New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
Never Reoorted Insolvent.

ance
Never Reoorted lrsolvent.
He then went on 70 say that the Bank
ing Department had been unjustly criti-
cised for it's failure To close the trust
company before January :. 1911. that
conditions did not Justify such action
prior to that date. and that contrary 10
all statements made heretofore the trust
company was never reported insolvent.
He added. however. that when he be-
came Superintendent OF Banks the Car
negie Trust Company was a distinct
source Of anxiety. due to two elements
OF weakness. 1T had too great a pro-
portion OF slow assets; its management
did not command confidence
He paid distinct compliment to the
administration OF Mr. Williams. who, he
said. demanded that the four fertilizer"
| loans by which c. c. Dickinson, then
president of the Carnegie Trust Com
pany. had been enabled to buy control
Of the Van Norden Trust and the
Twelfth and the Nineteenth Ward
banks. be paid. Mr.. Williams received
prompt assurance that this would be
done. and ar this tuncture Mr.. Cheney
succeeded him.
The new Superintendent Immediately
brought great pressure TO bear toward
the redemption OF these loans. and not
only did Cummins get a loan OF 80, 1O4, =
600 from Andrew Carnegie for the pur
pose. but Dickinson's resignation was
obtained" and Joseph p Reichmsnn was
installed as president
The condition Of the Carnegie Trust
Company" said Mr.. Cheney. was great
" improved. and y was believed that
the management had been bettered"
But before this Mr. Cheney had de
manded that the trust company furnish
him with daily reports showing the
amount Of cash in its vaults. the amount
due it from banks and trust companies,
the aggregate amount deposited during
the day. the aggregate amount with
drawn during the day. the total amount
of its deposits ar the close OF business,
the amount OF loans made during the
day. the amount of loans paid during
the day. the amount Of loans renewed
during the day. the amount Of loans So
cured by stock exchange collateral aud
other details He did not suffer these
reports to he discontinued until October
10. 1910. almost year later. when Jo-
o. ~
company.
The Election Of Mr.. Howell.
In view of the testimony of both Mr..
Carnegie and r A Franks, Mr.. Carne-
gie's confidential man. one Of the most
interesting parts If Mr. Cheney's letter
is that dealing with the events which
led up 70 the selection OF Mr.. Howell as
president Of the company. He wrote
In analyzing the general conditions which
prevailed in April, 1910 II is important TO
recall that on the 5th Of that month | had
closed the Union Bank Of Brooklyn. and on
the 1th the Borough Bank. Of Brooklyn.
Rumors were insistent and the public mind
IN state Of unrest a. 10 the general bank
should be necessary 10 take possession or
the Carnegie Trust Company the public
might become dangerously excited, causing
AZ immediate run on other institutions.
on the 18th OF that month | had gone 10
the home Of Mr.. Andrew Carnegie and dis
closed 10 him the situation in the trust COM
panv and told him that. while Improvement
had been made m lis condition very largely
through his assistance, ! no longer felt
any confidence in the management OF the
company. Nj Carnegie evinced much con
Germ. stated that the depOsitors must be
protected that their money must be- saved
ard said that ha WOUlG md Z
70 take control OF the company as its pres
dent in order that the company might be
como a credtabe and conservative inan
cia institution. and would devote 70 that
purpose his entire time before sailing for
Europe On Nav
He said further that hts financial secre-
tsrv. Mr. r. 4 Franks then present. would
be IN New York throughout the summer
and would devote such time as might be
necessary 70 the affairs OF the COMPANY
on Nav o 1910 a the request OF Mr.
Franks a meeting was held az which Mr.
Franks Mr. Willard \ Mitchell (AIr Car
negie's attorney Mr. Condor. Mr. cum
Minis Mr. Rollins and myself were present
| laid before Mr. Franks and Mr. Mitchell
in the frankest manner possible the weak
spots Of the Trust COMPANY and the things
in the management which l regarded as
Objectionable
Mr. Franks stated that Mr. Carnegie on
the DAY he sailed for Europe shortly be
fore. had delivered 70 him a paper on
which there appeared the name OF Mr.
Joseph T Howell, who. he suggested
would be the man 70 become the president
Of the Trust Company Thereafter Mr.
Franks and Mr. Mitchell had frequent com
rnunica-ions and conferences with the
Banking Department. expressing them
selves as DESTROYS Of assisting in the re
Mobilization of the COMPANY and stating
thai thew would devote tkeir time and at
tention 10 the accomplishment OF that re-
suit