The evening world., 1894-06-21
|HAD A BIC LOAN IN SIGHT.
Why st. Nicholas Bolstered the
Madison Square.
Ex-Cashicr Gardner Tells Moro of
the Famous Collapse.


Bank. was resumed before Referee Will
lam @. Choate this morning.
william j. Gardner. ex-cashier OF the
st. Nicholas Bank. spoken OF yesterday
by the plaintiffs counsel as an adverse
witness was recalled to the chair, and
his rigid cross-examination by. Lawyer
Cntermeyer was continued.
Witness declared that Notwithstanding
the fact that he had sent out notice
to all the Clearing. House banks to the
effect that the st. Nicholas Bank would
discontinue to clear for the Madison
Square Bank on and after Aug o. 1883,
he had no idea that the Madison Square
Bank would close it3 doors on that
date. He admitted tnat the affairs OF
the two banks had been the subject of
discussion at board meetings. the last
time no later than six days before the
suspension of the Madison Square liank.
No action was taken by the directors
of the st. Nicholas with regard to ter
minating the contract between the Two
House notice.
The officers Of the Madison Square
Bank were meanwhile asking for time
Warnpt watn whteh men 2, to pay of their loans
They were alse tookinE d '"a around Mi"GSs: for
another, Clearing: House agent"
hN btl"JSlt Vi tnt MuulSDn square
Bank ran below the $4,000 mark early
In the month preceding the banks fail
ure. Witness said that the Madison
square square officers were called to account
about this. and Director Mcdonald sub
sequently told witness that the bank
was negotiating. for loan OF 100000 to
100000 from Iadenburg. Thalmnn n Co,
when the Madison Square Banl, would
Cias. ciIS "' It's Indebtedness to the st. N'eh-
n.,,Gess saw President Graves, of the
st. Nicholas, and Director Mcdonald.
Of the Madison Square. leave the st.
Nicholas Bank on the morning of Aug.
s. 1893. He understood that they were
going before the Loan Committee of
day OF the result of that meeting.
Witness admitted that he had read of
the Madison Square Banks failure on
before reaching the bank. He could
not recall having talked with President
Graves about the failure before the
bank messengers left for the Clearing
House.
II had talked with n director OF the
Madison Square only day or SO before
the failure said Id .s the witness. witness and was
WHO gave you this assurance?"
"Humph! l thought so," said Lawyer
When you sent out the Clearing
Square officials had failed to secure
loans from the Clearing House and from
Ladenburg. Thalman a. Co.. didn't you?
IL was so told
When did you prepare those notices."
"On Saturday, Aug. o."
ton three days before they were sent
out in.s and n! four days before the bank
Il guess that's right"
What time on the afternoon Of Aug.
., 1898, was 1t tnat the first instalment
Of these notices went out?''
about 4 O'Clock in the afternoon"
Don't you know that President Can
non, of the Chase National Bank, testi-
fed to having received your notice before
he went uptown to the Madison Square
II heard him testify to that effect
with whom did you talk at the bank
concerning the affairs OF the Madison
fssss;! S2saF!e Bank on the morning of Aug o.
II recall having talked with Hill. He
asked Whn me IL If VI bad sent out the notices."
He was our receiving teller. He's up
In Sing Sing now"
Witness recollected that the clearance
arrangements between the two, banks
had been made by Messrs. Cryden and
Blaut for the Madison Square and
President. Graves and himself for the
Beyond this he said he could recall lit
tie, but he thought he met President
Cryden a second time day or two
afterwards
to produce the minutes OF the ST. Nicho-
las Bank bearing on the question of the
clearance negotiations;
Pending the arrival of the minute
book Witness Gardner recalled that Mr..
Blaut had asked him numerous ques-
tions regarding the, rules Of the Clear
answered. ans e' some Of Mr.. Blaut's ques,
t!ons and having handed to him
book of Clearing House rules and reso-
III" . ,oa ,,ort,,,,o rio about tho tirpa
allowed for clearances." added the wit
ness. ''and explained the twenty-four-
hour clearance, rule"
The minute book Of the st. Nicholas
meyer read from the minutes OF the
sns meeting estion OF Jan ssi
Madison square Banks Clearing House
agent was first discussed. The min
utes of the meeting OF Jan. Is, week
later. were also read:
lished the fact that the Madison Square
Bank had paid over to the st. Nicholas
the, sum OF 100000 in bills receivable;
and that the last-named bank would
then act as the Madison Square Banks
| cleara agent.
Then Lawyer Untermeyer read from
Bank, under date OF Feb. g. 1881, in
| effect that the negotiations between the
two banks had been confirmed and that
q, record to that effect be spread upon
This ended Mr.. Gardner's cross-exnm-
ination. and the redirect examination
| was then taken up by Lawyer Smith, who
| got the witness to testify that the Madi-
| son Square Bank had made "A deposit
| of $3l, 1886 at =. NJ, Aug. s, 1893 but
| same was credited to the following day
the eventful Aug. 9.
| Replying to Lawyer Buffers queS-
| tion. witness declared that so far as he
| was aware. the agreement between the
| two banks had never been altered.
Upon redirect examination by Lawyer
| Untermyer, Mr.. Gardner stated that
only few days before the failure of the
Madison Square Bank. President Blaut
had told him that the bank had two or
three dollars for every one claimed
| against II.
The accounts collected by the St.
Nicholas Bank for the Madison Square
Rank were s27l.l76,sl. The interest on
that amount is sl0.j57 l6,
But when MIR. Blaut told you his
bank had plenty Of money to meet Its
| liabilities, you knew from their last
Quarterly report this was untrue, didn't
your
We'll, I rather did think So"
After some unimportant testimony,
| Mr.. Butler declared the case for the de-
PENDANTS closed. So did counsel for the
plaintiffs who said they had hoped TO
| have Simon Chlmann as a witness. but
they heard that he was in Boston.
| Lawyer Butler then moved to dismiss
| the complaint. on the ground that II
| was mnle against a Temporary receiver,