New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-10
THE MADISON SQUARE SHUT.
4 BANK EXAMINER IN CHARGE.
DEPOSITORS OUTSIDE THE DOORS GET
LITTLE SATISFACTION.
WHILE THE BANKS OFFICERS ARE IN SESSION
WITH THEIR COUNSEL THE STATE STEPS IN
AND ASSUMES CONTRoL-RUMoRs
OF THE APPOINTMENT OF

WITH THEIR COUNSEL THE STATE STEPS IN
AND ASSUMES CoNTRoL-RUMoRs
OF THE APPOINTMENT OF
A RECEIVER.
Confidence in the ability of the Madison Square
Bank TO strayIten the difficulty which caused the
closing OF its doors yesterday dminishes as facts
regarding the truly embarrassed condition OF its
finances brought to light. The latest state
mcs is made by the State Bank Examiner II
is that the bink cannot Immediately raise the
necessary capital to enable il TO continue Its
business and that receiver will probably b
appointed to-day.
TIE news of the banks embarrassment and
the probable closing of its doors, announced
Yesterday created general surprise The bank
was supposed TO be perfectly safe Its sudden and
what now seems it's almost certain inability %
meet its Indebtedness comes as another financial
shock Depositors in the Madison Square Bank.
if what they say is TO be believed, have little
fear of losing their money. They invariably
wish TO draw it out Of the bank, however
OFFICIAL NOTICE OF TIE CLOSING.
AS early as Z o'clock yesterday morning Dttie
group of them had gathered about the Broadway
entrance. There We're men and women, all ANXIOUS
to learn what the bank would do when 1t came
to omen. AZ o'clock a notice was posted on
the doors IL read:
This bank will remain closed to-day
The notice did not relieve any of their anxiety
They tried TO obtain further information from DE-
hind the closed doors, but none was forthcoming'
Still there was nothing like excitement among
those present in the Railways Of the bank-only
d, sire TO get their money Immediately some hau
bills to pay, others needed money TO meet interest,"
due on mortgages, which il not satlsned wouio
surely be foreclosed. The majority of these de-
postors had small accounts with the bank, rang
ing from $500 to $4,000. Some OF them were
poor-al were especially needy.
During the forenoon State Bank Examiner Jud-
son and an assistant began their examination OF
the banks books statement was added TO the
one posted on the doors. 1t was written on
letter head Of the State Banking Department,
dated Albany, August 0, and read
This bank having voluntarily closed its doors
by posting notice to that effect, this department.
is now in possession of its affairs, and an ex-
animation into its condition is being made.
"CHARLES NJ PRESTON, Sup't Of Banks.
The paper was not signed by Mr. Preston, but
his signature was said to be authorized by him.
Until late in the afternoon that was the last and
the only information that came from the bank
Meanwhile the officers and directors of the bank
were holding a meeting in the office OF their couh-
sol Putney. Bishop & Slade, No. 1l5 Broadway,
and considering what was to he done and how 10 do
il Nearly all the officers Of the bank and many
Of the directe,s were present The conference
was in session when news received over the
telephone that Mr.. Judson had takeo- charge OF
the books Of the bank. That information practi-
caIly closed the conference Of the bank officers.
What officers or directors might offer to do would DO
of no consequence until the bank examiner had
made his report.
SILENCE ON THE PART OF THE OFFICERS.
Neither the president of the bank, Joseph T.
P'aut. nor any of the other officers or directors
present at the meeting downtown would speak
concerning the banks affairs. Bank Examiner
Judson, however, who is the only one now from
whom accurate and unbiased statements concern
ing the banks condition may be obtained, gave
out some interesting facts yesterday afternoon.
At the meeting of the directors, MIR. Judson SAID,
those present readily saw that it would be neces-
sarv 70 raise Immediately between $500, 900 and
sa0O, 900 in currency in order TO continue busi-
ness Such an amount impossible TO them
Many of their assets consisted OF deprecated
holdings Of stocks and bonds, and paper that had
been discounted insufficient security. About
S5O,O00 of this paper had been secured during
the former administration OF the bank. under tie
presidency of W. Wetmore Cryder, and insteau
Of being written off had been carried as gooo
assets One loan Of S25, 200 to Mr.. Cryder
personally.
THE LOAN TO MR.. DANFORTH.
Another unsecured loan of little sum OF $780,
600 had been made TO Elliot Danforth, the treas
urar Of the State of New-lork. In connection
with this personal loan to Danforth 1t is worth
noting that the bank held S2500Oo of the State
money. deposited there by Mr.. Danforth. Inc
deposits in the bank amounted TO 100000. These
facts and doubtless much more that Mr.. Judson
Thought best TO keep quiet, first came to lght ~
the investigation mtde by the Clearing house
Committee on Tuesday afternoon. At the meet
inc downtown il was further discovered that about
s3oo 600 in drafts on the Madison Siaare BANK
had ba,n nrcsentcd TO the ST. Nicholas Bank
through the Clearing House yesterday morning.
In order for the Madison Square Bank 70 co".
tnuc il was necessary to raise that amount "
currency at once 1t is said that Si3O,ooo was
| all that could be secured
WILL RECEIVER DE APPolNrEp'
RAM, Examiner Ju(son would give no idea ''
| tle probable result of his investigation VI ~
banks books He had not gone suncieh.'
| INTO the, accounts he said, to make a s-... e."'
Of the banks standing, its liabilities anu i'' -.
| The bank was in n bad way; now o"' o,v.
| rcr cent of the money il would oc '''e ,nrost
ITS dcpositors he would not venture ~ Ia shortIv
4 receiver would probably be appolh'eu ,"S sm 90,
and then definite statement might De iOo Ssrras..
Mr. Jndson did not think the BANK ecu, eu' ., N.
mont had been caused through any ,,a ia",, " ,vas
present administration. Its present "'''
| ,ue more 10 past afairs.
OFFER OF FRIEND OF PRESIDENT .dasr afternoon nIsu
The presence at the bank Yesterday as m',"S ri1u to
+ large depositor, who said he was $, w'" .aa" ooo
.ivc bonded security to the extent .. S ,m fs,,
o dcpositors of small amounts WIZ 10 .r,. ,ho hank.
| + suffering loss by the ciosihS ~ M ,a;,;,.