New-York tribune., 1911-10-25
OUTLINES CUMM|NS CASE
Counsel Charges Conspiracy
Against Carnegie Trust Co.
TO CALL MORGAN PARTNER
Expects to Show, He Declares,
That Certain Wall Street In
terests Were in Plot.


Cumu1ins. who is on trial for grand lar
ceny before Justice Davis and jury IN
the Supreme Court. outlined more fully
last night his clients elaborate fabric of
defence. which includes the charge maj
certain Wall street interests conspired 10
nut the Carnegie Trust Company out or
business In this relation ne VIII call IS
witness. he said. Henry ?. Dawson. Of
? Morgan & 90.
Co fsr n has seemed as II Mr.. Steuer
uere attempting 70 prove that no truSt
agreement existed governing The N4o'"'
lent tho Carnegie Trust COMPANY ny the
Ni7eteerth Ward Bank. the money which
Cumn1ins is accused Of misappropriatinE
rut q sppesrs from his explanation last
evening that such an agreement, differing
In important detail, 20 he sire. from the
one outlined bv the District Attorney ana
Bradley Martin. jr.. forms the corner
stone OF his case.
This agreement was part of biz deal,
hs said. 10 effect tho merger Of the an
No-der Trust Company and the Nineteenth
and Twelfth Ward banks with the car
reeie Trust Company, the whole 20 have
Clark Williams. then State Controller, as
president he explained that for the pur-
rose of the merger II was deemed wise 70
create fund Of $4,000. 10 be used to pick
I'D an stock Of these four institutions Of
4o-sd ,0 the market and that into this
fund went the $4,000 contributed by the
Nineteenth Ward Bank and the Sl95."N
'ert by the Van Norden Trust company.
II was agreed. he said that the stocks
bought with this money should he held ~
trust bv the Carnegie safe Deposit COM
rsry
Alleges Violation Of Trust Agreement
r. is the contention Of the District At
,or0ev. however. that the $500" actually
collected was 10 be used solely for the
retirement of certain loans negotiated with
various hanks by the Van Nordens. which
we're secured by stock Of the Van Norden
Trust Company and the Twelfth and Nine
reen-n Wa-d banks. that Cummlns use
Of il tg raw of loans 20 directors and so
on I'm the Carnegie Trust Company consu-
tuted. therefore. violation Of the trust
agreement But Steuer maintained that no
srch primary purposes could nave oeeh
entertained. since the Van Nordens hao
loans ont AZ the time april 1910 aggre-
eating i'm tho ueighborhood OF &.""''''
Andrew ,a-neeie testified before mo
grand Jury last spring that the prospect
~ src1 merger as Mr.. Steuer mas oe-
sg-tbe5. presided over ny Clark NiInaihS
induced him 10 lend Cummins ana MS
friends sscuDo three months before the
transactions which led 70 the Indictment
~ Cumr1ins Counsel for the defence IS
waiting 20 bring this out when the Noh-
master takes the witness stand at the
erd Of This week or beginning Of next
Bradley Martin. ir.. former president oI
The Nineteenth Ward Bank and star wiz
ness FOR the prosecution. has himself ad-
,ritted ON the stand the trust agreement
involved the purchase Of Carnegie Trust
stock as well as stock Of the other banks.
though not a share Of Carnegie Trust
stock figured as collateral Tor Van NOrdea
leans
Both Martin o.. Dondon. relative ard
business associate Of Cummins. and r.
I Smith. vice president of the Carnegie
Trust Company. who testified yesterday,
have said ou the witness stand that Cum
minis ir paving off certain loans 70 direc-
torv and friends in tho Carnegie Trust
Domran. With tho money he obtained
from t.s Van No-stu Trust Company and
'.s Nineteenth Ward Bank. released Car
ucgie Trust stock held ir escrow 90 So
cure these loans ay tle Carnegie safe De
losit Company.
Ste1er eoutended that 800 shares OF
carnegie Trust stock had been released in
tri- way and turned over 10 Michael j..
Lyman. 'tmminss private secretary. sec
retsry ~ TIC Merchants and Manufactu--
srs' SecIritks Company and a minor off,
ia iu the Carnegie safe Deposit Com
pany. to hold iu trust. But Assistant Dis
trict Attorney Clark said only ~ sha~.s
OF this stock had been thus recovered. and
me did uot admit they had been held in
rrGet Dos lyman. Court adjourned al this
uoiut Go give opposing counsel time TO
.ou, tp am agreement regarding the num-
usr ~ shares.
.N. purpose 10 show" Stouer told the
court. chow many shares Of Carnecl.
Trust stock wore bought with this money.
where eve-y share went TO what insti-
tuition. foo secure what loans
Counssi Explains Use of Stock.
TIC reason vhv Csrnegf. Trust stock. and
not tine stock or the three other instifu-
lions Was purchased with the money. ar-
.ordiuC 90 Cummins's counsel. is that on
tur'l -. she day after tho Carnegie Trust
towpsnr and Cummins received the
checks M" state Banking Department sent
ID 0ord that 70 would close the Carnegie
Trust Company - certain Of its loans were
nor taken up. It is this notice from the
state Banking Department which he con-
tends was the result of conspiracy 10 do
for CUmmine
g. T.. Smith. wien called 20 the stand IN
're morning rv tho prosecution. forgot 90