The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-07
Carnegie Institution i'm Hands
Of Bank Superintendent.
Capital 81, 500, 900 and Deposits
Of $1O,OOO,OOO.
HAD STORMY CAREER.
Leslie NJ. Shaw Was One of Ear.
ly Presidents.
Man Whose Name It Bears Not
a Stakeholder.

New York, Jan. THE Carnegie
Trust company was closed this morn
ing by direction of State Superin-
tendent of Banks Cheney. It has
capital of s1,500.0OO and deposits ag-
gregating about s1O,0O0,000.
The institution was in serious trou-
BILE in the panic Of 1907 and has never
fully recovered. Its late president,
Mr.. Dickinson, died last year under
peculiar circumstances.
The institution was organized in
1907 and after the retirement of
Leslie M. Shaw from the Office of sec
retary of the treasury he became its
president. The name Carnegie applied
to the institution attracted to it a
great deal Of attention but the adop-
ton of this name was without Gr.
Carnegie's authority or approval. 1t is
understood he was not stockholder
and not Immediately identified with it.
His connection with the bank ceased
after few months because of differ
ence with the other officers of the
institution. It is understood a year
| ago the institution was in more or less
trouble growing out of the fact that
one of its chief officers in connection
street had effected a very large loan
from the Carnegie Trust company to
| enable him to buy out and consolidate
| with it another institution. This fall
tion with large amount of funds
| locked up.
The Carnegie occupies handsome
| quarters on Broadway in the heart of
the financial district. News of the
| suspension spread rapidly and hun
dreds of depositors had assembled
about the doors even before the usual
hour of opening. The following no
tice was pinned on the doors:
Pursuant to the provisions Of sec
of IA r1x nj o
state Of New York. I have this day
taken possession of the Carnegie
Trust company.-O. H. Cheney. super
intendent of banking
This notice was posted shortly be-
fore 10 o'clock. The state officials had
made their plans earlier in the day
and it was evident their action had
heen anticipated as throng had al
ready begun to gather. The doors of
the institution remained closed and no
information concerning the condition
of affairs was given out by the bank
officials or state authorities.
Mr.. Cheney's Statement.
The following statement was issued
by Superintendent of Banks Cheney
relative to the closing of the Trust
company: THE superintendent of
banks has taken possession of the
property and business of the Carnegie
Trust company, located at 115 Broad
way, Borough of Manhattan.
company has caused the superinten-
dent to conclude that it is in an un-
sound condition to transact business
and that it is not safe for 1t to con-
tinue. The examination is not COM
plete and no further statement can
be made at the present time.'
The financial status of the Carnegie
Trust company, according to it's last
statement, that of November 10, is
Loans, $4,962,50O; stocks and bonds
investments. $2.334,600; due from
trust companies, banks and bankers.
$1,517,3OO; cash available, $1,05S, 900;
aggregate deposits, $8,895,700.
The company had a capital or
s1,500,000 and surplus and undivided
profits of s737,500. The officers of
the company are:
President, J. T. Howell; vice presi-
dents, Robert l.. Smith and James r.
Curran; secretary, Robert E. More
hold; assistant treasurer. W. L Samp
son; assistant secreary, A E. Chan
dlef.
The directors are David H. A Bates,
W. ]. Cummings. A B. Chandler, M.
J. Condor, G. W. Court, George D.
Crabbs, John Cudahy, w. A. Keener,
s. H. Kress, L L. Lewis, E. F. O'Neill.
J B. Reychmann, Charles NJ. Schwab,
G. c. Smith, J. B. Stanchfield and ].
r. Howell.
Though the notice of closing quick
ly brought a crowd of depositors and
others having business with the insti-
| tuition, it gradually melted away. The
suspension caused selling on the stock
exchange but the declines were not
large.
Important banking interests render
| ed support wherever necessary. Off
cials of the trust company were loath
| to discuss the failure and it was stated
that President Howell would not be
down today.
Mr.. Howell succeeded ]. B. Reich
mann as president some months ago.
He was formerly president of the
| Fourth National bank of Nashville,
Paul d. Cravath and Edward NJ.
Grout, former comptroller of this city,
had a brief conference this morning
with Superintendent Cheney. It is
believed they represent some special
| interests connected with the company.
History of the Concern.
| The organization of the Carnegie
Trust company in 1907 by the late
Charles C. Dickinson brings out some
| interesting modern financial history.
| Mr.. Dickinson interested a mum Der of
prominent financiers in the company
and Leslie NJ. Shaw, former secretary
| of the treasury, was made president.
! The name of Mr.. Caregie was used
by the organizers in order to lend
! strength to the undertaking, but Mr..
Carnegie repudiated the use of his
name. Mr.. Dickinson, the organizer,
became vice president of the COM
| pany. After about a year Mr.. Shaw
resigned and Mr. Dickinson became
president. Troubles of the company
developed when Mr.. Dickinson at
tempted to form a chain of banks
with the Carnegie trust as parent
institution. Control of the Van Nor
den Trust company. the Nineteenth
Ward bank and Twelfth Ward bank
was sought. A syndicate had gained
| control of the Van Norden company