New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-20
WEISELI- ESTATE GONE.
BINKS HAVE SECURITIES.
RothschHd as administrator Took
Moneu Obtained on Them.

Reports following the Federal Bank crash and
the arrest of its president. David Rothschild,
that the WeiselI estate, of which he wac tenn
porary administrator. had been plundered were
confirmed yesterday at the trial of Rothschild
on the larceny charge growing out of his prest-
dency of the Federal Bank. While Recorder
Cfoff would not allow Assistant District Attor-
ney Rand to examine Rothschild regarding his
administration of the estate, Mr.. Rand said
afterward that the entire estate of S1ooOoO had
been swallowed up. 1t one of the largest
steals of the Rothschild concern Assistant Dis
trct Attorney Kresel declared
1--WE were ready to show said Mr.. kresel,
that David Rothschnd was appointed tempo
rary administrator of the estate of William
WeiseU. I do not know anything more about
Weiseu than that he died about July 5. 1903
possessed of an estate rising 100000, about all
in gilt edged railroad stocks and bonds. Roth
schnd as temporary administrator. Of course
had no right to divert any OF these holdings
to his own purposes; he had no right to deal
with them. and could not convert them to his
Louis NJ. Haase who was manager OF the
Grand-st branch of the Federal Bank. has de-
posed in affidavit that have before me now
that on August -. 1893 he. at the request of
Rothschid procured from the Mercantile Trust
Company. at No 40 Broadway two loans on
these stocks of the WeiseIl estate, one was
for S24 900 and the other for $4,000 l have
the checks here which show the transaction. and
the Mercantile Trust Company now holds the
securitie1 They are such as Wabash 5ie per
cent preferred. Virginia Midland rs and Panama
4las with q whole lot of others. The Title Guar
antee and Trust Company also holds bonds and
stocks OF this estate 10 the value OF So. 500
which they loaned face value TO Haase in
similar transaction. All Of these proceeds went
10 Kothschild
we had hoped to bring this out IN the exam
nation Of Rothschild bat the Recorder
cluded il. The matter VIII be pressed. however.
because some accounting must be had OF this
estate Of more than 100000. which seems to
have been absolutely swallowed up"
In addition 10 this startling disclosure another
was made which went to show what all along
has been suspected-that Rothschild was Il
stockhoIder If not the principal one in the Globe
Security Company and various others Of like
nature one OF the strong boxes seized at
Rothschild's apartments IN the Ansonia. under
Mr. Kresers orders. RothschHd being In the
Tombs contained will made by Rothschild
Afr Rand showed this will 10 Rothschd whllo
he was on the witness stand. Rothschild said
that although he did not know whether il was
his last will. he knew It one of them. II
was dated January u, 1902 Mr.. Rand at
tempted to get in evidence five lines Of the
will showing disposition Of the property. but tho
Recorder refused to admit II.
These FIVE lines gave 20 the brother. Louis
r. Rothschild, holdings IN the Globe Security
Company. y. Rothschild & Co. James Gould &
Co, D. & l.. r. Rothschild Co. the Legacy Ad-
vance and GUARANTEES Company. and the Mer-
chants Exchange.
The trial was one long wrangle between the
Recorder and Mr.. Vorhaus, of counsel for Roths
child The Recorder invariably cautioned the
lawyer. but the latte, bobbed up sereney after
each rebuka and nettIed the Recorder again.
Herman D. Nesser the discountiug of whose
note for $4,000 is the basis Of the charge
against Rothschil1. was the first witness. Coun-
sci for Rothschi1 tried TO prove a connection be-
tween note of Nessle- for $4,000 record of
the discount of which October Z, 1903. ap
pears in Rothschds books and which Nessler
denies giving with his acknowledged note of
January T. 1904 for the same amount, which
RothschiId refused to discount. and. it is al
legged, afterward did discount appropriating the
proceeds. He had little success the Recorder
ruling against ali questioning on that line
Nessler admitted that one of his objects in
going Though bankruptcy vas to get rid or
debts of $1,000 TO the Southern National Bank
The bank lent the money on his notes, he giving
as security warehouse receipts for whskey
which proved to be forged. The forged receipts
were given to him, and he thought they We're
genuine.
BENJAMIN F. CASTOR. cashier Of the Federal
Bank, who is alleged by Nesser to have drawn
the note for $I0OO0 which Nesser signed.
identiied the note and testified that Rothschild
told him TO take il to the discount clerk have
il discounted end the proceeds placed to his per
sonaI account and tlis the witness did
William Y. Woods. who succeeded Rothschd
as president of the Federal Bank, testified that
Rothschild told him that the Nessler note was
perfectly good.
Then Rothschild himself took the stand. The
Recorder told Mr. Vorhaus that he could be held
in contempt If he did not cease from the line
of inquiry he pursuing with Rothschild.
He preserved an obtuScnesS in answering ques-
tions that was explained in widely differing
ways bv the defence and the prosecution. Mr.
Grossman said that the witness was bereft of
reason while the District Attorneys office held
that he was posing His face was without eX-
preston throughout the rigorous examination
of Mr.. Rand, and the only incidents that en-
livened his testimony were the many objections
made and the exceptions taken by Mr.. Vorhaus.
which finally resulted in an open breach between
himself and the Recorder.
The Federal Bank he said was started by>
Abercrombe Stone, Outcault, CASTOR and him
self He was president The capital stock was
100000 There was 10 surplus to start with.
Witness thought he owed the bank from S175.-
600 TO S225.010.
Counsel will sum up to-day.