The Washington herald., 1911-01-08

harm to the Carnegie Trust Company,
and so he determined on a weekly with
drawal of $4,000 until the amount at risk
had been reduced to $4,000 and exacted
from the directors a guarantee Of the
whole 100000.
| The comptroller has copy of this
guarantee, but the original was given to
City Chamberlain Hyde. 1t cannot be
found in the city chamberlain g. office,
but it may be in Mr.. Hyde's private SAFE
Mr.. Hyde has been absent from this city
for several weeks and no one will admit
knowledge of his whereabouts.
| Although Deputy Chamberlain Walsh
| would answer no inquiries, II was learned
from other sources that in refusing to in
| terfere with the deposit at the Carnegie
company when Mr.. Pendergast suggested,
| he was acting on orders. Mr.. Walsh en-
| deavored until late this afternoon to To-
cate Mr.. Hyde so that he could communi-
| cate with him, but his efforts were unsuc-
cesSful
Comptroller PendergaSt said he had been
| informed that 'ths personal relations be-
tween the controlling interests of the
Carnegie Trust Company and Mr.. Hyde
were very close" To all inquiries as to
just what these close relations were. Mr..
Prendergast refused to give any answer.
When Leslie NJ. Shaw. former Secretary
Of the Treasury. was president of the
Carnegie concern in 1907. he had the COM
pany made the official depository of
| funds of bankrupt estates in the hands of
the United States court here. There is
said to be about 100000 Of this money
tied up by the closing of the trust COM
pany The order, dated May g. 1907.
making it the official depository was en-
tered on Mr.. Shaws petition by Judges
Adams. Hough, and Holt. and required
bond only secure the de-
posits.
A large number of compositions and set
Elements in bankruptcy are likely to be
held up by the closing of the trust COM
panys doors.
Did Not Seek Aid.
So far as can he learned the officers
OF the company did not so to any of the
big banks for aid. Their failure to do
so is explained on the theory that as
President Howell intimated. they were
expecting assistance from Mr.. Carnegie.
The run following the failure of the
Northern Bank of New York was the
direct cause of suspension. but indirect,
and much more important. causes date
almost from the organization Of the
company.
Undoubtedly. there never has been a
DdHkinS institution winch mas ndU SUCH
a stormy career. Certainly there has
never been one in which so many Incl
dents narrowing to its officers were
crowded into 50 brief an existence From
the day of the opening. May &c, 1906. up
to the time of closing to-day the officers
had only brief periods in which they
could have felt content and confident.
The company had to contend with An
Grew CarneGies avowal of lack of in
tertst in it, with the criticisms of bankers
caused by progressive methods of solic-
ting deposits; with the unpopularity of
its organizer, c. c. Dickinson. among
ocal bankers: with the nOtoriety occa-
stoned by the rupture between Mr.. Dick
inson and Mr. Shaw. resulting in Mr..
Shaws retiremsnt from the presidency:
with the panic Of 1907; with the Fidelity
funding scandal: with the collapse of the
Columbus and Hooking Valley Coal and
Iron pool: with the resignation Of Mr..
Dickinson as president: with Mr. Dick
inson's death under circumstances which
inspired rumorS of suicide. and finally,
with the Northern Bank and Joseph G.
Robin.
There were other minor matters. too, !
attracting unfavorable attention and I'M |
pleasant comment When bank fails !
it is trite remark that the failure had
long been expected. but it is true re- |
mark applied to the Carnegie. Among |
bankers the wonder has long been that |
it was able to withstand the criticisms |
repeatedly directed against it.