The Providence news. (Providence [R.I.]) 1891-1906, 1902-03-28
Ssvsnth National Officials Ac-
cuso Schwartz Of Fraud.
IN OLD ACCOUNTS OF BANK.
Prisoner He'd tho Nslss Discounted as
President Of the Now Suspended Msr.
camille Company.

New York. March 2s.-Following the ar
rest in Philadelphia yesterday of Moses
Schwartz. on aichsrge of having defraud-
ID the Seventh National bank. of this
city. out OF $4,000 on forged notes. hints
Of very strong character were made that
at least one other bank had suffered as
a result of his depredations. and that he
had found two or more confederates on
the inside of the Seventh National
When arrested Schwartz asserted that
he had never committed forgery, and TO
the detectives he said that he would will
lingly return to New York, being conf
dent that his connection with the crime.
IL a crime had been committed would be
explained.
do / look like a man with ssO,0oo?"
asked Schwartz "You will find that
there will be no prosecution. / have
never been a fugitive from justice.
have been living here. in Philadelphia,
and have paid 50 a week for my board.
II had $4,000 do you think that would
do that?"
OTHER BANKS LOSERS.
1t became known late last night that
several banks other than the Seventh Ma
tlonal had been defrauded. among them
being the Nineteenth Ward bank. which
suffered loss amounting 10 about $4,000
This was on forged notes, which were
left as collateral for a loan. Explaining
the loss. Vernon NJ, Davis, counsel for
the bank, last night said:
Schwartz borrowed on notes 10 which
were attached the names OF alleged pros
porous saloonkeepers OF the city. The
names signed 10 the notes were In some
cases fictitious, and in others they were
simple forgeries. The notes were accept
ed by the banks, as several OF the names
used were OF men whose standing is well
known. or course all of the money Is
lost and | understand that Schwartz now
SAYS that he is penniless."
Schwartz had an account with the old
Seventh National bank and the alleged
forgeries do not represent any loss to the
bank as reorganizcd. All Of the accounts
were marked of as worthless. Schwartz
opened an account with the bank In the
name of the Manhattan Mercantile COM
pany, Virginia corporation OF which he
was the president and manager All ef-
forts Yesterday 10 learn who recommend
ed him TO the bank proved unavailing. The
company was organized to sell liquor To
saloons. Schwartz also dealt In warehouse
goods, selling receipts. though II Is assert
I'd the concern had never had ware
house.
Schwartz soon offered several notes for
discount. These bore the names OF well
known saloon men of the city. Schwartz
explained that they had been received by
him I'm payment for goods delivered. BY
June 1901, the bank held $40, 600 worth OF
these, all indorsed by Schwartz,
Then came the banks suspension. When
the first OF the notes fell due IL was pre-
sented to the alleged signer, and the re-
ceiver was told that forgery had beer
committed. The others were also pro-
nounced fraudulent
In the meantime the Manhattan Mercan'
tile company had gone TO the wall
Schwartz had disappeared. He wa:
traced to Chicago by George s. Dough-
erty of Pnkerton's Detective agency bu
was not caught. A month later the trai
was picked up in Philadelphia, and he wa'
discovered and followed TO his home.
Dougherty, accompanied by Defective
Sergeant Mcknight, OF Captain Titus
STAFF. went to Philadelphia Tuesday even
ing and caught Schwartz as he left hi
house yesterday morning. lie gave hi
name as Schatz, and denied having eve
lived i'm New York. lie refused TO accom-
pany the detectives until he had beer
shown a warrant Then ne admitted nj
identity. but continued 10 deny that h
had been in hiding. When taken before
magistrate, he again admitted his identit,
and offered 10 come 10 New York volun
tarily. He was held pending the arriva
OF exraditon papers
There are men In NewrHork,' he sal
later, who Know ALI ahout the busines
that carried on there. II | am guilty q
forgery then. they must also be guilty.
never committed forgery in my life, an
can prove IL. BY the way. IL that none
was stolen intend TO get some of it.
The Manhattan Mercantile company ha
Offices at and 35 South William street
These officers were closed last Novembei
and some OF the liquor trade journals q
that time quoted the loss at $20OO1
Schwartz is about 80 years old. II is sal
that he was once at the head of ban
In Louisville. KY. and that he faile
there In a disastrous manner.
Schwartz has been living with his wifi
and three small children In an apartmen
house at No. LIPS Madison avenue. IL
lived we'll and seemed, so other tenant
in the house say, TO have plenty OF none,
For several weeks he has not been see
there. Mrs. Schwartz received word G
his arrest early yesterday by telegrai
from Philadelphia, and left the house