New-York tribune., 1911-03-25
That Was Why National Reserve
Rank Favored Cummins Group,
Saws Its ViCe-PreSIdent.
FIGURES SHOW IN RECORDS
Rank Got S150,00O Of City
Money on Day Loan Was Made
to Syndicate, Twice as Much
as It Ever Held Before.

noo GutterCd at different times into the
,..,,rs IF banking institutions in this
,.,v vas succinctly expressed yesterday
:. tho examination Of Richard w. Jones
=, ,ico-president Of the National Re
serve Bank.
.Wo,ld YOU have lent Cummins and
,,s associates money without the as
srranco that YOU would receive city de-
,osits I'm return for the accommodation?
he was asked. in effect
..Xot cent" said the banker.
Mr. Jones I'm this way vindicaiod to
tho grand jury which is investigating
carnegie Trust Company affairs the
rerutat;on of Wall street for business
,bilitv All Of Cummins's eloquence
counted for little. apparently. beside his
rronise of city money for Cummins
leans.
The records Of the National Reserve
chow. that on June /, 1910. when the
hank lent Cummins s5o.oo0 on four notes
siened hv him and his three associates
P4ichrnan0. Condor and Moore, IT re-
,sived SiioO00 in city deposits. thereby
.vsctlv doubling its city account
The city deposits had a way Of arriN-
ing on the same day that bank ac-
,omr,o6ated William =. Cummins. w.
F. Holloway. former president OF the
Hungarian American Pank. who also
snres~od before the grand jury yester-
dsv SAID that that bank lent CTmmins
S1n1o,1 on Ncv - and about three
rl,,rs attervard received $4,000 in city
deposits the only city money 1t ever
handled.
II vas pointed ,ut that the testimony
of the two bankers seemed 10 corrob-
orate Joseph 9. Robins assertion that q
l,dnite agreement existed by which
tlo.s who came 10 the assistan G of the
Cuomirs group i'm the Carnege IT Il
rompauv got city deposits for their
hank. i'm return. Robin has testified
that he vas present at conference IN
charles II Hyde's private Wall Street
office one night when such proposition
vas made 80 him in So many words
That. however. was late in August i"l".
three months after the transactions of
me Hungarian American and National
Reserve banks
Career OF w. E. Holloway
William Hollo0ay halls from Bir-
mnghem Ala where he Was president
~ -msu trust company Mr.. Jones.
lis close personal friend. brought him to
Nv York less than two wears ago and
introduced him to Robin Robin. through
eight hundred shares Of hungarian
American stock held IN tho name of
president Netcalf - the Atlantic Ma
,ionsi R0nk. Of Providence. made Hollo-
vav president ~ The Hungariau-Am Amerl-
,~r parr a. represent his interest
U7rov4v first aired his desire for city
u,ue, ~ is said. 10 AutbonN Stumpf. q
director ef tho Northern Bank That
1s. u ipru 1910. and the banker had
Sumur> assurance that he would do
what he could 10 got him u deposit \
month stor. However. Jones went TO
UoHor4- aud tol0 him le could get
hi- deposit by lending Cummins money.
IL did not mention hence the deposit
oou.C come.
Jones testified i; is said, that Cum
rus commissioned him to approach
UoIlovav and make the promise in this
fotm q lcN days later Cumuins is
sa'd 90 have given Holloway the same
asVr'u-. himself.
The loan Of S1ODpJU Was then arranged
and u tho same day the city deposit ar
rived holloway at first thought That
stumpl had produced ii, and that the de-
Io,it mentioned 10y Jones and Cummins
would appear later But Cummins
quickly d'shuscd him OF that notion. ne
SAID
Jono-'. testimony. IL is learned. is that
approximately - per cent more in city
deposit, was guaranteed to the bank
helrnc tho Cummins syndicate. The
deposits of city money in the National
Reserle Bank were as follows SJOWD
on April I. 1910 $4,000 on April u,
Sj0DUp on May 1s. $4,000 on June J..
S2joW0 on January |, 1911, and SlVooOo
% March J. 1911. ON December ~
iwo days after the closing of the North
ern Bank. Sj0OCO was withdrawn. and
Oh January :. the day the Carnegie
Trust Company failed. S2Jo.OoO more.
Hyde Makes Statement.
City Chamberlain Hyde made quick
acknowledgment yesterday Of the pup
iicaton Of his letter to the Controller
advising him Of the designation as "a de-
pOsitory of the Northern Bank. He IS
sued this statement:
The publication OF my official Letter no
I4.ng the Controller of my selection Ol
t.e Northern Bank a. depository IO'
Bronx tax receipts Is not a surprise 10 hle'
Lave known iOr month OF the Con
uoIers activity in looking up e'Ide"c7
dsdlns, NE.
Selected the Northern Bank because the
controller ASKED me 10. H~ had Dtch d
Giecior oi the institution, and hehoeiSo'i
" Wolfe the chief auditor Ot the Con-
UOIcr's Office. appointed Dy Mr.. Irend"I-
east had been yice-president up to the tiihe
V iis taking Office. ,o,o a..
lreudergaSt came 10 my once personally
snc brought 10 me letter addressed 10
lnm by David l. Austen, the ReceiVer o.
axe. which pointed out that ~ tHc use
ot the Tweuty-third Ward Bank, which
Vas tncI the depository, much time "da
1st IN the carrylne Of the moneys iioiI
lne teN Office iu l11th street 10 the Ddhh
lh 18th street The letter also re9heslcd
iiai the Controller arrange with the proper
authority 10 nave either the Bronx BOT
el2h Bank o. the Northern Bank desis
rated
The Chambor3in Was the proper au-
NOrtv I'll, Controllers preference was
,h' Northern Bank. and he 50 stated. ne
vNched fOr u "s sale instiulloH' anu
700 me that 10 was cOnservatvcly man
s2ed knowing that he had been dircc-
,of and believing mat he could nave ru,
IN tNc sln2ir to the city = interests J
'isnied his request