New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-31
TO Wipe Out Dummy Loans.

There follows statement that &.#"0po
hold by tho trust department of the Car
negie Trust Company for four %positors
had been used with their consent for the
purpose. but that Clark Williams. at the
time Superintendent Of Banking. had dis
approved Of the transaction 10 return this
money (Wlpe out. in other words. the
DUNN" loans secured by stock of the In
dependent Fertilizer Company. with which
Il mad been obtained and meet the Objcc-
ion and 10 do II quietly, are the reasons
ret forth for seeking the money from Mr.
Carnegie. The petitioners say they VIII put
up IS security collateral of IAN undOubt-
Cd intrinsic value far in excess of the Sc
curities they borrow and in addition will
provide the personal guarantees "of gen.
uemen whose private fortunes. outside OF
the securities 10 be delivered TO you. ex-
coed many times the aggregate Of the pro-
posed loan
The letfsr continues:
As soon as the s., 10000 shall be paid into
the Carnegie Trust Company We are 10
accept the resignation of Mr.. Dickinson az
president. already secured, and 10 install
a thoroughly conservative executive man
agemcnt, which We are now IN d position
10 DO.
We desire TO state that We have at all
times earnestly endeavoTeG 70 the best OF
our several abilities. TO discharge our full
duty to the company and TO advance its
best interests without personal profit. save
what may legitimately accrue to us in the
prospective increased value Of our stock;
There i nothing whatever about the
loans which we wish paid that reflects on
Us i'm the slightest degree. In conclusion
We wish 10 deposit with you:
The Van Norden Trust Company stock,
which the proceeds Of these loans pur-
chased.
The securities which were deposited with
the Carnegie Trust Company as collateral
1or the $4,000.
The individual guarantee Of the parties
whose names arc appended TO this letter.
As we are IN funds from the sale OF our
new stock or from any other sources which
We can apply TO this purpose II is our in
tenuou 10 repay as promptly as possible,
and 10 return 10 you the securities
While We are not in "A position to fix Il
definite date for the return Of these seCur-
ities. think that We are justified in
saying that we have every reason to be-
licve and are of the opinion that they can
be returned not later than July l, 1910
This letter shall be taken as the contract
Of the undersigned. Jointly and severally
guaranteeing the return of the said securi-
Ties as herein stated.
Thanking YOU for the courtesy and con-
sideratiOn extended TO US. we are
Faithfully yours,
tSieucdD, Martin ). Condor. by William
keener. attorney in fact; George ..
. mann, Charles \. Moore. jr.. Liston l.
Lewis. William \. Keener. William J.
Cummns
Crabs Hazy as to Contract.
The men who signed this letter were the
men 10 whom the money was lent and
woo scverally guaranteed its repayment
All 81 them who have tangible property are
being called upon now TO repay #. includ-
ing George D. Crabbs. who testified yes
tordav that he could not recall having
read through the contract before signing
lis name 70 r.
Mr.. Crabs also guaranteed the payment
e. what is known rs the Dyer note for
:e6.ooo. which comprised that part Of the
fertilizer loans" not covered by Mr. Car
ncgie's money. IL is being sued for its
nsyment by the receiver Of the Carnegie
Trust Company Yet he was not sure yes
tcrday that he had talked over the loan
with any one before adding bis guarantee
10 those Of the others backing IT,
you didn't take much interest IN IL. did
ou. Mr. Crabbs? ?" asked Mr.. Clark.
No" smiled the witness. "No further
interest than attached TO the signing Of my
name
Ar Cheney. who g now vice-presldent OF
tie Pacific Bank told Of his frequent
warnings 10 and conversations with Cum
Minis and other directors OF the Carnegie
Trust Company over the fertilizer" and
catholic loans In the trust company and
the loans 10 directors. For weeks at a
time during the early part OF 1910 Cum
Minis. accompanied by one or another OF
the trust complnys directors, called IN
him at the Offices Of the State Banking
department, he said. lie learned from
item Of tho Carnegie loan
Max ID. Steuer counsel for the defence
lad only Just begun q c$osS-examination Of
tlc former Banking Superintendent, which
PROMISED fireworks. when Justice Davis ad-
j'mued court Until this morning.