New-York tribune., 1911-03-22
THREE INDICTMENTS
AGAINST CUMM|NS
Chairman Of Carnegie Trust
Board Accused of Larceny OF
S335,000 IN Last April.
HELD IN BAIL or $4,000
Whitman Explains That Action Is
Based Upon Alleged Use by
Cummins of Money Advanced
by Other Bari on Notes.

by Other B2rl- on EojeS.
William !. Cummins. chairman ~ ths
board cf directors of the Carnegie Trust
Company. whose personality has tinged
all the activities Of the institution and
those Identified with it for moro than
wear. was indicted three times YESTERDAY
on three distinct charges OF grand lar-
cenv. shortly after o'clock in the az
ternoon the grand jury. which J. sti'l
conducting an exhaustive investigation
Of the conditions which eliminated IN
rho closing Of the Carnegie Trust Com
many. handed to Justice Vernon NJ.
Davis in the Supreme Court the first or
several presentments expected against
officers of tho trust company.
rummins. who was present IN me
courtroom with his lawyer. stephen =
Baldwin. who is also counsel for Charles
n HYDE. pleaded not guilty and vas re-
leased in $4,000 bail The indictments
fled charge the larceny Of these sums
500 900 on April 21 1910; $4,000 on
April % and $4,000 on April 20.
District Attorney Whitman made the
following statement with regard 10 them;
In April. 1910. Cummins and his ,, asso-
! ciates learned that certain loans "hlc"
had been made by various banks on u,s
| security Of stock of the Nineteenth "ai"
Rank and the Twelfth Ward Bank "ete
| in such , condition that If they we're no,
Immediately paid off the collateral hsl"
as security would be sold. ~ vas ue
sired by Cummins and his associates
that such stock should not be sold on
the open market for fear II wouih dreC.
adversely the institutions me stoon w.
wbich was being sold and other institi-
tions known 10 bo interested IN those
two They therefore made ARRANGEMENTS
to Obtain money from the Nldeteenth
Ward Bank and tine Van Norden rus.
COMPANY for the purpose ot paying on
these loans and releasing the cola'era''
or If IL proved moro advisable 10 P"l
chase the collateral when the ioans were
| closed out. a
To raise the money needed To finance
tho tra,saction certain notes were given
Ia th, Van Norden Trust Company aHu
the Nineteenth Ward Bank, assr"sd'ns
s235. 5.OO0. While these notes we're appaI
emily unsecured demand notes ol NV
individuals whose names appeared uPo.
them. the agreement as result ol Wnch
reeie Trust Company in each instance
should receive the amount advanced on
the various notes, agSregatihg sSao'v'"'
and hold il i'm trust to purchase tne
stock Of the Nineteenth Ward hhn VIC
Twelfth Ward banks at specined ptiGe
so far as should prove necessary 20 va
balance. If any. to remain as trust run"
FOR the benefit of the institution from
which the money was received
Checks for cummirs's Account.
The Nineteenth Ward Bank paid over
s40 Ooo on April % by four checks each
of which was Immediately lndorSeo over
| 10 the personal account OF WHilan ..
Cummins. who used the funds Tor MS
own personal purposes. one nunoreo
end twenty thousand dollars OF me van
| Norden Trust Company money NitOn
/ uas advanced on April q. was deposited
| to tho credit Of one of the other MEM
Lars Of the group and shortly after
! ,,ard transferred II Cummlnss account
and apparently used by him for ms own
nersonal benefit. The remaining so'op'
of the loan made by the Van Norden
Trust Comvanv. which was advanced ON
.nriI % was Immediately indorsed over
~ the credit Of William J. Cumminss
,arsonaI account and used by him APP
narentlv for his own personal benent.
Tho indictments filed charge the lar
| cenv Of these sums Sl2O.Opo on Apr'l
81 $4,000 on April 80 and Slf"'ooo ON
April 23
| None of these transactions appear ever
IN have been entered upon the books ~
tho trust department Of the tarn"gi"
! 1rust COMPANY. nor so far as can pa
! learned were there ever heid ~ Ih"
| carnegie Trust company In trust ioT
the two institutions advancing me rnonAY
any shares Of the stock ~ the Nllelr'nt"
!
The District Attorney. an hour ne'orH
the indictments were reported. entered
tho courtroom. where Justice Davis ras
irving case. and conferred with Tho
iustice on the bench probably asking
him IN hold court until the indictments
were ready. as court usually adJourns ~
o'clock David Freed the foreman.
headed tho procession Of grand Jurors
,,artv-,hree in all. when il fled IN a.
4. 10 o'clock. Mr. Whitman and Assist
an, District Attorneys Clerk ana Adams
accompanied them
T., tho rear of the courtroom sat Cum
Minis and Baldwin. Cummns IS nan
.hout :, feet 10 inches tall. very solidly
hrn, smooth shaven and with heavy
III,
law His friends describe him as born
promoter. buoyant and cordial N man
nor I, vas noted yesterday that ne
seemed distinctly nervous and lacking n
Golf ,seurancc He and his lawyer had
h,on told beforehand by the District Al
,ornev to be present and ready to plead
Mr.. Freed handed the three indict-
ncr,s 20 Clerk Penny, who I'm turn
,;,hout reading them handed the docu-
r,or, ,o Justice Davis Neither clerk
ror foreman spoke. Justice Davis ac-
krovledced the indictments by formally
irs,ructing the grand jury To continue
i,s deliberations. and the jurors then
withdrew
After an interval of about minute
ard a half Baldwin stood MP in the rear
-, rho courtroom as If waiting for an
,.,.;,o,iop 10 step forward with lis eli.
an, ON getting no satisfaction "a
su,t OF expectant glances about the
courtroom he and Cummins took the
hi, I'm their teeth and advanced boldly
- and within the rail which divides
members Of the bar and other officers
nj the court from the laity.
Plea Of Not Guilty Entered.
Your honor. | wish To enter a plea
~ no, guilty for my client" announced