The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-08
Closin G Of G arm egie
Trust Company Cred
tied to Him.
RU MORS eau Sc
DETERMINED RUN.
Failure of Institution Brings
Hardly a Ripple to Wall Street,
as 1t Had Been Regarded
as Shaky and Nui-
sance for Several
Yeare. +
Especial to The Times-Dlspatch. I

e'FNSio' W L he lIle8-DlSpatCn.J
New York. January Tho State
Banking Department took possession
OIL the Carnegie Trust Company this
morning and closed the doors OF that
institution until It's tangled affairs
snail be Strengthened out
Whether the company is solvent is
not yet known. as no statement bearing
on this phase of the matter could be
obtained from O.. S. Cheney suner,n
ment. In point Of fact, the superin-
tcndent declined all day even to SEQ
newspaper men, nor could any OF his
deputies or examiners be induced to
utter single word Of Information
Apparently the immediate cause OF
the failure was based upon rumors In
quiet circulation for two or three
weeks that j. G. Robin, who Is now in
JAN under indictment for wrcckinE the D
Northern Bank, is heavily involved with
the Carnegie Trust Company These
rumors resulted in n quiet but deter-
mined run OIL the bank Heavy with
drawuls were made without attracting
public notice. until the total deposits
were less than the legal reserve The
reserve prescribed by the law In the
cases of all trust companies Is Is per
cent of deposits. exclusive of trust
funds and other specified preferred de-
posts. The last statement of the COM
pany issued November 10, 1910 showed
total deposits OF SS.S96,752.42 or this
amount the preferred deposits of all
Kinds amounted to Si.765,38O.3s. The
total of deposits, therefore, subject to
the legal reserve law. were S4,lsl,,
3I202. =
City Deposition.
Among the banks many depositors Is
the city of New York. with an account
of So5o.ooo. which Chamberlain Charles
III. Hyde has managed to keen ON its
books, despite efforts OF Comptroller
Prendergast to reduce the amount.
Finding himself unable to compel the
chamherlain's office to protect the
funds OF the city, which ut that tins
amounted to si,0oo,0oO, the comptroller,
early In July last, obtained n guarantee
from the directors of the bank to pro-
tcct the city.
This guarantee was delivered on Oc-
tober 81 to Hyde. after repeated de-
mands made by the chamberlain. 1t
Is not now in the possession OF the city
1t may be III the possession OF Mr.
Hyde. but his whereabouts has been q
mystery for more than n month.
All that the city has to protect It is
a certified copy of the guarantee. made
by the comptroller before lie delivered
the original to Hyde two months ago
II was asserted tonight by one of
the executors of the estate ~ c. C..
Dickinson. founder of tho company
that negotiations were we'll under way
with Andrew Carnegie to come to the
relief of the institution which bears
his name, but in which he holds no
financial interest; that Mr.. CarneEie
virtually had agreed to render the de-
sired aid, but insisted that he must DO
allowed to study the situation care
fully until Monday morning. 1t was
said further that this representation
had been made TO Bank Superintendent
Cheney. but that he refused to with
n hon fo H.
An iii-NiSht Plea.
dramatic feature OF the efforts
made by the banks officers to avert Its
impending doom was the virtually all
night plea made by W. j. Cummins,
the institutions heaviest Individual
stockholder, and lis real head, to Mayor |.
Gaynor to use his influence with pow
erfnl financial interests TO come to its
relief EARLY in the evening OF Fri
day, Mr., Cummns, a personal friend or
the Mayor, went TO the Mayors resi-
dence with an exhibit of the banks
condition. together with n statement OF
its resources and its desperate effort.
that he said was nearing success, to
get In sufficient money to comply with
the reserve statute. He told the Mayor
that If the institution could DO tided
over until Monday, or Tuesday, ct the
latest, all would be we'll; that then the
money would BIO In the vault. and the
depositors would be assured OF safety.
But the Mayor refused to interfere.
Joseph 4. Howell. the president OF
the concern, was brought to New York
only last October. from tho presidency
of tho Fourth National Bank OF Nash
VILE. Tenn He succeeded J. B. Reich
mann. Nashville Is the native town
OF w. j. Cummins. He and Howell
had been associated there many years
In business. About two years ngo
Cummins bought heavily into the Car n
negie Trust Company. owning now. 1t
Is said, over fourth OF its 1900
shares. The late G. c. Dickinson, @
whose tragic death attracted national
attention last spring, and who was the
organizer and founder OF the company,
Induced the Tennesseean to enter the
company first as an investor and then
as n director. At that time j. c. Robin
was director. 1t Is rotated by per-
sons familiar with the affairs OF the
Carnegie that soon after Cummlns was
elected TO tho directorate and had In
stalled himself In offices adjoining the y
banking-room at the rear. Robin visit Il
ed him enc day and solicited private &
Interview. Robin is said to have told q
Cummins fatty and brutally that if ha
were not exceedingly cautious In pro-
tecting nis interest he would be robbed Z
by Dickinson and the latter's "cliquo.p
Expelled from Once. 8
"If you arc not liar" sternly ex.
claimed tho Southerner. you are cert
tainly n traitor. and In neither case do
/ want to deal with you In any
capacity. and especially az a business n
associate, fSou do not get out OF my
office Immediately I viii kick you outs $s
1t was not long after this episode
before Robin was forced out OF Tho
directory. so the narrative rugs, y M III
Il IL tat.s