The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1911-01-12
BIG BANK CLOSED
BY DIRECTION OF
STATE AUTHORITY
State Superintendent of Banks
Merely Says That It Is In
"Unsound Condition"
and Locks It.

negie Trust company, one Of the
large banking institutions in the
city, with deposits. Of nearly &c.
600, 900, closed it's doors by order
Of State superintendent Of Banks
Cheney. The suspension hardly
caused a ripple in the financial
district, where the trust company
was often reported in a shaky
condition. -
superintendent Cheney, in an
official statement, said an exam.
nation e. the trust company had
caused him ito conclude that 1t
was in an unsound condition to
transact business and that it is not
safe for it to continue.
State banking officers now are
examining the company's books.
What President Howell Says.
President Howell, OF the company,
made the following statement later this
afternoon:
"Thls deplorable crisis was most un-
expected. 1t is the result OF sudden
and heavy Withdrawals occasioned by
the unsettled conditions brought
about by the recent bank failure. The
name OF the Carnegie Trust com"Iny
was unwarrantedly connected with GER
tain interests involved in that failure.
Distrust was created without any foun-
dalton in fact. The cash resources Inn
mediately available were insufhcient 10
meet the heavy demands.
There is no reasonable doubt that
depositors will be paid in full"
History Of the Concern. -
The organization Of the Carnegie
Trust company in 1907 by the late
Charles Dickinson brings out some In
teresting modern financial history. Mr.
Dick inson interested number OF
prominent f1nanciers In the company
and Leslie NJ Shaw, former secretary
OF the reasury who had a large bank
following In the west was made presl-
dent. Through Mr.. Shaw's connection
the business Of the company became
large.
The name OF Andrew Carnegie was
used by the organizers In order TO lend
strength to the undertaking. but Mr..
Carnegie shortly after the formation OF
the company repudiated the use OF his
name. Mr.. Dickinson, the organizer,
became vice president Of the company.
After about year Mr. Shaw resigned
and Mr.. Dickinson became president.
Troubles soon 6o0in.
Troubles Of the company developed
when Mr.. Dickinson attempted to form
a chain OF banks with the Carnegie
Trust as a parent institution. Control
| OF the Van Norden Trust company, the
| Nineteenth Ward bank and Twelfth
| Ward bank was sought, and syndi-
| cate had gained control OF the Van
| Norden company and was heavily pur-
| chasing securities Of other banks when
tho or 70 ha N King dana rtnant mt "A
stop to the plan.
During the Dickinson regime the
| Carnegie trust became involved with
| the Fidelity Funding company, which
failed. causing many Catholic insti-
| tutions throughout the country; consid-
| cradle financial loss.
Dickinson Forced Out.
Mr.. Dickinson resigned and Joseph
| B. Reichmann temporarily took the
| presidency in order to affect some re-
| forms and eliminate certain paper held
| by the institution. Mr.. cReichmann re-
tired several months ago and j. II
Howell. formerly president or the
Fourth National bank, of Nashville
| Tenn, became president.
The city of New York had on de-
| posit with the Carnegie Trust company
at the close Of business yesterday $780,
| 900. Not long after Mr. Dickinson haG
retired he died in, a hospital here an6
| it was said that the cause Of his
death was the inhalation sof poison
Gus gas in the laboratory of a chem
| list in Scranton. a''t ~
The Carnegie occupies handsom,
/ quarters on Broadway in the heart Of
the financial district. 5 80
Causes Much Excitement. :.
News of the suspension spread rapid
ly and hundreds OF depositors had as
sembled about the doors even before
the usual hour Of opening. The fol
lowing notice was pinned on. tn,
doors: 49,, f.
Pursuant to the provisions of sec
ton 10 of the banking laws of tn,
state OF New York, have this day TAX
en- possession Of the Carnegie Trus
company. ia -
20. III. Cheney,
/ superintendent Of Banking"
This notice was posted shortly be
fore 10 O'Clock. The state officials hat
made their plans earlier in the day ant
1t was evident their action had beer
| anticipated as a ,throng had alread!
begun to gather" The doors of the in
stitution remained closed and no in
formation concerning the conditions o
affairs was given out by the7bank of
fcials or state authorities.
'>' Cheney taa. Little to Say. It 8 ,
The following statement was ISSUED
by Superintendent OF Banks Chene!
relative to the closing Of the trus
company: ~
taken possession; Of. the property. AM
business of the Carnegie Trust com
pany, located ats lis Broadway, Dor
ough of Manhattan.
Examination Of the affairs of tn
company has caused the superinten
dent to- conclude that it Is In an un
sound condition to transact bushes
and that it Is not safe for 1t to con
tinue. The examination Is not :rom
plete and no further statement can b
made at the present time" tj -
The financial status of the Carnegi
Trust company. according to Its las
statement, as OF November 10, Is:
Loans, 81, &c., 5O0;" stocks and bonds
investment, 4 81. 1874 500; due from trus
companies. banks and bankers. 81.
51T 900: cash available. 81 ,05S 900; az
gregate deposits, Sss95.7OO. -,
Affects Stock Market.
Though the notice or closing quickl
brought crowd OF depositofs and 9th
ers having business with the. institu
ton, they gradually ,melted away. TIL
| suspension caused selling on the Stoc