New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-18
THE LAW STAYS ITS HAND.
MADISON SQUARE BANK WREChEH"
STILL UNFINISHED.
CALI. FOR ACTION BY THE Observation-Disclosures
OFFICE-A POSSIBLE DIVIDEND III DE-
posrToRs AFFAIRS OF THE

CALI. FOR ACTION BY THE DlSIhi|l-Ai io''>Hi
oFrIcE-A POSSIBLE DIVIDEND TO DE-
rosIToRs - AFFAIRS OF THE
ST NICHOLAS BANK.
The hand of The law fell upon the wreckers OF the
Madison Square Bank Learly a year ago IN Tue
arrest Of Joseph r Blaut, the president LEWIS
THOMPSON the cashier and Ronald i. McDohd'u'
Frederick Uhmann, A. :. Kaiiscner' simon o''e"-
berg. Andrew L. Soular1 and CnarIes H. "e'o'e''
directors. They charged with different e'''"e'
from perjury by the highest officers to abettins IN
a n1isdemeanor by those lower In rank IN the Dihh
According to the receivers. the amusement Oh me
hank nv President B.au and his friends was one OF
colossal fraud. and when the arrests were Waue ~
YVES hoped that speedy convictions wou'u De iouIu
aealnst ihe banks officers and that they would DE
placed behind prison bars. The ringeader In the
band OF bank wreckers was brought to trial Out
the jury disagreed and soon after the lh'ictheh'
IN which he was triol was quashed None OF the
directors has been placed on trial. some OF the IN
elements have been dropped and the puoIc Is ~"
asking why something in the cases - rot Hone
Vhie petty robbers serve time AT ng sing. the OIL
GERS and directors o: the defunct Madison square
Bank wax the streets free men.
The receivers of the institution have paced all
the facts Of the frauds perpcrated by the officers
an directors n the hands OF the District ATTORNEY!
and 1t is for him to take ACTON aeH IN, me ie
h mseIf and his ofica Of the charge that no steps
vi he 1k,n
cause there is political influence behind the ACCUSED
men Elliot Danforth the ex-Dem0crauc Htaie
Treasurer. used the Madison square BANK 10 SUIT
MS Interests.
LONG YEARS OF MISMANAGEMENT.
The history OF the Irregular dealings OF the Mad-
son Square Bank is familiar to the public IL Is
known that every statement made by IN" bank
officers to the State Bank Examiner for year" be-
fore II was placed In receivers hands was false;
that loans were made to directors who gave no Sc
Ivy IN
wort HESS was allowed t. owe the bank over AZ
90 and that there was much criminal negligence
on the par; OF I}iaut and MS associate tnat me
entire capital Of the bank. which was '"''""' was
These facts in the possession q The Rs h
Attorneys office. and TO have thein ioIio"cu uP III
fore many more month; shall pass away: ,,.,
O'I,ren and James q. Cannon. have been WORKING
on the affairs OF ihe rotten institution fcr year
lacking few day and yet N tha 70 Tine Iney n
The extraordinary. complicated ana irfSstr con on,
TcceveTs to do better than his although At pres
they are preparing to Pay another 1lVlnrhn 81
Application NIL probably be made ths week to the
courts for permission TO pay another dividend.
CASH On HAND.
The receivers now have on hand s2Si.32i7i and
when the legal questions involved In the settlement
of the banks affairs with the 81. Nicholas Bank
have been decided this amount Will DE distributed t.
the aepositors How the dcposl,ors VIII finally fare
have put rrcat deal OF time and hard work on the
winding up OF the blnk's affairs and me depNNiorS
NJ Efforts To work fir the leppsl,ors and in time
they VIII sue the stocHhpicrs t. make good IN"
amounts owing the depositor~
This amount now on hand represents what the re-
ceiy'rs have been abe 10 collect from the total re-
81 lsol minus the amount paid out IN the nrSt NV
dend Tho enormous amount ~ bad securities hcld
hrcn r1za5 frdn IN ,b ce Of he 81 Ncho
~ fpr mad
sold In most cases AZ less than one-quarer Of IN
anoun; Of the loans and the Madison square COZ
lateral Is not even az good A. that
out Of all the chaos caused by the officers ana IL
orderly shape before their work is done. AMI when
the deposiors have received as much as III" law AMI
have the satisfaction OF seeing convicis garb tn
wrsckers OF the institution.
ST NICHOLAS BANK AFFAIRS.
The affairs OF the St Nicholas Bank which was
also wrecked hy ~ officers AMI directors. not
IN a satisfactory condition Just now. Two dividends
have been paid to The depositors. and cN-Mayor
Grant the receiver. has hand over $1,000. He
Will not be able 10 max" further disbursements un-
~ he IS made nermancnt Teceiyer The enormous
receiver is now a bone OF contention and while n
Is Acknowledged that Mr.. Bowers has given eii-
Client service 70 the receiver IL IS not thought that
his services were worth N5."S' ID" amount charged
In his bill For bankrupt concern 10 pay Tor coun-
Of the services are taken into consideration and
IN the interest OF fairness and honesty 4; Is hoped
The manner In which so many banks are wrecked
compares fGvorabiy with the methods employed by
some railroad Ci'iccrs IN running the properties
they represent into bankruptcy. From the cases Of
the -. NichOlas and Madison square banks aud Of
the AtchlsOn. Northern Pacific ana Reading roads
a lesson can be drawn which should leach stock
holders that new system should be- established
which would prevent further Expectations by un-
princplel officers ana directors on the earnings Of
the companies The State Banking Department *
supposed 20 know something about the workings
of State banks. but recent cases have proved that
II only discovers after the mischief IS irrcparabe