The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-03-24
Carnegie Trust Company
Had 100000 In Worth
less Paper.
BANK Department INQUIRY
Hyde Directed Prendergast to
Deposit In the Northern
Bank.

\ OF the Carnegie Trust Company made
notes for more than 5000. 600 which that
institution was ready to discount. The
| Grand Jury wants TO know what flesh and
blood benefited from the proceeds.
A series of frauds that transcends
mere note Juggling has been uncovered.
These transactions have interested the
jurymen almost as much as the relation
of city deposits TO the health OF the Cum.
Minis syndicate or the influence that
Cummins and his friends were able to
| bring to bear on Andrew Carnegie.
! There were times in the recent his
| tory Of the luckless Carnegie when in
dividuals whose acts were not questioned
behind the Carnegie's counters needed
money in hurry. Security ofttimes was
coy. SO the needy ones found names
that looked like ready money. The fact
that individuals who had once owned the
names were dead and buried or that such
persons had never lived didn't interfere
it seems. What the Grand Jury is after
is. who was responsible for the conspiracy7
Those who have been investigating tho
Carnegie Trust Company have been in
terested in statements made on behal.
of City Chamberlain Hyde that he had
nothing to do with deposits OF city cash
made in the Northern Bank. Deputy City
Chamberlain Y alsh having made a state.
ment that the Comptroller's under ofi-
cials were the ones who put cash in the
| Northern. this letter from Mr. Hyde
to Comptroller Prendergast was made
public yesterday
CITY OF NEW YORK
once of the City Chamberlain
FEBRUARY q. 1910.
| The Hon. Wm. A. PTeHderoost. Com pfroher
Of the Citp of Ner York:
| DEAR SIR. | have selected the Northern
| Bank. fremont Branch. at No. sos East
fremont avenue as the depository for col
| lections OF taxes and assessments and
| arrears in the borough of The Bronx. VIII
you. therefore. please direct the Deputy
Receiver of Taxes and the Deputy Collector
| OF Assessments and Arrears of the Borough
| of The Bronx. beginning Monday. February
| IL. 1910. TO deposit their daily collections in
| said bank! Respectfully.
CHARLES II. HYDE.
City Chamberlain.
Comptroller Prendergast who has moth.
ing, he says. 10 do with the matter OF
banking city money, acted upon the
order received from the City Chamberlain
and sent letters to Gen. David f.. Austen.
the Receiver of Taxes, and Daniel Moyni-
| han. the Collector OF .issessnents and
| Arrears, informing them of tho City
| Chamberlain $ order and directing them
! to obey IT,
Comptroller Prendergast has not de-
sired To enter into controversy with
the City Chamberlain regarding the re-
| sponfi bility for placing city money. but
Mr. i'rendergast has insisted that the
City Chamberlain alone had tho authority.
| subject. of course. TO the city banking
| commission, which consists OF Mayor
Gaynor, Mr. Hyde and Mr. Prendergast.
Mr. Prcndergast did. as he says. what he
could To prevent the city losing money
in the Carnegie Trust Company, hut he
was not able by appeals 10 the Mayor
and otherwise to cut down the citys
deposits in the Carnegie 90 the amount
! he wished.
The publication Yesterday Of Clark
Williams letter To Andrew Carnegie, the
letter which was handed 70 Mr. Carnegie
by William }. Cummins aroused much
interest among bankers. Mr.. Williams
was asked if he had any statement to
make concerning his reasons for so en-
Enthusiastically sending Cummins to Mr..
| Carnegie, NJ, Williams said he didn't
think the time had come for him To talk.
Friends of his said, however, that the
letter as published accurately reflected
the feeling of Mr. Williams at the timS
and that Mr.. Williams when he wrote the
letter had every reason 20 believe that
William j, Cummins was not only very
able but q thoroughly honest man worthy
of recommendation to anybody. They
said too that Mr., Williams wrots the
letter on December -, 1909 not on Janu-
AIRY H., 1910.
Another who wrote a letter on behalf
OF Mr.. Cummns Jordan j. Rollins OF
Rollins 4 Rollins-saw fit a month after
he had done 80 to warn Cummins that
he could no longer act as his counsel II
was on March 10, 1910, that Jordan J.
Rollins wrote TO City Chamberlain Hyde
lauding Cummns as IAN exceptional
man and destined il his life be spared TO
add very greatly TO his accomplishment
of substantial things and to make OF the
iinancial institutions which he has UNDER
taken to build up the strong and copser-
va,ive power which he predicts for them"
Immediately following this letter Cummins
got for the Carnegie Trust Company the
first deposits OF city money it had ever
been able to obtain-S25 900. That was
on March "a Two days later it got an
other $3.50 900, and very shortly after
ward the City Chamberlain had placed
with the Carnegie more than 81, 800. 900.
But month later Jordan j. Rollins
wrote in different strain, In letter 70
Banking Superintendent o. H. Cheney
dated April 10. 1910. Mr. Rollins said
that he had devoted nearly half his time
since March or April. 1900. to the effort
OF cleaning up the unwarranted oondi-
ton that then existed In the CarneRis