Omaha daily bee., 1911-01-08
Shadow Of Joseph G. Robin on Well
Known Institution Causes Third
Bank Failure.
WAS DEPOSITORY OF CITY FUNDS
New York Once Had One Billion on
Deposit
DEP0SITORS PROBABLY SAFE
President Howell Says Situation Could
Have Been Saved.
WAS DEPOSITORY OF CITY FUND:
DEPosITORs PROBABLY
VARIED HISTORY OF INSTITUTION
Leslie NJ. shaw Acted Rs President
md RcsiEncd as Result Of Dis
agreement with DiCl<insOn--
Failure No Surprise.

NEW YORK, Jan. IA third bank, wdeh
the shadow Of Joseph c. Robin, tho in.
dctcd promoter had fallen, closed its doors
today and tonight the state superintendent
OF banks is In control OF the Carnegie Trust
company. an Institution with wide south
ern and western affliauon
An application for the appointment Of a
COMMITTEES to take charge of the person and
estate OF Robin was denied his sister, Dr.
Louise Robinovitch bv Justice Goff today
In The state supreme court United States
bankruptcy moneys. state and city funds
are all tied up, bonded In varying degrees
Of suffcency. The company was named
she official depository of federal receivers
and trustees of bankruptcy appointed by
the United states district court on Sppiiea-
tion OF Leslie NJ Shaw, who Tor a peri ID
was its president after his resignation
from tho treasury department
a bond Of $50 COO was given, but there are
now on deposit $3.50 0OJ involved in compost
tions and settlements, all Of which will be
indefinitely delayed. The city, which at une
time had 81 900 on deposit. stlll has $780,,
600 secured by the individual bonds OF the
directors The state has $4,000 on deposit
amply secured by $4,000 bonds.
/ DepOnitOrs May Not Lose.
The amounts to be paid to the depositors
! and stockholders win not be known until
the state superintendent make public the
report of his findings, but William a.
Keener, one Of the directors and formerly
OF the firm OF Keener & Lewis, counsel for
the company, said tonight:
Bank on what President Howell says,
the company will pay dollar for dollar
President Joseph r. Howell, who was in
duced to resign the presidency OF the
Fourth National bank of Nashville Tenn,
to take charge of the Carnegie Trust com
pany, three months ago, was similarly op-
timistic.
There is no reasonable doubt" he said.
that depositors will be paid in full,In the
event of careful liquidation the stockhold-
ers should receive a reasonable amount on
their holdings, The amount due from banks
and other assets quickly available will ag-
gregate approximately 40 per cent OF the
deposits.
In twenty-four hours sufficient money
would have been provided to meet the re-
quirements. Negotiations were virtually
concluded which would have met ali the
exigencies of the situation. The brief re-
spite needed, however, was not afforded" ="
No Connection with other Banks.
Several OF the directors Of the company
are directors of the Nineteenth Ward bank
and Bradley Martin, jr., whose name still
appears on the stationery Of the trust COM
pany as vice president. although he re-
Gently resigned. is now president OF the
Nineteenth ward bank. lie said tonight
that there is no connection whatever be-
tween the two institutions, and that he
closing Of one would no affect the other
In 1909, when the Carnegie Trust com
Nsa ha 81 a..
c. c. Dickinson who died mysteriously
last Man, an effort was made to console
date the Carnegie Trust company, the Nine
teenth Ward bank the Twelfth Ward bank
and the Van Norden Trust company, under
the management and name OF Carnegie.
Although Mr.. Dickson had been state
bank examiner, he was not persona gtata
TO the state banking department, which for
bade the merger under a ruling that Il
would he impossible for a trust company
to consolidate with state banks RecentI,,
the Van Norden Trust company changed
it's name to the Madison Trust company
and Bradley Martin, jr,, was elected presI-
dent.
Closing y" Surprise.
The closing of The Carnegie company to-
day was no surprise I'm financial circles and
caused little disturbance on tho stock ex-
!
quickly met by supporting orders and al
the close the tone was firm On the street
the uncertain status OF the company had
; been a matter of common knowledge
In its brief career-lt was organized I'm
lsO5-lt had already passed through one
serious period of depression and had known
four presidents The first was Charles C.
! Dickinson, whose family is stiIl IN IitiRa-
tion with insurance companies over his
, death He was interested in experiments
r looking to the transmutatlon OF metals and
his brother, stanton c. dickinson ad.
yanced the theory that he was Killed by
+ inhaling poisonous gases I'm a laboratory
test ON this theory the family sought
, TO collect $1,000 accident insurance An
autopsy performed by experts for the com.
pany showed, however. that death was th,
Immediate result OF pneumonia and
Brldghts disease.
Mr. Dickinson resigned and got Lesli,
NJ. Shaw, then retired from the Treaslir,
department, TO succeed him Mr. shaw
proved a very successful business gettsl
and succeeded In having many westerr
banks name the Carnegie as their deposl
tary, but he did not agree with Mr. DICK
inson, who stil retained a large share II
directing the policy, and resigned Mr.
Dickinson became Tres' dent again, but dic
! net succeed in gaining the confidence o.
Influential banking interests. lie wa.
active and energetic however, in estab
a fishing connections with southern business
I men. Through his influence william J.
8 Cummings. formerly Of Nashville Tenn.
r became a shareholder and the way wa
e thus paved to the -, sidsncy FOR MIR
d Howell.
Dickinson Resigns.
But before This time ar. Dickinson ha,
/, already come into conflict with the stat'
/ banking department. His plan for
8 merger with two state banks and another
trust company was dissllowed to the re-
- lief OF conservative bankers. The intlma
tion was conveyed that his resignation
q would be acceptable and "a was soon ten
r derud.