The sun., 1904-04-18
POLICE HAVE GOT ROTHSCHILD
PROSECUTOR WANTS $4,000 BAIL
n A NIGHT IN A CELL.
can't Explain where the S77S.OOO Is
e. Gone-Uncie Sam May Take the Globe
I Security Company In Hand-It Has
Flooded the Mails with Its Literature.

David Rothschild, wrecker Of the Federal
Bank, from whose depositors he is accused
Of stealing about s2250OO and father and
founder Of the Globe Security Company,
the usury joint in the American Tract
Society Building, was locked up in Police
Headquarters last night by Detective
sergeants McConvlle and Clarke, He was
arrested on general charge OF grand
larceny, without a warrant.
The detectives said, when they got their
prisoner to Headquarters, that they had
caught him at Forty-second street and
Broadway They had been watching the
Ansonia, where Rothsohild lived, and they
learned, they said, that a man living in the
hotel was particular friend Of Rothschild.
When this man left the hotel last night they
followed him to Forty-second street and
Broadway, where he met Rothschild. At
Headauarters Rothscbild said he was .
banker. He refused to make any state-
rnsnt, but before being taken to n cell he
requested that he be allowed to see his
counsel or his brother. Louis Rothschild,
il either called.
In a half an hour or so Isaac Bell Brennan.
Rothschild's lawyer, came to Headquar-
tsrs in cab with Augustus Docharty,
who was secretary Of the Fire Department
under Commissioner Scannell, and man
named Mendel. Brennan said that Doch-
srty was a friend Of his and came along to
hustle for bail, IL necessary.
THE trio had a talk with the prisoner
annd Mr. Brennan said that it wouldn't be
worth while to try to get bail last night.
Tho prospective giver OF the bond, he said.
was a woman and by the time she could be
found and Magistrate secured IL would be
midnight.
..-Rothschild hasn't been hiding" said
Mr.. Brennan. He has been at the Ansonia
al the time understand that he started
from the hotel for the Murray Hill Baths
and was arrested there or on the way down.
town"
Pretty soon Louis Rothschild arrived.
Ha insisted that his brother ought to be
bstled, but after talk with the prisoner
and Lawyer Brennan changed his mind.
He understood that bis brother had been
arrested in the Murray Hill Baths while
nlephoning
Meantime the police had sent word to
Assistant District Attorney Kresel, who
has charge Of the case, and he came to
Headquarters and had a short talk with
Rethschild,
!. Il have told the police that will accept
nothing less than $50 900 ball. he said,
, Kresel asked Rothschild what he had
done with the Federal Banks money.
According to Mr.. Kresel. Rothschild said
ne. couldn't explain where 1t had gone.
sThe bank had some losses and some ex-
pSnses, xRQthschjld 'sgiAos1sbut suppose
twill bS, kSfd 70 make the people under
Rand where S276 900 went for expenses"
5-Then Rothschild became inquisitor and
asked: 1Can you explain where it has
gomez
Mr.. Kresel shook his head when the re-
porters asked him il he had given the in
formation. According to Mr.. Kresel,
Rothschild took about S225, 600 Of the banks
money by juggling notes.
e Mr. Kresel said that he had reason TO be-
Heye that Rothschild was on his way to
take a train out of town when he was ar
resi- ed. The trains and steamship piers
had all been watched for him.
Rotheohild will he arraigned at the Tombs
this morning. No specific complaint has
been prepared, but general charge OF mis-
approprating s2OO,OOO belonging to the
Federal Bank will be made against him by
McConvile.
The United States Government, through
the Post Office Department, has interested
Itself in the Federal Bank-Globe Security
David Rothschild mess. For more than
weel Post Office Inspector hshe, who is
asid to be the only Post Office inspector
in The United States who wears a Phi Beta
Kappa KEY, has been investigating the
Globe Security Company and its methods
As a result of this investigation somebody
Il. al. n nj n trpllhla with Uncle
Sam.
The Globe Security Company has been
very liberal patron Of the United States
mails. Through the mails IL has sent all
over the country it's advertising matter,
particularly the advertisements relating to
it's gold and per cent. bonds, as good
AS Government bonds. These advertise
ments stated, as proof OF the financial
TsQundness OF the usury shop, that its cash
capital and surplus, amounted to 81 ,076, 600.
They also contained financial statements
purporting to show a wonderful growth
and prosperity of the business.
Itwas intended, of course that the adver-
tising matter should make purchasers for
the bonds, and it did. Now, however, Will
liam Muirhead president or treasurer, or
aecretary, or scapegoat, OF the concern.
aCSOTOlnR 10 His I)iedsuie' sdys tHa' lie 8
afraid the company will have to stop doing
business. The Michael Printing Company
feared that something Of that sort might
hsppen, so it concluded to attach the goods
and chattels Of the company, on claim Of
E.7D7, while the attaching was good.
Inspector Ashe has learned things which
6sSe led him to believe that II is just possi-
obls that the stuff sent out by the Globe
SECURITY Company through the United
States mails may have contained, to put 1t
mildly. Inaccurate information regarding
the company's financial condition All
'tbe information he has already collected,
And more Of which he will become pos
'seesed this morning, will be laid before
United States District Attorney Burnett
Tntime to enable that official to put certain
Svidence before the Federal Grand jury
before II quits business for the day.
1T was said yesterday afternoon that
William Muirhead will have an audience
With Inspector Ashe this morning and a
chance to tell what he knows about the
Globe Security Company.
These statements are made on the au-
fbority OF a person who Is in q position to
know how the Post Office Department