The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-03-22
Larceny Of $685., 900 Charged
Against Carnegie Trust
Financier.
NE HAS $4,000 BAIL READY
Court Won't Lot Supt Cheney
Make Northern Banks Lawyer
q Preferred Creditor.

Nv ictuiuOSS ~" Dsr rhsNASs
ments yesterday against William j. Cum
minis for stealing total OF 1856 900 from
the Carnegie Trust Company. Mr.. Cum
minis. standing before Justice Vernon NJ.
Davis. with his counsel. Stephen O.
Baldwin. pleaded not guilty and was re-
leased after he had put up a $50, 900 bail
bond.
The indictment Of the Tennessee pro-
moter who ran the Carnegie Trust Com.
pany for more than two years and who
used the name OF City Chamberlain Hyde
when he was around negotiating loans for
himself and his syndicate il the first Of .
number that the Grand Jury has de-
termined on. Excellent reasons exist
for a delay in handing down the other
indictments. It Ia desired that a number
Of financiers step around to the District
Attorney and ease their minds.
The Grand Jury finds that Cummina
was guilty Of grand larceny in using for
his personal benefit the proceeds Of q
loan obtained from the Nineteenth Ward
Bank and the Van Norden Trust Company
on the understanding that the money
was to 60 to the Carnegie for a specific
purpose. Although the money was Sc
cured by Cummins and others on their
apparently unsecured personal demand
notes, there was An agreement that the
Carnegie Trust Company should receive
the proceeds.
Justice Davis was hearing a case in the
Supreme Court when at 4:1O p. NJ. tina
Grand Jury fled in. In the rear Of the
court room William j. Cummins had been
sitting for some minutes with Lawyer
Baldwin. who Is now associated with John
b. Stanchfield in Cummins's case. Mr..
Cummins and Mr.. Baldwin had received an
intimation that their presence in the
Criminal Courts Building in the late after
n oon might expedite business.
After Clerk Penny had read a descrip-
ton of the indictments Lawyer Baldwin
informed the court that Mr.. Cummins
was present and desired to enter plea
of not guilty. asking for time in which to
change the plea. Justice Davis thought
that ten days would be sufficient time
and fixed March 81 as the limit for chang
ing plea or filing motions.
District Attorney Whitman told JUS
tice Davis that in consideration of tho
amount involved and the gravity of tho
indictments he would ask for 5000 bail
LAWYER Baldwin did not ask for a reduc-
ton He said. on the contrary. that the
figure was satisfactory and that security
had been provided. The bond Of the
Pacific Coast Surety Company was ac-
cepted.
On March 81 Mr. Cummins. through
John + Stanchtield or stephen c. Bald
win. will. 1t is believed. ask leave to with
draw the ples of not guilty in order that
permission may be asked to inspect tho
minutes of the Grand Jury District At
torney Whitman will oppose this applica-
ton on the ground that the names Of
others besides Mr.. Cummins appear in
the minutes and that it would be extremely
nadvisahle to have counsel for MIR Cum
mlns FAMILIAR with what he's been brought
oui by the Grand Jury concerning the
acts of MIR Cummins's friends or asso-
ca,ss
In tie event that the court denies the
applcation Cummins's lawyers will, it is
supposed file demurrers on number Of
points in the indictments. II the de-
murrers are not sustained the trial will be
set for a date within the next two months.
The allegations on which Eummips
is indicted can be put simply this way:
In April, 1910. Cummins and his associ-
ates learned that certain loans which had
been made by various banks on the Be-
curity of stock Of the Nineteenth Ward
Bank and the Twelfth Ward Bank were In
such condition that il they were not
Immediately paid off the collateral held
as security would be sold. II was desired
by Cummins and his associates that such
stock should not be sold on the open
market for fear it would affect adversely
the institutions whose stock was being
sold and other institutions known to bc
Interested in those two
They therefore made arrangements
to obtain money from the Nineteenth
Ward Bank and the Van Norden Trust
Company for the purpose Of paying of
these loans and releasing the collateral,
or if it proved more advisable purchas-
ing the cOlldteTai WHcu VIC IoeAie "OiN
closed out. To raise the money needed
to fnance the transaction certain notes
were given to the Van Norden trust
Company and the Nineteenth Ward
Bank aggregating $685., 600
While these notes were apparently
unsecured demand notes OF the indi-
viduals whose names appeared upon
them tho agreement as result Of which
the loans were made was that the Car
negie Trust Company in each instance
should receive the amount advanced
on the various notes, aggregating $685. 600.
and hold II in trust to purchase the stock
Of the Nineteenth Ward and the TwelftA
Ward banks at a specified price so Tar ~
should prove necessary, the balance "
any TO remain as II trust fund Tor the bene'
III of the institution from which the
money was received
The Nineteenth Ward hank paid over
., 70. 900 ON April ~ by four checks. sach