Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-11-11
Confident OF ACQUITTAL
CAME INTO TRUST COMPANY on
LY THROUGH AGREEMENT
ANENT DEPOSITS.
TELLS Way THINGS went
Directors Voted for Loans TO BE Made
But Nothing Stipulated As 10
Moneys Application.

NEW YORK, Now 1O-Smiling and
confident, William j. Cummins. on
trial, charged with the larceny Of
! $4,000 in connection with the loan
transactions of the Carnegie Trust
company, took the stand today in his
own defense. After detailing the
story of his rise from newsboy in
Paris, Tenn, fifty years ago, a part
nershlp in a merchandise business In
Nashville, Tenn, that netted him $40
600 a year Cummins plunged into a
minute recital of the events which cut
short his career rs u captain OF fin
ance in New York.
lie came into tho Carnegie Trust
company at the invitation of the late
c. Q. Dickinson, then president of
the company who promised him, he
said, that the company would pur-
chase 100000 of bonds of his Nash
Vile business on condition that he
bought stock in the Carnegie COM
pany and get $10,000,000 in new de-
posits. Cummns said he obtained
$40, 100000 for the Carnegie Trust
company, but Dickinson failed to
keep his promise to purchase his
stock, saying that "he could not take
pay Andrew Carnegie loan OF
S1,500,OOO.'
Andy Got Some of It,"
Dickinson said" explained Cum
minis, that during the panic of 1907,
Charles NJ. Schwab and Alton b. Par
ker had negotiated loan of million
and a half in steel bonds from Mr..
Carnegie, and Mr.. Carnegie had taken
all the assets of the Carnegie Trust
company security in addition to the
guarantee of Mr.. Schwab and Mr..
Parker and the Carnegie Trust COM
pany in the negotiation of this loan,
was not brought out. Shortly after
wards Dickinson proposed to him,
Cummins said, a merging of the Car
negie Trust company with the Van
Norden Trust company which was
short Of cash. but that Van Norden
had lots Of it.
State Objected TO loans.
Dickinson had already purchased
1000 shares of the Van Norden Trust
company stock. according to Cum
Minis, raising the money of four notes.
aggrgating s2.400,OOO. and put It
into the Carnegie Trust company. The
paper was endorsed by various con-
Germs In which Dickinson and Cum
Minis were interested. The state bank
ing department objected to these
loans and this led up to taking the
$2,100.000 loan in United States steel
bonds from Andrew Carnegie, he tes-
titled later, furnished additional Sc
curity for this purpose on Cummlns
note.
Bevyuse the banking department
then objected TO loans made by the
Carnegie Trust company to its direc-
tors, Cummins said, further nego- |
tiations were started for the collection
of the Carnegie Trust company.
Knew How to Relieve 1t
81 told Bradley Martin" said Cum |
Minis. that IL we could raise enough |
money topay off certain loans. in |
the Carnegie Trust company and to |
other banks, 1t would greatly relieve J
the general situation
This resulted in the execution Of /
the plan by which the Van Norden |
Trust company and the Nineteenth J
Ward bank, provided the necessary |
capital secured by the notes of Mar
tin and others.
81 said that in my opinion 5000 900 |
would cover the general situation. The
directors then voted for the loans to
be made" said Cummins.
No Stiplations Made.
WAS anything said about that
money being used to pay only the
Van Norden loans-f" Cummins was
asked.
mot word" Cumimns replied.
THE loans were voted without any
stipulation for that"
Cummlns emphatically denied that
Bradley Martin had ever suggested
that either the money or stock re-
leased by the payment Of the loans
should be held In trust at the Car
negie Trust company.
Mr.. Cummins was still on the stand