The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-03
SPURIOUS VIRGINIA BONDS.
SCHROEDER REFUSES TO TALK OF
HIS DEAL IN IHEM.

Sent Back to Jail In Default of 81 600
BniI-Case to Come UP Monday.
Bonds Had Been Rejected by Vir-
ginin nnd sold hs Unclaimed
Frcight-Vireinin state Auditor
Tells How They Probably Got Into
Circulation.
New York Feb. Julius Schroeder.
who was committed to Jail in default OF
5000 bail on "a charge of having swindled
the banking firm of Ladenberg. Thalman
& Co. out of $4,000 by means Of worth>
less bonds OF the state of Virginia, was
iearraigned to-day.
Little is known OF schroeter's past life,
and he declines to discuss the matter
which eliminated in his arrest. The pro-
ceedings in court to-day we're very brief.
Counsel for Schroeder asked for an adj
journmeut TO Monday. counsel for the
complainant making no objection to this
except to ask that the bond be Increased
This was done, bond being placed at ST.
OGo aud Schroeder was returned to jail In
default of bail
Just as Schroeder was being led back ia
his cell in the Tombs. Josiah Ryand, Jr,
state auditor Of Virginia. entered the
court room- He said he had never met tho
prisoner. With reference to the bonds ut
tered by Schroeder, he said:
II have had exclusive control of tho
Virginia debt fund since 1884. As to these
particular bonds, which have been known
in the stock market as the Riddleberger
bonds, called after the late Senator Rid
dleberger whose picture is engraved on
them, 1 am unable to state how they got
into circulation in this or any other way.
Under the last calling for their issuance
the sinking fund commissioners awarded
the contract for engraving to the KendelI
Bank Note Company, of this city, that
concern being 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 Virginia financial au-
thorities making a demand on the Ken
dell Bank Note Company for the surrender
OF the bonds. They however, sent One
box containing All bonds to Virginia by
| express, but the sinking fund commissions
ers refused to accept The box and had t
| returned. il appears that the Kende,l
Bank Note Company refused TO take 1t on
its arrival here, and the Adams Express
| Company, we have reason to believe, sold
this box of bonds as freight That was on
or bout July J. 1882, / wish TO state, how
ever, that the kendell Bank Note Com
pany was paid IN full for the contract un-
dertaken in engraving the bonds, The
contract was subsequently given to the
American Bank Note Company.
"The first intmatlon that | had of ths
| matter was that Of Nov. /. last year. when
one of the spurious bonds was sent to me
for inspection by "a bank In this city. In
Boston one bank in July last, loaned $l5,-
900 on what was represented to be $4,000
worth OF bonds, bearing the seal of the
commonwealth of Virginia The man
whose name / have been unable to recall
and who got this $4,000, was arrested but
the case was compromised and he was
turned loose, giving him six months in
which to prove the validity of the bonds.
which he said he obtained from an uncls
in Maine"
Mr.. Ryland will be in court when the
case against Schroeter Is reported on
Monday.