New-York tribune., 1911-04-24
WHITMAN NOT SATISFIED
wants Deeper Probe Into Delay
in Closing Carnegie Trust.
CASE TO GO TO GRAND JURY
uvde Witnesses Again To day
Arrangements to Sit Until
= July, if Necessary.

,,ohins chief examiner OF tle S1dVe
.,,re Department. before the grand
ard partcusrly that part Of II re-
u 20 the results Of the examinations
Pa carnegie Trust Company In April
August Of last year, the District At
',.v has found IL necessary TO instigate
even deeper investigation OF the State
.x,nr DEPARTMENT than he at first con-
.r,s,ed 1t is apparent from his atti-
- that he does not regard Superintend-
-. rheney's defence putting the RESPONSE
<m,v on Andrew Carnegie as sufficient TO
- the DEPARTMENTS neglect to close
shs trust company.
- the purposes of this part Of the
c.,,asie Trus, inquiry District Attorney
n-,,,,an will call before the grand jury
-, orlv Mr. Carnegie hut r. A. Franks.
49, ironmaster's confidential man; Willard
v;,chen. attorney for Mr.. Franks. and
,..,nh T. Howell. the trust company's s
last president
Among the documents 70 he Incorporated
,-,o Mr. Cheney's report to the Governor
>, Wednesday " is understood. is an aff1-
sev4, of Mr. Howell now in the possession
~ the bank department Mr.. Howell is
o,o.sd as SAYING in this AFFIDAVIT that he
.,ceptAa the presidency or the Carnegie
.r,us, Company last October on the ex-
i,-ass condition that Mr.. Carnegie would
.,.nd behind the institution. a condition
scouiesced in by Mr. Carnegie himself. it
Ls sa,d Mr. Howell has consented TO come
~ New York from Nashville to testify.
Conference in Carneee's House.
reforA Mr.. Howell became president OF
,,A Carnegie Trust Company. while he was
..p, president o. the Fourth National Bank
>. Nashville a conference took place In
" Csrnegia's hcre, so the story runs. at
..rdAd hv SUPERINTENDENT Cheney. Joseph
2 Peirhn1ann. then president of the trust
,onnanv: William f. Cummins. Mr. car
r.sie himself and r A Franks The iron
ras,lr. in tha midst Of a discussion re
xsrdinS the hest means for saving the
,rrst company IN view of the bank exam
,,sr,s discoura-ing report. cried out, IT is
said:
What the institution needs is real
banker ~ it's head I'll help YOU to get
such a man.
NJ Reichmanr said then. and has since
,,sistsd that he was not a banker. Sew
s-al New York bankers We're mentioned as
Howell Mr. Carnegie Is said TO have used
he influence TO get one after another of
N. New York men named 70 take the Job.
De-, in vain. Finally he had Mr.. Franks
investigate Mr.. Howelrs record. The re-
ro-t being satisfactory. the offer followed.
The grand Jury investigation assumes.
,h4n threefold character-an investga-
,,on ~ the trust company's misdeeds. an
re-
sponsibiHtv. and an investigation of the
city Chamberlains connection with the
mix-ur
For the purposes Of the last named cum
rns and Reichmann will resume their tes-
timonv before the grand jury this after
noon and II. J. Walsh. Deputy City Cham
beIain and Deputy Controller Fisher Will
tA called The District Attorney has made
arrangements to have the grand jury sit
sntii July. il necessary.
, Collaterars Value in Balance.
4 particularly interesting speculation Just
now 10 depositors in both the Northern
Bank and the Carnegie Trust Company IS
the question how long the securities Of the
South Shore Traction Company will con-
,,nue 10 represent value The two banks
together hold among their assets stock and
bonds Of the traction company Of the face
value Of s7ss."oo An idea Of their actual
value NAV be cleaned from this remark
made yesterday by Paul T. Brady. one OF
the receivers OF the road:
F II some one doesn't come forth inside
she next twentY-four hours and guarantee
fhA construction of the line between Long
Island CITY and Jamaica. Z wouldn't give
fftv cents for the whole road"
The South Shore Traction Company rep
resented Joseph G. Robins dream of troll
lev system radisting from the heart OF
Manhattan all over the Borough OF Queens
Wa the Queensb boro Bridge. II has for some
time maintained a shuttle service across the
bridge but one Of the conditions on when
the grant Of a franchise rested was the
construction Of part Of the company's line
ietween Long Island City and Jamaica
within a certain period Of time. This time
limit elapsed some time ago without the
requisite construction. and a motion is stili
PENDING before the Committee on Fran
rhises of the Board Of Estimate providing
that the South Shore Traction Company's Is
franchise be forfeited.
Mr Brady said he had put the proposition
interests in this town and Philadelphia,
but none Of them has been willing to
finance the needed construction.
What's the use Of buying trouble?" they
are quoted as saying. the explanation being
that although the franchise is valuable
ard the road could easily be made 10 pay
good profit, vet the company itself is so
Involved in debt and mixed up with other
Robin ventures that II would hardly pay 10
attempt untangling it.
No Way Of Financing Project