New-York tribune., 1911-03-13
R[ADY TO PROBE
! CARNEGIE TRUST.
l.,sraI indictments Expected
irom Grand Jury Inquiry
to Begin To-day.
krILL OUT FOR EVIDENCE
70 Trace Connection Be-
:ween City Deposits and
Cummins Syndicate
Loans.

Grand Jury investigation ot me
Trust Company will begin this
fs.rnoon on the return Of District A.
49, whitman from Lakewood MI
F., will take charge of the IN
a.a.ion personally and will be helped
'SA, sss;stant District Attorney Clark
J. has bad charge Of the examination
u, If the men who will he called
witnesses
...,sa of the great amount OF evil
"a be presented, II is expected
., viu be at least week before
,,aic,ment Is returned. The Dis
,,,o~nev.s Office considers il as
.,,d sact that at least two Of the d.
49,. of the Carnegie company Will he
.,.,sd while the indictment of third
expected.
oS,ls the grand Jury is considering the
:. ,i,h a view 10 finding indictments
/. [.irves,sations by the District Attor-
,vs oHce will be continued TO get more
...asd evidence for use in the trials of
Ten members of the staff are
!, securing the country. tracing the
..-.s Of the drafts told of in The Trih-
r.s,srdav that We're used 10 SUP
| :. me inpecunious companies of the
-,,,,s syndicate. In some cases 1t
Assn found that the drafts went
II V,sh the regular banking course
81 a., tho money had been raised by the
r,sniss 10 replace the amount ad-
.,.,s bv the Carnegie company. Inc
ro,sy would be sent TO the man on
,.n ,bs draft was made and then the
,,n would he sent on for collection.
:, r,ny Instances. however. it is be-
,r.. that II Kill he possible 10 prove
=, TIE drafts never left the Offices OF
!. Carnegie Trust Company. The
.,,sr would be advanced on the face
,lus of the draft. and the draft itself
Eovli remain in an envelope on the desk
member Of the executive commit
y ~ the trust company for several
E,rs and sometimes for two or three
k,s,s until the money could = -ised
nee, the "forbearance loan II was
n.r The case that the envelope would
o,,ain half a dozen or more Of these
-sfts. and they would be taken out ana
ss,-oyed as the money was repaid. with
record Of the transaction ever ap-
sring on the books Of II company.
s,y. cIrrirs Was High Handed.
4 former director Of the company sad
|wsriav thai he had resigned from the
|xrd because Of the high handed man
" Of William J. Cummins. az chair
F,r Of the executive committee. III
l-yire on tho business Of the com
ay This man was a member OF the
ari during the last days Of the Charles
| Dickinson regime and the first months
The management Of Cummins.
He said that the meetings Of the board
directors were held i'm % room in the
&s3nent adjoining the offices OF the
[aneeio Safe Deposit Company and that
umins would como in with a state
mt that purportcd TO be an account Of
7 Transactions and loans of the COM
~ since the last meeting Of the board
\ directors This statement would be
q on tho table and the directors would
asked 10 sign /, without receiving any
krarcfiOD of what IL WAS
| Kheu some one wanted few details
umns would say that the statement
Hisined g full account of everything
lt had been done. II further exphna-
y that the books of the company and
lsl ~ the loans could be had by ap-
lng to the secretary.
The director said that he tried several
nes after meetings Of the board OF
'eeiors % get statement from the
Nitlary, and every time the secretary
as either out and did not come back
E'pt the inquirer waiting on one PRE-
or another until he gave up in
tsIair and went away. The former
'seIor said that conditions finally be-
lne so bad that he resigned i'll self
election.
AZ the same time that MIR. Whit
ans men are tracing the drafts
~ ior the benefit of the Cum
WIS syndicate companies. another
." is busy running down the
NAno'ders IN the same companies. and
p7'Aiy the stockholders in the Platt
7" works Company. 1t is known that
'"' 0! these stockholders are dunn
ana that while the stock stands in
. names it is held for other persons,
- II Is hoped 10 trace in this way the
,"'cuon between the syndicate and a
sh city Official
I'y Deposits and Loans.
"s Huetuations Of the deposits Of city
'a'y IN various banks and trust com
ana the changes in the loans by
'"'e Institutions 10 the Cummins
-''"'e suggest close connection be
u'e two, but great difficulty has
'o1hd IL tracing the relationship.
~s reason District Attorney Whit
great pains TO find all the
Oueis IN Cummins syndicate en-
and cross examine them and
A.. "'ie stock may have been placed
,, "ouid account for city favors.
eeh banking institutions in this
y, 1s loans TO the Cummins syndi-
sno the officials Of many Of theni
zen examined by Mr.. Whitman
s'an, District Attorney Clark
b. mort TO discover the documents
h.. " exist TO prove connection be
rs.. ''dhs and city deposits. II Is
~. '''a That II least three banks had
promises OF deposits Of city
"om persons who were believed
b.. soe 10 influence such action. If
,n~.1s.