El Paso herald. (El Paso, Tex.) 1901-1931, 1911-10-23
TRIAL Of BANKER RECALLS STORY
Of FREHlED new YORK FINANCE

small bankers all over the United
states, but principally in the southwest.
Cummins who has since been so much
In the public eye, then a commission
merchant in Nashville, Tenn, and in
terested in the Fourth National bank
or that city, was one of the men 10
whom Dickinson sold some stock. Dick
inson having learned that Cummins was
associated with the Cudahys and other
men Of money, fattered him by making
MIN director Of the Carnegie Trust
company Cummins soon after this
came back to New York
About this time, the Van NOrdens.
who owned control in the Van NOrden
Trust company and the Nineteenth
Ward and Twelfth Ward banks desired
TO retire from the banking field. They
ouered their stock to a syndicate OF
Empire Trust company directors. While
the latter were dlckering over the price
Dickinson and Cummins heard of the
proposed deal and snapped I'D the
stock, as they said, right under the
noses OF the Empire Trust people.
Then they announced their plan to
merge the four institutions but the
state banking department, then under
the superlntendence Of Clark Williams,
opposed them on the ground, as alleged,
that the law would not permit the
merging Of banks and trust companies.
ReIehmann as President.
Joseph B. Reichmann, the Young
mead OF the National Starch company
generally regarded as a Standard on
affair, was selected by Cummins as the
fitting president for the Carnegie Trust
company. Although in delicate health.
ne accepted the post.
The first trouble the COMPANY ex-
perienced under the Reichmann regime
came in connection with a loan the
company had made through a broker
to a man who turned out to be an ev-
convict. The broker and his PRINCIPAL
Quarreled, with the result that the Ia f.
r Haf -
office and said that he had been de-
frauded out of S40o, 900 in bonds This
was distorted into the report that $500
600 worth of bonds had been stolen
from the vaults of the Carnegie Trust
company.
The name Of the institution was
linked with the crash in the Columbus
Hooking Coal and Iron company stock
pool, which had been under the man
agement of James r. Keen, and a run
on the institution was the outcome.
subsequently president Sheldon, Of the
Phoenix Fire Insurance company, was
exposed as an embezzler, as a result of
stock market gambling, and some OF
the securities belonging to the com
pany which he had pledged. were found
IN the Carnegie. That started another
run.
Meanwhile messenger boy had
stolen a registered package containing
$4,000 and had elOped with a Jersey
City girl This brought more unpleas-
was not prosecuted, however. He is
the nephew Of well known New York
politician.
Carnegie Vithdrnws Aid.
Finally Reichnann resigned as pres
ident and was succeeded by James
Howell, Of Cummins's Fourth National
bank in Nashville. The selection of
Howell was approved by Carnegie. {
whose attitude toward the institution
had changed so much that he had
helped it on the occasion when it had
been hard pressed by the runs caused /
by the various unexpected happenings. |
This help had been extended at the re-
quest Of Mr.. SChwab, and consisted of
the loan of more than $4,000 600 of
United States Steel company bonds
Finally he became tired of aiding
the concern and, on the night of the
crash, when appealed TO once more for
assistance, declined to extend it on the
advice of banker friends.
Cummins himself spent all that night |
January z, in the house of mayor Cay
nor, pleading with him in the absence +
OF city chamberlain Hyde to direct the
latters deputy to put $500, 900 more
Of the city's money on deposit with the