New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-07-06
THE DEPOSITORS ANGRY.
Rap Schleanger for Federal BANS
Troubles Starring, Say Some.

Between two and three hundred of the small
depositors Of the Federal Bank. which suspend
ed on April IA, met last night at No oo Orchard-
st. Frank Midelman was chairman of the meet
ing which was originally called for protesting
against Leo Schlesinger. president of the Me-
chanics and Traders Bank. continuing as tenn
porary receiver of the Federal Bank.
The protest was based the report or Max
Loidman. chairman OF an investigating commit
tee Of the small depositors. He complained that
the temporary receiver costing s66 a day.
that rent was still being paid for the Federal
Bank buildings IN Broadway and at Grand and
Orchard SITS, and that the Mechanics and
Traders Bank lending the starving de-
positors' OF the Federal Bank 40 per cent of
their claims against the institution, and charg-
ing per cent interest on the advance
When the report Of the investigating commit
tee was made last night to the depositors the
latter became angry and some fiery speeches
were made. Some of those present declared
that they starving, and others said that
because of the failure OF the Federal Bank they
could not continue business
When the excitement was at the highest III.
E. Friend. manager OF the Broadway Safe De-
posit Company, who is assisting Mr.. Schlesinger
in the effort to straighten out the Federal Bank
affairs, appeared, he instantly called on for
some informa ton, and at the start there
sought to smooth matters by explaining
that Mr.. Schlesnger philanthropic man
and that as president OF the Mechanics and
Traders Bank he had made the loans Fed
eraI Bank claims at per cent interest to re-
lieve distress. Friend admitted that he was
we'll aware OF the fact that some of the small
deposItors in the Federal Bank were suffering
while their money was tied up In a litigation
which might last years
IF you don't like to pay per cent don't ask
us-I mean. Mr.. Schlesinger. for advances
your claims" said Mr.. Friend, complaining is
fine gratitude your part. You forget that
Mr. Schlesinger is your friend He " not
Rothschid or the Federal Bank. He is simply
the servant of the court. and is under bonds TO
perform his duty honestly He does not make
the loans temporary receiver of the Federal
Bank, but as president of the Traders and Me
chanics' Bank"
At this the depositors at the meeting became
more angry. Then Mr. Friend explained that
the temporary receiver had power to move
out of the Federal Bank buildings or TO sell any
of the property of the bank. He said further
that the motion made in behalf of others of the
1900 depositors of the Federal Bank. alleging
that the Rothschild institution was not insolvent.
had caused delay, but II was likely that in a
week so Mr.. Schlesnger would be appointed
permanent receiver Of the Federal Bank, and
then there would be Improvement.
Finally Mr.. Friend won those present over to
his way OF thinking and the meeting finally de-
cided TO ask for Mr.. SChlesingers appointment
as permanent receiver. and begged him as presi
dent of the Mechanics and Traders Bank 10
Bank claims to keep some of the small depOS-
tors from starving or going to the poorhouse.