New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-20
LOANS WITH NO SECURITY
MADISON SQUARE BANK METHODS
--, v.s Az osTENsIDIE
HOLDER OF sTocK-cAslIER Ii'o"i
SONS TESTIMONY.

SONS TDsTIMoNY
The trial Of Joseph +. B.aut' pr -,
Madison Square Bank was resumed b.
the Court of oyer AM Terminer before Ju-ee
rett and jury. Blaut Is chaTSeu wa t;.
IN maxim false report of the finances o. ''e D''''
% tho STATE Superintendent Of Banks Oh '1''' -
1888 hork co,-
,inncd his testimony He said that the eap''N'
stock Of 100000 had been paid up fully at pi' ''''
ard that BIaut had received per cen. I'm
mission amounting TO $4,000, for hoa''"s '"'
dion to the capital stock. S2JoeV' .,.d
Edward Lauterbach. who represents Biau' asNe1
the witness 10 speak louder III he had the eoui'se
70 do so" Judge Barrett said quickly: ! c"''''oc
allow YOU 70 make these remarks. Ihey arc w.
order" Lawyer Lautcrbach apoloSzeu !" Wv
Court. The witness testified that w. X Iho'npSo"
came into tire bank May l. lSa- Preslurn'
told the witness to draw note ior 80" ,
was signed by Thompson. who gave Dis 'o va .
"a, shares of Madison Square Bank stock W. ~
THOMPSON had no shares before May I. iss-. ireS'-
dent Blaut had directed the witness to ara" W :"
l.ttar which would relieve NJ Thompson from "''
chance OF loss in the transaction. oeo shares from
"Baut did not receive ta05e 90, '''' ~
Thompson when the money was ie EN-, oson,s name
The shares We're transferred 20 ny. "a brought
before the board Of directors on Nay - LII do
Assistant District -At;oIrney u Pl WIsbae!?'
YES" replied the witness, Il 90, lie was ''''-
Moved A Il typewriter IN the pam T..
Tho witness said that Biaut had tod Nm III 81 res
1888 to give Michael loan OF sou on ni'eg , 1i 4
~ Madison square Bank stock. Mlchaei aso g. "
letter protecting him from loss ana pau ~
HAD Michael any shares In the bank .r, ,o,cbt
NO he had not" replied tho witness. ~ r ;,
have gone DOWN own and got II EN- as mesSe"se''
"Nhat was MchaeVs salary? ,.oss with
lie received 1913 a year, SAD 'he "i'''V'' w
a smile. <..Aor loor vrss made
% the ,vn writer on May TO- 1888 TAls ast .0ail
was Tor ST 80 shares or the banh 500 bofn~o
given as collateral. This loan WAS Dr9uSrs no
Tho hoard Of directors and confrmed ins. 20 :
,y,,nrss told Of now Emile s Kahn had borrower
$1,000 on slXty-cever shares OF STOCK. A., ov,or
TN. witness was cr)Ss-eX amInel oN VI 49, .
bach IL said tnat hc had been IN the e''Poy $50
,% Madison square Bark since 1t started. IN ~
iI la maj he understood that he was not 70 be n
dictel, I'm confederation OF MS tesu'!'"s ''' W.
'"DlG YOU ever previous 70 June, 1903 warn me
bonL directors that the affairs Of the bahk WERE
c5ng wrong" Mr.. Tauterbach asked; ~. #
II dl" replied the witness. Il ton Ut. J.. -
Macdonald that the bank was Dorro"ins o'e'
1'bn witness thought that the banks capital was
irrlir-i about $4,000 when Bnut became Pi
olfhouCn there was Cstenslble surplus Oh <-yVo
Tho witness vas then crosse xanine ABOUT uT Io,a.i
~ $4,000 made b. tho bank - the lOrt NasinV
company WAS tina not perfectly Iair ana 'e-
,-i.iria.e loan II the time II was made 81.
~ think IL was. hut tn" amount was 700 1hi X,
vas The replv Thompson gave II as his opinion that
w. alleged loans 70 Leopold Michael and " r.
Tho,npson wore made simply - protect inc pans
which was not allowed - hold ts o"n stock. me
bank bought back its sock al a prom. Inc trial
will to-day.