The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-03-29
DEMAND ON ANDREW CARNEGIE
FOR PLATT IRON WORKS STOCK,
ONCE DYERS COLLATERAL.
Reichmann Held In SlO.O>DO for Mlstie.
meansr Pending Further indictments
Hyde Heard Frsn'-sta'e Omcial
sai,i 70 Have Advised Altering Record


A demand WAS made on Andrew Car
negie yesterday to hand over to George
l.. Dyer the whole stock Of the Platt Iron
Works. Mr.. Carnegie got 5000 shares.
par value $500 900. when he loaned the
Cummins syndicate $2.i0O.0o0 in steel
bonds. having been assured by former
Banking Superintendent Clark Williams
and others that Cummns was a worthy
man. Mr.. Carnegie had no reply TO
make yesterday. but persons who have
been dickerng with him in connection
with the Carnegie Trust Company don't
think he will let 60 of the stock
Dyer. it will be recalled consented
at the request OF his friend Joseph B.
Reichmann- was indicted bv the
Grand Jury yesterday for making a false
report to the State Banking Department
in connection with another shady note
transaction-to figure as the maker Of
one Of four $500 900 notes that the Cum
minis crowd fixed up when they went
after control Of the Van Norden string
of banks. He told Reichmann that he
wasn't worth u. 900. but Reichmann said
that didn't matter. since he wouldn't
be held responsible.
At that particular period in their affairs
the Cummins syndicate were hard pressed
Three Of the four $500. 900 notes weren't
giving any trouble. but one was. It had
been obtained from Southern fertilizer
concern on the assurance that it would
only be held two days for exhibition pur-
poses. When the two days stretched into
six months a party OF Southern gentle
men, whose hip pockets sagged. arrived
at ii5 Broadway and presented arms
Something had to be done in a hurry. so
Reichmann hustled around to Dyer's
office and asked George to do it.
MIR. Dyer wasn't averse to obligng
Rechmann, but he said he had been in
business long enough to realize the value
Of collateral What would they put up
to guarantee him? After a little parley
Rechmann got permission to give Dyer
the whole stock OF the Platt Iron Works
as security for the note. and the nature
OF the collateral was entered on the face
of the note.
That was in November. 1909. and the
Cummins crowd were relieved from ap-
prehension until tho latter part OF De-
cember. when the bank exeminers be-
came inquisitive. The four seOO.OOO notes
on which the cash had been obtained
from the Carnegie Trust Company to put
.rs Al h-l ha1
lying around the shop for many months
without any definite action by the Bank
ing Department. But toward the latter
part Of December there came tip that if
those notes weren't taken up the Carnegie
would be shut up.
Followed at once the frantic appeals
to Andrew Carnegie for cash. Having
listened 10 encomiIms of Cummins. Mr.
Carnegie was impressed but he wanted
something more than a eulogy of the
Tennesseean if he was going to put up
good steel bonds. What did they have?
They produced the Platt Iron Works
stock. OF which Dyer had never had physi-
cal possession. Mr.. Carnegie took il in,
together with stock in the Madison Trust
Company, the Tennessee Packing and
Stockyards Company and other Cum
Minis concerns.
What Dyer. through his lawyers. Gard
ner. Van Amringe & kohler OF 81 Nassau
street, now asserts is that they slipped
the Platt stock away from Dyer in order
to supply Mr.. Carnegie. and that
Independent Fertilizer stock was subst-
tuted without his knowledge or consent
when he drew a new note for $500 COO.
The occasion for drawing tho new note
came when the Cummins outfit, having
got Mr. Carnegie's bonds. paid OF three
of the 5000 100 notes and part of the DYER
note.
As things stand now. Dyer is being
sued by Receiver Egbert to recover the
Ss96, 900. He says that either he doesn' t
owe q cent to the Carnegie Trust Com
pany or that the Platt stock is more than
sufficient to cover his indebtedness. Here
is the letter sent TO Mr. Carnegie
Andreu Carnegie, Esg. 1893 ram Arc. ,ry.
DEAR SIR: On behalf of our client. George
l.. Dyer we request you to return TO him
5000 shares OF the capital stock Of the Plat,
Iron Works Company. which, We are in
formed, you received from the Carnegie
Trust Company in or about January. 1910
| as collateral for advances made by you
| Certificates for these shares standing in
the name of Mr.. Dyer were deposited by
him AZ collateral TO a note OF $500. 900 hearing
date November ~, 1909. made by Mr.. Dyer
| to tho Carnegie Trust Company as payee
| We have been informed that this stock was
removed from under the Dyer loan in OF
about January. 1910. and turned over to YOU
| As collateral as aforesaid. Mr. Dyer in no
way consented to or had knowledge of this
| removal of such stock or it's delivery to you
or to any other person. Any application
Of this collateral. except to the payment
| of the note or renewals thereof. constituted
| a diversion of the same.
The records of the trust company show
that the certificates deposited by Mr. Dyer
we're numbered as follows:
| Certificates No. 25 for 7903 shares, No u
for one share. No. "a for one share. No.
for one share. No. 2 for one share: No.
| for one share, No. 5 for one share and No
| for one share.
We understand that the usual assignment
| in blank and power OF attorney were executed
nv Mr. Dyer in conueciion with the depOsi
| of the stock certificates, Please take motto,
that Mr.. Dyer has revoked this power OF
attorney and assignment aud has duly
notified the Platt Iron Works Company I,
that effect. Very truly yours.
GARDNER, VAN AMRiNuE koHLFH.
New York. March :s
IL ought to I've made clear" said Mr.
Overs lawyer yesterday. that he die
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