New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-11

way, In W all street, anu III tne uptown HotciS
and clubs in the day and evening. There was
only opinion, and that was that Danforth
had dsgraced himself irretrevably.
Facts developed yesterday make the case even
blacker for Danforth than it was at first re-
ported The State Treasurer was fully apprised
of the unsafe condition of the Madison Square
Bank on July "a, over two weeks before he with
drew the deposit, but he left the large sum OF
S25O,OOO in jeopardy until August g. All this
time his personal, unsecured paper for $4,000 re-
mained in the bank. and still remains there un'
paid
The methods which Danforth used for obtain
inc the loan were severely criticised by hon.
orable men. 1t early in July that Dam
forth made in the bank the deposit OF S25O,ooo
of the States money. The State Treasurer was
then in some financial straits. individually. His
Wall Street speculahons, it was reported. had
turned out badly As large operator said
Yesterday Danforth seemed to get hold of the
wrong end of the money market every time"
About a fortnight after placing the $25O.0OO in
the Madison Square Bank he went to President
Blaut and asked for loan of S5o,OOO on his
personal note. indorsed by young Church. lie
did not say to Mr.. Blaut: If you DO not
let me have this money | will withdraw the
S25OOOO of the States funds on deposit here'
but he might as well have said 1t. and the
president knew that the withdrawal of so mucn
money meant death TO the bank in the then con-
diton of the market. Danforth got the money
on the slender Endorsement of boy oi t"ehy'
one who was without pocuniary responsibility,
Wien the State Bank Examiner came to make
his Investigation he found the banks capital inn
raired $50 900, and nearly two-thirds OF the sum
was through the note of $4,000 given by the
State Treasurer Examiner Judson says he CEN
sured President Baut for letting Danforth have the
money Baut however, took no effective meas-
ures to get the money or proper security LOT ns
payment Had he done so, he knew Dahior'n
would have removed the States deposit
When Danforth heard of the visit of the Clear
irg House Committee he hurriedly and successfully
planned the withdrawal of the States deposit
A more contemplate bunco game was never
nlaved.- remarked "a well-known banker last even
ing.
Danforth was reported yesterday to be raising
money 10 take up his note
Bank officers do not hesitate to condemn In
unmeasured language the ethics of the State
Treasurer There are obvious reasons why banN-
ora wish 70 withhold their names from any public
criticism on the course of Mr.. Danforth, but In
rriyata conversation the censure is freely ana
cmnbatically expressed. The transaction OF Mr..
Danforth's loan is severely condemned nut IN
addition bankers say that there was no excuse lor
the State Treasurer in keeping so large sum VI
State money with the bank. Among "eii-ih'
formed me mbers Of the banking community 'ho
standing of the bank has long been an ooJec' VI
suspicion. and the impering of the FUNDS Oh 'us
taxpayers under the circumstances Is heid 10 10
Indicative of a course not to be justified by con-
ser,ative and intelligent conduct OF the o'"'
Treasury
This is not the first instance of the selecti'h o'
D,nfortb,s mart of unsound banks as the dePos'.
,or;es of thc States money When the cana.
Street Bank went to the wall 1t was io""" IT..
the State Treasurer had State funds ,'e'e' -
same WAS true of the old North NJ -
One of Mr. Danforth's pet deposltorles III o'. In
County was another institution WIN" "N"
with State money IN II. IT,.
L. will he interesting to know wha' ,he n'a' % n"s
Democrats will do with Mr.: Dan,ol. .;od ~
hoon . ono NJ them from the earliest perio" u
.r ,,h;no Hill, Murphy and Sheehan always
,.na,, ,r,t they could rely upon him ior any Nihu
-. .hov wanted When the Democra'io
y, .h. State Senate was accomplished Dah-
c,a,e Treasurer was MEMBER OF tio
r...a C.,vassing Board, and implicitly did hilrs
| .;dd;ro He, with the other members OF 'niS
,..rd defed the Court of Appeals which had de-
",Iad that the lawful return of Dutchess County
."s, hc counted, and with the aid of that othee
.ooI of the ring, Isaac H. Maynard, carried QUE
.ns conspiracy which resulted in the counting In
~ Osborne. the defeated Democratic candidate for
senator from the XVIII Senate District.
For this defiance of the highest court in the
state he has never been punished. Emboldened
by the immunity from the just results Of violat-
ing his duty, he probably eApects to escape the
consequences Of his recent act.
Lieutenant Governor Billy" Sheehan recently
SPOKE of HIN rs my dear friend Danforth. VINO
has been ruined nv Wall Street me re-
mark proves the intimate relations when eSls'
between Danforth and the head men OF the Desno-
cratic State machine.
Danforth is now serving his second term y SAN