The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-12-13
SAID CARNEGIE
WAS Her PAPA.
New Light Thrown ON Mrs.
Chadwick's Methods.
Dupes Believed She Had Hold
on the Ironmaster.
WO INDICTMENTS.
Are Found by the Grand Jury
at Cleveland.
Fri Reynolds Tells the Story Of
His UndOing.

Cleveland, O., Dec. 13.-Trouble for
Mrs. Cassie L. Chadwick has increased
at a rapid rate. She has been twice
indicted by the grand jury of Cuyahoga
county and her oldtime friend, Iri Rey-
nolds, whose confidence she had betray-
ed, took the stand in court and made
evident his intention to shield and pro-
tect her no longer. The secretary of
the Wade Park bank presented a pa
thetic picture as he answered question
after question which brought out his
own implicit faith in the woman whose
financial transactions have well nigh
ruined him in fortune and caused him
such infinite trouble. He gave evidence
too that he still believes his trust was
justified. Only one query he attempted
to evade. This was when he was asked
how much of his personal estate had
passed into the possession of Mrs.
Chadwick. His eyes filled and he re-
quested that he be excused from an
Swering- The question was not pushed.
The formal indictments voted against
Mrs. Chadwick this afternoon are based,
one upon the Carnegie note for Il mil
lion dollars, which was made payable
at the office of Andrew Carnegie in
New York city, and the other upon the
Carnegie note for II million dollars
which was payable at the National
Bank of Commerce in New York. I'm
der each indictment are two counts, one
charging forgery, the other uttering of
forged paper.
Information of the indictments was
at once wired to New York by the
county prosecutor, Mr.. Keller, and he
requested that Mrs. Chadwick be i'm
mediately rearrested if she secured bail
on the other charges hanging over her.
The examination of Iri Reynolds,
treasurer and secretary of the Wade
Park bank, before Referee Remington
in the bankruptcy court failed to dis
close any asset that might be secured
by Receiver Loeser, appointed by the
federal court, but brought from Mr..
Reynolds in reply to questions this
statement: ''She told me she was the
illegitimate daughter of Andrew Car
negie."
Later Mr.. Reynolds, in detailing his
transactions with Mrs. Chadwick says:
In all my transactions with Mrs. Chad
wick 1 believed from what she told me
that Andrew Carnegie was backing her,
and all her Indebtedness would be
paid" He then added: And have not
had anything yet to make me doubt it,
Mr. Reynolds was asked if he knew
of Mrs. Chadwick ever having diamonds
and he replied that he had seen dia
mondS that had been pledged in New
York and were inventoried at S9S, OO0
He had also seen them at the house.
They Were contained in several trays in
a box and Mr.. Reynolds caused a rip
pie of laughter in the court room when
he said: "They were as nice and pretty
a lot of pearls and diamonds as you
ever saw" He did not know, however,
where they were now.
The witness appeared anxious to help
the officials in every way and volun-
teered much information. One question
caused him to bride somewhat, how
ever, and his reply was most pathetic.
He was asked how much his personal
loans to her amounted to, and in
trembling voice, with emotion, he said:
please excuse me from answering
that; I'm willing to tell all 1 know of
this affair, but I'm going to stay right
here in Cleveland. I'm not going to run
away. I'm going to stay here and take
my medicine. / want to see the other
debts paid
Mr.. Reynolds memory was faulty as
to dates and he was frequently correct
ed by Attorney Andrew Squire who sat
near him. The examination was made
by Attorney Grossman, the law partner
of Receiver Loeser.
After the preliminary questioning,
Mr.. Reynolds said he had known Mrs.
Chadwick seven or eight years and DR..
Chadwick all his life. In detailing how
he came into possession of the million
dollar note bearing the name of An
drew Carnegie, he said: Mrs. Chad
wick called me to her house, 1 think it
was March 5, 1903, and said she wished
to intruSt to me some securities. She
said she had been advised to place them
in the possession of a third party and
she wanted me to take care of them"
ed last Friday night in the presence OF
Mr.Reynolds and Attorney Stearn by At
torney Andrew Squire. The package
was produced in court and Mr.. Rey-
nolds identified the Carnegie note, the
mortgage deed and the copies of an al
legged trust agreement Continuing the
witness said:
"She then handed me a paper to
sign" This paper the witness did not
have with him, but as near as he could
remember, it read: II certify that /
hold in trust for Mrs. Cassie L. Chad
wick securities and a note for 5 million
to the wording, but it was to that eff
feet.
The note was not Endorsed but he had
no doubt that the alleged maker of the
note was back of the woman. The con-
tents of the package were identified
separately by Mr.. Reynolds and at the
request of the examining counsel he
marked each paper as an exhibit The
million dollar note was marked eX-
hibit "a and this is the first time it
has been seen except by the numerous
lawyers interested in the case.
Asked as to other transactions sub
sequent to 1908 Mr.. Reynolds said:
There is one. It is a little banking
secret but I'm willing to tell all. She
came to me, 1 think it was in 1904, and
said she had $12, 900 in paper payable
at the Prudential Trust company. fl
would let her have the money she would
put up United States Steel bonds in. the
morning as collateral. 1 consulted my
committee and with their consent sent
her the money. The next day she
brought a package which she said con-
tanned 100000 in United States Steel
bonds and a Il million dollar certificate
which / was to hold in trust for her
under the same conditions as the prev
ious package. I held these until a
month ago. when in the presence of
several gentlemen they were opened. 1t
was about the time Mr.. Newton began
his suit They contained bonds all
right, but they were not Steel bonds.'
When asked what they were Mr.. Rey
nnlds said. ssr,L,arn rr-era fr-l 81 nnn