New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-31
HOW CUMM|NS GOT MONEY
City Deposited 1t in Savoy Trust,
Which Then Made Loan.
VICE-PRESIDENT TESTIFlES
Banker Expected to Corroborate
Testimony of Robin as to Con-
troll of City Deposits.

The SAVOY Trust COMPANY sent another
commemorative to the grand Jury NeS' 'foaS
in the person Of Reuben X. Fogel. IT'S VICE
nj, sident who admitted reluctantly that
only the color OF city money induced ms
company 10 lend nSney to William D.
tummips and his associates in The ar
negle Trust Company
Would you have lent Cummins me
money II you hadn't already obtained an
extra CITY deposit Of $1,000 was the ques-
ton put 10 him. II is said.
NO. sir" was his answer.
Was il the city money Itself that you
lent to cummins?'
Yes"
And YOU expected eventually to get iut-
sher city deposits. did you not
Yes We did.
on September s accordinS 10 the tesu-
roonv Of Louis y Hammerling, former
director Of the SAVOY. and Arthur Baur'
its secretary and treasurer. the company
received city deposit of 10000 ana the
next day. September .. SO Mr.. Fogel said
Yesterday. II lent that money 10 Cummlns'
TIE advantageous pert Of the transaction
Law in the difference between per cent
the interest paid on the city deposit, ana
rer cent the interest Cummns paid on his
loan.
The SAVOY Trust Company apparently
I'D not drive a. advantageous bat gam
IS some Of the other hanks in obtaining
citv derosits in return for loans 10 the
Cunr1ins syndicate. Richard ". Jones. il.
o former director Of the National Reserve
Bank. has said that 2 Dank usually or
tanned q per cent more CITY MONEY than
va lent 10 the Carnegie Trust croWd. :
hsrgsin is a bargain however. as appears
IN tho minute books Of tne Savoy Trust
COMPANY. under date ~ August ~ ON
,hs, day this entry. I'm substance. was
made.
sc II resolved. That the board 81 dire
tors Of The savoy Trust Company hereby
consent 10 and 90 authorize loan 20 w w.
AN J Cumnins and me , az nHS con Mn
gent upcu the fulhlment Of two conditions
First that cola teral consisting of Stock
~ the carnegie Trust COMPANY and STOCK
~ the Van Ncrden Trust COMPANY he de-
posted To- secure such loan. and, secondly +.
that the deposit % IN equal amount Of
money be made I'm the Savoy Trust 'om
NAM and that tho loan snail be IN the FORM
~ demand note and shall continue during
the ;iie Of the aforesaid Del osit.
The savoy Trust COMPANY received ar-
o,nef city deposit Of only 5000 IN January
~ this vear. but shortly afterwsrd with
drawal Of 100000 was made. leaving only
800 100 Of city money in the Institution.
Vie grand jury investigating N" car
reeie Trus, failure is 50 warmed up 10 the
subject that IL rescuded Its first decision IN
adjourn from WEDNESDAY afternoon 20 Mon
dav morning and sat AGAIN YESTERDAY II
vii SIT to-day TOO. Though continued
through the month Of Ap:il. the jurors. far
from being FESTIVE under he burden i'm
ncsed uYor them have sienGed their will
hrness. II Is SAID. 20 sit for six months. Il
only the affair can be cleared up.
tarlv next week 2 well known hanke
IS expected 10 step forward and tell The
g-sGd iIrv The result 81 q private inquiry
hc made IN behalf ~ three banks, includ-
ING me own. into the basis FOR CumminS :
PROMISES that he could obtain city deposits
in return for loans So far Joseph 9
ROBIN il the only man who has testified
definitely that any one was party 70 such
al agreement except Cummns and the
hanks involved
Al ofNcia CT the state Banking Depart
nisuf s'Nl connected with y as offered %
TESTIFY. II was learned Yesterday but the
District Attorney. has not Yet decided 20
cail him. Mr.. Whitman wants 20 he sure
irst. % - said. that this man * not 50
involved himself that his testimony VIII he
an abeoiution