The Birmingham age-herald., 1911-01-08
New York Bank Is In Hands
 of Superintendent
NO OTHER BANKS AFFECTED
Suspension Comes Suddenly and Big Amount of Money Is Involved But It Is Not Considered
 Very Serious

New York, January 1.-The Carnegie Trust company, one of the largest bank ing institutions in the city, with deposits of nearly s9,0Oo,OoO, closed it's doors to- day by order of State Superintendent of
 Banks Cheney. The suspension hardly caused a ripple in the financial district, where the trust company was often re- ported in a shaky condition. Officials of the trust company were loath to discuss the failure and it was
 stated that President Howell would not be down today. MT. Howell succeeded J. B. Reichmann as president of the com pany some time ago. He was formerly president of the Fourth National bank | of Nashville, Tenn.
 The institution was in serious trouble l in the panic of 1907 and had never fully recovered. Its late president MT. DicSin- l son, died last year under peculiar cir | cumstances.
 | The institution was organized in 1907 and after the retirement of Leslie M. Shaw l from the office of Secretary of the Treas ury he became its president. The name of Carnegie, applied to the institution, attracted to it a great deal of attention, but the adoption of this name was with
 out MT. Carnegie's authority or approval. | It Is understood he was not a stockholder and not immediately identified with it.
 Mir Shaws connection with the bank ceased after a few months because of differences with the others of the insti- l tuition.
 
 Statement Is Issued | The following statement was issued by I Superintendent of Banks Cheney of the closing of the trust company; | "The superintendent of banks has taken
 charge of the bank and business of the Carnegie Trust company, located at 1l5
 Broadway, borough of Manhattan. Exam nation of the affairs of the company has caused tht superintendent to conclude that
 1t is In an unsouno condition to transa, i
 to continue. The examination is not yet
 complete and no further statement can
 be made at the present time" 1 The financial status of the Carnegie
 Trust company, according to it's last state ment, November 10, was:
 l Loans, $4,962,5OO; stocks and bonds | investment, s2,324,60O; due from trust
 companies. banks and bankers. s1.517,- l S00 cash available, Sl,50S,0 900; aggre- gate deposits. ss.ss5,7oo.
 The company had a capital of $1,50o,- 900 and surplus and undivided profits
 of s737,500.
 company are:
 l President. J. T. Howell. 1 Vice presidents. Robert l.. Smith and James R. Curran.
 l Secretary, Robert E. Nor shead. | Assistant secretary. A. E. Chandler. l The directors are:
 1 David H. A. Bates, w. J. Cummins,
 A. B. Chandler. M. J. Condon, George w. Court, George D. Crabbs. John Cud-
 ahy, w. A. Keener, S. H. Kress, L.
 Lewis, D. F. O'Neil, J. B. Reichmann, Charles H. Schwab, G. c. Smith and
 J. B. Stanchfield.
 In Trouble a Year Ago It Is understood that a year ago the institution was fin more or less | trouble, growing out of the fact that one of it's chief officers in connection with a well known banker in Wall I street had effected large loan from | the Carnegie Trust company to enable | him to buy out and consolidate it with another institution, but these plans | falling through left the Carnegie ln- stitution with a large amount of funds | locked up.
 The Cornegie bank occupies hand some quarters on Broadway in the | heart of the financial district. | News of the suspension spread rap | idly and hundreds of depositors had assembled about the doors even before | the usual hour this morning. The fol- | lowing notice was pinned upon the doors of the company: Pursuant to the provisions of sec- | tion 19 of the banking laws of the
 state of New York as amended, I have
 this day taken possession of the Car
 negie Trust company.
 l %. H. CHENEY, l Superintendent of Banking" This notice was posted shortly be-
 fore 10 o'clock. which is the usual hour
 for opening the bank.
 l The state officials had made their plans
 earlier in the day. and it was evident
 their action had been anticipated, as a | throng had already begun to gather The | doors of the institution remained closed
 and no information concerning the condi- | ton of affairs was given out by the bank
 officials or state authorities. | stocks Not Affected l The stock market reflected the failure with slight dip in prices, but recovered when 1t was reported that the suspension would in no way involve the stability of l any other financial institution. | Not long after MT. Dickinson died in a | hospital here and it was said the cause of
 his death was the inhalation of poisonous gases In the laboratory of a chemist In | Scranton His death was so sudden that | it gave rise to rumors that he had com mitted suicide. This was vigorously de-
 nied by relatives and pneumonia was of- | fcially determined as the cause of death. l The Carnegie Trust company occupied | extensive bankirr quarters on the r~l
 floor of No. 115 Broadway, which extend
 ed from Broadway to Trinity place An
 enormous rental was paid for this space. 1 Presidents Statement
 1 President Howell this afternoon said:
 This deplorable crisis was most unex- | pccted. It came practically without warn | ing It Is the result of sudden and heavy withdrawals occasioned by the unsettled | conditions. brought by the recent bank failures. The name of the Carnegie Trust l company was unwarrantedly connected u,ith cerfaiu Interests Involved in that