Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1911-01-11
HAD DEPOSITS
OF 100000
Carnegie Trust Company Is
Forced to Close Its Doors
IS HIT BY ROBIN SCANDAL

Funds of Bankruptcy Court and State
and City Funds tied Up-Uncertain
Status of Institution Well Known In
Financial Circles-Many Changes In
Management Since Its Organization
Much Money withdrawn Recently
New York, Jan. "a third bank
across which the shadow of Joseph G.
Robin, the indicted promoter, had
fallen has closed its doors and the
state Superintendent Of banks is in
possession of the Carnegie Trust com
pany, an institution with wide south
ern and western Affiliations, with de
posts of nearly 50 900 GOO.
United States bankruptcy moneys
state and city funds are all tied up,
bonded in varying degrees Of suffi
cheney. The company was named the
official depository of federal receivers
and trustees Of Bankruptcy appointed
by the United States district court. on
application of Leslie Nj. Shaw. who
for period became president of the
company following his resignation
from the treasury department.
bond Of $25 000 was put up, but
there are now on deposit $3.50 ,OO0 of
moneys involved in compositions and
settlements, all of which will be in
definitely delayed The city. which
at one time had 81 600 0J0 on de-
post, still has $3.50 600. secured by
the individual bonds of the directors
The state has 500 600 on deposit
amply secured by 500 600 bonds.
The future of the dep0sitors and
stockholders will not be known until
the state superintendent makes pub
lie the report Of his findings, but Will
liam A. Keener, one of the directors
and formerly Of the firm Of Keener &
Lewis, counsel for the company, said:
Bank on what President Howell says
the company will pay dollar for dol
lar"
In 1909, when the Carnegie Trust
company was under the presidency Of
the late G.. c. Dickinson, who dice
mysteriOusly in an alchemist's IabOra
tory last May, an effort was made tC
consolidate the Carnegie Trust com
pany, the Nineteenth Ward bank. the
Twelfth Ward bank and the Van Nor
den Trust company under the man
agement and name Of Carnegie. But
the state banking department for
bade the merger under a ruling that i
would be impossible for a trust com
pany to consolidate with state banks.
The closing Of the Carnegie Trus
company was no surprise in financial
circles. On the street the uncertain
status Of the company had been 6
matter Of common knowledge. In its
brief career-it was organized in 1897
it had already passed through one
serious period Of depression and hat
known four presidents.
So many changes in management
had not strengthened the bank ir
public favor. II is evident from it:
report to the state superintendent,
Nov. 10, that its business had greatly
declined during recent months. Then
the shadow Of Robin fell across its
doors.
Dickinson and Robin had beer
friends and allies. Robin was on the
first directorate but resigned. Wher
the Northern bank was closed, and
superintendent Hotchkiss of the state
department of insurance made public
his investigation into it's affairs. 6
draft drawn by Robin on the Carnegie
with which he had no account, cropped
up. From that time there began :
steady but continuous withdrawal o.
funds by depositors who had lost con.
fidence. 1t could scarcely be called ;
run on the bank, but in it's culmina
ton it proved quite as effective
The Carnegie Trust company occu
pied expensive banking quarters OF
the ground floor of lis Broadway
which extended from Broadway t.
Trinity place. An enormous renta
was paid.
The officers of the Carnegie Trus
company are: President, J T. How
ell; vice presidents, r. l.. Smith an
J. r. Curran; secretary, R. E. More
head; assistant treasurer, w. L
Sampson; assistant secretary, A. E
Chandler. The directors of the CON
pany are: D. H. A. Bates, w.
Cummins, A. B. Chandler, M.
Condor, G. w. Court, G. D. CrabbS
John Cudahy, w. A. Keener, S. T
Kress, l.. l.. Lewis, E. F. O'Neil
j. B. Reichmann, C. M. Schwab, {
e. Smith and j. B. Stanchfield.