Globe Security Company - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: *
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: aeb2bf7b

Response Measures

None

Description

Articles describe the Globe Security Company as having been 'wrecked' by David Rothschild, causing many depositors to lose life savings and implying a failure/receivership. No contemporaneous run on the bank is described in these excerpts; the event is bank-specific criminal failure leading to closure/receivership.

Events (2)

1. * Other

Newspaper Excerpt: who wrecked the Federal Bank and the Globe Security Company, in which many people on the East Side lost the savings of their lives.
Source: newspapers

2. * Receivership

Newspaper Excerpt: the failure of the Federal Bank and of the Globe Security Company, which, when wrecked by David Rothschild, cost upward of one thousand people their lifetime savings.
Source: newspapers

Newspaper Articles (3)

1. October 20, 1906 The Sun New York, NY

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Article Text

-MURPHY JUDGES, INC. A FEW CORPORATION LAWYERS ON "CLEAN BENCH" TICKET. M. Warley Platzek, Counsel for Beer Trust Firm, Which Hearst Papers Attacked -Erlanger for Theatrical Combine -Was a Friend of David Rothschild. Mr. Hearst and his newspapers have repeatedly referred to the judiciary ticket put by the Nominators as "a tioket made up entirely of corporation attorneys." He professes to favor a clean, upright bench entirely free from corporation control, but hehas remained silent about the charges brought in this line against some of the candidates running on the ticket which was the result of a bargain between himself and Charles F. Murphy. M. Warley Platzek, who was put on the ticket for Supreme Court Justice by order of Murphy, long has been engaged in defending corporations and he is himself the and director one at the president least, Fidelity Coal in and corporation Iron Comof Tennessee. He was active as counpany Govsel in the criminal proceedings of the ernment against the beef trust in Chicago and was connected in a legal way with the case of the Schwarzschild & Sulzberger Company. which finally entered a plea of guilty, upon which four of its officers were fined $25,000 by Judge Humphrey on Sentember 21 of last year. Mr. Hearst's newspapers have time and again scored the beef trust for its methods of doing business. Mr. Platzek also is said to be counsel for the United Cigar Stores, about whose business methods so many retail tobacco dealers complain. Another corporation lawyer on the Murphy-Hearst ticket is Mitchell L. Erlanger. He is a brother of the theatrical manager and is attorney for the theatrical trust, the Klaw & Erlanger Building and Construction Company and the New York Theatre Company. It was the theatrical trust that barred James Metcalfe, the dramatic critic, from its theatres. Erlanger was a friend of David Rothschild, who wrecked the Federal Bank and the Globe Security Company, in which many people on the East Side lost the savings of their lives. Erlanger was a depositor there personally and he also deposited in the bank some of the funds that he held as Sheriff. But he got the money out before the crash came. When Erlanger was running for Sheriff Rothschild sent out hundreds of personal letters begging his friends to help the Tammany candidate. These letters read: 'As my friend Mitchell L. Erlanger has been nominated by the Democratic party for Sheriff of the county of New York, and as I am greatly interested in the success of his candidacy as well as the success of the entire Democratic ticket, [should esteem it a personal favor if you would contribute something toward the expense of the campaign. "Please draw your check to the order of James W. Gerard, chairman finance com- will mittee, and mail the same to me and I personally attend to its delivery. "DAVID ROTHSCHILD." Erlanger has since denied that he was friend of Rothschild or that he ever got a a cent of campaign money from him. Another candidate on the Murphy-Hearst ticket who had close corporation connections is J. J. Brady. whose nomination was made as a favor to Louis F. Haffen, the Tammany boss of The Bronx. Brady, it is said, has had a finger in every real estate pie that has been cut in The Bronx in the He last ten years and be is now a rich man. is a director and an active worker in the Geiszler-Haa Realty Company. which has put through some big deals recently. He is also interested largely as a stockholder and director in the Sound Realty Company, the Manhattan Mortgage Company and the Bronx Borough Bank Charles L. Guy, another candidate on the Murphy Hearst ticket. is also a corporation man, being director in the Washington Heights Realty Company. And even John the Ford, one of the men who were put on adticket through the demand of Hearst, mitted yesterday that he was a corporation lawyer, too, being counsel for the Queen Accident and Guarantee Corporation of London, which does an accident, burglary and credit insurance business all over the world. He said he was sorry that he did not have more corporations to represent and that he would not draw the line at even the sugar trust. He hastened to add that he was no friend of the predatory corporations such the Ryan-Belmont merger, the beef as trust and the gas combine but said that he believed that corporations when properly conducted were good things.

2. October 20, 1906 New-York Tribune New York, NY

Article from New-York Tribune, October 20, 1906

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Article Text

MEN. TAMMANY ATTACK Nominators Throw Hot Shot at Brady and Erlanger. The Judiciary Nominators gave out statements yesterday attacking John J. Brady and Mitchell L. Erlanger, two of the nominees on the Tammany judiciary ticket, running for the Supreme Court bench. Of Mr. Brady it said: Brady has never been anything except a professional politician and officeholder, and is best known as one of the right hand men of Louis F. Haffen, who is the boss of The Bronx. He has had a finger in nearly every good real estate pie that has been cut in The Bronx in the last ten years, with the result that he has risen from comparative poverty to affluence. One of the greatest get-rich-quick schemes in realty was the Clason's Point deal put through by the Sound Realty Company. A big tract of swamp land, utterly unimproved and apparently worthless, was bought in by the Sound Realty Company for next to nothing. There were no streets and no sewers, but as soon as Brady and his friends got the tract of land in question plans for the general improvement of the section were rushed through by the Borough President. A sewer was built right in the heart of the section, and the land doubled in value. Assessments were held up pending the marketing of this property, and If Brady were elected a Supreme Court justice he would have the naming of one assessment commissioner for this property, while the Borough President would name another, making a safe majority of three commissioners. Another deal in which Brady was interested was the passage of the bill for the extension of Bronx Park by adding some two hundred acres. This plan, ostensibly, was to prevent the pollution of the Bronx River, but it was not put through until Brady and his friends had bought up all the land the city will have to take over. In addition to this, Brady has been largely interested, directly and indirectly, in sales of recent years of school sites, firehouse sites and park property to the city. Regarding Mr. Erlanger It said: People on the East Side have not forgotten the failure of the Federal Bank and of the Globe Security Company, which, when wrecked by David Rothschild, cost upward of one thousand people their lifetime savings. They also are remembering the close friendship that existed between Rothschild, who is now in Sing Sing, and Mitchell L. Erlanger, one of the Murphy-Hearst nominees for the Supreme Court bench. Erlanger dea not lose a cent by the two failures-he had the tip and withdrew his deposits in time. Not only were his own funds on deposit there, but after his election as Sheriff he had county menev on deposit. What would have become of that had he not been under bonds would be worth guessing about. The long n:emoried East Siders recollect the hundreds of personal letters Rothschild sent out in the campaign of 1903 to aid his friend Erlanger in running for Sheriff. Rothschild was high in the esteem of his "soon-to-be" victims, but Erlanger dropped him hard at the first sign of trouble. Erlanger has since protested vigorously that Rothschild never was his friend, and has denied repeatedly that he ever received a penny from the bank wrecker for campaign purposes. The fact is, however, that he received the tip that the crash was coming.

3. October 31, 1906 The Sun New York, NY

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Article Text

ROTHSCHILDWAS FOR ERLANGER And Erlanger as Sheriff Deposited in Rothschild's Bank. Mitchell L. Erlanger, one of the candidates for Supreme Court Justice on the Murphy-Hearst ticket, resents the published reports that Rothschild, the notorious wrecker of the Federal Bank and the Globe Security Company, who is now serving a long term in Sing Sing, was a friend of his. When Erlanger was running for Sheriff in 1901 Rothschild was active in his campaign and sent out letters to hundreds on the East Side, asking them to give their support to Mr. Erlanger and to contribute what they could to the campaign. The character of Rothschild was not generally known then and he had a large business acquaintance on the East Side. He was also popular among the thrifty people over there, because his bank paid 4 per cent. on deposits. According to the statements of Mr. Erlanger's own friends, Erlanger deposited some of the funds of the Sheriff's office in Rothschild's bank. At one time they say there was $19,000 of such funds in the bank, but when the crash came the balance was only about $150. and this Mr. Erlanger personally made good, making a claim on the receiver for the amount. Mr. Frianger owes his place on the Murphy-Hearst ticket entirely to the Sullivans, big and little Tim. It was they who secured the nomination for Sheriff for him in 1901. and it was they who insisted that he should be put on the Supreme Court ticket this year. Erlanger's brother, the theatre manager, and Sullivan are in business together Erlanger, the candidate, has been the attorney or counsel for the theatre trust, the Klaw & Erlanger Building and Construction Company and the New York Theatre Company.