New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-28
TO HOLD SURETY COMPANY
FER FOR ESTATE FUNDS.
LGscyer Says Federal Bank Is
SOlCent -Dep0sit0rS Angry.


The loss that MY faI on an estate % which
david Rothschud IS administrator. 81 there was
sueelinc OF securities. may have TO be borne by
the Bankers Surety Company. OF Cleveland
This company bonded Rothschnd for 100000.
Since the dual collapse OF the Federal Bank
and the Globe Security Company. with their at
teadant disclosures the heirs Of the S165O0O
ayaissel estate have been making inquiries as
20 their securities. David RothsChild. the eX-
hank president IN the Tomhs, is admins
trator of this estate. having been recommended
Tor that Office by Richard ". Jones. jr., presi-
dent 81 the Oriental Bank Il was reported yes
terday that other securities on which much less
Khan $4,000 could be realized had been sub
sJituted FOR The originals.
When this rumor came 70 the ears Of one Of
the lawyers after Rothschila's arrest, it is said
that the lawyer visited Rothschild in the Tombs
and challenged him TO deny il. Rothschild Civ
ing an ogasive answer Rothschild received
note yesterday telling him OF the reports and
asking him II the substitution theory had any
foundation i'm fact. He sent out word that he
had no answer TO make.
James McKeeu. temporary receiver Of the
Globe Security Company. had word from the
District Attorneys office yesterday. It IS said.
that the Office declined to furnish the combina-
tions OF the company's stin unopened safes.
pending the decision as 10 whether the bank
Yuptcy hearing before United States Commits
sioner Alexander should be discontinued for
lack Of jurisdiction. The safes are believed 10
contain papers OF considerable value 10 the
ceiver in his investigation
The State Backing Department yesterday IN
sshed its examination Of the Federal Bank. 1t
has made a report to the Attorney General who
viii probably apply to the supreme Court for n
permanent receiver to-day. II is said that the
hank is IN a better condition than at first sup
posed. and that there IS possibility Of a pay
rnent OF - per cent TO deposiOrs.
When the grand juTy reported to Judge Cow
fng in the Court Of General Sessions. at noon
yesterday Assistant District Attorney Perkins.
who IS assigned to that body. announced that
no indictment had been found against David
5Rothschld. 1t is expected that the grand jury
VIII take the case UP to-day
A meeting to denounce Louis AIinsky was held
at No IS Forsyth-st last night by more than
shree hundred depositors I'm the East Side
branch Of the Federal Bank. Minsky few days
Hgo declared he would place fund Of SJ0Wo in
the Bank Of America in order that every East
side depositor in the branch might receive 30
per cent of a deposit whose safety he had per-
Eonally guaranteed Hundreds of persons &C
cordingly applied 20 Alfred Bullowa. Minsky's
attorney, 10 be told late yesterday after
noon that no money was Yet Forthcoming.
8Iinsby afterward qualified his statement. say
ing his offer was only TO apply 10 the East Side
poor
When the question asked at the meeting
10 who had been induced 10 deposit through
Mr.. Minsky, in the belief that he was manager
81 the Grand-st. branch. the hand Of nearly
every one present was raised. Threats mutter-
1ngs and Interruptions characterized the entire
meeting. but there was no violence. The chair
man was authorized 20 appoint a committee OF
len 10 confer with the District Attorney. and
use such methods would help the depositors
receive a portion of their money.
Alexander Karst. who asserts that he is coun-
rel for Federal Bank depositors but is said
TO have been clerk in the office Of David
Rothschilds present counsel, declared that the
Federal Bank solvent. He says the bank
has $1,000 cash in hand. $4,000 due on de-
mand loans Of which 10000 is good; 100000
sn bills receivable. Of which S2.JS 600 IS good
and fixtures which he says cost $4,000 and
may be rated at $1,000 These make total as
sets Of 100000. against S4SoO00 that he said
due depOSitoTS. Many depOSitOrS, how
ever. had borrowed from the bank sums that
exceeded their deposits, and ii could be said
that the amount actually due depOsitors was
100000
T. x. Daniels asked mr.. karst whether he was
not representing William NJ. Woods Mr.
ROthschild's successor at the bank. Mr. Karst
ignored the question, but in the face Of a hurri-
cane Of questions and challenges as 20 where
he obtained his Information. closed his speech
and was permitted TO hurry away unmolested.
Mr.. Bullowa made short speech telling de-
zDositors that he, too, had been fooled" by Mr..
Afinsl1y promising TO deposit a 80 per cent
fund.