New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-02
BIG FORGERY CHARGED.
STATE OF VIRGINIA BONDS ISSUED
FALSELY, IT IS ALLEGED.
JULIUS SCHROEDER ARRESTED ON COM
PLANT OF A BANKING FIRM-SUIT
BROUGHT IN THE CASE.

Court Building, IN William-st.. by Detectives
Mcknight and NIulry. The compliments are
Ladenburg, ThaImann & Co, bankers of No.
Al Wal-st They charge Schroeder with forging
bonds of the State of Virginia.
To complicate matters further Ladenburg,
Thalmann &, Co. sent out a statement last night.
Il said that suit had been begun by them
against the Importers and Traders National
Bank. Edward H. Perkins, tr. its president;
Edward Townsend, its cashier. and Julius
Schroeder, charging conspiracy to defraud
According to Captain McC1usky Schroeder. in
September, 1899, was operating factory for the
manufacture of gas mantles and burners where
the Captain did not know. In some way he
was introduced TO OF the vice presidents of
the Importers and Traders Bank. Of No. 247
Broadway. He had gone there and tried to
borrow from this vice-president $4,000. and
offered as security fifty $1,000 bonds of the
State Of Virginia, making a security of $4,000
He did not get the money that day but did so
In few days.
BONDS DECLARED FALSE
In October. the following month, he had re-
turned to the bank and requested $4,000 more
offering forty-fve of the bonds as security. The
bank had held the matter in allegiance for a
few days until it could find the exact standing
of the security offered. Five of the bonds were
sent to Virginia, and had been Immediately sent
back with the word from the Auditor of the State
that they were forgeries. The bank had there
fore refused the second sum, and demanded that
Schroeder make good the first loan.
On November II, it is alleged, he had called
on Ladenburg, Thamann & Co. and negotiated
for a loan of $4,000. He had offered ffty-six
bonds. similar to those given to the Traders and
Importers Bank. but failed to get the amount
that day, and the next day had returned with
sixteen bonds. which he offered for loan Of
$4,000, This he got in two checks of $1,000
each
Schroeder the Captain says, then took one of
the checks to the Importers and Traders Bank
and paid that amount on his first loan there. re-
ducing the Indebtedness to $4,000. He also
gave to the bank 450 shares of stock in the gas
mantel company In which he interested, and
received back for them forty-f1ve Of the Virginia
bonds.
AS he had already given to the firm Of Laden
burg, Thamanu & Co. sixteen Of the hfty-six
bonds offered, he took forty of the forty-fve
bonds received from the Importers and Traders
Bank to them. and thus made up the amount
and received the SOS 600 promised him.
Some little time after the transaction with the
banking firm OF Ladenburg, Thalmann & Co
the firm investigated it and found that the
bonds bogus, They informed the police
and detectives were sent out TO look for the
man. and found him only yesterday.
McClusky also said that. besides his specula-
lions with the two banking houses already men
toned, the had been successful in nego-
tlating loan with the Seaboard National Bank
Of No. IS Broadway. Here 1T Is alleged. he was
! successful in putting up thirty of the bonds and
received $4,000 for them.
The firm Of Underwood. Van Wort & Hoyt, OF
No. 27 Wiliam-st. the legal representatives
of the banking house of Ladenburg Thalmann
& Co, and Of the law firm had an interview
with Schroeder. He is quoted by Captain Nc
Clusky saying that Schroeder said that the
bonds were not his, but belonged to Mrs. Eme-
line Turner, formerly Of Mount Vernon, but now
living in London. England. He is also said to
have shown a power of attorney to this lawyer
| which authorized him to dispose of the property
Schroeder Is described as being fine looking
| man Of forty-three with erect carriage and ex-
| ceedingly we'll dressed. He refused to say any
| thing about himself to the police.
BONDS WE'RE NEVER ISSUED.
| 1t IS said that the bonds were Issued In 1882
| by the Kendall Bank Note Company, Of this
! city, on order Of the State Of Virginia. Previous
| to the full issue, the amount of which Is not
known by the police. FIVE hundred of the bonds
we're issued and sent to Virginia. The bonds
| were unsatisfactory to the Virginia officials and
| the rest Of the order was cancelled The order
| then given 10 the American Bank Note
| Company, also OF this city.
| The FIVE hundred bonds which had been made
public auction IN an express office in Virginia as
! curiosities.
| Captain McClusky said that he heard last fall
| of these bonds appearing, after lapse of
| enteen years and on November "A, 1899, he sent
notices to all banking firms and houses inform
| ing them that they were on the market and to
| look out for them. The transactions credited to
! Schroeder were all done before that period.
| Schroeder was arraigned before Magistrate
| Crane I'm the Centre-st. court in the afternoon.
| He said that he called up his lawyer. Mr.. Dodd
| of No. 20 Broad-st., and learned he was not in
| and would not be at court for some little time
| to represent him. Magistrate Crane granted
| respite for a few minutes for his appearance,
and he did not appear, George f. Simpson,
| connected with Abraham Levy, appeared for
! HIM He was held in 5000 for examination this
morning. AS ne could not furnish the bail he
| committed to the Tombs-
THE TECHNICAL CHARGE.
The technical charge on which Schroeder was
araigned the falsely Issuing bonds for
| $4,000 on the State of Virginia series of Feb
ruary IA, 1882 and authorized by the Sinking
Fund of that State. The bonds signed
by H H. Dyson and B. r. Beverley. and the
| signatures were declared forgeries.
sworn affidavit from Josiah Ryland. Second
Auditor of Richmond. Va, was introduced in
which he corrohorated the fact of the forgery.
| In their suit begun yesterday, Ladenburg
| ThaImann & Co. allege that learning the
! facts they demanded repayment by the Import
| ers and Traders National Bank Of the amount
| they had lent to Schroeder and on that instt-
| tuition refusing they offered to submit the whole
| controversy to the arbitration of the Clearing
| House Committee. of which Edward H Perkins
| jr. the president of the bank was the chairman
| or to a committee from the Stock Exchange or
| from the Chamber Of Commerce. accordingly as
| the bank might choose, which offer they say
| was refused with the result that the present
| suit has been begun.
| Edward H. Perkins. jr. last night
| at his home, No , East Fortieth-st., by Trib-
une reporter in regard to the statement made by
Ladenburg, Thalmann & Co. He said he had
nothing to say about the matter for publication
| Edward Townsend the cashier. who lives at