The evening world., 1894-06-19
BANK PRESIDENTS TESTIFY.
The Madison Square-St Nicholas
$4,000 Controversy,
Every Ono Got Out in Good Shape
Except Dcpositors.

Thomas Ryan. expert accountant for
the receivers of the Madison Square
Bank, was the first witness before Ref
cree William q. Choate to-day, in the
suit OF the receivers of the Madison
Square Bank against the ST. Nicholas
Bank to recover s3ls,ooo. the amount of
checks passed through the Clearing
House and paid by the st. Nicholas
Bank as the Madison Square clearing
by securities turned over by the Madl-
son Square.
The question between the two banks
is purely a Clearing House one, and Is
to decide which Is liable for the amount
OF the checks. the Madison square did
not open its doors the morning OF Aus.
=. and the checks in question were
dated the day before. but were not
ciearcd until Aug, o.
MIR Ryan testified that on Aug. s the
square Bank were 81. .i62, 1888. and the face
value OF the assets, 81 l626I3
John Waterbury, President of the
Manhattan Trust Company. then testi.
hel that the Chase and Con,inental
Banks were their clearinghouse agents.
state deposit credited to Court Fund"
but no general funl. on Aug. ), he
was introduced 10 Elliott s. Danforth,
then State Treasurer, at the Chase
president Carnon introduced him and
stated that Mr.. Danforth wanted to
open another state, account which the
and he wished to know II the Manhat-
tan would accept 1t. He said u would,
and tifteen, minutes later Mf Danforth
clearing of checks received by mail:
He was informed that checks received
before 10 A. NJ. were cleared that day
a , check from = Albany ban FOR FOR siso,SS to $40.
900. and wished to know II Mr.. Water
bury would be there to countcrsign the
check. He was informed that he could
make the check payable to either OF
their clearing house agents-the Chase
or Continental National Banks No
mention was made of the Madison
Square Bank
on cross-examination the witness said
there was nothing unusual In the trans
frederick d. Tappen, President of the
called. Ae said the Gailatin was a
member OF the Clearing House Asso-
citation. He remembered the discussion
of the standing of the Madison Square
Bank in the Committee meeting of the
rumors affecting the standing of the
bank for several years. which had be-
come far mnSooye pronounced just prior
on the morning Of Aug. s. 1893 Prcsi-
dent Graves. OF the st. Nicholas Bank,
had called at the committee rooms and
stated that he was in doubt whether the
St Nicholas would continue as Clearing
House agents for the Madison Square.
There was so much talk that he was
becoming frightened. He was advised
Bank and obtain additional securities
for the clearings Of that and the follow
Ing day. He said he would do so. but
"A NlAa rtt,.x
House Committee visited the Madison
Square Bank and made an examination
of Its securities.
The Committee requested additional Sc
curltles for the St. Nicholas. which were
turned over to them. The question came
up during their visit. as to whether a
few heavy checks might nat come In
visit was that the Committee decided
the credit OF the bank was impaired. and
II should close
said the ST. Nicholas Bank had de-
rived no benefit whatever from the ad-
ditional securities obtained by the Com
mittee from the Madison Square. These
to the receivers OF the bank.
Expert Accountant Ryan, recalled. tes-
tilted that II balance sheet had been
strucl. of from the books Of the Madison
Square Bank Arg. s, the figures. had
they been correct, would have shown an
excess of assets of s69s, 600 over llabili-
tes, eNciusiNe oi chPi'ai s'och unu sur-
plus.
The defense drew from the witness
that In paying the 25 per cent. dividend
the Madison Square Bank receivers de-
Quoted from those depositors whose
checks were cleared by the St. Nicholas
Bank, on Aug. 8, the amount paid by the
St. Nicholas. The witness had previously
testified that the books contained nc
entries of transactions OF ug. "a as the
bank closed its doors on the morning OF
that date.
had no right to pay anything after Aug
3 on account OF the Madison Square
Bank.
James NJ. Donald. cashier Of the Han
over National Bank. testified that the
heavy depositor in his bank. but he did
not remember who the officers were
| on the morning of Aug. 0 Frederick
| Uhlmann called ut the Hanover Bank
and handed him check drawn by him
pany on the Madison Square Bank fol
$50, ,0o0. II was dated the day previous
| and Uhlmann requested that 1t be pu
| through the Clearing House that morn
| ing which was done. The check was
accompanied by deposit slip dated the
| day before.
| Frederick Uhlman followed, and testified
| that he was President of the East River
| Bridge Comrany. and was also n drec.
tor in the Madison Square Bank up &c
the time OF its failure, He signed the
check for $4,000 at he Hoffman House
son Square Bank. Hir brother. Simon
Uhlman, who was interested in the Glen
Ridge Quarry and Mining Company
which also had n deposit In the Madison
| Square Bank. also made out II check for
the amount of their deposit in the bank.