New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-04
DIRECTORS WIN AND LOSE
MADISON SQUARE BANK INDlCIMhNlo IN
COURT.

THOSE For PERJURY AND RECEfNlN" DEroo'i'
,vrrp INSOLVENCY. sUsT>INEp-THE
OTHERS DISMISSED, But THEY
WILL. BE RFsUBMITTED.
Tho Indicted directors of the Madison Square baih
made their first stand against the attack Vi Wv
peopIe represented by the Dstrct-At,orhe9
office Yesterday Their first line of defence was o'
ON every Indictment except that when maoe Wv.
ereral charge of fraudulent insolvency against all
tho directors The demurrer to that indictmeh,
s e,,s,oina1 on the ground that the indictment
uos NOT specnc enough. The indictment charged
that the directors were participants IN the mar
administration OF the bank covering pe'iou VI
i,h,oar months II was the first indictment Of the
kind which had been drawn under the new pa"A-
ing act Judge Barrett ruled that the statute re-
quired that specific acts be alleged ASSISTANT
Disrict-Attorney Davis who had charge of the case
ror tho prosecution. will move to-day before Judge
Barrett for permission to draw an amehded
Indictment ard to submit II 10 n new grahd Jury
The two indictments for perjury against Joseph
f. Blaut the president, one also for perJury against
w Wetmorc Cryder, eX-presdent ana "iSH' ib''"H
Hlaut 4 l.. Soulard and II. r. Mcdonald for re-
ceying deposits after the insolvency Of the BANK
was known 10 them were sustained. The directors
who escaped temporarily arc,C. f.. Seover. frankel
A. $ Kalischer Simon Gutenberg and +. a. Nur-
The Madison square Bank closed its doors on
August .. 1895 The Investigations which YER i ss,
on foot disclosed startling Irregularities IN "hicn
A number Of prominent Democratic politicians, m
Guiding the State Treasurer, Elliot +. DhnlOTtn,
were concerned. 1t was found that 5laut ana ms
associates had been ooting the bank ior more ta'i
"A year. and that the result ol their iePreiat,lons
was an impairment of the banks capital OF apcdt
$4,000. Danforth got private unsecured loans from
the bank because he deposited state FUNDS thert.
The story Of Danforths scramble to get this money,
$1,000 out Of the bank al the eleventh houT mas
been told The comment Of The people was maze
when they elected a Republican State Treasurer 10
succeed DanfOrth. 3
Indictments against nearly all Of the officers OF
the bank were found by the Grand jar ana the m
dlcted mon were arrested and held in heavy BAL;
The counsel for the various defendants lncludel
Wheeler H. Pockham. Edward Laut"rhach W Il.
Putney and ex-Judge Dittenhoeftr.
Judge Barrett decided that SOularl and McD9nald
were principals to the misiemeanOr Of receiving
DEPOSITS after the insolvency Of the bank was known
70 them. as they had advised Blaut 10 receive the
deposits. The demurrer to the charge OF perjury
against Blaut was withdrawn and plea OF not
guilty entered In ruling on III" indictment charg-
ing the directors generally with participating in
fraudulent Insolvency. Judge Barrett said that the
charges should be more specific: that "ach director
should be- told exactly what he did. This il a
pioneer Indictment well a pioneer statute, and
| should be very sorry indeed 10 be back at the bar
defending any of these gentlemen under the in
dictment as 1t stands" said Judge Barrett