New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-15
n TWO BANKS OUT S11OOOOA UNIFORM BANK SYSTEM
Continued FROM FIRST page.

TO that institution in August OF TINS
year with two payments. one Of S.todo.
on the 11tn and the last Of S1oa.eD. on
the o5th The cashier 81 tho National
Park Bank supplemented this Yesterday
y it'll the statement that Rothbarth nae
q small credit balance with them now
Il. II Boyesen. of Sullivan 6 Crom-
well, said that the firm of Rothbarth =
CO. OF Frankfort-o Main Germany. is
composed Of three brothers, Leopold,
Jdstlls ;,nd Martin Leopold and Martin
Rothbartl1 manage the home Office. Jus
tuS handles their English affairs from
branch office in London. and Adelph
EothIesrtt1. the prisoner, though not A
member Of the firm. has been their ac-
credited American representative for
twenty years He has held broad
power of attorney FOR the firm in ali its
American dealings and the paper held
By the two victinized banks is all be-
heved to have been executed in the firms
rame.
The banks feel that the German firm
Will make good. - said Mr.. Boycsen last
night. They are an old established
and most reputab bic firm. We have not
yet communicated with them Rothbarth
has not been as successful in handling
their affairs of late as he was before.
and his stock speCulations have been I'M
fortunate. We went 20 him on Tues
day and confronted him with his two
statements 10 tho two banks. which diff
fered SO essentially. and Yesterday morn
ing we secured a practical confession
from him as to the falsity of his state
ments for the last two years. We took
him from his apartment in the Sherman
Square Hotel to his office Yesterday
morning. and later Ia the DISTRICT Attor-
ney's Office, where the whole matter was
aired
Kept Brothers ignorant.
previously his accounts had always
been in the best of shape and. in fact, he
usually carried a balance of something
around SO 900 in the banks with which
he dealt. but he told rs that in the
panic of 1907 he lost so much in the
slump Of stocks that he hardly knew
how much il was Since then he has
been engaged in q fiCht TO recover his
money, and III the course Of II. he told
us, he had concealed the true state Of
affairs from his brothers abroad"
Rothbarths attitude when he was ar
raigned yesterday was one Of resigna- I
ton
I'm glad it is over" he said. Il have
not had d peaceful minute since the
panic. I'm heartily glad ! have no wife
or children. and I want to get the limit
He mentioned Union Pacific and
United States steel as among the stocks
in which he was caught in the panic. and
declared that the affair would wreck his
brothers firm
The lawyers and banking people inter
ested We're Of the opinion however, that
Rothbarth is so overwhelmed by his
plight that he thinks IT is much worse
than it is. and they confidently expect
that the German hop dealers viii have
no difficulty at all in meeting the obliga-
tions which their American agent and
brother has piled mp against them
From = statement Of his affairs volun-
teered by Rothbarth it appeared that
the American agency did business /
amounting annually to about $4,000 /
lie produced a small pocket size ledger /
IL which the true status Of the agency's !
affairs were kept by himself. and in this /
book. which contained none Of the exag-
geTated assets put forth on the open
BOOKS and statements of the firm, the /
Investigators found that his bills re
ceiva bic in six month periods since 1907 I
approzimated S25t00
Rothbarth assigned what cash credits. /
accounts due and stock on hand he was
possessed of yesterday TO the complain /
Ing banks. and the exact amount Of his .
liabilities 10 the institutions will not be
determined until they have been bal /
anced against his notes in their hands
Emil Klein. the cashier of tho MGR
camille National Bank appeared in court
as the complainant and acquiesced in .
the amount OF the bail asked by the Dis
trict AttOrnev- Rothbarth conferred for
q few minutes with james ". Osborne.
and though that lawyer took no part in
the proceedings YESTERDAY he said he
might take up the case later