The evening world., 1894-06-19
BANK PRESIDENTS TESTIFY.
The Madison square-St Nicholas
$4,000 Controversy.
Every One Got Out in Good shape
Except Dcpositors.

Thomas Ryan. expert accountant for
the receivers of the Madison Square
Bank, was the first witness before Ref
cree William @. Choate to-day, In the
suit of the receivers of the Madison
Square Bank against the st. Nicholas
Bank to recover $4,000. the amount OF
checks passed through the Clearing
House and paid by the St. Nicholas
Bank as the Madison Square clearing
agents. The St. Nicholas was protected
by securities turned over by the Madi-
son Square.
rhe question between the two banks
is purely Clearing House one. and is
to decide which is liable for the amount
vi the checks. The Madison square did
not open its doors the morning OF Aug
p. and the chccks In question wtr.
rieured Until Aug. ..
Mr.. Ryan ,testii,ed that on Aug. $ the
sssgregate liability ,cs % E., the MADISON
John Waterbury, President OF the
Manhattan Trust. Company. then tcsti.
tel that the Chase and Continental
Banks were their ,clenring-house agents.
The Manhattan Trust Company had Y
State deposit credited to Court Fund"
but no general fund; On Aug \, ne
was introduced u fshlOtt y, l)lnIOrtn.
then State Treasurer. at the Chase
Bank
President Carnon introduced him and
stated that Mr.. Danforth wanted TO
Chase National had refused to accept,
and he wished to know II the Manhat-
tan would accept 1t. He said 1t would,
and oI,io fifteen minutes minute Later Later Mr.; Danforth
clearing of checks. received by mail.
He was informed that checks received
before 10 A. NJ. were cleared that day.
n check from Albany for ilt0,0pJ 10 $25O,
900. and wished to know IL Mr.. Water
bury. would be there to countorsign the
check. He was informed that he could
make the check payable to either of
their clearing house ngents-the Cha Sc
or Continental National Banks. No
mention was made of the Madison
Square Bank.
On cross-examination the witness said
there was nothing unusual in the trans
action.
Frederick D, Tappen, President of the
Gaatn eae1 He saa thu b1nk Gsnn MaS waa .hen
member of the Cl,uring- House Asso-
citation. He remembered the discussion
of the standing of the Madison Square
Clearing House, They had heard
rumors affecting the standing Of the
bank for several years, which had be-
come far more pronounced just prior
u AubuSl 1879.
On the morning of Aug. S. 1888. Presi-
dent Graves. of the st. Nicholas Bank,
had called at the committee rooms and
stated that he was In doubt whether the
House agents for the Madison Square.
There was so much talk that he was
becoming frightened. He was advised
% go at once to the Madison Square
FOR the clearings of that and the follow
Ing day. He said he would do so, but
dId not, That afternoon, the Clearing
Square Bank and made an examination
OF Its securities.
The Committee requested additional Sc
curities for the St. Nicholas. which were
turned over to them: The question came
up during their visit as to whether a
few heavy checks might not come In
the following day; The outcome of the
the, credit of the bank was Impaired. and
II should close.
On .cross.examination Mr.. Tappen
said the 81. Nicholas Bank had de-
ditional securities obtained by the Com
mittee from the Madison Square, These
securities We're subsequently returned
TO the receivers of the bank
Expert Accountant Ryan, recalled, tes-
titled that tf balance sheet had been
struck of from the books of .he Madison
Square Bank Aug 6. the figures had
excess of assets of $4,000 over liabli-
ties. exclusive of capital stock and sur
The defense drew from the witness
that in paying the Is per cent. dividend
the Mad son Square Bank receivers de-
Quoted from those depostors whose
checks were cleared by the st. Nicholas
Bank. on Aug: 9 the amount paid by the
testified that the books contained no
entries of transactions OF ug. 9A as the
bank closed It's doors on the morning Of
that date.
Lawyer Untermeyer stated that they
contendei tina. the st. Niclolas Rank
had no right to pay anything after Aug
3 or account of the Madison Square
Bank.
James NJ. Donald. cashier of the Han
East River Bridge, Company was a
heavy depositor in his bank. but he did
not remember who. the officers were.
On. the morning Of Aug 0 Frederick
and handed him check drawn by him
self as President OF the Bridge Com
pany on the Madison Square Bank for
$50, 900. It was dated the day previous,
through the Clearing House that morn
ing. which was done. The check was
accompanied by deposit slip dated the
dav before
that he was President OF the East River
Bridge Comrany. and was also direc-
tor In the Madison Square Bank up to
the time OF its failure. He signed the
check for $4,000 at ne Hoffman House
son Square Bank. His brother. simon
Uhlman, who was interested in the Glen
Ridge Quarry and Mining Company,
which also had deposit In the Madison
Square Bank, also made out a check for
he amount OF their deposit in the bank.