New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-06-25
BANK CLOSED, CASH GONE
Bankruptcy Petition Against
Auerbach & Goldberg Followed.
NEITHER COULD BE FOUND
Deposits Amounted to $4,000,
Cashier Says - Offices and
Printing Plant in Disorder.

The banking establishment of Auerbach
e. Goldberg, at No. l29 Rivington street,
was closed yesterday morning, while
crowd of anxious depositors clamored Tor
cash There was no violence, for police
men cleared the street in front Of the bank.
When the cashier, f. V. Leberdorf, ar
rived, shortly before o'clock, ne found a
state of disorder. Books and papers were
strewn about the floor and there was no
money nor stamps nor railroad tickets IN
the safe, as on Sunday, when business for
the week ended. Soon after the bank
closed an involuntary petition in ba TX
ruptcy was filed against Reuben Auerbach
and Henry Goldberg partners in the lnstl-
tuition, by three creditors, who declared
that they had s1,4OO on deposit and that
preferential payments had been made. 1t
was set forth that the assets of the bank
were $4,000 and the liabilities much more.
The State Banking Department took
charge OF the affairs of the bank soon after
It's doors were closed, and two examiners
were put to work to straighten out the
books The bank has seven hundred de-
positors, of whom three hundred had check
ing accounts According to the cashier
there was no trace of the money, and $500
left there on Saturday had disappeared.
Clerks in the bank told the bank exam
liners that though recently some 5000 had
been left with the concern for money orders
on foreign countries, no money had been
sent away. The cashier said that on Sun
day night the partners were In the bank
with several clerks, and that later the
clerks were sent home
Though the police dispersed the crowd in
front Of the bank another crowd gathered
In front of No. 1875 Essex street, VIII ere
Auerbach conducted large printing estab-
lishment There 1t was found that some
one had entered the place and cluttered It
up. Auerbach lived in rooms over the print
ing shop, and through the transom 1t could
be seen that the same condition Of disorder
prevailed there. Drawers were open snd
things scattered about the floor Auerbach,
however. was not to be found, and neither
was Goldberg. Two patrolmen who were
on duty in front Of the printing shop had
to call for assistance, and the guard at the
bank was increased.
The bank was started seven years ago.
The checking system was abandoned two
years ago because the bankers did not nave
money to the amount required by the state
banking law, but several months ago they
took in a new partner, Morris Hene, who
had some money, and the checking system
was resumed. Heine withdrew from the
concern a month ago. The cashier said
that on Sunday about $1,000 was received
on deposit. but the money could not be
found yesterday.
Or. Philip Gardner holds a mortgage of
5000 against the printing plant. and the
presses and equipment are said to be worth
81. 600 Leberdorf was made cashier seven
months ago. He said depositors continued
to leave money with the bank. though
there was never much cash on hand Le-
berdorCs estimate Of the amount placed on
deposit was $1,000