New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-09
FOODS PLANS NEW BANK.
East Side Depositors of the Federal
Receive a Circular.

At a meeting Of Federal Bank East Side deposit
ors held Odd Fellows Hall. No IS Forsyth-st
last night. IL became known that William NJ
Woods now under bail a civil charge of fraud
and deceit and David Rothschild's successor as
president OF the Federal Bank wishes organize
a bank. to be known the Merchants State
Bank the ashes OF the defunct concern. and
also that project is afoot make Oscar s. Rich
ard. president OF the Grand Street State Bank.
ceiver. Under date OF Tuesday circular appeal.
signed by William NJ. Woods. president OF the
Federal Bank" and Alexander Karst. represent
ing a large number OF depositOrs.'' has been
ceived by East Side depositors. pending agree
ment whereby depositors shall accept in satisfac
OF their Federal accounts. 30 per cent in cash
payable within thirty days after the organization
OF the bank. 20 per cent in the stock OF the
new bank, and the balance the assets OF Fed
eraI Bank may be realized by the new bank The
appeal purports be made protect the inter
ests and prevent sacrifice of the assets OF the
defunct concern.
At the meeting Alfred l. NJ BuIlowa honorary
counsel for the depOsitors. read. In part. letter
from Mr.. Woods. asking that the deposItors grant
him respite before going forward. on account OF
Mrs Woods being i'll. In the letter Mr.. Woods de-
clared that provided depositors hssented to his
plan. he hoped to announce within seven days the
names OF the officers OF the projected bank. Mr.,
Woodss letter took a sanguine view Of the FEEDER
ais condition asserting that the books showed the
assets to be s726. CO., OF which sS55O00 good.
and the liabilities be SiS5COO with Sos 600 cash
now in the bank Mr.. BuIlowa expressed himself
as not in favor OF Mr.. Woods's request. His re-
mnder OF his audience that five hundred OF their
wives i'll heartily applauded.
One OF the deDositors present at the meeting dis
played a typewriter petition addressed TO Gov
ernor Odell asking that Mr. Richard be appointed
receiver. According to the depositor. Mr. Richard
drafted the petition. TO which several signatures
were affixed Mr.. BullOwa advised the depositors
first 70 sound Mr.. Richard as TO whether he would
be willing to accept the appointment
In view OF Mr.. Karst's persistent denials that he
represented MI WOODS, ana IN View or his address
ton that the Federal Bank solvent. Isidor l.
Daniels attorney of No. 1876 East broadway
demanded to know if he were not Mr. Woods's
agent, the WoodsKarst circular caused consider
able comment.
The State Banks official announcement pub
Hshed in Saturdays Tribune. that. beginning to-
day would advance to Federal deposiOrs on their
authenticated accounts IS per cent Of the balances
TO their credit. paying any dividends in excess OF
this percentage that might be declared the Fed
eral Banks receiver. also provoked discussion a
committee of fifteen including five business and
Ave savings bank depostors. appointed a dele
CATION 10 go tho State Bank with Mr. RuIoura
to-day 10 confer with Mr. Richard and also 10
learn the terms Of the 80 per cent advance
Frank Kudeman presided at the meeting and
three cheers for our counsel" were given before
the gathering dtsbanded-