New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-18
LOAN SECURED BY BIG
NOTES WAS D|SAPPROvED
Carried by Carnegie Trust for
Ten Months After Banking
Department Moved.
DICKINSON MADE THREATS
Descended on Local Office OF De-
partment and Said "Persecu-
ton" Must Stop, or He
Would Make Trouble.

Would Make Trouble.
c. c. Dickinson's adventure with the
Georgia gun men" who came up here
to get back a 100000 note used by
Dickinson in his manipulation of the
affairs of the Carnegie Trust Company
was not his first experience Of that kind.
IL was learned yesterday. for Dickinson
himself had made n demonstration In
force over the same note eight months
earlier.
Dickinson got the note from the South
ern Fertilizer COMPANY. over which the
Georgians made their trouble. with three
others for 5000 900 each. from T. G.
Meadows. T. VI. Anderson and the hide
pendent Fertilizer Company and after
discounting the notes in the Carnegie
Trust Company used the money to buy
Nineteenth and Twelfth Ward banks
from Warner Van Norden. Dickinson
expected to consolidate the three insti-
tutions with the Carnegie Trust Com
pany. but the deal was held up by the
state Banking Department.
II was on March y. 1909, that the four
notes were put in the Carnegie Trust
Company, and when Dickinson learned
that he was not 10 he allowed 10 carry
out mis- scheme Of consolidation he went
down t. the offices Of the State Banking
Department. at No - Broadway, and
threatened it's determination II the per-
secution Of him and his trust company
We're not stopped
The loar Of s2,40oO00 represented by
the four notes was known 70 the state
Ranking Department six days after il
was made. and was ordered reduced TO
the legal limit. Dickinson and the trust
company officials were told that the loan
amounted to s2.25O.ooo more than the
law allowed The loan was carried for
more than ten months until s2,100,000
Of it was paid by the sale Of United
states Steel bonds borrowed from An
drew Carnegie.
The four notes were hacked by the
stock Of the Independent Fertilizer Com
pany ~ collateral, but as that company
had been abandoned by IFS promoters
before the loan was made the collateral
was disregarded by the Banking Depart
meut in considering the loan. The notes
were Endorsed by nine directors Of the
Carnegie company-Willam J. Cummns.
Martin J Condor, Joseph B. Reichmann
Samuel H Kress. George &. Crabbs.
Charles A Moore. ir, William 4. Keen
or. Liston l.. Lewis and c. G. Dickinson
and the Endorsements of Kress and
Crabbs were considered a sufficient guar
antee of payment.
The law, however. said that not more
than IS per cent Of the capital and sur
plus Of the company could he placed in
one loan. The Banking Department
cla ssed the four notes as one loan and
the capital Of the company was $1,000
COO, while the surplus reported at that
time was 100000. making a total of
~
placed in one loan. But there was
further restriction that only 10 per cent
Of the capital could be loaned 10 a di-
rector, and the Banking Department, be
sides chasing the four notes as one
loan. claesed the guarantees Of the nine
directors as a loan to one director, under
which ruling the total amount Of the
loan could not exceed $4,000.
Clark Williams, who was state Super
lntendAnt Of Banking at the time the
about The orders issued by his depart
ment.
The records # the department will
show whether the loan was ordered out
Of the bank" he said.
In May. 1910. eight months before the
Carnegie company was closed, Deputy
Bank Superintendent Skinner wrote 10
Attorney General O'Mallev asking II the
banking Department had the right to
force the Carnegie company TO make
good an impairment Of capital and TO
REQUIRE the discontinuance of unsafe or
ursound practices By that company.
The request for an opinion was made
because the Carnegie company was in
corporated under special charter I'm
stead Of the general banking law Of the
state. The reply of the Attorney Cen
eraI was that the Superintendent Of
Banks had full power TO enforce the pro-
visions Of the law for the protection of
depositors.
1t was at about the time that the !
opinion was given that the deposits Of
city money in the Carnegie company
reached their maximum sum Of 1854 I
1886. The letter Of Jordan J. Rollins /
introducing Cummins IN City Chamber |
lain, HYDE was written on March 10. 1910. /
and two days later the Carnegie COM
panv received its first deposit Of city
money. amounting 10 s250.000. on March /
% there was another deposit Of s25O.000, 7.
and between March 2s and 81 there were
deposits Of SCALES 80. on April II /
there was a deposit of 100000 and on
April IS one Of 100000 \ deposit of
$3.50 GOO on May II. 1910. brought the
total up 10 nearly sl.5OO0OO. When the
doors were closed. on January I. 1911, the |
city deposits had been reduced to
$3.50. 900
The city deposits IN the Northern |
Bank. the records show, increased rapid |
Nv after the conference between Robin !
and city Chamberlain Hyde, told about
hv Robin in his testimony before the