Connecticut western news., 1893-10-26
WRECKE THE BANK.
THAT IS THE CHARGE AGAINST THE
 ARRESTED OFFICIALS.

The President, Cashier and Two Directors
 of the Madison Square Bank, New York.
 Held on Charge of Forgery and Fraud.
 They May Ga to Prison.
 NEW YORK, Oct. 24.-Joseph F. Blaut, president; Lewis Thompson, cashier, and Ronald T. Mcdonald, director, of the de- funct Madison Square bank, were arrested Rt the Hoffman House while attending meeting of the directors and taken to po- lice headquarters. They took their arrest very coolly, and after their names and ad- dresses had been recorded they boarded & 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 S20, eco for Mcdonald, and his bond was accepted. A Dr Tutts pre- scented 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 Mir. Grady, their counsel, that he would open court early today to receive bail. McDon- ald 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 s40, ,s96 73, by feloniously adding to the indorsement 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 director with fraudulent bankruptcy" Bail was furnished in s, ,0OQ
 They May Go to Prison.
 Even though the luckless depositors of the Madison Square bank are likely to wait long time before they receive their percentage of the assets, their burden of woe may be frightened to some extent by the news that some of the officers of the wrecked concern stand fair chance of go- ing to prison for their questionable meth ods of flnanciering
 Lawyer Untermyer, counsel for the re- ceivers of the bank had secret confer ence with Assistant District Attorney Lindsay to this end, and while Mir Lind say declined to make public all the facts suDmltteu ne uld say bnht bne eNiuence in his possession is so strong that he will present it to the grand jury tomorrow. He refused to mention the names of the ac- cused officers 1t is understood, however, that he will ask the grand jury to find in | dictments against at least two officers for forgery in the second degree.
 The counsel for the receivers informed Mir. Lindsay that between 5000 900 and 800, : 900 had been illegally taken from the bank and that the persons who did it are guilty of forgery. Mr. Untermyer said that Mir. Lindsay had assured him that the proof submitted was ample to insure the indict- ment of the accused. ..a.- Biauts Personal Loan.
 After the assistant district attorney ex- | amined the books and papers shown by Mir. Untermyer he exclaimed, Why, 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.
 It is alleged that Blaut used the bonds as | collateral for personal loan of ss0,00o | from the bank of which he Is president