New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-03
THE VIRGINIA BOND CASE.
SCHROETER'S BAIL INCREASED - u-
DITOR OF THE STATE TALKS.

Julius Schroeder. the gas mantle manufacturer of
Newark. who committed to the Tombs last
night in default of 800 bal: by Magistrate Crane
In Centre-st. court, charge of having swinaleo
the banking firm of Ladenburg, Thalmann & Co..
OF No. IS Wall-st Of $4,000 by means Of worth
less bonds of the State OF Virginia rearraigned
yesterday morning.
Abraham Levy and George Sampson, who ap
peared for the prisoner. asked for adjournment
Monday afternoon next This request was not
opposed by William A. Underwood, who represented
the complainant banking firm of Ladenburg Thai
mann * Co. who demanded that the amount OF
bail be increased to at least $1,000. Mr.. Levy said
he thought that $500 the amount originally fixed.
was sufficient. Magistrate Crane. however, raised
the amount from $500 to 5000 This ended the pro-
ceeding and Schroeder was led back 10 the Tombs
Just as the prisoner was being led back TO MS
cell in the Tombs Josiah Kyland. ir State Auditor
of Virginia, entered the courtroom. He said he
had never met the prisoner With reference TO the
bonds uttered by Schroeder he said:
y have had exclusive control of the Virginia
which have been known in the stock market as the
6iqoeDeSer bonds called after the late eA-oeiatoI
unable to state how they got into circulation in
their ssuSnce the ~ Sinking Fund commissoneTs
awarded the contract for engraving TO the Kendall
ing the lowest bidder
The condition providing that the bonds be listed
IN the Stock Exchange here brought about a
change in the contract that resulted in the Vir-
Kendall Bank Note Company for the surrender Of
the bonds. They. however. sent box containing
81 bonds TO Virginia by express. but the Sinking
Fund Commissioners refused 10 accept the box, and
Note Company refused to take it on its arrival
here, and the Adams Express Company We have
That was about July l. 1882. l wish to state,
however; that the Kendall Bank Note company
craving the bonds. The contract was subsequently
first intimation thai had of the matter was on
November ! Ct last year. when one of the spurious
bonds was sent me for inspection by bank In THIS
city
In Boston one bank in July last loaned $4,000 on
what was represented to be S20V0 worth OF ponds
bearing the alleged seal of the Commonwealth OF
recall and Rho ' F6t this s5 6 was arrested but
the case was compromised and he was turned NED
loose giving him six months in which TO prove the
validity Of the bonds, which he said he obtained
from an uncle in Maine
Mr. Ryland viii be in court when the against
Schroeder IS reached on Monday
Mr. Underwood. OF Underwood. Van Worst. Rosen
& Hoyt, counsel for Ladenburg, Thalmann Co.
said:
We did not make our CHARGES public until the
not until after we had offered to submit our dis
pute with the Importers and Traders Bank to ne
Clearing House Association. or by the Chamber OF
change ] think their refusal to submit their
70 such judges speaks for itself
Edward H. Perkins jr. president of the I'M
porters and Traders National Bank. when asked
yesterday if he wished make any reply TO the
criticism Of his banks methods made by Laden
burg. Thaman & Co, said:
We are fighting our case in the newspapers:
VIC have good at law. and viii fight II out
in the courts We have Done nothing TO be
ashamed Of. This man Schroeder borrowed from
Is md RED to set our loan back from him
and from MIN only; 1t looks as il some other
peCpie. having lost their money en- Schroeder were
trying to get il back. from him. but from
Others and being unable 10 do were throwing
mud
President Rayne of the seaboard National Bank,
wf4lh loaned money TO Schroeder on the Virginia
4 bonds said yesterday. gu. led:
The Seaboard National Bank made a loan 10 the
extent of $4,000 the bonds in question. We have
10 session of property of Schroeers. partially Sc
curing the Gebt, and expect to recover the
ba lance from other sources In the month of luT@,
before making the loan. submitted the bonds TO
bond experts. who pronounced them genuine The
losn made before the validity Of these Sc
cuTities questioned. Schroeder kept large
with US, and furnished the highest recon-
mendations when opening il.