to DISCUSS measures
for settling the affairs of the bank as rapiu'y us
possible under the new powers that had been
''''
proceed Immediately to sell real estate ana Sc
curites and will advertise for all claims against
the bank to be presented. dividend 10 the
stockholders will probably be PAID sooh' IL Is
probable that the receivers will leave the OFFICES
in Madison SQUARE. and secure less expensive
quarters as soon as possible. Mr.. tnternlyer took
to the Office OF Assistant District Attorney DAVIS
the books Of the bank. so that Mt DAVIS , mism.
examine them before reporting to Distrct-Attorney
Nicoll about sending the cases OF the directors
before the Grand Jury. a.. c.
suit which l. now pending IN tne SuPee''o
Court throws considerable light on the KIND OF
business transactions I'm which Joseph r. Biaut'
president OF the Madison Square Bank, mad been
engaged Two or three years ago Blaut VINO was
then in partnership with Myer HERMAN :" NH sne
brokerage business. under the firm name or Heli-
4 Blaut. sold to Charles :. l'aun. whole-
sale clothing merchant and to Heyman Sarher,
another clothing merchant, ten BONDS eacn on tiie
City Railway Improvement Company ior -" NoHi
each man. . ,,,. -
Mr.. Baum charges that Holman Blaut repre-
sented that the bonds were Sllt-edged Investment
and that they were selling them on commission
Instead Of this. Mr.. Baum says that Bsut was
the owner Of the bonds FOR which he paid sfo ana
that they rfovcd 70 10 worthless Roth Baum ana
Sarfler brought suit through David Leventritt as
their counsel TO recover the bonds, when they
allegc were sold them under fraudulent repre-
sensations. Mr.. Raut. In his answer. denies the
charge of fraud. . -. - -,
bonds the Madison Square Bank. during the
Crydcr ma ma cement. The bank directors discovered
that the bonds were worthless. and Ilaut took them
back depositing. In their place. Prescott ana
Arizona Railroad stock. which proved to be equally
worthless.