New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-19
ELLIOT DANFORTH MIXED.
CONFUSED IN HIS TESTIMONY ABOUT
THE STATE TREAsURYs CHECKS.
TIE SUIT OF TIE MADISON SQUARE BANK RE-
CEIvERs AGAINST THOSE on THE ST NlcHo-
Las BANK BEGUN-A CLEARING HoUsE


cErvERs AGAINST THOSE or THE ST. NIcHo-
Las BANK BEGUN-A CLEARINGHOUSE
PRINCIPLE IN QUESTION.
Before William q. Choate. the referee In the case
there came up for argument yesterday at the rel
eree's Office. No. 35 Wiliam-st. the suit OF the re-
cevers Of the Madison Square Bank against the re-
cevers OF the 81 Nicholas Bank. The case not only
Involves securities 10 the amount % 10000 but also
I, Is 70 decide CleaYlng House question as 70
whether or not the association has the right ON the
morning that n bank does not open for business TO
clear checks on chat bank. The Madison square
PAM, did not open on the morning Of August .. and
checks dated August passed through the Clear
ING House on the morning OF the 9Th. being paid by
the St Nicholas Bank. rs agent. The suit Is 10 set
lie the question whether these checks were properly
paid and therefore whether the ST. Nicholas BANK
should stand the loss the Madison Square Bank
Samuel tnter7nyer appeared for the Madison Square
Bank receivers. and Mcssrs Smith and White Tor
thosc.of the ST. Nicholas
The first witness William Nash, The president
of the Corn Exchange Bank. lie told about MS
visit to,the Madison Square Bank on the evening OF
August s. 1893. member of the Clearing House
Tben Eliot Danforth State Treasurer was called
T, wason the afternoon ofAugus that his fears were
greatly aroused and no a notice that the ST
Nicholas Bank had refused longer TO clear for the
Madison Square Bank. lie then decided to draw
the State funds from The bank. lie teephoned to
train there later in the day. He returned with the
checks early. In the morning OF August D.
And then what did you do?" asked Mr. Inter
myer.
81 took the checks to the Manhattan Trust Com
panv one check in favor OF the Chase Ma
tIonal Bank and the other the Continental Ba'k
"But Il was not yet,9 OcOck when you arT1Ned vi
the Manhattan Trust Company
And You knew that IT did not begin business
until 10 O'clock"
Yes"
And vet the bank was open ana ready 70 no
business on this particular OCCASION?
Tho ui,noss answered that such was the case but
he could not remember with whom he LEFT the
checks Ills impression. however. was that they
were received by Assistant cashier Smith
How dd the bank happen TO b. opened when
you cailed?'
MADE PREVIOUS ARRANGEMENTS.
"I had stated the previous day TO some OF the
officials that I would deposit with them the follow
ing morning two large checks. Ihey PrVO'oy ""-
tlcipaied my arrival"
"Win YOU now look az those checks ana eS-
p,ain II you can why there Is nothing upon them
to Indicate That they were ever deposited With the
Manhattan Trust Company
Mr. Danforth looked AZ them. bu. he could not
explain Then he said that he was OF the i'm
preston that he hadn't deposited the checks with
the Manhattan Trust Company that morning. AFTER
all. Il believe" be continued. that eft one az
the Chase National and the other al the Cont
mental"
"Anl both these banks were open to receive them
before the regular opening hour?'
yes"
flow al that happen"
cit was arranged on the previous day
HENRY ". cANNoN's STORY.
Henry ". Cannon. prcyiirn, OF The chase Ma
tional Bank next went the stand. He WAS n
member OF the Clearing House Committee in Az
gust 1892. The witness said he recalled visit OF
Elliot Danforth. with whom The condition OF the
Madison Square Bank was discussed "Dan'orin
asked abou; The ra!cs Of The C!caring House. sai
the witness. "anl spoke about w.thirAwing lar,
OF MS deposits. and asked my adyic" adElSsl
him to draw some OF IT, hut not all ihink lac
SAID he would Withdraw 1000 , -, 49,.
Danforih gave him 10 lea tho, he was gong %
draw oil his deposits rom ne aHe;so" sgn1,'
Thai state Treasurer Danfor;h would clear from
my own bank 20 fact told him would prefer
10 understand you to say that It Is The Gus
,0g ieilcrH desk before 10 a. m. ana taat 1t Is
Furthermore the custom TO pags,checks through the
W. .T hat Is the custom Checks that come
into the bank tho preceding day and that morning
"If a check came in at II o'clock would It 80
through"
Mr T9tcrmyer here produced sneGi for sloSG
Bank on August s. 1883, and cleared on the io wing
dav hy the Chaac National BANK.
did Mr. DanfOrth make any arrangements Win
you for the clearing Of that check?
mo sir. ! ga not know the check hnd boon de-
posted until the afternoon. when Mr. Graves tod
me our bank had cleared check for SlDj.pt Then
| went 10 the bank and found what had occurred
Now ] ask you" said Mr.. tntcrmyer was
that check $4,000 cleared I'm the usual business
way ,,,,.. :. $50.
Mr. t'nfermyer then nskcI Mr.. Cannon II he
ever knew OF a case where check was cleared
when the bank which II was drawn had sus-
pended payment. , -,
Il know several instances whore precisely the
same thing occurred that between the ST
Nicholas and the Madison Squore Bank" replied
the Witness THE Washington National Bank had
exactly the same occurrence. \ check was de-
posted In the morning and 1t was cleared that
same morning"
plalnt?"
Edward H. Perkins, president Of tho Importers
ana Traders National Bank and chairman Of the
Clearing House Committee. told the same story as
Tho last witness about the examining OF the books
~ me Madison Squnre Bank. Mr. Graves wasn't
there" said the witness. "and he ought to have
STRIKE out ought to have been there" said the
The witness said that later tho securities were
brought back to the Madison square officials. The
proceedings Will 70 AZ 1913 o'clock this morning.
TO GO T0 PEARYS RELIEF