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

When the trial OF Joseph +. NRlaut,
who is charged with having doctoreh the
statements OF the defunct Madison
Square Bank while he vas President OF
that institution was resumed before
Just,ca porrst, in ovor and T.ruiner
this morning, Lewis Thompson. the for
mer cashier, was recalled to the witness
s,ond
''ah"'
evidence against the officers of the Nadi-
49,, $50 uas, Ia, -. u.t,,,
V "i"a'e n'"h' 'eS'"''u VI" rt'"s as
TO many OF the irregularities OF the man
agement in the discount,ng of notes and
,a..,.. -. m.,a. an,so-.,.
'o"um"s VI ''o"es '"u'' '"e "u'"''"'
Of President Bla Vt.
Continuing his testimony regarding
,.a ,hraa 80 n.on ~. ,ha no., w.
ny 'hlee ho'es given ny 'he r'i' wayne
Electric Company for $4,000 each In pay
-, 49, ..aaans .pnt, ~" rn"aan
OF the increased oank STOCK MT lhofnp-
son identified the two last extensions of
these notes, which were secured by ID,
rector Ronald T. Mcdonald. Mcdonald
had subscribed for the stock as trustee,
but 1t was afterwards transferred to his
W name
ord ' iasn was pas PIE o, are1nn, oo' n
witness stand. and these were constantly
referred to by Mr.. Thompson in answer
tr,ct-Attornev Davis The snhscr,nt,on
account Of Mcdonald and the Fort Wayne
Electric COMPANY on which /, ia claimed
the bank never received one cent of
rash, was followed through the different
books and the entries We're looked IN
and read by the witness.
At the time this account was opened,
rhn,,nso. naIi II -. rnn.,
Of sa0l do Mr. Lamterbarh RI,nt,s ra pun
sci. Frequently ohiected 70 The line Of
innrirv adnnted 10 tbe nrosacu,inn On
tn nchniS au1ptru oy me pfGse'Hs'pm on
rulinns we've ms,nnllv av.tnst him
NJ Iauterbacb 'a c.ain, wos that the
r rSSIt;nra Sho We'd, that ato6 al s Of the bee. sso o. ,o %
Sor n,ban praeidsr Riiart awope 70 ttShffaa
fact in his statement Of June i. 1888.
II this had been divided up into differ
~ that II d,5s nn n omiea anne q, ne to hhaaYe
gone to the canital stock Account II was
not material "a the noint nj issue "
Mr.. Rlait, was shown 10 the witness
and he said ~ was given to the Presi.
dent for commissions in betting sub
RE witness smoke in rafher n low
tone when testifvinS az r. how presi.
dent Blaut had signed the quarterly re-
! mir. THOMPSON, IL you have the cour-
age 10 do ~ ~ wish von Womb small
UP louder" broke in Mr.. L%auterbach.
ta ~rhat is z VERY Try im1proPer remark in:
t1nca,Ied FOR I viii not ba va tthts uwu,tt
ness insulted" "' " ~ ~ ""
MI. Laiit .rba cb apolopizeJ and sinh
sided al" sun
Continuing his tsst,nonv ,be v,tness
said that on Nav 1900 he wo ,m eN m
by President Biaut to draw a Collateral
for SIS, 4O5, in payment for ss9 shares Of
the bank stock 10 e"''e' u
The eX-cashIer also said that at Blaut's
order he also wrote n letter ho,ding w
r.. Thompson h harmless against loss,
W. p. Thompson was a clerk in the
Germania Reai-Estate Title and Guar
antee Company. and the witness said he
had no account in the bank. This was
only a scheme. as Mr.. Davis showed, to
enable the bank TO get hold of this
stock, as ": r, Thompson never paid
transferring his interest in the stock to
Crvder. the President of the bank at that
time. together with Mcdonald and Rlaut
Cashier Thompson testified in answer
to a question by Mr.. Davis that he
c2Iidn,t recall iany conversations H. had
with Mr.: BIaut- concerning the disposi-
ton Of shares of the bank stock.
Nheh 90 you recall ne nrsl SAFE,
askei Assistant Aitorney DaSis'
., Inrea Shares were 500 an, = nv.
TO Leo Trvltch at loD a share; less . per
cent solnmissiSn; Imat sac reaIzsd
s4oo; s4oS NJ nnh'gm Vas piaGei " ~
Sreuit q W. ~: noinpsom ~ Ihs '"an,
me otnet tnirtS WI chtut'ru ~ y
snarahsy iuha nceoun' .e %n'G pot was inc I y
up q sucn i.tn's a MI la anh 4,
~ u aod ~ "uu Nv fppndd 20 n %d
Ead Jehtadnpes '' " N''
sseVhat atbar sales do con recau,"
..-rhere were ia h res sold in Feb
r or ZOO az IA - reaIizinp 60 "a. "a
!, ' aaty t"'a. ht p.ing me tmts5 0S ' H.
shooo " WI" ran,t ID w. ,ba W
- Thonsn~ nota Tha hoIance ~ Si.a
y. 'nmrnn.a'bhaoJI" 80 tbn 40 anconn""
"a nv? Ereur,Tu .o s amr ,ESuaea,,,,sSy S drr% .
.nhu pnaiohan,, SoIah, Ion nnd MAJ.
n Jonn p~eirnan.y bought io anu James
-: nea'S .l'rtee"Dr r.
-, Mas tne W. ". thompson note ior
fSS9,oV Yer oro"sht pelofe 'He poaru OF
III, toas',,
..iI was.
we're you present.
was;
M as tne DEFENDANT. blaut, present.
ne was.
Mas ahytnLhg sa!d ABOUT TINS Ihomp-
son 0 a Or S6,Oc?,
, Yes. the President said the bank
held ~? shareS or Its stock, which l.
was not allowed to sell, so they were
placed In the shape OF a loan to W, II
The witness was then asked what he
knew about fifteen shares OF the bank
stock In which Leopold Michael; a type;