New-York tribune., 1909-02-03
KEIRAN'S HIGH FINANCE
iu4IS STORY At HEARING.
Tells Of Plans for Big Merger OF
Com names.

A. FfranaT 10 n
No 65 Cedar street, and the United states -
gage and Trust Company, Of No 90 CedaF 49,
as told by Patrick :. Keiran. Fice-presioeIIt - -,
Fidelity Funding Company, or No 10 IstS
in direct testimony before United states On
stoner Alexander In the bankruptcy hea'ifle Va
January 2s The attempted merger s'ar'ee az
cording 10 Keiran. in an effort to purciase a " - -
4raIlinx interest in the United States MOI l's"e0
and Trust Company from the -du'd't LIZ
ance Company Of New York
In the testimony Keiran said:
Al tl, time the negotiations started Tor t9 PuI
chase the United States McrtsSse n an! Johnson
tie resident oT the Security Life Insurance. , ot he
psl-s, % O 1-,,.oi f a large trust company IN New
York ina. z capital Of szVs5Vn &0 d, q 80 foT
OF 100000 with deposits OF ABOUT S'' ft vas
about sss3 Opl asked him what company ~, ~ 49, 49,
and h. said not at liberty 10 fsne am @ iater
during tie dav He came hack within an LouI' +- 80
tod me 4 vas was t,,e 4 ,I5st Mr Cumming had the
<1pticn Al $3.50 share 1oT eleven thouSau anu AM t.r+
an We wo41 I'H ~ - ,l,r1,iT'r would make his OBJ
Elration eor which to be paid IN one W. ~
4s-ee Years F5e afterward brought MI Suliilltls ns
,,ert 81 S5.3s o5 / told him thought could .LhT
understanding that was 70 rtsise - tLI nd
and that Mr. Otis JosePh E Otis OF Chcas0, ert aa6q
MI johnson and Mr.. Cumming we're 10 p prO1eCC @
against any loss in case me 9eal HS % and trust
red through The stock was 10 be S tI1er own
eed 10 keep the control WITHIN 'iiei' 0"''
arranged with the Sterling Bank: of TorGnJm; onto,
Canada. for the s550eee, and was 10 I' gIre ~ AZ
Mann Of Cleveland, and J. P Madgan oI =! ~.
land. who were 70 be lnteIes'e99 G I contraot be
No. 1891 nd Also notes Of Cumming to the
same as cur notes TO run. TO be held aS ~ Co.
lateral Before this matter was coIlpleIeu -o.e
W Baldwin Of the Empire Trust 1oin.anE' ! s.5z
q letter to the Mutual Life Offering ineIn 500 4
0Hyour price was $3.50? A.-Yes: And Cum
rune's oTer uQ this time had rot eeen for m ,
I, bs5 NOT been accepted. as he nOt sure ne
could raise the money BALDWIN leaned tilo - -
s0f r &
Cumming asked him II he wouldn't have his offer
66r S15nara Sg associsfes sG at NJ Cumming submitted the
e1er 70 and also called up 53tdsCn @ s5d @ tI,ey
declined 10 accept it Later on Nj bald"ln 80
nGHeu ne ff5ce i +i,e Empire Trust and I did and
he said they had learned that vas as 15es+
switch ii over to him asked MIN Whist there e5 was
n u Tor me = Gao @ o t So for him He said well.
viii give YOU $4,000 CASH said, y am more ore
sted set than in sfiihs a IN so0s CASH s os for
Tsnf ,vo an5 half millions in the line of credit
IIe said Il can't give you that, but VIII give n son
ap 10 two 1nfIions. and sioO.ooo in cash"
CREDIT IN THREE COMPANIES.
o-was this credit to be in the Mortgage Trust Trust
Company an. & 1 Ters man merged @ teether their scheme
was 10 merge the Empire and the Windsor with
NE yoTr was interested with him and the fol-
lowing afternoon ne teleph2ne9 m @ 10 2 sS tbere iT He
Yepeated the offer that he had made TO me IN tne
aeealescTG t ,,I5 ~ stand bv went 70 Cumming and
l9 sag ,; IT sI the 1ffer was Cumming refused to
put il through unless he got SleoeS hlTnsel anu d
o-ks what PRESIDENT A.-As president or
chairman Of the board & Or ANYTHING @ 5 fh4t !, "1pla as
They turned down. but finally they agTeeG on
Sr iqr 9ai5s f6en N told how Mr. Baldwin had
formed him that he was unable tn arrange with
The Hanover Bank security for the Sterling
Bank loan Finally. with the understanding that
there should be no liability the part Of the FL
daIity Funding Company. Fidelity notes were is
sued. said Keiran-one- for thirty days. for Slz0-
eso; cne for sixty days for $4,000. and one. for
ninety days for s9ao0n Mr- Keiran then testified;
George n Cumming made his notes in the same
way and for the same amounts. ana NlIilaIl NC
Mann, Of Cleveland and J. ? Madgan a ana my Pysesl @
Segment Of the contract made by Cumming
t5sai Life The hank then refused TO carry it out
unless We gave them $i5e,00o or other secLrlues res
and. So they were only going 10 be temporary Sc
s996 GOO made by 81 Mary's Academy OF Nauvoo,
n which had hand At that time. one for
So ooo. anG check for $97eeo l thak II vas e O
sl5 OOa. and one $50 Of I A RgSaczawskl.
Of stock Of the seourifv Life Insurance COMPANY
These were all put IN as collateral 70 the Floel.as @
5s5in9lefsd, F31n6lns S'n'i' any nO's anu '
The Sterling Bank, 1 may say, didn't give US the
in Six lline and twelve months. and I arranged
for s550.0Oo with these certificates Of deposit as as
collateral Il The Carnegie Trust company cio
Cumming agreed to depost $500 o0o Of the M United
se 4Tst Sesg S ts g. se3osf O to remain SO long
se Is The ioa,, to re was held there The Carnegie
Trust made their check TO me; indorsed 1t over
for Chicago that afternoon and returned on Sunday
WOULD REMOVE CUMMING.
Monday morning I saw Mr.. Cumming. VITO said
that MT TfTnson, vice-president OF the Mutual
LITE and one Of the directors Of the United States
Mortgage q Irdst Company, had got on to the
Trust and had ordered il withdrawn, and gave him
unit noon Tuesday 10 have il ,ione he would
ming min forcIby removed tod him Il was Nm nrposs
be for me q get that money back as the Carnegie
The matter was so urgent went down and saw
facts snd told him he would have to arrange TO
make q deposit with the Carnegie Trust Company
tned States MorSaEe S ana T7ust t e s Sid soe M te e
.1,sif $40 90 in The Carnegie Trust SenSrsrv md
called up President Shaw and told him he would
SSs o me l11st y ~ re y OI5ed Rl5e States
5&oItesstsz ing 49,; o0IIlL1LE tqr Sooo was
weeks the transs ction between Baldwin and Cum
snine ard myself was carried ont, bur as Baldwin
did not have money it was agreed thar he Was
TO take ove- an assignment of the Sterling Banks
Ter OF the contract either Baldwin or Young and
slIa 10 make the nal psyre9fs was 4 t tsE Ie t
eterling Banks loan over with all the securities
SIR. Keiraa said the papers were drawn up in the
cface Of Davis. Stone q Auerbach. in the presence
cf NJ Baldwin. Mr.. Young. Mr.. Cumming the
president OF the Sterling Bank, OF Toronto and
others But Keiran said that Cumming and he re-
fused TO sign until they had understanding as
50 how their notes would be handed back 10 them
xesran testified that the Empire Trust Company
aereed TO put up $4,000 Immediately for the
Fidelity Funding Company notes.
TRANSACTION IN SEPTEMBER
The whole transaction took place between Sep
teresr / and tie first week in October. Keiran
eafd- Tne witness then testified: