New-York tribune., 1911-01-08
C|TYS GUARANTEE GONE.
Hyde Last Had Bond of Car
negie Trust Directors.
PRENDERGAST'S STATEMENT
Tells How, with Gaynor's Ap-
proval, He Forced a Reduc-
tion in Deposits.

The city had on deposit in the Carnegie
Trust Company az the close OF banking
hours Friday the sum OF $4,000 Last
July the amount had been S.0ooOO. few
weeks ago II Was $4,000, but Withdrawals
$4,000 having been taken out IN the last
few davsl had brought down the total.
Although some persons expected that
Charles II. HYDE. the City Chamberlain.
Who has been away for several weeks.
would return to his office yesterday 20
take charge Of the situation ne did not
come. Attaches OF the Office repeated that
tbev did not know where he was and did
not know when he would be back.
Last July. when the Chamberlain was on
tjs summer vacation. Controller Prender-
cast. learning some things that he did not
Ike about the Carnegie Trust Company.
insisted uron guarantee of the city's
deposits I'm the institution. This was given
h. the directors and placed in the Con-
trollers safe.
Chamberlain Hyde asked for this guar.
sutee after his return from Europe. on
October 81 Controller Prendergast, after
taking a copy Of It. sent the original TO
the Chamberlain. il was delivered by Miss
WaIdron. the Controllers confidential ste
nograrher. who took a receipt for it.
At the Chamberlain's Office yesterday no
one vould say where this guarantee was.
j was not with various bonds given for
deposits in other banks. i may he locked
M in the Chsmberlains private desk.
In statement issued Yesterday Con
iroller Prendergast explained mis- part in
The case In the first week in July he
loarned that the city had 100000 in the
Carnegie Trust Company, he said. which
was the money deposited there after the
bond sale IN March. although the accounts
I'm other institutions mad been drawn upon
literally.
..r told Acting Chamberlain walsh said
,ho Controller, that I'm my Judgment this
large sum OF money should not be on de
posit with any institution whose methods
we're the subject OF unfayorable discus
sion. Mr.. Walsh demurred at making any
draft upon the account. on the ground that
he did not want to interfere with ar
yanraneuts that had been made by his
DISTINGUISHED chief,
Il went 10 the Mayors Office and laid
The entire situation before him. l told him
I had been informed that the personal rela-
tons between the controlling interests OF
the Carnegie Trust Company and Mr. HYDE
we're very close. and that in view OF these
personal relations I did not want TO take
q-v action that would look as If We were
assuming an unfriendly attitude during
the absence OF the Chamberlain in Europe.
Il Wish TO say that the Mayors attitude
toward my suggestion that prompt action
should be taken with the account was Of
the most pleasing character, and as re-
svlt OF nv interview he told me that
could go ahead and take such action as I
chose with the account and that he would
UNFOLD me-
After an investigation the Controller in
sisted on a guarantee for the account
and also insisted on the account being re-
duced by draft at the rate of 10000
week until it had reached $4,000. The
idea was that the Chamberlain would prob
ably be home by that time, and could
handle the matter himself.
The following Monday morning the Dep
uty Chamberlain began withdrawal Of 80
GO" the statement Of Controller Prender-
cast went on 70 say, and # is my un-
derstandirg that this amount was with
q drawn weekly until the return Of Cham
berlain HYDE from Europe, after the shoot
ing Of Mayor GsyHor. 1t appears that the
Withdrawals ceased, for only a few weeks
ago the account was still $4,000
The following is a copy of the guarantee
that was given on the demand Of the Con-
troller:
Whereas. The city OF New York has on
deposit with the Carnegie Trust Company
tho sum OF one million dollars (S 100000;
and "
Cflritv be furnished guaranteeing the city
az New York against loss as 10 said de-
pOsit,
ing directors Of the Carnegie Trust Com
pany. in consideration of the above recitals
and in consideration Of one dollar lSD 10
each of us in hand paid, the receipt whereof
Is hereby acknowledged, do hereby Jointly
and severally guarantee the city of New
York against loss as 10 the whole or any
part Of said deposit.
In witness whereof we have hereunto set
our hands and seals the Sth day OF July.
1910
J. B. REICHMANN. CHARLES a.
MOORE JR., WILLIAM J. CUMMINS,
WILLIAM A. KEENER, L. L. LEWIS,
GEORGE c. SMITH, MARTIN j. CON
DON.
Acting Chamerlain Walsh said he had alb
selutely nothing 10 say regarding the state
rnent OF Controller Prendergast. In the alb
sence OF Chamberlain Hyde he does not