New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-04-21
HELD FOR GRAND JURY.
Continued from first page.

papers called at the bank yesterday to mako
their weekly payments Receiver McKeen sc
cepted the money and gave receipts for II. the
deputy sheriff apparently offering no objection
Among the numerous other charges pendfns
against the Federal Bank is one Of declaring IN
earned per cent semi-annual dividends Man
East Side business men called on Mr. Kr.se,
yesterday to tell what they knew Of this al
legged procedure.
ROTHsCHILD's ARRAIGNMENT
Mr.. Kresel. Bank Examiner Judson. M,
Mary F. Huckle, Of West Orange, and two rnar
whose identity was not disclosed were closetea
with Justice Wyatt for some time before
ROthschild was arraigned.
District Attorney Jerome was IN court
ROthschild pleaded not guilty. but refused to
sign the pedigree he had given
Benjamin s. Wise, OF No. III West Eighty
seventh-st. auctiOneer. at Nos. 1921 West
One-hundred- and -twenty-hfth-s the first wit
ness who had an account with the Federal
Bank. said that on January 16 he asked Roth
schild to discount note for $500. At Roth
schild's request witness said he made another
note for $3.50 as collateral He had never au-
thorized RothschiId to make any use OF tho
So, $50 note. RotnschiId asked for no indorss-
ment. He made out the $3.50 note
Mrs. HuckIe discount clerk and general
the note for $3.50. She said 1t was discounted
by her and the proceeds deposited to the crsdis
OF Rothschlld's account
Bank Examiner Judson testified that thu
books OF the bank showed Rothschild's balance
TO be 81 20. Mr.. Kresel then rested.
MIR. Leventritt. counsel for ROthschild. asked
for dismissal Of the formal complaint OF larceny
on the grounds that no larceny had been shown;
that the note was given by Mr.. Wise, that the
liability for the note was Mr. WiSes. and that
no larceny had been committed
Mr. Jerome in reply said that discounttnr
such an accommodation note with the money OF
the Federal Bank. Of which he was president,
and devoting the money 70 his own use IN
doubtedly larceny.
Justice Wyatt agreed with the District Attor-
ney and held the defendant.
Thomas c. Aspland. Of No. 2O1 West E ghty-
frst-st-. dealer in hygienic goods and hbrs.
told Of similar transaction lie and ais part
ner, Isaac Frank gave Rothschild an accom-
mediation note for $4,000, dated April IL. 1903
and due on April 10. 1904. A typewriter agrss-
ment executed by ROthschild said that under
certain conditions the note was to go 70 Frank
on April -. 1904. while on other conditions Il
to go to him and Frank jointly.
Mrs. Huckle. recalled, said that on September
10 ROthschild used the note as security for a.
loan OF $4,000. less discount. The loan was
made to D. ROthschild and the money was de-
posted to the credit OF his account
Mr.. JudsOn testified that the Federal Bank
holds the note as one Of its assets.
Mr.. Kresel asked that bail be fixed az $1,000
and the court fixed bail at $4,000 in the hrsr
case and at $1,000 on the second complaint
thus holding the defendant In $4,000 On the
two charges.
Rothschnd walked iauntfly from the court
room to the TOmbs. Mr.. Leventritt said he did
not believe any attempt would be made to get
bail for ROthschild.
In speaking Of how William u. Woods came to
be identified with the bank. Mr.. Kresel said
that Mr.. Woods ard Mr.. Doolittle. the cashier.
jointly purchased the bank and agreed to pay
$4,000 month for t. They discovered about
100000 Of worthless paper and demanded that
Rothschild make II good as II had all been dis
counted IN his name He agreed 20 do SO, and
promised to turn over to Woods and DOolittls
8 160 shares Of the Globe Security Company
(Which Mr. Kresel says not worth 81 a
share) and also a number Of mortgages and
deeds 10 property amounting to $4,000 more
The stock I'm the Globe Security Company was
turned over to them, but the securities were not