The evening times., 1900-02-02
THE VIRGINIA BOND Case
Julius Schroeder Held for Trial
Charged With Forgery.
Suits Against a National Bank ON
Grounds of Conspiracy brought by
Defendant Appears i'm Police COurt.
Obtained Thousands of Dollars

NEW YORK, Feb. Julius schroe-
| ter. of Forest Hill, y. j., who
/ was arrested last night by Captain
McClusky. charged with forging s56.o1o
worth of Virginia bonds. was arraigned in
court today, and was held for trial
The complsinants were Ladenburg. Thai
| mann * Co. bankers. of "A Wall Street
| Ladenburg Thalmann & Co. have also
| brought suit against the Importers and
/ Traders National Bank. Edward II. Per
kins. jr. it's president; Edward Townsend
! its cashier, aud Julius Schroeder. charging
| conspiracy TO defraud.
According to Captain McClusky, Sehroe-
| ter in September. 1899, was operating a
factory fer the manufacture CT gas mantels
and burners where, the captain did not
know. In some way he was introduced to
one of the vice presidents of the Importers
and Traders Bank, of 247 Broadway. He
had gone there and tried TO borrow fiom
this vice president s3l 900. and offered as
security fifty 81 000 bonds Of the State OF
Virginia. making security of $4,000. He
did not ge, the money that day, but did
so in a few days.
In October the following month. he had
! returned To the bank and requested $2o,-
! 900 more Offering forty-fye OF the bonds
| as security The bank had held the matter
! in allowance for a few days. until 1t could
| find the exact standing of the security CT
! fered Five of the bonds were sent 10
/ Virginia and had been Immediately sent
! back with the word from the auditor of
the State that they were forgeries. The
bank had therefore refused the second
! sum and demanded that Schroeder make
good the nrst loan.
On November Il. il is alleged. he had
called on Ladenburg. Thalmann & Co. and
negotiated for a loan of $3S.00o. He had
offered dfty-siX bonds similar to those Civ
| en- to the Importers and Traders 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 s.. GOO 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. reducing the Indebtedness
! to So. .000. He also gave to the bank $50
! shares OF stock in the gas msntel company
| in which he was interested and received
back for them forty-fiye of the Virginia
| bonds.
As he had already given TO the firm Of
| I.adenharg. Thalmann a Co. sixteen OF the
| lifty-siN bonds offered, he took forty of the
| forty-five bonds received from the Import
/ ers and Traders Bank to them. and thus
made up the amount and received the S2S,-
/ 0u0 promised him.
SOME little time after the transaction
with the banking of Ladensburg Thalmann
! 4 Co. the firm investigated il and found
that the bonds were bogus. They informed
I
to look for the man. and found him only
Yesterday.
McCmsky also said that. besides his spec
ulations with the two banking houses al
ready mentioned the man had been sue
cessfui i'm negotiating loan with the Sea.
board National Bank of No j. Broadway
Here il is alleged, he Was successful in
putting up thirty of the bonds. and re-
ceived S200o0 for them.
The firm of Underwood. Van Wort &
Hoyt. OF No. - William Street, are the
legal representatives Of the banking house
OF LadeRburg. Thalmann q Co. and one of
the law firm had an interview with
Schroeder. He is quoted by Cap
tain NcCmsky as saying that
Schroeder said that the bonds were not
his. but belonged to Mrs. Emeline Turner.
formerly of Mount Vernon. but now living
/ in London England. He is also said To
1 have shown a power of attorney to this
lawyer. which authorized him to dispose
OF the property.
Schroeter is described as being a fine
| looking man of forty-three with erect
carriage. and exceedingly well dressed.
! He refused TO say anything about himself
| to the police.
Ii is said that The bonds were issued in
| 1852 by the Kendall Bank Note Company.
/ n -if oF Z ofE
ginia. Previous to the full issue. the
amount of which is not known by the
| police. five hundred of the bonds were is
| sued and sent to Virginia. The bonds were
unsatisfactory TO the Virginia officials, and
the rest OF the order was cancelled. The
order was then given to the American
| Bank Note Company, also of this city.
The five hundred bonds which had been
made and shipped to Virginia were after
ward sold at public auction in an express
office in Virginia as curiosities
Captain McCluskv said that he heard
last fall of these bonds appearing, after a
lapse of seventeen years and on NoYem-
ber "a 1899. he sent notices TO all banking
firms and houses informing them that they
were ON the market and TO look out for
them The transactions credited to Schroe-
ter were all done before that period.
Schroeder was re-arraigned before Mag
istrate Crane in the Centre Street court
today He said that he called up
his lawyer. MIR Dodd of No 20 Broad
Street. and learned he was not in and
would not be at court for some little time
TO represent him. Magistrate Crane grant
ed respite for few minutes for his ap-
pearance, and, as he did not appear,
George L. Simpson, connected with Abra-
ham Levy, appeared for him. He was held
in 5000 for examination this morning. AS
he could not furnish the bail he was COM
mitted to the Tombs.
The technical charge on which Schroeder
was arranged was the falsely issuing bonds
for $40. .000 on the State of Virginia. series
of February Il. 1882. and authorized by
the sinking fund of that State The bonds
we're signed by H. II. Dyson and B. b. Bev-
erey and the signatures were declared
forgeres.
sworn affidavit from Josiah Ryland,
Second Auditor of Richmond, Va, was In
troduced in which he corroborated the fact
of the forgery.
In their suit begun yesterday. Laden
burg Thalmann & Co. allege that on
learning the facts they demanded repay
ment by the Importers and Traders Ma
tional Bank Of the amount they had lent
TO Schroeder. and on that institution re-
fusing they offered to submit the whole |
controversy to the arbitration of the clear |
ing house committee OF which Edward H. {
Perkins. ir, the president of the bank, was |
the chairman, or TO a committee from the |
stock exchange from the chamber Of |
commerce, accordingly the bank might |
choose. which cffer, they say, was refused, |
with the result that the present suit has |
been begun.