The evening world., 1894-02-19
BANK SECRETS TOLD.
Juggling with Stock of the Madi-
son Square Explained.
Ex-Cashier Thompson Tells Of Stock
Bought by Dummies.
Justice Barrett Declares the Wit
ness Must Not BE Insulted.

who is charged with having doctored the
statements of the defunct Madison
Square Bank while he was President Of
that institution, was resumed before
Justice Barrett, in oyer and Terminer.
this morning, Lewis Thompson. the for
mer cashier. was recalled to the witness
stand.
Mr.. Thompson, who has turned States
evidence against the officers of the Madi-
son Square Bank. testified on Friday as
to many of the Irregularities of the man
agement IN the diScuunting of notes and
.loaning of money under the authority
OF President Bla It.
Continuing his testimony regarding
the three notes given by the Fort Wayne
Electric Company tor $1,000 each in pay
ment for subscriptions to 1000 shares
OF the increased bank stock. mir. Thomp-
son identified the two last extensions Of
these notes. which were secured by Di-
rector Ronald r. Mcdonald. Mcdonald
had subscribed for the stock as trustee,
but 1t was afterwards transferred to his
own name.
There was a big pile OF account books
and ledgers piled on a table beside the
witness stand, and these were constantly
referred to by Mr.. Thompson In answer
to tn" questions put by Assistant Dis
trict-Attorney Davis. The subscription
ACCOUNT Of Mcdonald and the Fort Wayne
Electric company, on which It Is claimed
'h". bank never received one cent of
caSn, was followed through the different
books and the entries were looked up
ana lead by the witness.
AT To" time this account was opened,
Thompson said the bank had a surplus
e. Sa9Mm Mr.. Lauterbach, Blaut's coun-
INQUIRY adopted, by the prosecution on
technical grounds, but Justice Barrett's
rg,irsT We're usually against hin;
for wbep. President Biaut swore to this
II this had been divided up Into Differ
ent accounts by the officers of the bank,
3" That It did not all appear to have
not material to the point at issue.
A cashiers check for SIS, 900, payable to
Ny; Biaut; was shown to the Witness.
dent for commissions. in getting sub
scriptions TO the capital stock.
The witness spoke in rather a low
dent Blaut had signed the quarterly re-
MIR. Thomson, If you have the cour-
up louder" broke in MIR. Lauterbach.
THAT Is a very improper mark in
terrupted Justice Barrett, land utterly
n nass Insu Ter ! Will not have this wilt
s,Mr; Lauts rbach apologized and sub
Continuing his testimony the witness
by President Biaut to draw a coflaterai
note TO be signed by W. r. Thompson,
tbr 10 SSS - t': IN payment for $50 shares Of
The ex-cashier also said that at Blaut's
9rdgr he also wrote a letter holding w.
n Th9mpson harmless against loss.
w. T., Thompson was a clerk In the
Germania Real-Estate. Title and Guar
sntee Company. and the witness said he
nag nag no account in the bank. This was
s zap the bank to get hold Of this
ANYTHING for 1t, and signed a paper
me bank. The witness said that this
Vas done through the agency of w. w.
u,,rSder. the President of the bank at that
Cashier Thompson testified in answer
20 q question by Mr.. Davis that he
SST11Ihdn't RECALL any conversation he had
non or shares OF the ban stock.
,,,M men 90 you recall the first sale?"
a. Mrh ASSISTANT Dlstrict-Attorney Davis.
% Leo witch at 100 a share, less 3 per
cent Commission. That sale realized
S ESQ.,, s4SSS Of WHICH was placed to the
The other $50 w a2"'p credi ta "' to 'oa the
guaranty fund account, which was made
up or such Items as were not Included
was intended to lay VI a fund to provide
against bad indebtedness"
".M hat other sales do you recall?"
mere were ll3 shares sold in Feb
frnaalr.y' 1882, at 1876 IL, realizing s9,O34.5O.
sLSS OF which. the total OF the
fpnares at l45, being credited to the W.
u" thompson note. The balance of $l49
was credited to the guaranty account"
Who purchased these 1l3 shares?"
Ionn Delehanty, bought 100 and James
Was the w. r. Thompson note for
Directors ?"
1T was
"i' wns you present."
Mas the defendant, Blaut, present."
son loan a n ,5s, 5So sad about this rhomp-
bo,i essSo the President said the bank
r""S not allowed to sell, so they were
Th5mtnslm t!he shap@ OF a loan to w. r.
hnnnne witness was then asked what he
sSt"cTE about fifteen shares OF the bank
Writer, figured. He replied that he called
,snnGn attention of President Biaut In April,
af 70 az advertisement Of fifteen shares
gnestei witness 10 see Mr. ThImanna and
request him TO protect that stock at III
Sirr' ~, The stock was bought in by
49, I hllnann. Mr.. B.aut tod witness to
make a loan Of $2,25N on those shares TO
tmHi,oli Michael and to give him a let
Ter i~ndemnifying him against loss,
I, ~ Michael eyer deposit those shares
NO; he brought them un to the bank
as mrSsesnser from Mr. Uhlnann."
M WHr0,, mos" shares evcr transferred to
hllnhaels nance
Nev"r, ana they were never In his pos.
- sliniIa! transaction on May II, 1893.
W. which Michael again figured as the
ap'ilrehl p1sSessor cf the stock on which
Out by Nj. Davis. ""' "e'S"'
M, note for 1860, signed by Leopold
VI lchael, was submitted nv Mr. DavIs