New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-07
CARNEGIE TRUST LOANS
State Banking Departments In
ventory Shows Who Got Them.
DIRECTORS BORROWERS
Operations of Cummins Syndl-
cate Involved Large Sums, with
Stocks as Security.

Stocks as Security.
The operations Of the members Of the
hoard of directors Of the Carnegie Trust
Company known as the Cummins syn
dictate in financing the various enter
prses controlled by the syndicate "''h
the aid Of the Carnegie company are as
,lsyed i'm considerable detail in the 'u-
ventorS of the assets of the company
Cleo with the County Clerk by the state
Banking Department
District Attorney Whitman. with the
help Of John X Clark. Assistant District
ATTORNEY. has been investigating the
books of the Carnegie Trust Company
for two weeks. For the last few days ne
has had the help Of Joseph q. koolh'
and it is expected that the case VIII oe
nsken to the grand jury before the ehd
OF the week.
Pohin expccts to be one OF the grand
bury witnesses and believes that he VIII
receive immunity for any questionaoie
transactions of his own in connection
with the Carnegie Trust Company IN re-
turn for helping MIR. Whitman in MS IN
iyestisation. The inventory of the STATE
1ankins Department shows That IN lhe
last six months " 1910 the trust COM
ranv lent S230.9O0 on stock and oohus
d. Rollins enterprises.
Great Activity Last Year
Il was in the last half of 1910 that 'ne
Ermmins syndicate was particularly ACT
1--we in obtaining loans and that the great
hulk Of the combinations huge lhuep'-
edness was incurred. and particularly III
dhe last four months of that year. Inc
Inventory Of the State Banking Depart
l,ocnt shows a total Of 81. 432.62i IL owed
10 the Carnegie Trust Company by 'he
iCummins indicate their friends ana the
comranies that they owned and financed
Nearly the whole Of this sum was Dor
lrovod after September ]. 1910.
And besides the money borrowed from
rthe Carnegie company they borrowed up
ward of 100000 from fourteen other
banks and trust companies in this city
and obtained in all approximately 81
800. 600 from Andrew Carnegie-though
most OF the money they got from MT
lCarnccie was borrowed before they be-
gan their operations with the banking
institutions.
The Cummns syndicate is composed
Ipf William j. Cummins. Martin j. Con-
don. Joseph b Reichmam and Charles
\. Moore. ir.. with whom appear asso-
ciated from time to time on the lnven-
Tory of The state Banking Department
as cuarantors of loans. ex-Judge Will
lam 4. Keener. Liston l.. Lewis ana
George G. Crabbs All Of these men were
directors in the Carnegie Trust Com
,anv. and eX-Judge Keener and MI
Lewis formerly made up the law firm OF
Keener & Lewis, and were the counsel
for the trust company Both Mr.. keener
and Mr.. Lewis appear as having OBJ
FAMED personal loans from the company
Mr.. Keener obtained two loans IN 1908
aggregating $3.50. and one on NoVem-
Der IA. 1910, for $500. Liston l.. Lewis
obtained a loan in 1908 Of $3.50 and one
IN 1909 of $500 The schedule of ac-
crued interest in the inventory of the
state Banking Department shows inter-
est due on both these accounts
The Cumn,ins syndicate headed INTO
The rising sun from the Cumberland Val
lev a year and half ago and began the
construction If its financial pagoda on
foundation of notes now held by the
&. G. Dickinson estate To the sum of
S7OOWn for the purchase from Charles
q. Dickinson Of four THOUSAND shares of
the capital stock G. the Carnegie Trust
s,.~I he
pany. It's meml.ls had when they came
here. control of 1hc Tennessee Packing
and stock Ycrdt Company, the UNI
Minis Bennett Con lpany, the Nashville
Union stock Yards Company, the Ten
nesscc Packing and Provision Company,
the Enterprise Soap Company. the Platt
Iron Works Company, the Duncan.
the Vcta. col. Mining and Smelling com
1,anies. the Independent Fertilizer Com
pany. the Continental Baking Powder
COMPANY and the Wholesale Merchants
Warehouse Company.
Money Borrowed on Stock.
on the stock f all these companies
they borrowed money from the Carnegie
Trust Company. the control cf which
had been secured wit. the notes to G. c.
Dickinson. one of the early transactions
was loan of $3OG00O on a note Of
George l.. Dyer. secured 10y fifteen thou
sand shares Of Inc stock of the indie
Iendent Fertilizer Company. held in the
name Of William J. Cummins. The note
was guaranteed by Rcichmann, Cum
minis. Charles \. Moore jr.. Liston l..
Lewis. ex-Judse Keener Condor and
George c. Crahbs and was a demand
loan.
After september !. 1910 the stock Of
The various Cummins enterprises appears
- security for loans made by the Car
ncgie Company aggregating more than
$iVOpOOO. Some of the loans were made
directly 10 the companies and some on
the notes OF Individuals secured by
stock i'm the companies. Among the in
dNidual drawers of the notes were
Harry Anderson. $1,000; l.. +. Brad
shaw sol 900: George G. Cummins. $50
sou: Paul Edridge, $4,000; Bird NJ
Robinson. $1,000 and William r.
Weaver. 5000. There appear also in
dividual loans Of $4,000 10 Charles A.
Moore jr. in June. 1909. and $1,000 to
Joseph r. Roichmann in the same month