New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-20
PRESIDENT BLAUTS LOANS.
QUESTIONING THE VALUE OF IHr
SECURITIES

HE LENT $50 900 TO HIMSELF. AND OTHER d.
RECToRs WE'RE FAVORED. Too-A CLAIM
THAT DUMMY, NOTES WERE GIVEN
STILL ANOTHER VERSION OF
THE DANFoRTH EPISODE.
"Go and ask the president of the Madison oqua'e
Rank how many unsecured loans that hsti'u'o'i
carried" was the significant remark OF man W.
knew whereof he spoke. 1t Is not at all likely ''a
.Toseph f. Baut, who is the president OF the DAM,
would answer the question win any uee'
CELEBRITY or frankness AS told In The tribune Ses
terday 1t had been intimated that Mr. Biaut MIN
self had loans from the bank which were pfae
ticay unsecured but, while admitting that ne
had az n bank officer loaned money to himseif
az a private Citizen he declared that the loans
were fully secured. -
IL has been learned that other directors 'oo'
had such loans from the bank. No DOUBT III every
case they were nomnally secured so was .ie
$50 COO loaned to state Treasurer Danforth on MS
private note Endorsed by twenty-one-year-oio
clerk. There is one important difference Wheh
rho light Of public scrutiny was thrown upon MI
Danforths transactions he and his friends scurried
around and raised the cash to pay Off the note
The other loans referred to have not peeh paul
MONEY LOANED TO THE PRESIDENT.
Mr. Blaut's loans to himself amount to about
$50 OOO Another director secured $4,000 under SINH
lar conditions and third got $o,oW Ihese sums
are secured Il Is declared but the bonds pledged
are said to be such as may not be easily reaized
upon at present" Mr.. Blaut does not deny MS
Indebtedness to the bank, and the question Is as
to how much the securities are worth. 1t chances,
however, that this is paramount question: when
the interests Of the stockholders and creditors are
considered.
The mutterings of the storm that seems hkeIy 70
break the bank grow louder. Yesterday 1t
declared that dummy notes had been re-
sorted to for the purpose of securing money under
apparent Of legality.
Mr. Baut has not been known long in
the financial world. Not many years
ago, 1t is said. he the cashier of a Thrd-ave
restaurant. He became the administrator OF an
estate and secured the charter OF the Mechanics
and Traders Bank which he sold to j. d. Grim
minis.
MR. BLAUT NOT At HOME.
A Tribune reporter called at Mr. Blauts home,
No. SO East Seventy third-st., twice yesterday to
get his statement as to the reports that he ana
other officials Of the bank had secured loans on
poor security but it said each time that Mr.
Blaut was at home Mr.. Blaut denied on Fri
day evening that he had any unsecured loans from
the bank. a story told by one OF the stockholders
OF the bank of what occurred at the meeting OF the
Clearing House Committee at the bank on August
is significant in the light of Mr.. Danforths SUBJ
SeQucnt acton III S-JV'vV VI S'"sS
from the bank In brief It Is az follows:
ION August s. the St. Nicholas Bank sent out
notices that it would clear for the Madison Square
Bank for twcntyfour hours longer. The members OF
the Clearing House Committee went directly to the
Madison Square Bank to make investigation or
its affairs and to get security for the clearances
Of the following day. William r. quincy. a law,
yer whose Office is at No. rs Broadway who had
been secured as counsel for some of the stock
holders Of the Madison Square Bank. went 70 me
hot cd fhen w..
Nicholas Bank had sent out, ana asked for IN
The committee admitted that the object of its
visit to secure assets TO cover Whatever
When Mr Pntney Earned that the officers of the
Madison Square Bank were about to give up
said was far greater than a reasonable estimate
Of the ciearances OF the following day Mr.. Put
toned in his presence that Mr.. Darforth was at
that hour making strenuous efforts to get an
Putney said Yesterday that this story was substan-
TALLY correct
Still. PULLING OVER DANFoRTH'S LOANS.
Now some Of the stockholders and depositors OF
tho bank are inquiring whether there was any con-
nection between Mr.. Danforths race to Albany |
against time to get an official check started for the
New-York Clearing House in time to have It |
honored by the St Nicholas Bank and the putting |
up OF the 100000 securities. How was II. they ask
rheck Which was n more or less unexpectedlv drawn
Was 1t merely coincidence that the officials OF
the bank should be putting up unusually large |
securities while Mr.. Danforth making ar |
rangements to draw unusual amount Of money? |
or was 1t rather to be believed that Mr.. Dan |
forth. who sufficiently intimate with the bank |
officials TO 900 loan for himself. unse |
cured also sufficiently intimate with some one |
In position to know what going to get |
warning and to secure the States money at the |
expense OF the bank
IT Will take great deal Of explanation to satisfy |
many persons interested that everything was done
according to accepted business methods.