The Washington times., 1911-01-07
CARNEGIE TRUST
COMPANY CLOSED
New York Institution, With
$S,9oo,ooo Deposits, Sus-
pends Business.
CONTINUED from First Page.r

ton of the company under the presi-
dency Of Dickinson, with Charles w.
chapman, curb broker, who acted
Tor ellborn. The present officers and
e directors were eXonerated.
About two years ago, II developed,
Wellborn conceived the idea of making
some money by organizing the Titus
Vile and Northern railroad. Among the
first steps he took was to issue 500, O,UUy
in per cent gold bonds in the name
In the spring of 1909 Wellborn was in
troduced to Chapman by c. NJ. Sexton.
who represented himself as Wellborn's
financial agent. Sexton painted a bril-
liant picture of the large amount of
money to be made out of Wellborn' S
scheme. The ultimate purpose, Sexton
and Wellborn claimed, was to connect
all the coal-carrying roads in Pennsyl-
vania into a single system, with the
Titusville and Northern as the main
artery.
Borrowing Begins.
Shortly after the launching of the pa
per railroad, Chapman began to bor-
row money from the Carnegie Trust
Company through President Dickinson,
until the amount grew to nearly $4,000.
Then he was compelled, Chapman de-
clares, to consolidate the various loans
into one note and TO back this note with
collateral of the face value of several
hundred dollars.
Reichmann, when he assumed control,
learned of these operations. He made
Chapman secure his loans with all the
collateral he could command, and whel
he failed to meet the note at maturity
brought suit against him.
Wellborn has been well known in New
York financial circles, and, in fact,
all over the country, for eighteen years.
He has admitted the he was in the
kings county penitentIary for eighteen
months, in 1905. for an attempt to
Ewindle a widow in Alabama, by mail.
Morgan's Aid Asked.
During the 1907 panic, the Carnegie
Trust Company, with other institutions,
was called upon to pay heavy withdraw
ais. and the supply of cash was running
short. Shaw, who was then president,
favored closing the institution, but he
was opposed by the other officials and
the directors. It was finally determined
to send committee to visit ]. P. Nor
gan aud ask his assistance.
The desperate situation was explained
10 him and he consented to loan $1,000
600 in United States Steel bonds. This
enabled the trust company to weather
the storm, and the doors were kept
open throughout the panic.
OHdTlGS OOulleT lIle COII-
panys organizer, died in st. Luke's
Hospital last May under circumstances
which led to an extended investigation.
His relatives claimed that his death
was caused by injuries he sustained
when he fell off his horse in Central
park.
An accident insurance company in
which he had large policies, took up the
probe. 1t developed that some time be-
fore he had attended a chemical test
in Pennsylvania and If said that
he died from the effect of poisonous
fumes he inhaled there, while watching
experiments that he expected to result
in the transmutation of baser metals
into silver. -" -.
Ends His Connection.
Reichmann ended his connection with
the Carnegie Trust Company some
months ago. He was succeeded by J.
T. Howell, formerly president of the
Fourth National Bank of Nashville,
Tenn. and he is the present head Of
the institution.
Joseph G. Robin, the young bank
juggler, was at one time a director
Of the Carnegie Trust Company, but
his recent financial operations are be-
lieved to have had nothing to do with
the closing of the institution.
The city of New York had S650OO0 on
deposit in the Carnegie Trust Company.
The money was deposited by Chamber
lain Hyde, who is missing.
Last week there was 100000 to the
city's credit in the institution. Accord
ing to Deputy City Chamberlain Walsh,
the city is fully protected by bonds
OF the bank officials.
More than 81, O,OOO is involved in the
closing Of the trust company, the last
report Of the institution to the State
banking department, on November TO-
1910, showing total assets of $11.17O,6Oo.
The Carnegie Trust Company was a
depository of the New York Cotton Ex-
change, but it is said it had not re-
ceived a large percentage. of the busi-
ness of the exchange lately.