New-York tribune., 1911-01-10
Talks Of Shaw's Connection.


this city. and l expect that it will lose
100000 on those. vaults alone"
Talks of Shaw's Connection.
Leslie NJ. Shaw came in as president
not long after the company was organ
lied" this man continued "The Kieran
loan was made while he was president
three years salary. That cost them
$4,000, and they had TO take over lot
of his stock holdings as well. He did
not lose anything on his stock On the
contrary, he made n large amount. 1t
must have cost nearly S1.o0o,O00 to the
out as president.
The Tennessee outfit came In at that
time. They thought they saw a chance
10 get into banking In this city, and
they came into the Carnegie Trust Com
pany and then got into the Van Norden
Company and the Nineteenth and
Twelfth Ward banks. They are out now.
THE Carnegie Trust Company had to
be got rid Of. Such banking methods as
It employed could not be countenanced.
It never was allowed to have any con-
necuon with the Clearing House. There
are no other bankers left in the city
now whom we fear. Robin is gone and
the Carnegie Trust Company is gone. If
there are any left who would follow the
same practices, I think they have had
their lesson from what has happened in
the last few days and We need not fear
them in the future
Alvin ". Krech. president Of the
Equitable Trust Company, which took
over the Madison Trust Company, said;
our taking over the assets OF the Mad
ison Trust Company will not be finally
consummated for some days TO come,
probably thirty days or more, but in the
mean time we have fully guaranteed all
the depositors for the full amounts OF
their deposits.
I'VE have. in substance. agreed TO per-
form two functions: First. to guarantee
all depositors. and. second, we are
pledged 10 liduidste the Madison Trust
company anu ulNiuS 'iIr pivh'o oihOiS 2
its stockholders.
I'VE Will, in all probability. continue
to conduct the branch OF the Madison
! Trust Company located IN the BoWery
! but It is a question whether we will con-
tinue to conduct our own branch at Fifth
avenue and 5Oth street in conjunction
with the main office Of the Madison
Trust Company at Fifth avenue and Goth
street One Of the two offices will prob
ably be closed
THE Madison. Trust Company as an
institution owned very little OF the
stock of the Twelfth and Nineteenth
Ward banks individuals who passed
control Of the Madison Trust Company
10 us own the control Of the Twelfth
and Nineteenth Ward banks Our trans
action closed by the acquiring of the
stock OF the Madison Trust Company
and We did not as an institution get con-
troll OF these banks However what
pa ssed between the individuals who
passed the Madison Trust Company to
us and those who may. take control OF
the two banks is information you Will
have 10 get from the banking house OF
IL. p Morgan e. Co"
What J. p, Morgan & Co. Did.
Henry 7. Dawson, Of J. +. Morgan &
Co. said that It was not true that j. p
! Morgan e. Co. had guaranteed the de-
posits Of the Nineteenth and Twelfth
Ward banks He said that what had
been done was that Morgan g. co. had
| promised financial assistance TO the two
banks. He added that IT had not beer
necessary 10 send any money 10 the
| Nineteenth Ward Bank, but that 500
GsO lad been sent 10 the Twelfth Warc
! Rank.
Bank Superintendent Cheney said thai
ho had nothing further 10 say about th'
situation except that he thought every
one was TO be congratulated on the turr
OF events.
| Judge Hough, I'm the United states Dis
trict Court, explained that depositors OF
bankruptcy funds were not preferred
creditors in closed banking institution
lie said that If there WAS any loss II
uould fall on the bankrupt estates.
But L do not believe there will be ans