New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-29
NOT GUILTY, J. B.
RE|CHMANN PLEADS
Made False Statement on $751;
600 Carnegie Trust Borrowed,
Indictment Says.
HYDE ISSUES STATEMENT
Savoy Trust Witness, Regarding
Whom Whitman Was Mute,
stirs City Chamberlain
TO Give Out Letter.


.oc,ate Of William J. CumminS in the
MANAGEMENT Of the Carnegie Trust COM
panv and for time its president
s,enped I'D before Justice Davis in the
Criminal Branch 81 the Supreme Court
yesterday afternoon and pleaded not
guilty 70 an Indictment \ week ago.
slnost 10 the minute. Cummins had gone
through the same motions in the same
rlace accompanied by the same counsel,
stephen Baldwin. And in both IN
stances the indictment proceedings inter
-jpted the trial Of the Hare case.
But while Cummins was charged with
grand larceny and his counse' did not
ohioct 20 furnishing $50 oco bail Reich
mann was accused only Of misdemeanor
md furnished $4,000 hail under protest
That's an unprecedented amount for
r,,sdemeanor." contended NJ. Baldwin.
TT seems large" agreed District At
,orney Whitman. but ! expect that
o-re~ indictments will be returned
,eairst the defendant
,ir BALDWIN SAID he he'd no objection
toe amount IL " was 70 apply 70 other
indictments as we'll. When. however
Iystjce Davis said the court could enter
,rt, no such agreement he acauiesced
unconditiorslly
Violstio of Law CHARGED.
Tive Indictment against Joseph y
peic-r,ann was based on an alleged vio-
,s-'or # Section 665. Subdivision !, or
IL sy,c- n
duct ~ officers ~ corporations
The indictu1en. charged that Joseph q
p.ichuann knowingly concurred In max
,nc and publishing statement OF 'ne
eHairs and pacuniarv condition or tus
carnegie Trust Company containing ma
,e~ior --a,ements which were false on
c,rterober : 1910 The principal raise
Ter, charged was that on August 81
., tho close of business the Carnegie
T~us, COMPANY had 10 liability for DOT
-or.e1 r,onAv. when IN fact II was liable
m demand note 10 the Northern BANK
fo~ $4,000 secured by certain col
lateral
--bis srr, .he carnegie Trust Company
I'D borrowed from the Northern BANK
n August 23. giving it's demand note
-i4ne6 by Reichmann IS president ana
delivering as security for the note TWO
.,,es of .1oseph :. Marcus asgregat'ne
:o,2 oon together with the coiia'eral
..,,;.b the Carnegie Trust Company heIn
., eac,uit, for the Marcus notes.
The loan was authorized by resoiu
ian -assed AZ meeting OF the eNe'u-
nc committee of the Carnes'
,-ororarv. On August %.
Concealed $4,000 Itsn'
When the time came for Verl''''s wv
-,ar,arlv report Of the trust c"iHPa"|
..o,,.irq i,s condition at the close oi
,..ei,oss August 81 II became evident
,ta. The results 70 the trust company
- o,-'d ne serious II this H'3"'A" i'e"'
tl~ borrowed money showed IN me re-
~o~t
Z. -.as therefore, arranged between
80 Northern Bank and the 'arnNeae
-r~vst COMPANY that the form or the
transaction should he changed ana that
.r- demand notes should he surrendeded
and the Northern t:ank should receive
IN 'r1 fUFTF0I q IiHi ti' iii'A''' ~
cvt.nt ~ $4,000 in the Marcus loan.
which had been made by tho CarnSgic
Trust COMPANY The Northern Bank
continued fo hold all the Colateral-a
most unusual circumstance # the trans
action was in reality participation.
The form Of the transaction having been
changed. Mr.. Reichmaun then signed the
.D E,-r.ripf4nHanT M Ranks
which was drawn Up rs though the
transaction o. Angus, - had originally
heeu participation instead OF a de-
mand note.
This vipcd off the $4,000 debit item.
In order 10 preclude, so far as possible.
the discovery o. the false item the min
utes Of the meeting of the executive
committee Of the Carnegie Trust Com
pany on August - ware altered. and
the participation agreement. wh'ch was
actually executed on September : was
dated back. according 20 the Indictment.
aeichrann Gives Pedigree.
The strain Of the last three days since
bis return from Dayton. Ohio. had told
on the young inanufactUrer as he would
rather be called The color in his cheeks
and the quiet assurance of his manner
had fed together. and their loss was ac-
centuated 10y the hesitancy e his steps
due 10 two strok' OF paralysis several
years ago. He smoked a good many
cigarettes while waiting for the prepara-
tion Of his bond In the District At
torney's office. After saying he was
ttirty-six years old. born in this country
anj lived Al No. 800 West 18th street. he
wss asked what his business Was
Manufacturer was the laconic re-
ply.
Aren't you q banker qu,ried the
clerk. in surprise.
No.' he said positively: Tin manu-.
fscturer. not q banker
Irss friends know that he wishes ne
could forget he had ever tried TO be
banker Six years ago he was drawing
yearly salary ~ $4,000 as general
manager OF number ot STANDARD oil
subsidiaries. after having started his
business az o newsboy on the streets Of
Chicago AT the age Of i've; ne was prom
inenty connected with the sales depart
ment of the Corn Products Refining
Company. Of which bis warm friend. T.
7 BEDFORD j. president. The late Henry
- Roscts tvs- among Iis influential