New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-16
SAYS BANKS ARE EASY
Rothbarth Ayers Only Letter
head Is Needed to Get a Loan.
WHITMAN PROMISES PROBE
Mercantile Counsel Defends
Transactions-Doubt Any Of
Money Is Hidden.

Transactions-Doubt Any Of
Money Is Hidden.
The case of Adolph Rothbarth, who has
I confessed 10 swinding the Liberty National
| and Mercantile National banks out of u. to-
/ tai of about $4,000. resolved itself yester-
day into two inquiries: Has the prisoner
! sailed away any Of his haul and are the
banks rs easy" as his confession would in
dicate?
The ease with which you can deceive
| tho banks and financial institutions of Now
| York Is Ridiculous said Rothharth yester-
| day. "AlI YOU have to do Is to go in with
| a letterhead. whereupon they Will ask for
4 statement Of assets. and You can give
| them anything YOU please and get your
money. went 10 the Mercantile in 1905
! because Of a letter received by me from
Miles NJ O'Brien. an officer and director
of the bank. asking me for my custom.
said to him i may want some money.
He said. Go ahead and take some
II sa id I NAV want s15o.ono.'
lie said. All right give us a statement
/ of your assets as a guarantee of payment
L did So. Anybody can who has let
I terhead'
! District Attorney Whitman said that
thorough ,nvestisa Nm would he made by
the grand jury into the methods by which
/ Rothharth obtained money from banks. and
| that if Developments warranted II The evi-
depce would Re turned over to the Control
| ler of the Currency at Washington for ac-
! :ion.
Counsel JustiTies Bank.
But H II. Royesen. of Sullivan *
J oil In, l. the Nercau-
| tile National thinks that the bank was
perfectly justified in lending Rothbarth the
money. and. furthermore, that his arrest il
proof that American banking, moro Gar
] ticularlv New York banking, is dis
tinctly higher plane than of wore
! Fothbsrth offered to check out his other
/ hank accounts TO settle with US" said he.
! We might have accepted his offer got all
our money back and turned him loose on
the public Such vas the general practice
in such eases fifteen years ago. aud is still
tho practice in some other cities in this
country. But instead of making sure of
our money at the expense Of society and
other banks showed him up
Mr. Boyesen pointed ont that slthough
Rothbartll had never been member OF
, either Rothharth & Co. the European firm,
. or of Martin Rothbarth 4 Co. the American
firm he had represented himself TO the
! bank as ; member of both firms, and as
/ such had obtained his loans. He was in
the habit of visiting Germany every April
! the lawyer said, and leaving with his ste
/ Hocrapfer a Young woman, the power Of
attorney which he enjoyed as American
agent of his brothers firm The document
conveying this power of attorney was
sworn to before q notary public in each in
/ stance and constituted. according 10 Mr..
! Royesen. sufficient proof Of his contention
for the bank s purposes.
/ MI Poyesen also said that the high finan-
. caI rating of the foreign firm. with offices
I at Frankfort-on- the Main and London, one
Of the best known dealers in hops in the
world had been Corroborated within the
last day or so by tho banks foreign cor
respondents.
Eoti1barth's Brothers Are Liable
There is very little doubt that eventually
the bank will get all IFS money back said
} the lawyer. There is absolutely no doubt
that Rothbsrths brothers the members of
tho two firms, are liable for the amount he
stole The power of attorney which they
save him was broad such docu-
! ment can be. and every loan he made was
/ in the name of Martin Rothbarth & Co.
The only question now is whether it is best
10 proceed under the English law against
IuStus Rothbarth in London. or under the
/ German law, against Leopold and Martin.
! in Frankfort Wo understand not only
I that the business OF these brothers is in a
| very prosperous condition but that each
has considerable property of his own.
! The prisoner. however. Processes to be
! lieve that his losses have ruined his
! brothers also.
The sOlvcncy and responsibility of the
( firm abroad" said he 10 the reporters yes
! terday. depended largely on the solvency
and responsibility of the firm on this side
, and | had persuaded my brothers that this
| firm was doing a yearly business of three
| quarters of a million dollars. As matter
! of fact it is worth nothing.
| Mr.. Boyesen had found nothing 10 indi-
! cate that the prisoner had "salted away
| any part of the money be obtained from
! the banks. He said the balance which the
man had TO his credit in the National Park
Bank amounted to s642. OF this the Mer-
camille National Bank accepted $500, leav-
! ing enough for fun settlement with Roth
barth's employees. The lawyer did come
, across some large checks in his investiga-
ton of the hop importers effects. one of
sie.n00 and another Of $2o.o1o. ne said, made
out to persons and firms other than banks.
but these appeared 20 'he in settlement Of
! transactions in hops and gave no promise
. Of leading TO any cash credit, although they
! would bc thoroughly investigated
Ready to Take My Medicine
I haven't a dollar in this Y orld.' said
Eothbsrth. and not friend-that | know
| of-and don't want one, am ready TO
! take my medicine. All I ask is that the
I,rlblic shall Let the grass grow over my
memory.
Tho District Attorneys belief. however.
! that no one would offer to 20 bail for the
I prisoner, and that therefore f20.0ho vas
! high enough figure. was rudely shaken and
81 the same time Eothharth's assertion
/ that he didn't have a friend Vas refuted.
/ Fx-Judge \. ]. Dittenhoefer. who he'd
/ known Rothbarth q fellow member Of
! the Liederkranz, visited him in the Tombs
; and has agreed to represent him in court.
! He offered 10 get bail for him. but the