The evening world., 1904-04-15

the Guardian Trust Company"
Mr.. Mulrhead said that the notice
posted at the bank was for the purpose
OF letting the holders OF these checks
know they could be redeemed with new
checks at the company's Office. Many
~deposltors who had read In the news
papers Of Rothschild's connection with
tho Globe Security Company misunder-
stood the notice n went down to Park
Row with their bank books.
Depositors After Cash.
The Globe Security Company will
only redeem Its own checks" Mr.. Muir
head was explaining to several Federal
Bank deposltors when an Evening
World reporter arrived.
I'VE have $4,000 worth Of hypoth-
ecated paper In the Federal Bank" he
concluded. land the most of this is
good. Besides, there is the cash de-
poslt OF 5000, so that the bank will not
lose through this concern. But I have
no bank now to carry my paper. and I
am nearly distracted. l have been
forced to refuse business. and have
sent back several large checks from
private persons who desire to open an
account with us rather than have them
involved in the present tangle, which
looks very blue for us"
The District Attorney has Joined the
officials of the State Banking Depart
ment In the examination OF the Fed
erals accounts nj they are said to
agree hat the conditions revealed are
about the worst they have ever met In
this city. Some of the officials are not
so sansuine as those who think deposit
tors may get forty cents on the dollar.
Tho less optimistic ones say that nf-
teen cents will be about all that any
deposltor IA hope for.
Small Trndesnien suffer.
Many small east side tradesmen will
suffer by tho failure OF the Federal
Bank Some OF them have their all in
volved In the concern and not n few.
besides being depositors. were induced
to Invest the savings of years In Its
stock. These Investments run all the
wav from $1,000 to 5000.
The assets of the Federal consist OF
5000, 900 In loans. When Its doors closed
yesterday its deposits amounted to
s9o,Ooo, Of which sum $40, 300 belonged to
east side deposltors. Early in the
week deposltors In the Broadway bank
had heard rumors and withdrew slbo, 900.
These rumors did not get over to Grand
and Orchard streets. INT the poor peo-
pie there kept putting money in the
branch bank until a few minutes before
tho doors were closed.
1t Is believed by the State Banking
Department that the original paId-in
capital of $685. 900 and a surplus OF
5000 0 are gone
Tho Federal Bank vas started two
years 4 chiefly by David Rothschlld.
who was it's president until three weeks
s In the latter part OF March many |
complaints were made to the District
Attorney against the Globe Security
Company, which occupies nearly all of
the seventh Zoo OF the Tract Society
Building. at No. $50 Nassau street.
OF William Muirhead. president of the
Globe Company. on a charge of usury.
The arrest OF Muirhead disclosed pc
culiar relations between the bank and
the Globe Company. The Globe. II Is
satd, was established by Rothschild and
his brothers shortly before the bank
was organized. There are several OF
these Rothschild brothers. David
IL regarded as the head OF the
family. He lives In good style at the
Ansonia. The brothers dealt In bar
fixtures ana office furniture in CincIn-
natl, and tried the same business here,
but ~bandone 1t TO go into f%inance.