New-York tribune., 1894-03-10
ST. NICHOLAS BANK TROUBLE.
SOME OF IT'S SECURITIES TO BE SOLD
AT AUCTION.

THE INSTITUTIONS QUEER METHODS OF DOING
BUSINESS NOT YET MADE PUBLIC-DEPosI-
TORS MAY DEMAND AN INVESTIGATION.
Ex-Mayor Grant, the receiver Of the st. Nicho-
las Bank, gave out yesterday the list or some or
the securities held by the st. Nicholas Bank as
collateral against loans made by the bank
They will be sold at public auction on March q
at the New-York Real Estate Saiesroom. 1t was
thought that the names of the makers or tie
notes would be given out also, and that some or
the peculiar transactions between the Madison
Square Bank and the st. Nicholas Bank would
be made public. but they were not. Mr. Grant
said that he had held back a good many of the
securities because he thought that the notes
would be paid and that they were too good TO
sacrifice at auction sale.
The securities that are offered for sale are of
little importance The list includes ten shares
of Beecher Schenck & Co, 100 shares of the
Southern National Bank stock. 900 shares OF the
Bridgeport Land and Improvement Company, sOO
shares Of the Citizens Gas Company of Brooklyn,
some Richmond Terminal securities, and
miscellaneous assortment OF poor securities
Beecher. Schenck & Co, were supposed to have
a wide connection with the st. Nicholas Bank,
but the list Of collateral gives little information
about It,
1t was known that among those whom the
bank made loans TO were Beecher. Schenck &
Goa Joseph f. Blaut, A. l.. Soulard, the firm of
|. B. Newcombe & Co, but what part Of the
collateral put up came from this list cannot be
learned. The publication of the list of collateral
had been looked forward to with considerable
interest and especially so in respect to the Madi-
son Square Banks collateral for its $269,39O debt
10 the St Nicholas Bank which was its Clearing
House agent The receivers list Of the col
lateral however, throws little light on the sub
ject 1t may be that the collateral Of the Madi-
son Square Bank is among that held back by
Mr.. Grant
Mr. Graves the president Of the ST. Nicholas
Bank complained recently in published inter
view about the trick played on him by the Madi-
son square Bank, VIXEN the four checks, two Tor
$25O000 for State Treasurer Danforth ana
his political friends and two for s54,10O for the
Blauts were dumped on his bank. Mr. Graves
also complained that he had not been larry
treated by the Clearing House Committee. Tne
Clearing House however, did all that could be
done 1t seized enough security from the Madi-
gan Square Bank TO cover the checks or the
spcculating State Treasurer and the BauiS.
The Clearing Holsf Committee went 10 the
Madison Square Bank on the afternoon u lalied
and took securities to the amount or $3oO,OO0. ana
held them i'm the name OF the ST Nichoias BANK.
Later the Clearing House Association iound that
II had been acting without authority OF law, ana
II returned the securities and Informed Presl-
dent Graves that II Rad tried to hold them safe
as long as possible. but that IL did not intend
tn be sued BY the Madison Square Bank re-
ceiyers II added that he would have to look out
for himself The association demanded tnat
President Graves should sign an agreement re-
leasing II from all responsibility and that s
what Mr Graves based his claim on Of not hav-
ing been treated fairly.
People are now wondering II tne speculatlns
c,a,n Traosurer's loar from the Madison Square
Rank was not transferred TO the ST. Nicholas
Bank and what form of security he gave Ihere
are still several chapters OF the inside history Oh
tho - Nicholas Bank that have not been told,
and there IS a strong feeling among depositors
that a full publication Of everything that mas
happened in the bank be made II was sald yes
,oud soon be held. and that rigid eXamlna-
,ion If Tho banks transactions would be made.