New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-11
S||BPENAS OUT IN
CARNEGIE TRUST CASE
Grand Jury Will Begin to Hear
Evidence on Monday, and IS
Expected to Take Action.
MAY BE THREE INDICTMENTS
p.lation Between City Bank
Deposits and Loans to Gum
Minis Syndicate Also
Looked Into.


b,. tho District Attorneys Cthce LOT
illnesses wanted for the grand jury IN
lection of the affairs of the Carnegie
- Corpany that is to begin on >'on-
af,o~Doon. The investigation VIII be
..tore the grand jury that was sworn Ill
-. rustic, Vernon. in the criminal
tr,rcb az the supreme Court a" the
,u5iotment of two directors of the car
- company is confidently expected
s.. ,be District Attorneys office. while
- .rd,..ncnt of a third director 5
hoped for
The witnesses for whom subpGnas
have already been issued are officials OF
the state Banking department and for
,,o~ Jerks of the Carnegie Trust Com
INV Tho chief evidence TO be pre-
ss,ted however viii be documentary,
,o,sistine Of the books Of ne trust COM
,anv and reports made by the company
n the state Banking Department and
signed by the companys officers and
directors. and the indictments are eX-
nec,ed TO be found for either perjury or
forgery.
The indictments will be for forgery
ohere il is shown that loans made were
concealed from the board of directors by
,5e manipulation Of the books or the
failure To- record transactions or their
details. I'm the case Of the omission Of
certain loans from the reports made to
the state Banking Department, the
charge vin ho perjury.
one ~ the transactions that has been
INVESTIGATED 10y the District Attorneys
Office with particular care is loan Of
<lS0Q0O carried on the books Of the car
resio Trust Company under date OF De-
cerber - 1910, TO William Ferguson.
The note is iudorsed by Joseph G. Robin,
who has since his conviction been help
mr. Nj Whitman i'm his investigation of
the Carnegie company. and the security
IS stock and bonds in Robins enter
rrises
Tho loan was originally divided into
three parts, and at the time the first notes
verc made Ferguson was clerk in the
isu ate.o. Of Teener & Lewis, both Of
whom vcrc members Of the board of d.
rector. ~ the Carnegie Trust Company.
rher we're then counsel for the institu-
dcn. Ferguson is now managing clerk
for Crocker. Lewis 4 Wickes, Mr..
rs7ise new firm. Mr.. Lewis was coun-
eel for tho carnegie company at The time
RI i.- failure. while eX-Judge Keener
said that ne had ceased some time be
fore IN act for the concern. II was said
tv ex.Tudge Keener's friends that he had
ogsrreYed with Lewis end the firm had
fss0 dissolved because OF the Ferguson
',ar-
The Loans 20 Ferguson.
rhe frst loan 70 Ferguson by the Car
nesie COMPANY was fov $4,000, payable
m demand. and was made on June %,
1910 The security was $4,000 in first
mortgage 8 Per cent South Shore Trsc-
ton Companv bonds 1oo shares Of the
Northern Bank stock and 300 shares OF
me preferred stock of the Fidelity Dc
velorment company. Tho note was In
6orsed By Robin.
Tho second loan was ON a demand note
for $4,000 Endorsed bv Robin, and dated
Iu'v J. 1910. The security for this loan
was 100000 i1 first mortgage , rer cent
bonds ~ Tho south Snorc Traction Com
aar,. so shares ~ the stock Of the
Northern Bank and 600 shares Of the
preferred stock Of the Fidelity Develop
ucrt Company.
Tine t.rG loan was made ON August
80 1870. oh q note for S155,9oo, Endorsed
hr Robin, and the security in this case
vas $4,000 JOB first mortgage per cent
bonds Of tie South shore Traction Com
J-0v. 400 shares Of South shore Trac-
ro7 stock and 1000 shares of Fidelity
Development Company preferred stock.
Tho regular half yearly examination of
ttc Carnegie Trust Company was made
o.. tho state Ranking DeI lrtment in
August. 1910. and the half yearly exam
nation NJ the Northern Bank Of New
Yor. Robins bank, was begun on Dc
rrmIr H.. 1910 The Northern Bank
was closed by The state Banking Depart
ment .u December - on December 3,
tro aats after the cola. Of Robins
anar al castle. the loans to Ferg
by ths Carnegie Trust Company were re-
nowcG with the additional security of
SiupV0O iu first mortgage > per cent
South Shore Traction Company bonds
When an explanation Of the loai and
their renewal was sought vest rday at
Tho Office of Mr Lewis. an Office boy
brought the word that Mr.. Lewis was in
conference with John B. Stanchheld and
could not bc disturbed. An attempt 10
sec Ferguson was equally frutless. The
same Office boy returned with the word
that Mr.. Ferguson was in conference
with Nj Lucas. another emJloye Of the
firm. and would be tied up all the after
noon
After City Deposits, Too.
Al tho same time that District AttOr-
ney Whitman is investigating the az
fairs of the Carnegie Trust Company
no is examining the deposits Of city
money with various banks. and the loans
made by those banks 10 what has been
known a.. the Cummins syndicate, and
ihe companies owned and controlled by
thc Cummius syndicate. His inyesti-
cations have extended also into the ai-
fairs of tho syndcates companies In
tho investigation Of the carnegie com
pauy and the other banks and trust
companies he has had the services OF
Joseph =. Eroderick who Is considered