The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-13
FREED OF DEBT, BUT PAYS ALL
ONtE BtNk IA Pr. u. ROTHSCRTLD
SETTLES EVERY CLAIM.
Had - Let When the COur, Nld Him Of His
Dcbts-Pnid $500. 900 IN -Four Years
and Is President OF a Bank-Started
anew WIN "a Credit Of $50, (D<blD,

Seven years AGO David Rothschild, who
was head Of the Il Rothschild Sons Com
pany. which failed in the financial panic Of
93 and 81, found hat his personal fortune
81 s? 10000 had been swept away, that
he was pennies, and owed nearly sos, 900
Although legally freed of his debts hy the
bankruptcy court. he has paid them all,
and j. to-day president of the Federal
Bank Of New York. which was opened
about month ago at 800 Broadway.
Mr.. Rothschild's father was n wealthy
Cincinnati man, and on his death left 500, :
40 in trust for his son. besides requests OF
s5OOo0O TO hospitals
The X Rothschld Sons Company man.
uiactured woodwork and cafe fixtures
and did an in'crnaii onal business, having
houses in London and Paris. factories in
this city, Chicago and Cincinnati, and
branches IN the West and South The
company ,'4ul,yed 1900 men and owned
fifty freig .ar- on the Baltimore and
Ohio Railr.dI. David Rothschild was at
the head of the company
In the early rinetics according TO Mr.
Rothschid. the company. through an un.
fortunate deal with some lumber men. los,
about siOo,Ood Then came he period OF
business depression, and the enactment OF
tho Raines law. which crippled the com.
pany's business 10 such an extent that il
went under.
Mr.. Rothschild and his brother, Louis
VINO was in the company with him. gave
over all their money and property in settle.
nent Of claims against the company David
Rothschd disposed of twenty-three piece,
II real estate which belonged TO him.
None Of the merchandise creditors Of the
company suffered by the failure. The
Bothschild brothers found after everything
available had been disposed Of. that they
still owed s7oo,noo. This was mostly paper
held by national bank. and indorsni 10y
David Rothschild.
After the Bankruptcy law Of 1905 wa
passed David Rothschid. on the first day
that il went into force. filad a petition IN
bankruptcy. In telling of his experience,
Mr.. Rothschild said yesterday.
Some of the creditors thought | was a
fraud and opposed me. told them that
was on the level and that | would settle
every one of my debts if they'd only give
me doubted my word But had lots OF
friends broad gagged thoroughbreds who
believed in ma-and they stuck by me"
When he got through with th" bankruptcy
court, Mr.. RothsChlld says he had loss than
TWO dollar The first thing he did was 70
borrow enough money TO pay for a railroad
ticket 10 Chicago. His object in going 10
Chicago was to make a small loan, $50 OIO
on no security.
The man I got that money from" said
Mr.. Rothschild yesterday, is known on two
continents. | told him that there wer.
several banks in New York hat would give
me chance selling bonds. But to do that
| had 10 have capital and without il was no
good. ! had no security and told him so
nut he had confidence in me.
He said: You go back TO New York and
tart right in. You can draw on Inc "a
$50 600. That was kind wasn't il? Then
had TO borrow my carfare back to New
York from him"
With capital behind him Mr. Rothschild
began 10 make money rapidly The first
wear the return was small but by degrees
II increased. An extensive acquaintance in
the Middle West and an expert knowl.,d ge
Of bonds and their value helped him greatly.
BY one bond dea he cleared $50 O'O in fifteen
minutes. With his brother he established a
private banking business under the name of
b. Rothscnid Company. He engineered
q consolidation of small street railways in
Western cities and 'o-day il the credit man
for three banks in thi, city.
Once Mr.. RoihscmId began TO make
money lac started a systematic payment
If his debts. A. first It was on a small
-cale. but to each creditor was allottec
80 much.
In some instances he Ma told to kccI
ha money until ha had lots Of it. but Mr.
RlthsChild insisted thai hc only need.c
enough to liz" uN and the rest should q
20 the CREDITOR
|, wasn't long hafur" h" found that l.,
hod an income of Sn,pr Q yoar, and a book
keeper was employed To- di-bur-a IN,
iIauts. T. maxi -urc that none of tn,
creditors was forgot Mr. ROtlschilt