The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-12-30
He ShINDlEO The BANKS
HOW DAVID R0THSCHILOS FL0ATED 500,
900 IN WOR rHlESS PAPER.
Names of Some Of his Employees Signed to tht
Notes. The Swinder is Now in
the Tolls.

New York, Dee. 20.-David Roths-
childs was arrested to-day on a warrant
sworn out ut the instance Of the Central
National Bank. According to the com
plaint, Rothschilds was the head of the
firm OF r. Rothschilds and Sons. which
until recently conducted large cloth
ing business in Cleveland, Ohio. On
May 18th, 1897. Rothschilds visited the
Central National bank and offered note
signed by the firm for $1,000, payable
September 18th of that year. for dis
count He made a statement that the
firm had liabilities of about $4,000, but
possessed assets OF three times that sum.
He also gave the bank as security about
twenty prOmiSsory ~notes of customers
in sums ranging from one hundred to
three hundred dollars, which the bank
says Rothschilds claimed were secured
by chattel mortgages. Their total was
$6,250. Among other notes were notes
signed by Henry Go'den, John Elnrclz
and w. Lei. Emrick's note was paya-
bic at the Home National bank of Chi
cago, as was note purporting to be
signed by Louis Cook, the others at the
office of the firm here
When the So 600 note became due in
September Of last year, X. RothschildS
x Sons assigned, but the Central bank.
with the $1,000 of notes felt safe. As
fast as the notes became due, the firm
sent them out for collection, hut the
banks reported they could not find the
drawer of the paper.
After search however Emrick finally
was located in the Chicago Stock Yards.
where he was employed as driver. He
stated that he had formerly worked for
the Rothschilds concern, and that David
Rothschilds told him to sign his name
to about twenty notes. just what they
were, he said, he did not know and he
did not care. as he knew, having no
money, no one could make,him pay the
notes. Emrick also stated that the
other men employed by the firm were
asked TO do the same, and that Golden.
Lei and Cook made about the same
number as he did. Later the Central
National bank located Lei, who corro-
bated the statement made by Emrick.
Other men employed by the firm also
made similar admissions.
With this information the bank laid
the matter before the district attorney
and the result was the issuance of the
warrant for Rothschilds arrest. When
arraigned in court to-day Rothschids de-
clined to make Il statement further than
to say that he knew nothing about any
swindling, and it was simply an effort to
induce or frighten him into paving a
debt contracted by Il firm that had made
an assignment and was in the hands of
an assignee.
While the police who conducted the in
vestigation for the district attorney will
make no statement of details further
than stated, they admit that from n
member of other large financial institu-
tions and banks in this city, money was
obtained in the same manner as at the
Central National bank.
In all they say about 100000 of the
RothschildS' paper was 1oated i'll New
York.
Rothschilds was held in $1,000 bail
for examination on january 3rd.
UNKNOWN THERE |
Cleveland, O.. Dec. 29--It is impossi- |
bic to learn here about the firm of X. |
Rothschilds * Son, mentioned i'll the |
New York dispatch concerning the ar
rest of David Rothschilds. No such |
firm has been in business here within |
the past two or three years, nor do any |
of the clothing merchants know of a
firm of that name.
How much easier it is to forgive an |
enemy we have worsttd than one who |
has worsted us.