The Providence news. (Providence [R.I.]) 1891-1906, 1902-11-13
And When Hs Emerged From
Bankruptcy Owed 100000.
HAS PAID UP EVERY COLLAR
David Rolhscald Even With The World
0ncs More and Making M0nsy
Very Rapidly

New York. Nov. Nov. 13.-Seven years
ago David Rothschild. who was head Of
the r. Rothschild Sons company, which
failed in the financial panic OF '93 and "a.
found that his personal fortune OF $500, :
90 had been swept away, that he was
penniless. and owed nearly 500. .000
Although legally freed OF his debts by
the bankruptcy court, he has paid them
all. and is today the president OF the
Federal bank of New York, which was
opened about a month ago at $50 Broad
way
Mr.. Rothschild's father was wealthy
Cincinnati man, and on his death left
100000 In trust FOR his son. besides be-
quests OF 10000 TO hospitals.
The II. RothschIld Sons company manu-
factured woodwork and cafe fixtures, and
did an international business. having
houses i'm London and Paris, factories In
this city. Chicago and Cincinnati and
branches I'm the west and south. The com
pany employed 1000 men. and owned 80
freight cars on the Baltimore and Ohio
railroad. David RothschIld was at the
head OF the company.
In the early SOS. according to Mr..
Rothschild the company. through an un-
fortunate deal with some lumber men.
riod of business depression. and the en-
actment OF the Raines law. which crippled
the companys business TO such an extent
that IL went under
Mr.. Rithschild and his brother Louis.
who was In the company with him gave
over all their money and property In set
tlement OF the claims against the com
pany. David Rothschild disposed of %
pieces OF real estate which belonged TO
him.
STILL OWED 100000.
None OF the merchandise creditors OF
the company suffered by the failure. The
Rothschld brothers found. after every
thing available had been disposed OF, that
they still owed 100000. This was mostly
paper held by national banks and Endorsed
by David Rothschild
After the bankruptcy law Of 1898 was
passed David Rothschid. on the first
day that II went into force. filed pc
tition in bankruptcy In telling or MS
experience Mr. Rothschild said yester-
day: Some OF the creditors thought |
was fraud and opposed me. ] told them
that was on the level and that / would |
settle every one or my debts II tney |
would only give me chance. The law |
yers who don't know me doubted my |
word But had a lot OF frlends-broad' |
guaged thoroughbreds. who believed I'm |
me. and they stuck 10 me"
When he got through the bankruptcy |
court Mr.. Rothsc hild says he had less |
than 50. Ths FIRST thing he d.d was 10 |
borrow enough money to pay for rail |
road ticket TO Chicago. His object in go |
ing TO Chicago was TO make small loan. |
$4,000. on no security
1.-The man | got that money FROM
said Mr.. Rothschild. lis known on TWO |
continents. l told him that there were
several banks In New York that would |
give me chance selling bonds But to !
a. a 81 ,t.1 ..,ffk
1t was good. had no security and
told him 80. but he had confidence in me
HE said: 'You go back to New York
and start right In. You can draw on me
TO $4,000 That was kind, wasn't r.?
Then ] had to borrow my carfare back
20 New York from him"
With capital behind him. Mr.. Rots-
child began TO make money rapidly. n NJ
FIRST year the return was small, but by
degrees IL Increased.
An extensive acquaintance in the mid
die West and an expert knowledge OF
bonds and their value helped him greatly.
BY one bond deal he cleared $4,000 I'm Is
minutes.
PRIVATE BANKING BUSINESS.
with his brother he established a private
banking business under the name OF d.
Rothschild company. He engineered a
consolidation OF small street railways IN
man for three banks In this city.
Once MIR. Rothschild began to make
money he started a systematic payment
OF his debts. At first IL was on a small
scale but to each creditor was allotted
10 much.
In some instances he was told to keep
the money until he had lots OF Il. but
Mr.. Rothschild insisted that he only
needed enough TO live on. and the rest
should go 10 the creditors
II was not long before he found that
he had an income OF $4,000 a year, and
q bookkeeper was employed to disburse
the money 10 creditors in monthly In
stallments. To make sure that none OF
the creditors was forgotten. Mr.. Roths-
child had this advertisement printed:
''All persons or corporations having
unpaid claims against the r. Rothschild
Sons company. or against David or Louis
Rothschild individually. In connection
with the Affairs OF said company. are re-
quested 10 present the same for pay
ment"
Now Mr. Rothschild finds that all OF his
debts have been paid one OF the largest
creditors was the Central National bank,
and as a receipt for the cancs llation OF
the debt Mr.. Rothschild prizes the fol-
lowing:
New York Dec g. 1901
"Mr David Rothschsld New York city:
Dear Strive are pleased TO acknowl-
edge having received. through MIR. Leo
Frank. final payment on account ~ your
former Indebtedness 20 this bank. and
thank you for the same. Yours respect
fully.
"EDWAIN LANGDoN. president"
When the Federal Bank OF New York
was organized I'm October. Mr.. Rothachild
was elected Its president.
lITHLGRaPp: RS COMBINE