The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-05-02


Put one bv one people who had taken
part in IL came forward and fixed the
time. that is, all but Hyde. He was not
asked to appear
Then the question came up, what did
Hyde say to Robin AT that conference
The next day Robin called meeting
Of the executive committee Of the North
ern Bank He placed before them an
account Of what took place the night
before in Chamberlain Hyde'e Wall street
office. The situation was critical. he
said with much emphasis. And then he
told them that Hyde was forcing him to
lend money to the Carnegie crowd II
was a case OF obey Hyde or lose what
city deposits the Northern had On the
other hand Robin had every reason to
believe that II the committee voted the
loan the city deposits would be largely
increased. perhaps doubled. II was a
hard situation for the committee. but
they knuckled under and voted the si30 ono.
concealing the nature Of the transaction
somewhat. by calling it bond purchase
participation.
Was Robin telling a fairy tale to his
drectcrs' Did he romance later 10 others
dbVuJ tIt PIOScVulHke vi tiC .~Vl thCi "
executive committee? Was he telling the
truth when he ssid he told the directors
that Hyde had threatened him7 II took
time to develop these leads Two Of tho
Northern directors came out point blank
and verified Robins account Of what he
had said to tho executive committee.
These directors admitted that the loan
wse made from fear Of punishment and
hope Of reward.
II was necessary to learn after these
matters had been established whether
the Northern Bank got increased city de-
posite after assisting the needy Mr.. Cum
mins. II did. Tho city each came slowly.
but when II began to come the amount
Was satisfactory TO Robin and the direc-
tore After the Northern had COM
planned to Cummine that Hyde was not
making good the money began to pour
in Where the bank had s2os,5Si on
August q, 1910. ..it had $4,000 on October
a. Sometimes the amount was over
100000
The query arose. as to who ordered the
city cash into the Northern. Was II put
there by the direction of the Comptroller
or by order Of the Chamberlain? The
Comptroller stated publicly that he had
nothing to do with IL. Then il was learned
from Chamberlain Hyde's Office that early
in September last he directed his depart
ment TO increase the deposits in the
Northern. The next information ontained
was that about the first Of December last
Chamberlain Hyde sent his private sec-
retary, John Vincent Smith. on this
errand:
pany or TO any OF the other banks we have
been doing business with and get me
como money"
John Vincent Smith on demand notes.
one for $4,000 and one for $4,000. with
no collateral but Hyde's guarantee. OBJ
tanned $4,000 from the Carnegie. He
didn't take it in cash but in the form Of
Smith to the Northern Bank and deposited
the checks to his private account. Very
shortly after the deposit had been made
a few hours will stretch over the whole
proceeding-Smith drew four checks on
the Northern. checks aggregating Ns.soo;
two payable to the order Of Charles H.
Hyde. The checks payable to cash
were cashed at the Northern Bank by
Hyde. Smiths Endorsement is on them
and HYDE name ia written under Smith q
The ckecks drawn by Smith TO the order
of Charles II. Hyde ware drawn on the
Northern. as were the others. hut the
Northern in payment issued cashier q
checks. which Hyde put to his credit in
two other banks.
The original Smith checks were turned
up by an employee OF the Banking De-
partnlent. For some reason. possibly
because the Northern collapsed on Decem-
her 81. Mr.. Smith did not get back the
cancelled checks. These vouchers were
believed to be Of some Importance and
came naturally into the hands Of the
authorities.
The only repayment that is on record
by the Bank Department az having been
made TO the Carnegie Trust Company ia
$4,000 which Smith handed in some week
after the trust company closed. 1t /
assumed that the other $40 900 was repaid
because it has not appeared among the
assets Of the Carnegie as listed by Re
ceiver Egbert.
Subsequent. however. to the Smitl
notes, Charles S. Eaton. who had desh
room In Hvds's Wall street Office. Dor
Powed StO, 600 from the Carnegie Trus
Company on Hyde's Endorsement. Afte,
the Carnegie's fall Eaton or somebod!
paid up.
Still another'matter Of interest was tn
Norcroes notes. When the trust company
went out of business It held five note
drawn by Charles p. Norcross. WHOSE
resources weate not supposed 10 be un
limited. No collateral was put up. but tn
notes Vore guaranteed by Chamberlai
HYDE. On November 10. 1910. Eorcros
borrowed $40 900. On September 8 h
not $4,000 on November 80 $1,000; OF
$1,000. This total OF 1tA00O was repaid
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