The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-04-20
Law IN CARNEGIE CASE
GRAND JCRY SCBPENAS FOR
CtMMINS AND REICHMANN.

GRAND JCRY SCBPENAS FOR
CtMMINS AND REICHMANN.
Any One Pri,y 10 bribery Must Tell About
N-New indictments Expected To-day
Based On Check kitlnx Ask Prem.
dereast About Hyde-No sale OF Assets
II is expected that William j. Cummins
and Joseph r. Reichmann. already under
indictment in the Carnegie Trust Com
pany case and under bail. will be arraigned
to-day OH several fresh indictments
charging the larceny Of seOo 600 altogether.
A more interesting matter is that they
are likely to be served with subpPnas
calling on them to appear before the
Grand Jury and answer whatever ques
tions are put to them under section 3sl
Of the ipenal laws. which relates to bribery
and corruption. The section says:
A person offending against any pro-
vision OF any section Of this cha pter relating
TO bribery and corruption il a competent
witness against another person so Offend
ing. and may be compelled to attend and
testify upon any trial. hearing. proceeding
or investigation In the same manner az
any other person. But the testimony so
given shall not be used in any prosecution
or proceeding. civil or criminal. against
the person so testifyinR. 4 person 90
testifying to the giving Of a bribe which
has been accepted shall not thereafter
be liable to indictment. prosecution or
punishment for that bribery. and may
plead or prove the giving OF testimony
accordingly in bar OF such indictment or
prosecution.
Cummins has said that he would vel
come a chance to appear before the Grand
Jury. but it was understood he desired to
60 voluntarily. One Of his lawyere.
Stephen c. Baldwin, said recently that he
would not permit any client Of his to
appear In such circumstances before the
Grand Jury and 1t is possible that there
may be fight made to-day by Cummns's q
counsel. The Tennessee financier is under
bail of $4,000 now on three indictments
returned against him several weeks
ago which charged the larceny OF S335 600
OOctDu IbclCuIu6IlIl Is uIucT SlOuDU
bail at present on misdemeanor. forgery
in the fourth degree. consisting. accord
ing to the indictment. Of the making Of a
false report to the Banking Department
concerning the $4,000 loan made by
Robin OF the Northern Bank to the Car
negie Trust Company.
Both Cummins and Reichmann are
here and il was said last night that they
will be in the Supreme Court this after
noon by the time the Grand Jury reports
There ia a probability that the District
Attorney will not require any moro bail
from either.
Some Of the indictments expected re-
late to alleged check kiting by Cum
Minis and Reichmann. Tho Grand Jury
has been working for several weeks on
this phase Of the Investigation and It
was not until yesterday afternoon that
sew eral links OF the chain were connected
up. For two hours clerks Of the Car
negie Trust Company were examined
as TO what they knew about check kiting
that is said to have totalled $3.50 900.
This afternoon, having cleared away
the internal affairs Of the Carnegie Trust
Company. the Grany Jury will resume
it's inquiry into the relation Of loans got
by Cummins to city deposits in the banks
that made the loans. Comptroller Prem
dergast will be asked TO appear before
the Grand Jury to tell what he knows
about the adminst ration of City Chamber
lain Hyde. Cummins and Reichmann
will he called to appear tomorrow. il
not late this afternoon.
Both offers for the assets of the Car
negie Trust Company have been rejected.
The offer Of the Assets Realization Com
/ pany a. amended on Monday last has
been submitted by Bank Superintendent
Cheney to the committee OF bankers
called in az advisers and they have ad-
vised against accepting it. Mr.. Cheney
wrote yesterday to John r. Bland. chair
man OF the depositors' committee. that
unless the committee could satisfy him
that the decision was unwise he should
at once notify the Assets company that
the offer was declined. As to the Offer
OF +. Clarence Jones. he had been con.
vinced on examining 1t that its accept.
ance was impossible Mr.. Bland wrote
back that the depositors he represented
approved the rejection Of both offers.
| Supreme Court Justice Greenbaum
denied yesterday Bank Superintendent,
Cheneys application for permission te
assign the Carnegie Trust Company
claims against the Platt Iron Works o
Dayton. Ohio. to the creditors committe.
OF the Platt iron works that is plannin1
TO reorganize the plant. The court
however. appointed Charles F. Brown
as referee to determine whether tn,
Carnegie Trust Company should joir
| in the plan.
The court said that the proposed agree
ment confers practically unlimited powe
on the reorganization committee. H,
thought that the Banking Superinten
dent might have power to join in the
agreement. but that Mr.. Cheney's petition
10 -colorless and devoid OF statement o.
facts which would justify the court in
drawing any conclusion For this rea
son Mr.. Brown was named TO report on
the probable success OF the reorganiza
ton plan. in order to aid the conscienc,
OF the court.
Among the assets OF the Carnegie Trus
Company are S3Os 900 OF notes OF the Plat
Iron Works. OF which S22e.OO0 is for Dor
rowed money and SS2.OO0 for a draf,
drawn by the corporation on the trus
company. His opinion. he said in hi
petition. was that 1t was for the bes