Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-07
COMBINE PLAN FAILED:
HAD NEVER RECOVERED
Leslie M. Shaw a Former President
of the Institution.
WALL STREET NOT PANICKY
Selling of Stocks Follows Announce
ment of Suspension, But Mar
ket Is Given Substantial
Support.

NEW YORK, January THE Carnegie
Trust Company, one of the largest bank
ing institutions I'm the city. with deposits
of nearly S9,OOOOOO. closed its doors to-
day by order OF State Superintendent Of
Banks Cheney. The suspension hardly
caused ripple in the financial district,
where the trust company was often re-
ported in shaky condition.
Supt Cheney said today that an Of
ticial examina.,on of the trust company
had caused him ito conclude that 1t was
of too unsound condition to transact
business and 1t was not safe for 1t to
continue business.
State banking officers are now probing
the company's books. Officials OF the
trust company have made no statement
and the extent of liabilities is unknown.
Bankera however, said depositors would
be paid In full.
Shaw O Former President.
The organisation Of the Carnegie Trust
Company In 1907 by the late Charles &.
Dickinson brings out some Interesting
son interested q number of prominent
lnanciers In the company and Leslie NJ.
Shaw, former Secretary Of the Treasury.
who had Q large banking following in
the west. was made president.
Through Mr.. Shaw's connection the
buGness Of the company became large.
The name Of Mr.. Carnegie was used by
the organizers in order to lend strength
to the undertaking, but Mr.. Carnegie
shortly after the formation Of the COM
pany repudiated the use Of his name in
connection with the company.
Mr.. Dickinson, the organizer, who was
formerly a state bank examiner, became
vice president of the company and
sought to dictate to a large degree the
management Of the company. After
about a year Mr.. Shaw resigned and Mr.
4-ickins0n became president.
Wanted Chain of Banks.
Troubles of the Carnegie Trust Com
pany developed when Mr.. Dickinson at
tempted to form a chain of banks with
lne Carnegie Trust as a perent institution.
control of the Van Norden Trust Com
pany, the Nineteenth Ward Bank and
twelfth Ward Bank was sought. and a
syndicate had secured control of the Van
Norden Company and was heavily pur-
chasing securities Of the other banks
Wien tne state banking department put
a stop To the plan.
During the Dickinson regime the Car
negie Trust became involved with the
rluelfty Banking Company, which failed
causing many Catholic institutions
throughout the country considerable
financial loss.
-ar. DlcAinson resigned and Joseph b.
ieichmann Temporarily took the presi-
Gency in order to effect some reforms
and eliminate certain paper held by the
Institution. Mr.. Reichmann retired sew
eral months ago. and j. T. Howell, for
merry president of the Fourth National
Bank OF Nashville, Tenn, became presi-
dent.
The city of New York had on deposit
with the Carnegie Trust at the close of
business yesterday $6JO.OOO.
The stock market reflected the failure
with slight dip in prices, which just
as smartly recovered when it was seen
that the suspension would in nowise
involve the stability of any other finan-
cial institution.