New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-05
tended to the guardian Of the people y mo"'''
IN tho people's money itself

the bank I'm several instalments. ana cur'o"S'S
enough several loans were made by the Jam
State Treasurer Danforth at dates Jus ,,,,o
corresponding with the deposits OF ne punpro
money Danforth lost money thus op'aim ro, ~
speculation in Wall street He 0psras' co.. The
name will be recalled in connection WIN , baus
restaurant venture Baut also specuia,erua mental
the same firm IL doesn't require more ineh.a.
EFFORT than to put two and two together to see
what the relations between Baut ana ""''''''
The States deposited n in the M Mas's son
cured by the bonds of the directors VINO w9u 10
have been personally liable II the pank laa'e nv "
close corporation 1t no part Of the sehe Ho %
the directors to have to pay szSoW" 10 ome was
to be kept in the bank long possible in ORDER ie
to deceive deposltors and other credi'ois, any ar
ranged It's Withdrawal at the last moment was
Bank gave notice august that i wSuld ce Wss
Obliged to give notice twenty -four hours before
the refusal clear took effect TWentyfTnr h Samx
accidentaly that the St Nicholas B AMI Mad had
son square Bank BY dn of the most s s'rena9Hs
SSsTsCns he sS ssne Sf" for % and
it through the Clearing House next morning .. no
Shsr that HT'S the Madison square
going to fail It was clear ,S case 3 UI sne poll
ticians and directors Presden- Blaut and Irea ,
urer Danforth each winked the other eye ana sa'o
But Treasurer Danforth's troubles were by no
means The fact of his $4,000 personal senate uT
Tsised Storm Of public Indignation The Demo
cratic leaders recognized their DANCE ana ser
I sSan STAT ga s cGn,r2 Sns
Th ns Sp t aeu state " then they this ely
ana had a conference with Senator HI. , ID me
square bank and exchanged for Treasurer Dan
forth's notes The transaction was closed so iar
blotted from the memory OF the people OF TINS
State and i, now stands as terrible IN
Joseph f. Baut. with the aid. diree; and IN IN
direct OF his Democratic friends IN Joor ls
The statements Of the bank especially th rarr OF
July l. 1882 contained false and lraud9e ,h repro nd
he is undec arrest on the charse OF PelJE;;s
without hope of escape from sing oihs il liz se's
a fair trial
IT'S SECU RITES WERE WORTHLESS.
The last chapter of the story UP to date is the
account of the sale of the securities Of the Mac
ison Square Bank. which was held by the re-
ceivers Wednesday. and which conspicuousF
demonstrates the complete and thorough rotten
ness of the bank Such worthless lot OF securities
has seldom been offered for sale. They brought
less than per cent of their face value Four nun,
dred and eight thousand dollars oil fresco't tr anu
thousand dollars Madison Square Bank STOCK LOCK
brought s. The total face value "a. ot tne rcaz
After the story % fraud in the management OF the
bank which has been told these figures need d no
less ard inscription bank wrecker. Eaut, and
volumes against the Democratic ring. lncIuaihs
the custodian OF the peoples money, Danforth. VINO
were associated with Blaut in his wretched work
The bank is now in the hands Of receivers fai ie1
August 8. 1t is only within week that Attor-
ney-General Rosendale moved to =, allow me re,
affairs and pay what could be saved from the
wreck to the depostors The seeming indications
are not wanting nor the assertion either, from
rspusbs who are eav Ssap maGe IN
order To allow the guilty parties 10 cover tnelr
tracks much as possible All attemItS al the
Stafford chairman of the Reorganization Commit
tee. has declared the task impossible. stu the
manent and movement has been made by the
Attorney to TAX a%ay The charter an ana
The indicated ground OF. defences of the guilty
been filed is that the prosecution against them
should have been conducted by the
defence. Mr.. Untermyer, counsel for the receivers,
SORT and the Indications that the consequences
Of dishonest banking VII be emphasized in the case
such S the history Of The Madison Square Bank Bank
known. a palmer case of official misconduct on
the part of State Treasurer was never
ring getting private gain through the misuse OF
public power and property was never known.
But Cs sHe hs
5. Stokes, II; 4. Mcdonald, Lpwrence r. Fitz,,
I
pull: If so, how is it that Hugh Dufrey.. Mr..
Fitzgoralds partner, is the Democratic candidate
| been made by the ruin Of the Madison Square
Bank SHOW clearly the economic character OF the
men who are in control OF the Democratic state
machine to-day. Those who have been directly
besmirched are lieutenants of Hill and Sheehan.
whose power is absolute and VINO responsible.
although not apparently repentant for the dis
honesty OF their subordnates.
TIE STATE BANKING DEPARTMENT TO BLAME
Another point of equal Importance to be consl-
eied is well-nigh criminal negligence and in
efficiency of the State Banking Department, which
! is thoroughly Democratic" The Banking law Of
! New-York is pronounced by prominent and ex-
/ perienced bankers to be one of the best in the
United states III provides that the Bank superb
! tendent or one of his examiners shall frequently
/ examine the condition OF each STATE bank ana file
I Madison Square Banks affairs had been conducted
ably and honesty the in its manage
II the state Banking Department were properly
IKE Baua DC on %ossae
berry under the guse of banking With the Bank
ing Department administered DIS it is at present
the depositors and creditors Of banks are liable to
/ be stripped of Their possessions at any time The
! deposited in small institutions. whose Of
hcers have pulls. but whose methods and condition
| In such "a condition and maraged by such men
May the the S q The & Offended " o The
banks and The protection Of The state extended 10
Controller. Mr. Croker has decreed that the time
manyized. The Democratic forces are moving al
along the line against the pockets of the people
! Election day Is next Tuesday. Then the final as
| sault will be made. With such record how car
the Democratic party expect the support of honest
thrifty people In the fac. Of the revelations that
! have been made how many depositors in the Mad
ison Square Bank will vote fer Duffey and ''vndica
tom How many depoSltors In otner banks Will in
dorse the policy of Hill and sheehan and endan
ger their holdings? How many workingmen vii
vote to have the conditions Of their life made hard
by the wrecking of banks and the prolonging OF
| hard times? If these classes Of people. who com
prise the brain well as the bone and sinew Of the
| State will rally the polls Election Day and
vote to protect their interests the power OF
the Democratic thieves and bank wreckers in thi.
State can be destroyed, but not otherwise
| LIST OF THE STOCKHOLDERS.
| Following is q list of the stockholders of thu
| Madison Square Bank with their addresses and Tn,
number of shares OF stock held by EACH IL stood
| on the eve of the failure. August s. 1885,
| No. Of
| Name. shares
! AlichI, Margaret !.
Iopp. Lena
! Hopp JofH
] s.
I1idWin. 4. 49,. 3