The evening world., 1911-03-13
Witnesses Testify of Deals ON
Which Three Are Expected
to BE Indicted.
STORY OF BIG STEAL.
Alleged Theft Of 100000 ~
100000 said to BE One
Disclosure.

Tho supreme Court Grand Jur'. 81
whith David Freed is foreman. took up
a. g o'clock this af,crnoon the invest
CATION OF tire failure oc the Carncg,
thus. Company, from which. j. is 90
pc,tcI. sensational indie; ucnts VII rr-
suit. 10 go the las moment before
submitting the case ;u the Grand jurv
DistrlCt-Attoruey Whitman encountered
obstacles.
f. was supposed tnat the Grand Jury
would take up n; thc beginning a trans
action involving a 'pan made by the car
negie Trust COMPANY. IA which the
Northern Bank participa ed. A the wit
nesscs gathered, however. 1t became app
parent ;Hnt this transaction was being
held IN allowance.
The report Is that the Grand Jury IL
taking testimony relative to the alleged
theft Of between S,00.Onp and S30.OD from
the Carnegie Trust Company IN April.
1910. This appears 10 be An entirely new
feature OF the failure.
The Distri"t-Attorney did not reach
his Office until moo lie was told that
Judge O'Sullivan Of the Court or Gem
eral Sessions had been trying to reach
him all morning. and Immediately hur-
rled 10 Judge O'Sullivan's chambers.
Somewhat to the District attorneys
surprise. hc learned that Judge O'Sulli-
van-who IL said TO represent the feel
ing OF his associates on the General Ses-
sions Dench-was ~antagontstlc to plac-
ing bhe Carnegie Trust matter before
the supreme Court Grand Jury.
Refused to Change Plan.
There are two General Sessions
Grand JurIes in session now, the Gem
eral Sessions calendar Is not over
loaded. and Judge O'Suilivan IL said to
have taken The view that the District
Attorney should bring the Carnegie
Trust matter before one OF the Genera
Sessions Grand JuricS.
The District-Attorney and the Judge
discussed the matter until . O'Clock. Mr..
whitman said that. inasmuch az he Is.
sued his subpoenas Saturday. his wit
nesses were on hand and the Supreme
Court Grand Jury was ready to take the
matter, he would not change hts plans.
Despite the practical admission Of
the District-Attornev that an attempt
had been made to place the Carnegie
Trust matter before y General Sessions
Grand Jury. Judge O'Sullivan denied.
later in the afternoon, that he had dis
cussed the matter with the District
Attorney. lie said he knew nothing
about II.
Among the Witnesses who had been
summoned TO testify before the Grand
Jury were Bradley Martin jr. and John
V. coggey. who were interested in the
Madison Trust Company, which was
absorbed by the Carnegie Trust Com
pany. Joseph \. Frederick. the Deputy
Bank Examiner. who went through the
books and records OF the Carnegie Trust
Company after the failure, was also on
hand. Mr.. Coggey was excused later. as
II was found that his story would cover
the same ground as that of MIR. Martin.
The first witness to 60 before Tho
Grand Jury was A. l.. Smith, who wa,
FIRST Vice President Of the Carncgi,
Trust Company. Watkins Crocker, for,
mer President of the Madison TrusI
Company. was the next witness. Evi
IDENTIFY the investigation started with tn,
transaction by which the Madison Trus
Company was unloaded upon the Car
nesie Trust Company.
Kept on the Books.
According TO report, II has been foun,
that drafts for large amounts wer
drawn and left with the Carnegie Com
pany, which advanced money on then
The drafts are alleged then TO nave bee
. put In an envelope on the desk of
| member Of the executive committee q
the trust company and kept for two .
= three days, sometimes weeks. until tn
, money could he raised to meet the "for
( Dearance loan" When the money wa
= repaid the drafts are SAID TO have bee
. destroyed without any record beln
made on the books of the company.
a Al the same time the men are trallin
u some OF these drafts two other men
Ders Of the DistrIct-Attorney's stan Al
~ tracing stockholders OF the Cummit
companies FOR the purpose OF ascertain
u ing whether or not they are dumm.c
d holding stock In their names for ota,
persons. In this way 1t IS hoped to u
Is ne iran leading 20 a connection bel I've,
u the syndicate and a high city Official.
e Another matter hat Is to be tho
l. oughly Investigated Is the report IN
i the Carnegie Company was n.y
caught mapping by the bank examiner
49, The Northern Bank seems IL have oo,
rI equally AS fortunate, The District
turney has been told that these instit
tions were always able to produ
bundles OF satisfactory securities Al
plenty of cash when the examine
turned up. The Grand Jury wll
asked to ascertain II any State ofnc.
tipped any body Off as to when the c
amlners would be around,
Robins Stsry Fully Toold.
Joseph q. Room ~ understood to ma
furnished much valuable informant
that thus far has not been corrobOratl
70 II Is likely that much cf to-day's ties
mony Will be given Dy Joseph \. BrC
erick, the expert OF the State Bank
8 Department, who has been ASSIST
the District-Attorney. William j, ca
Minis and Liston l.. Lewis Slil be cal.
W. early I'm the week, II Is said, and Jose
VI b. Keichmann VIII be called when
returns from Dayton, o,
II is iutimatel by the District-Att
" 40 t.HE 4 ,oLD ~ one DAI