The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-11-11

hC wanted him as V'Ce-proSldet OF the
merged banks and that he would need
MPftius help III raising money since Clark
William, wanted tho llern 4 Langley
,iuuk pool and the remainder of the
fertilizer loan cleared out Of the Car
noVIc.
Martin replied. according 10 Cummins,
that he would do all he could 10 help since
the situation was worrying him almost
as much as il did Cummins. After that,
CumminS testified, he saw Martin several
times each week and was IN almost daily
consultation with Rollins and with Clark
Williams.
II wrs AZ this time. said Cummns. that
Clark Williams had written out his plan
for amalsemating tho Carnegie with me ,
uptown banks The letter was produced
end put in evidence 1t was on the paper
Of the Banking Department Gnd Vas
signed CLARK Williams. Superintendent
of Banks II said that the reputai ion
Of thc Carnegie vCsut at all whai Su, u
an institution should have and that tho
same WAS in a way truC Of tho Van Nord"n
but that the two might he merged into u
sound institution The merger sng-
Cested was predicated upon the immediate
payment Of the Hern and Langley loans
which would return to the 'Grnesl"
81. $4,000 in cash. and the organization
of the new company under new name
Cummins had shown the plan to Bradley
Martin aud had told him that Rollins had
been retained The check Of $4,000 TO
Rollins was introduced and identified
Then Cummins told Martin, he said,
that Rollins had advised him that the
money 10 pave the way for the merger
could best he raised by the uptown banks
and that Rollins had said there was no
ohle, tiun To The plan of having Cummins
end hir friends sign notes upon which
the uptown banks we're To advance money
for the plan, Cummins and his friends
being made responsible for the notes
He had Clso told Martin. he said, that he
feared trouble for the uptown banks, slnc .
the fa that Warner NJ Van Norden had
been held ny Ivy woman and robbed Of
$40 M had got out and the banks that
held Nineteenth and Twelfth Ward banks
stock a. collateral for loans TO the Van
Nordens were getting uneasy
Martin had replied that if anything hap
pened il would hurt them all and wanted
10 know how much would have to be
raised Martin had said that he would
join in the purchase of the Nineteenth and
Twelfth Ward banks stocks Cummins
told him he said that they'd need more
than $500 .Ou0 and Martin had promised
to invest 500 900 of his own money in
Nineteenth and Twelfth Ward bank stocks
AT $3.50 and 500 a share respectively.
There was introduced in evidence here
a contract drawn by Rollins and sent to
Martin III which the Van Nordens gave
Culumlns an option on the uptown bank
stocks at the prices Martin had agreed
TO pay
Then Cummins said that at a meeting
of the directors of the Van Norden Trust
Company on April 10. 1910. Martin had
explained TO the directors that "a situation
had arisen" which made him advise the
making the loans to certain persons by
the Van Norden company. ReiChmann,
who was present al ~" meeting, had eN-
planned ~ the directors that since { G.
dickinson had been ousted from the
tarnegi. Dickinson was doing his best
to ruin the Carnegie and was pretending
10 offer large blocks of Carnegie stock for
sale Rechmann had told the directors
that he considered the Dickinson matter
more urgent than the Van Norden loans
and that money was needed TO take up
Carnegie stock After more talk the direc-
tors voted to make the loans 10 facilitate
the merger.
Cummins was very certain that nothing
was said either by Martin or the directors
about the money being used exclusively
for IA" protection of the stocks put up by
the Van Nordsns az collateral for their
loins
Cummins told of similar meat,ng OF
directors at the Nineteenth Ward Bank.
whore Martin told of the loan for the
merger granted by the Van Norrten and
advised similar action. The loan was ap-
proved
Cummins said that Michael J. lyman
had been picked by himself and his assoc
Clates az custodian of the fund and that
Martin was 50 informed. Later. he said
Martin had complained that the banks
that hold the notes OF Warner and Warner
NJ. Van Norden We're getting uneasy be-
c. use the notes were not taken up. Cum
Minis said he had told Martin that he had
found that the banks had adopted the
stocks pledged by the Van Nordcns at
prices much above the $3.50 and 500 a
share and that he was llanning to get the
Van NOrden notes out hy replacing them
with notes signed 10y himself, Condor,
ReiChmann and Moore at the same time.
leaving the stock pledged 10y the Van
Nordens up as additional security. He
had told Martin. he said, that as a matter
Of fact he wanted 10 save all the money
possible out of that raised 10y the uptown
banks for the situation downtown" and
Martin had agreed that his plan was all
right.
The situation downtown had hecome
acute, Cummin, had told Martin. because
Clark Williams and Rollins had gone back
on him. He wasn't allowed TO repeat
what he had told Martin about the cause
of the break nor We're "A large bundle
OF papers which Cummins said he had
given Martin to explain the matter al
lowed in evidence.
ing Department had suddenly become
exacting. II" produced n letter from
Rollins and when Justice Davis refused
to allow IL to be offered in evidence Mr.
Stauer explained tnat he wished TO show
that Bank Superintendent Cheney's state
ment that s'Ihprnas were issued to Cum
minis to facilitate the examination Of the
Carnegie wasn't true and that there had
come IA change in the situation"
Cummins said that he had told Martin
that since falling ont with Rollins and
Williams he was afraid to send the notes
of -our crowd" to the uptown banks aa
had been agreed, and had suggested that
il would be best 10 put the stock released
by payment of the Van Norden loans,
about four loans. in downtown banks.
Martin had agreed that this was the best
plan, he said, and they had very frequent
talks in which every move was explained
to Martin. Martin had never suggested
that Cummns had made an improper use
of the money secured from the uptown
banks and had never told Cummins that
he understood that the money was to
be held in trust by the Carnegie.
NCummins told in detail Of the way In
which the Van Norden loans were re-
placed by loans to him and his associates
thus removing the danger of having the
collateral put up by the Van Nordens
placed on the market and Of the rehy-
pothecation of the stock released. Martin
had been told all about II. he said.
The session lasted until 7 o'clock and
Justice Davis announced that to-day the
hearings would be continued until o
o clock. II is probable that Cummins
will be on the stand all day.
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