The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-10-30
nANTORTH AND THE BANK.
nv THE oFFIOTAE RECORD or
Blu YlS WYCK,S RUNNING MATE

49,. TNranauFnT He mHUoA hNAN0 DgHuUNe
hs'.Isnd Him Money for spseulatlons
" will streot-It All Came ont when
~. Madison Square Bank Failed in 1e03.
,,,,yine letter IA one OF O number TIE
Inc oniwcd relating to the connection OF
bgN n'1 ot,rtb rChnirman in 1896 OF tho
Eihot prvop,tc Campainp Committee md
W" .,, candidate on the k~uow-hothinR
tap .a,i, ,iosot for the ONCE Of Lieutenant
pcmVN""s ~ tho state OF New York; with the
uv'ea" - Tho Madison Square Bank, which
m"s i, 1sI3.
iSoN .. LntroR or TIE SuN-Sir. A few
%oaesstl6ns Tor Elliot Dantorth 10 answer:
Did you. whils stats ~LensurS ghpsUnsE 10
large 9alGun nv and then borrow OF the bank
ugcUjOY
Nhat, made you WltnaTaww VIZ 1en os}RV nnnsa thu
pid ths %isnits liz doors, or. In other words, to
XIV oooa
What did YOU G9 Watn ths 3oV'V00'
haNe now mT aid YOU raise the money to pay the
notesf I~SDEPENpENT VoTBH.
DEPOSIT. N u oct 90 .ooo'
The Madison Sauare Jun = mo~N o'
p~atronlZed largely DY Demooratc cI'y, county,
and STATE officials, As ss sSo1 9oa 1p re ,nn st.t -.
h' w. Eva hanE n IN amount much larger
funds in the 1anh. an ~ snuS .,a No.
and Strength ! S. ou = ~ Saso.t. 49,
While the state money was oh ueposle sNsto
ElS' p %So sipeS oUsnVo OF a Sant are personally
OluA, Ala tor STATE monev depoai,ed in their
responsible nc iof a S.ase money y, XII EeP bonS ,Ta u ' mar.
bank; anu sas Sne .tI'I for The states S25o.ooo.
IonS.y |"n ~" hant sai,oS NJ nsntor+h
1 ra' t tip somewhere that it had reached the end
Of It's rope and : WAS was e on tns 20 sn ,ar. o sne ne
nH,nAntlV drew ID UnnOk IOt IU0 e0GlI0 AuOuuB
SsI ,spod Az Mr.. Danforth had succeeded
y, vrI ~sttjnS the states money. OF course. the d.
reetors did not have to pay It. After the failur
q Trs discovered that Mr.. Danforth owed the
banEsOmethinG oversee. 900. which was secured
onlv Nv notes and stock certificates. This
noD.shs aitorward paid. The New YORK Times.
,gtGovernor, went a little deeper into the affair
at the time than any OF the other newspapers
printed by that paper on Aug. 8. 1893. will
PROBABLY answer more ruiy 'ue injuries W
The Sun correspondent:
One q the sghemes to cover operations and
S g. Ss. ddsSSOsiwt b f.S% /, time r. F te slTS r. Tos H ssSsS
N, T%;'fNs ,1f he he ff S no an s SSsssSsS Fl ldSJ ssSt Az g
officers Of the bank found that they could make
4 mrrh better ~arrnnpament with Treaeuref
I Dsn,05ts thar than S xisn his d RssdsSsSsss y S ;HHd n from t Ss
weakness Of Mr.. Danfortk BY assisting him IN
various schemes for his private enrichment
SPd In II rs stnTo,s setting SaPs. him a to Hd e f lad thf S s%0q INT
creased from SlOO.0OO to $1,000
NJ Ne G5n RISa 15 / m 81 PSS S sSsS lSSS BIZ h s!n t Z
o oni seSry in Of the nsS S SSSrN YorE 4 4as aisf He dealt
strset firm and. ne it was necessary for him to
ranged with the bSnk that whenever his mar
Bank would make the necessary advances In
order Is protect him. In return for these ad,
ya3ces MI: Dsntcrth was eTPsctssYd t0deRoslt
10 the amount OF money advanced. In. this
vay h. accumulated quite . debt az the bank
SSsSIS sSs Il ri la st0 he d GesFnsao Chat hh he EkSSdaS advanced dslg
MARGINS enough. he arranged ut the bank that
the stock which he had been carrying should
maze this payment. The stock remained
with the bans as collateral for part OF the
money advanced to him, Upon previous ad.
vauces the only security that he seems to have
his nfHes named Gaor1a n S'huSch
The bank acquired q hold upon Mr.. Danforth
through this series of accommodations. What
ever he may have thought as to the banks
condition. he was naturally disposed to allow
II T. said that he showed no INCLINATION to
known that the bank was tnS0lvent, and that
he was urged to AXE It away by directors,
who wished in this matter TO relieve them
selves from the Individual liability to which
the law bound them to make good the States
deposit In case the bank should become In
solvent. The withdrawal OF the $25O,OO0
BY Mr. Danforth plunged the bank into ruin,
but the directors did not object to paying
that price TO escape the large liability that
HDuld otherwise have been imposed upon
them TO make good all losses that might have
been Incurred on the States account.
tors. knew OF the wretched condition Of the
banks Affairs long before the collapse came.
II was at the instance Of some Of those dir0o-
tons that Mr. Danforth was warned In time to
Saye, the States money. While not actuated
By the motives, which induced Mr.. DanfoTt4
e TAXI, away this money, Mr.. Uhlmann. availed
the $4,000 Of the East River Bridge Conn
IanY, which had been deposited with the bank
BY him In his capacity as President. With
these two large accounts out Of theSTay, It be-
came important TO prevent further scandal BY
relieving Mr.. Danforth Of the personal loan OF
S3.OOO with which the bank had
Gated him for his stock operations. All he
had at the bank to show for hts loans were the
stock certificates that the brokers a deliv.
cred and his various notes OF auestionabio
II will be recalled that he cancelled these OBJ
t%Rations almost as soon as the bank was pub
ney declared insolvsnt. There has been more