Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-08
HAD DRAWN ON THE BANK
Caused Withdrawals by Depositors,
Who Lost Confidence.
NOBODY WILL LOSE, IT IS SAID
President Howell Declares That the
Depositors Will All Be
Paid in Full.

| Robin. the indicted promoter, had fallen.
closed its doors today and tonight the
state superintendent of banks Is in pos
session of the Carnegie Trust Company,
an institution with wide southern and
western affiliations.
An application for the appointment Of a
committee to take charge of the personal
estate of Robin was denied his sister,
DR.. Louise Robinovitch today by Justice
Goff in the state supreme court.
United States bankruptcy moneys. state
and city funds are all tied up, bonded In
varying degrees of sufficiency. The COM
pany was named the official depository
of federal receivers and trustees of bank
ruptcy appointed by the United States
district court, on application Of Leslie
NJ. Shaw, who for a period was president
of the company. after his resignation
from the Treasury Department. bond
of S2JGtO was put up. but there are now
compositions and settlements. all of
which will be Indefinitely delayed. The
city, which at one time had $1,OOO.OO on
deposit. still has $6JO,GOO. secured by the
individual bonds of the directors The
state has $4,000 on deposit, amply Sc
cured by 100000 bonds.
Mr.. Keener Optimistic.
The future of the depositors and stock
holders will not be known until the state
superintendent makes public the report
of his findings. but William A. Keener,
one Of the directors and formerly of the
firm Of Keener & Lewis counsel for the
company. said tonight:
Bank on what President Howell saws,
the company will pay dollar for dollar''
President Joseph I. Howell. who was
induced to resign the presidency of the
Fourth National Bank of Nashville,
Trust Company about three months ago,
was similarly optimistic.
There is no reasonable doubt" he
SAID, that depositors will be paid in
tiOn the stockholders should receive a
substantial amount upon their holdings.
The amount due from banks and other
assets quickly available will aggregate
approximately 40 per cent of the de-
posits. In twenty-four hours a SUM-
cient amount of money would have been
provided to meet the reQuirements. Me-
gotiatfons we're virtually concluded
which would have met all the ext
relief only was required The brief re-
spite needed. however. was not af-
forded."
Several of the directors Of the Car
nesie Trust Company are directors Of
ley Martin, jr.. whose name still ap-
pears on the stationery Of the trust
company as vice president, although he
recently resigned. Is now president OF
the Nineteenth Ward Bank. He said
tonight that there was no connections
whatever between the two institutions,
and that the closing Of one would not
affect the other.
Efforts at Consolidation.
In 1909, when the Carnegie Trust Com
pany was under the presidency OF the
late c. c. Dickinson, who died mysteri-
ously last May, an effort was made to
consolidate the Carnegie Trust Com
pany, the Nineteenth Ward Bank. the
Twelfth Ward Bank and the Van Nor
den Trust Company, under the man.
agement and name of Carnegie. But,
although Mr.. Dickinson had been
state bank examiner. he was not per-
soma grata to the state banking depart
ment. which forbade the merger under
a ruling that it would be impossible
for a trust company to consolidate with
state banks. Recently the Van Norden
Trust Company changed it's name to
the Madison Trust Company. and Brad
ley Martin, jr., was elected president
The closing Of the Carnegie Trust Com
pany today was no surprise in financial
circles and caused little disturbance on
the stock exchange. brief dip In the
market was quickly met by supporting
orders, and at the close the tone was
firm. On the street the uncertain status
OF the company had been a matter OF
common knowledge. In its brief career
II was organized in 19O1-it had already
passed through one serious period Of de-
preston and had known four presidents.
Mr.. Dickinson First President.
The first president was Charles =. Dick
inson. whose family is still at litigation
with insurance companies over his death.
He was interested in experiments looking
to the transmutation of metals, and his
brother. Stanton c. Dickinson. advanced
the theory that he was killed by inhaling
poisonous gases during q laboratory test.
On this theory the family sought 70 COL
lect $4,000 accident insurance. An au-
topsy performed by experts for the COM
pany showed, however. that death was
the immediate result Of pneumonia and
bright's disease.
NJ. Shaw. then just retired from the
Treasury Department. to succeed ilm.
Mr.. Shaw proved very successful busl
ness getter and succeeded in getting
many western banks to name the Car
negie as their depositary. but he did not
agree with Mr.. Dickinson, who still re-
tanned large share in directing the
policy of the bank. and resigned.
MI. DICKINSON became PRESIDENT
again. but did not succeed in gaining
the confidence Of influential banking
interests. He was active and energetic,
however, in establishing connections
with southern business men. Through
his influence William j. Cummins.
formerly of Nashville. Tenn, became a
shareholder. and the way was thus
paved to the presidency Of Mr.. Howell.
Merger Not Allowed.
But before this time. Mr. Dickinson
already had come into conflict with the
state banking department. His plan
for a merger with two state banks
and another trust company was dis
| allowed. to the relief Of conservative
| bankers. The intimation was conveyed
that his resignation would be ac-
ceptable. and it was soon rendered. John
B. Reichman. whose affiliations with
the Corn Products Refining Company. a
subsidiary of the Standard Oil, and the
National Starch Company. OF which he
was president, made him a desirable
asset succeeded Mr.. Dickinson for ten
months. He did as much houseclean-
ing as he could. and resigned In favor
bf Mr.. Howell
| So many changes in management had
not strengthened the bank In public
favor, 1t is evident from It's report tn