New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-21
HELD FOR GRAND JURY.
ROTHSCHILD'S METHODS.
Muirhead Found Clash BetUeen
Globe ReceiUers OTer Papers.

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Strong intImations that more prominent men
and women, including a we'll known bank presi-
dent and Standard OF man, as well other
banking institutions heretofore reputab BILE. were
involved in the dual collapse of the Federal
Bank and Globe Security Company. made
yesterday. There was a persistent report that
David Rothschild speculated and lost heavily
in stocks. Rothschild was again arraigned and
held for the grand jury at bail aggregating
900.
A member Of the firm Of Meyer e Goldsmith
attorneys for the creditors in the bankruptcy
proceedings. said last night that a writ OF
habeas corpus for Rothschild would he asked
for this morning. that he might give evidence
in the hearing before Commissioner Alexander.
Detectives last night had found William Muir
head. the treasurer of the company, who is
under $1,000 bail in the Globe usury case, and
IS also wanted a witness in the bankruptcy
hearing Saturday
Miss Carrie Adams. OF No 206 West Seven
tieth-st-, who has been seen frequently In the
company Of Louis Rothschild. n brother OF the
eN-president was served with p subpoenl Or
dering her 70 appear before United States Com
missioner Alexander. \ subpoena has also been
issued for Mrs. David RothschiId
Receiver McKeen OF the Globe Security Com
pany who appointed BY the Federal Court
learned that Charles G. Black who had been
appointed receiver for the company by the New
Jersey Chancery Court had further qualified al
receiver under New-Jersey federal court COM
mission. the office OF neither receiver taking
precedence and both applications having been
made simultaneously. To confound the con-
fusion Deputy Sheriff John j. Plunkett who was
nominally I'm charge. refused to leave the Of
flee. declaring that he must first have his
| "poundage" and that there was sufficient money
TN the office to pay his fee-a few hundred dol
lars. This Receiver McKeen declined to pay.
Il find that the trustees" Mr. McKeen told a
Tribune reporter. have transferred the securi-
ties to New-Jersey. and told on good au-
thori'y that papers belonging TO this office have
been taken to that State have opened sew
eral Of the safes and found them-empty"
Mr.. Meyer. Of the creditors counsel declared
that an order had been signed by Justice Holt
compelling the trustees 10 return the papers 70
the Nassau-st. office. Henry J. I.owds one Of
the trustees. has already been subpoenad bv the
marshal. and John II. Russell, another trustee
is b>ing sought.
Mr.. McKeen said that at Saturdays hearing
he hoped by the evidence OF employees TO Obtain
the keys and combinations Of safes he was nm
able 10 open An order is also being sought au-
thorizng Mr. McKeen to continue the businass
OF the company I'm the interests Of the creditors
TTFrt
Mr.. McKeen states that notes are daily becon-
| ing due and must 20 to protest falling author
! zation to continue business
The fact that Cuthbert. the expert accountant
| who went over the books Of SuIIy & Co. has
! charge Of the accountants who are going over
! the Globe Security books. was considered part
! confirmation Of the report that RothschiId had
| lost most of the money I'm cotton speculation
! The only cash asset OF the company that was
I-r,ovr e, o-fgt : n
| Company. Just before or Immediately after the
deputy sheriff took possession Of the offices on
| Saturday. Mr.. Murhead. It is said went to the
| trust company and drew out the entire deposit
| United States Marshal HenkeI has sought for
| Muirhead I'm vain.
Compared with the Globe Security Com
! pany." said Samuel J. Goldsmith the Miller
! syndicate paIes into insignifcance."
Richard w Jones. jr. president OF the ORR
| entail Bank. at Broadway and John-st. and ex-
! president Of the defunct Seventh National Bank.
declared that his institution had asked the
| Federal to withdraw its accounts because of the
| many out OF town checks that IL had deposited
and against which it drew Immediately after de-
| posting.
| 'Our only dealing with the Federal" said Mr.
Jones. was the carrying of its account The
| Federal never owed the Oriental a dollar"
Mr.. Jones admitted that he had had personal
| dealings with David Rothschild.
Did you ever recommend or indorse Mr
| RothsChd?" he asked
| Il done remember that I ever did" said Mr..
! Jones.
Assistant District Attorney Krescl declared
| positively that others besides Rothschild had
| benefited through the Fedora. Banks operations
| He declined to mention any names He said he
| had learned that when the bank being
| organized II employed ex-A!derman Louis Minski
| to solicit business and sell stock. According to
| the agreement he was to get one-half of per
cent the deposits which netted him about
| $4,000 year. and n large percentage the
| sale of stock He had good reason to think it
| was - per cent. The grand jury would be asked
| TO indict Rothschild several counts Of grand
! larceny. Every time Rothschild discounted an
| accommodation note he was guilty of grand lar
| ceny. On March n statement was issued which
| represented that the bank i'm good condi-
| ton. If 1t is learned that this statement was
| not in accordance with the facts some action
would probably be taken against Rothschild on
| that account probably in the form OF an indict-
| ment alleging perjury.
| Nr KreseI asserted that he had been informed
! that RotEschid would plead guilty.
! Several persons who had borrowed money
| from the company and do not read the news