New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-15
FEDERAL BANK CLOSED.
SAY 1T OWES OYER s45O,OOO.
Acts of Da0id Rothschild, Former
President. Being Investigated.


The Federal Bank State institution at No.
30 Broadway. having branch at Grand and
Orchard sts closed its doors yesterday afternoon
by order Of Frank =. kllburn, Superintendent OF
the State Banking Department
A Tribune reporter was told by State Bank EX-
srniner Albert C. Judson now I'm charge. that the
bank viii probably he unable 20 pay depositors IN
fuu lie said that David Rothschilds acts as
president 81 The institution were being carefully
investigated.
..The examiners have been investigating since
April r." Mr.. Judson said.
What are the banks liabilities to depositors!
Er. Judson was asked
between $4,000 ard 500 CO., 7 should say There
g also "a debt Or S8S 90 to another hank on &C
count 90 a loan" The assets ne declared were
some 100000. mostly in loans.
ITO what do YOU attribute the banks collapse!
ITO poor loans and shortage % cash
Mr. Rothschld was president OF the bank untll
March &C. when he resigned. and with MN r d
Abercrombie. the ce-president ana G r. ou'oauI''
the cashier Under the Rothschid management
the Federal Bank has been advertising auction
ssles NJ rms In one of these sales which opened
sp the nixon THEATRE building. Pttsburg. on March
4 the catalogue contained the following letter
Deposltary OF the city o. New-York. the Federal
Bank % New-yorl &c. so Broadway New
Aessrs a lleggate & Son FittsblTg 49,, 4. .s,.-
Gentlemen: You are hereby &ulhoII Ds. ~ p,e
and carpets. inventory value $4,000, which stock
Is be sold in order TO pay l sSN aiA-S9 "--'N w
made en- the same Yours truly. 1880 ----,,-
THE FEDERAI. BANK OF NEW I; I,lo OBJ,
The asvert,sernent Of the sale in a Pittsburg
.-.- seclared that "the bank loan Ito pay freight
and duty) was mer~ trihe compared with me
value Of The goods"
William NJ Woods. formerly vice -presloent OF llle
Central National Bank succeeded MI hothscnlio
NY investigation" said Mr. Judson mas tenoea
~ show that Mr. Woods in no way inNoiNeu
q, any o-lesti o-la bic conduct When Mr. WOODS
took hold ne announced that there would be no
moro rug auctions.
what were the circumstances OF ar. Woods sue
csednE AIR. Rothschd?"
M woods agreed to pay Mr. Rothschld 10
per cent for his controlling shares, some sixteen
hundred IN the banks stock, Mr.. Rothschild guar
znteeing that the bank was able TO pay lOO cents
on the dollar. This the Globe Security Company
also guaranteed"
INTO PUBLIC NOTICE.
The Federal Bank has come into public notice
A., the last few weeks through the alleged connec-
zion Of NJ. Rothschild with the Globe Security
Company. a money lending concern. whose treas
aIrer William M1rhead. arrested on March 26,
charged with usury. Auirhead was arraigned be
fore Justice Special Sessions. and was re-
leased in N.0a0 bail
The Globe Security Company's Offices embrace
che bulk OF the seventh floor Of the American Tract
Society's building. at No. $50 Nassau-st Within
the last few weeks number OF persons have told
OF borrowing money from the company al neaNg
Interest. Nearly all declared they had been re-
gerred there by Mr. Rothschild.
The District Attorneys Office has been and is
still il is said. investigating the matter One Of
these deferred Christopher W. Munro, an
importer Of laces at No. $50 Broome-st- who. seek
tng a loan was introduced, he said. 10 MIR. Roth
schild at his bank He received a letter OF intro
duoton 70 Mr. Muirhead at the cOmpany's Offices.
Mr. Munro asked for a loan OF Sl.o00 with chattel
mortgage as collateral on his notes. The loan
r1r NJ ad al
him the interest would be $50 a month. Mr.. Munro
says ne received his money, with the exception Of
q few dollars. in a check the Federal Bank. He
says that suggested by Mr.. Rothschild he
deposited the check in the bank and there opened
an account. Munro says he paid the $50 interest in
January. February and March, by checks drawn to
1Ir. Murhead's order. Fle declares he noticed a
peculiar thing however. about the letter stamp in
6orsement Of Muirhead. Always below it. also in
letter stamp. the Endorsement -. Rothsehild
& Co."
HAD TO BORROW ANOTHER $1,000.
On April /. asserts Munro he had TO borrow
other S.0o0 putting the two notes into one. the
amount being fixed by Mr. Rothschild al $500. de
then paid $40 a month interest until August, when
he told Muirhead. he says he could pay it
longer and live. Mr.. MuirhCtd then agreeing to
reduction 10 SEQ a month. which Mr.. Munro has
since been paying. Despite Muirhead's alleged
promise on March I. when Munro paid the interest
and renewed send him the ole note. Munro has
not yet. he declares. receised IL, and as things
stand MUirhead has notes Of his aggregating
$500 Il declared yesterday in Wall Street
that the Federal Bank until recently controlled
by q syndicate an adjunct the Globe Security
Company.
The last and regular tri-monthly statement Of the
bank was issued March g. and purports TO have
been signed by Mr. Rothschild as president and
Mr.. Outcalt as cashier II bears the name Of J.
p. Marouand. q notary public Of Westohester
County. and is as follows.
LIABILITIES
Capital paid in IN cash $3.50 900 90
surplus --.----.-.... $1,000 %
Undivided profits, less current expenses and
paid ...-.....-..-- 1913 20
Due depos,tors .------..-. 57z.233 20