New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-21
BLAUT PLEADS GOOD FAITH
HE CONSIDERED THE REPORT COR
RECT, HE SAYS.
TIE DEFENCE OPENS IT'S CASE IN THE TRIAL
IN OYER AND TERMINER-THE CHARGES
DOWN

NARROWED DOWN.
The prosecution finished its testimony yesterday
IN the trial Of Joseph F. Blaut. president of the
Madison Square Bank, and the defendant was
placed on the witness stand in his own behalf the
case is before Judge Barrett In the Court OF oyer
and Terrnlner. Leopold Michaels was the first Wit
ness called lie was the stenographer in the bahA
who gave notes for twenty-five shares OF Stock
which had been placed in Mchacls's name so as to
evade the law forbiddng the bank purchase its
own stock. The witness said that he had no IN
,erest in the stock. and did not know to whom II
BELONGED. on denomination by Mr.. Lauter-
bach. the witness testified that when the scheduie
Of June ] was shown to the defendant the latter
asked c. L. Seover the assistant cashier II the
statement Of the Of money due by recioTS
was correct. Mr.. Selovcr had said that 1t was al
right; but that II anything was wrong he would
toll Mr. Blaut The witness added that when the
statement was sworn 10 Mr.. Blaut was away. lie
admitted TO Assistant Dstrict-Attorney Davis that
he had been with Blaut great deal lately. several
other witnesses including q. II. Lee. Morton the
discount clerk OF the bank. were called Then Judge
jarrett narrowed the case down to the transactions
with w r. Thompson and Mlchaes, both OF whom
appeared on the banks books as owners OF It's
stock for which they did not pay.
William Fromme then opened the case for the
defence. lie then called Charles Eugene Sullivan,
who became assistant cashier Of the bank in March,
1891 lie declared that he made out the report OK
June /, 1896
John Delahanty was the next witness. lie was
counsel for the Madison Square Bank from 1871 TO
1893 lie testified that he bought shares in the
Madison square Bank In Marco. 1898 George ~
lIarit presden. of the Chatham National bilh'
testified as to Mr. Blauts personal character whlCl.
he said was excellent. Other witnesses We're also
uroiuccd 10 give evidence to Mr.. B!autS chal-
acter. II, 81, -
was born in Germany. was foriy-hvc years 1I,
and came TO this country in 1866 He entered INTO
In, banking business in 1888. lie SAID ne was q
director OF the Columbia Bank before he became
resident OF the Madison Square Bank ms was
IN 1901 The witness sad that IN 1880 the hrm o.
Ue,ruund d Baut had entered INTO a negOtla tlo.i
stock. The witness then tod about tie louisa
Sate Eecr rio bonds and the loan made by me M1ul-
SON Square Bank % $4,000 10 IN" Fort wayne
Electric COMPANY on S2oOOl0 OF these bonds.
81 regarded the transaction WIN Inc Fort aNhe
Electric Company cash transaction and the III
fpd YOU dispose of any stock In the Madison
SQUARE Rank" asked Mr.. Davis.
II never disposed OF a cents worth replied
Blaut then tod how the Madison SQUARE BanI
ACQUIRED the stock belonging 90 Mr.. Cryler. The
transaction in which Leopold Michaels figured was
made in good faith, and me notes Were reported
as an asset in the schedule in the shape OF loan.
What occurred In the preparation Of the report
and schedule in June l%}2'
The witness said that he told Mr. Sullivan not to
include the Fort Wayne loan in the report. as II
was the proper place FOR Il.
"Dld you see the schedule when you signed the
repOrt?' was asked.
NO. ! never saw the schedule until 1t in
court"
The defendant will be cross-examlned this morn
ing by Mr. Davis