New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-22
ROTHSCHTLD INSANE?
FRIENDS DECLARE HE is.
Charge That Bank Took Deposits
TsCo Days Before Closing.

s-soDhs n. David T2othechfd yesterday that the
ex-presidenf appeared be suffering from mental
trouble and both william n. Woods Nj Roth
schid's ruccessor at the Federal Bank. and me
Frnte ferking examiners were STACKED by me
creditors counsel for their connection With the
COLLAPSE % the Globe Security Company and the
bank
Alexander Ka-sh. the attorney for the depostors.
sasd that a dopositors' meeting was planned for
early next week 10 drsft petition - tho District
Attorney asking Tor "a thorough investigation. ana
alleging that Mr. Woods accepted deposits when
Dc knew the bank 10 Pc insolvent
According samuel J Goldsmith. OF couise'
FOR the Globe Security Compa7y's creditors. the
TUESDAY before the hanks doors were closed A
smell East Side business man was asked Tor an
sc-ount. and deposited $1,000.
''If Mr. Woods did not know ~ this and other
matters .hat vert on" said Air. Goldsmith. his
Ignorance is no x-pse. 81 his business 10
know. 10 know. too. who were the makers Of the
banks notes. what was their business ard rating
Had aTr Woods and his cashier known this. they
must have seen that many 81 the makers were
statesmen and clerks. with little Or nothing TO their
names
NJ Woods lss. night denied that he had had any
knowledge Of the hanks insolvency. He said:
ar Rothschnd nos CITY. gave me written guar ,5
that its paper was good. bat an agreement asslgh-
ing The cQllaterals further 10 save i1'e va 30 iit
lie that week. causing drain on nc nak 5 re re
Not only had Mr. Rothschd made these agree
rrer;s but he told me ] might have ample time TO
lave taken about three months had not been
there a month.
NJ Woods added that h. ccurted the fullest
investigation.
According 10 Albert Q Judson. the State Bank
sng Examiner the department made an exarni-
nation Of the hank April Il. 1903. and on April l.
s9es. well intermediary examination on
May % 1868. when application was made 10
ne department Tor the privilege OF opening
bar IN 9-eT Mr. JuGsOD declared
shat The hank had apparently no worthless paper
whatever in 1876. and that IT must have been
planted since that date.
Although IN December. 1872. the Banking Depart
,,lert appears to have compelled the bank to make
s.ood a deficit and IA May. 1903 having enforced r.
creation Of n surplus 81 S500o0. and otheT rlg'd
conditions stockholders and depcs'tors declare
What r. the examiners conscientio2cT did lhelr
full duty. It must long ago have beer apparent
fnat something amiss. II is declared By
Dir. Goldsmith that If the Banking Department
had reason TO believe in February tnRt the bank
was not being rLn IL should. noc even tho
examination OF one OF the largest banks IN this
city should have delayed The examination OF ne
a-a6eral Bank until the second month following
That since his incarceration in the ToInEs NJ
rothschd had shown signs OF erratic conduct
was said by some 81 his friends They declare1 he
had sent Tor them his cell. only to make
rambling and incoherent statements This ruruor
as apnarentlv not borne out By observation 81
those who daily come IN contact wttn " =. :" t.
nchild "a prison.
Joseph Martin who said ne was attorney ksr az.
aiuirhcsd appeared the Globe Security Company
sflces yesterday morning and demanded OF Henry
e Brewster. counsel for Receiver Mckesa. that al
instruments or loans paid in since TIE rece'=er took
,,ossession be turned over 10 him. on the ground
that they were his own personal property Mr..
Brewster however. failed 10 follow Mr.. Martin
line Of argument and Mr. Martin retired dsco2'
ISOLATE.
Deputy Sheriff John J. Plunlett. who. despite
Sire presence OF Receiver NcKeen. has been noIni-
raIlv I'm charge Of -ro security compaTys Nassau
g. Offices yesterday formally turned over the Of
,7cag 10 Receiver Ac<een An order had been
signed by Justice Holt for those concerned TO show
cause why the securities and other property OF The
company should not he transferred from the state
II Nevv-Jersey 10 the state Of New-York.
William Muirhead. the treasurer of the cornTa~N
IS expected 10 appear to-day IN the usury case
hearing having been released In Loo hail
Louis Hasse the eN-Dresident OF the company;
Miss Carrie Adams Kathryn Hene and George (,
Perkins, the receiver ~ the Union Security ana
Guarantee Company. As Well a national bank
president. have now been served with suhpoenas
FOR to-morrow's hearing I'm the bankruptcy pro-
.cee5fnes before Commissioner Alexander, and proc
esS servers are seeking Mr.. Murhead. Mrs. Roth
echild Miss May Adams and others whose testi-
snony IS expected 10 assist in throwing light on
she dual collapse. Mr. Kresel said yesterday that
10 objection would Itobst iy oe o 81 IA. Mr.
OF habeas TO TESTIFY being granted, 80 - , "
Eothschid might give testimony at the nearing
h., the Examiners yesterday seventy shares 81
worthless Hammond Dlstiling Company stock al
legged TO have been given away with bonds Mer-
chants Discount Company shares and seats on the
Nev-N0rk Produce Exchange.
Sir Knesel yesterday examined Louis Haase, an
Insurance collector. who formerly president OF
the Globe Security Company and late manager OF
The Grand-st. branch Of the Federal Bank up -
within week OF the Smash. tiaase sslo lne orr
thing he did sign lis to patches
~ bonds which brought 10 him by gin cler-l
t;rlrf-st branch OF tho Federal Bank at G salarg
O. S.6o increased later 10 sl-Soo $500 anG finally
Mr. K-esel with three detectives went 10 the
.tnSonia Hotel and made a search of the apart
r1ents lately occupied there by David kothschlid
T1ree tin boxes. sstchel and a leather bag filed
vith papers were taken doNn to Police Head
quarters. -
said 10 be clerk employed by Rothschids counsel
entered the ROthchild apartments IN the Ansona
Nith keys that he had IN his possession. Shorty
Hfter ne reappearec win y large punde OF l'ttels
and papers which are thought to have been focl-
snents connected with the bank case. Three . en-
tral once detectives who were on cuty II the An
sonia IN anticipation. d said- Of some attempt
the part Of Rothhschid's counsel 20 gain access
lie was leaving the hotel They forced him give
ID the bundle Of papers and after he demonstrated
81 vain. the young man went away
The detectives later took the papers 10 Police
headquarters. About an hour later a man. who
said lie % counsel Cor Rothschild. appeared At
the detectives in forcing the youth 10 give up the
bundle Of documents After he created something
hotel manae cement TO leave the place. He did so,
and dld not give his
At midnight Mr. hresel appeared al the hotel
and when ne learned what had been done nv the
detectives ne arranged with the police OF the West
SiNty-eighth-st- station 20 have policeman sta
apartments. Patroman Lawson was sent there, IN
rlsin clothes He has orders 20 allow no one 20
enter the rooms except Louis ROthschid the bank
er's brother. Mrs. Rothschild her maid
ARRESTS IN CASE OF SCIENTIST.