The evening world., 1894-06-21
HAD A BIG LOAN IN s|GHT.|
Why St Nicholas Bolstered the
Madison Square,
Ex-Cashicr Gardner Tells More Of
the Famous Collapse.

Bank. was resumed before Referee Will
lam G.. Choate this morning.
william j. Gardner eX-cashler 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
Untermeyer 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. .. 1898,
he had no Idea that the Madison Square
Bank would close its doors on that
date. He admitted that 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 Bank.
No action was taken by Ihe directors
OF the St. Nicholas with regard to ter
minating the contract between the Two
banks until the Issuance OF the Clearing
House notice.
u" The Ilt officers Of the Madison, Square
with which to Pay of their loans,
well. yes" replied the witness.
ANOTHER, Clearing House agent"
Bank ran below the $5O,OJU mark early
In the month preceding the banks fail
nre Witness said that the Madison
square officers. were called to account
about this. and Director Mcdonald sub
sequently told witness that the bank
wa, was negotiating, for a loan OF 10000 to
SZV.VO from Ladenburg. Thalman Co,
when the Madison Square Bank would
pay up Its Indebtedness to the St. Mich
.trcss saw President Graves, OF the
st. Nicholas. and Director Mcdonald.
OF the Madison Square. leave the St.
Nicholas Bank on the morning OF Aug.
3, 1893. He understood that they were
going before the Loan Committee of
the Clearing House. Did not learn that
day. OF the result Of that meeting.
Witness admitted that he had read OF
the Madison Square Banks failure on
the morning of Aug. ., 1893. This was
before reaching the bank. He could
Graves about the failure before the
bank messengers left for the Clearing
House.
Il had talked with a director of the
the failure, ;" said the witness. land was
assured OF the banks solvency."
..W "Who Teuyy1s gave yos9 this assurance?"
"Humph! / thought so," said Lawyer
| Untermeyer.
When M you; you sent sent out the Clearing.
Square officials had failed to secure
loans from the Clearing House and from
Ladenburg, Tnalman & Co.. didn't you?"
II was SO told"
when did you prepare those notices."
"On Saturday. Aug. o."
Then they were in course Of prepara-
ton three days before they were sent
out and four days before the bank
closed?"
II guess that's right"
What time on the afternoon OF Aug
Q, 1893, was 1t tnat the first instalment
of these notices went out?
About o clock in the afternoon"
Don't you know that President Can
non, of the Chase National Bank. testi-
| Bank"
with whom did you talk at the bank
concerning the affairs of the Madison
Square B.nk on the morning Of Aug. o.,
Il recall having talked with Hill. He
asked me II we had sent out the notices. ="
who is HIP
He was our receiving teller. He's up
Witness recollected that the clearance
ARRANGEMENTS between the two banks
had been made by Messrs. Cryden and
Blaut for the Madison Square and and
st. Nicholas. The date was Jan. 8, 1891.
Beyond this he said he could recall lit
tie, but he thought he met President
afterwards.
Here the referee ordered the witness
to produce the minutes OF the ST. Nicho-
las Bank bearing on the question OF the
Pending the arrival OF the minute
| book Witness Gardner recalled that Mr..
tions regarding the, rules OF the Clear
ing House. He also recalled having
answered some of Mr.. Blaut's ques-
tions and having handed to him a
book of Clearinghouse rules and reso-
lutions.
He asked particularly about the time
allowed for clearances," added the wit
ness. and ! explained the twenty-four-
The minute book of the st. Nicholas
ensr Bank se ,be
which the question of becoming, the
Madison Square Banks Clearing House
agent was first discussed. The min
utes OF the meeting OF Jan. l5' week
later. were also read.
The minutes OF this meeting ,estab-
lished the fact, that the Madison Square
he Hank sum had Of Fa. @ 0 hS s st Nh2ns
and that the last-named bank would
then act as the Madison Square Bank 5
| clearance agent.
Then Lawyer Untermeyer read from
the minutes of the Madison Square
Bank, under date OF Feb. 3, 1891, in
effect that the negotiations between the
a record to that effect be spread upon
| the minutes
This ended Mr.. Gardner's cross-exam-
| 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 s3l.SS6 at o p. NJ, Aug. 8, 1893. but
same was credited to the following day
the eventful Aug 3.
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 BlHut
had told him that the bank had two or
three dollars for every one claimed
against It.
The accounts collected by the st.
| Nicholas Bank for the Madison Square
| Bank We're &7l. 1861. The interest on
that amount Is Sl0.567.l6.
"But when Mr.. Blaut told you his
bank had plenty of money to meet Its
liabilities. you knew from their la ST
o"or'erly report this was untrue, didn't
you?"
We'll, rather did think So"
| After some unimportant testimony,
| Mr.. Butler declared the case for the de-
fenda nts closed. So did counsel for the
plaintiffs, who said they had hoped 10
| have Simon thlmann as witness, but
they heard that he was In Boston.
| Lawyer Butler then moved to dismiss
the complaint, on the ground that II
was made against a temporary receiver,