The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1911-01-12
BIG BANK CLOSED
BY DIRECTION OF
STATE AUTHORITY
State Superintendent of Banks
Merely Says That It Is In
"Unsound Condition."
and Locks It.

| OuGIlGV. lie SuSDGISSOu udl lily
a,ua. ~ - a. f~nono;o1
o"uscu Z" !APPAc III liz ~
ulstIlcG, WHeIe TIE u
was often reported In a shaky
condition
c
superintendent LII dill
official statement. said an exam
;,,+;o, - +lo +,,, o,rn,,u bod
AHdeAoH VI the u ust ooliiP"ny u"u
caused him Ito conclude that IL
1.,oc IN On ,n,o,r,d condition to
""s "
transact business and ChaJ IL Is mol
cot q for Il n o~o,+;,yon
sale ioi ~ W oo1i'liree'
Stabe banking OlIlceTS now dTe
| examining the commands books.
what President Howell says.
President Howell, of the company,
made the following statement later this
afternoon:
This deplorable crisis was most un-
expected. 1t is the result of sudden
ana heaNy wllhdfa"ais occasloheu py
the u1lsettled prought
ABOUT by the recent bank failure. me
mans OF the larhegle trust company
was uh~WaFrahtedly connecten Win Ger
yam interests involved IN that failure.
Distrust was created without any Ioan-
aatlon IN TACT. The cash ~sourc mn
I~leuiately aVallaple We're lnsu11lcaeht TO
meet the heavy demands.
There is no reasonable doubt that
depositors Will be paid in full
History of the Concern.
The organization of tho C,rneg-e
Trust comnanV in 1sa7 Nv the late
Charles Dickinson brings ont some IN
teresting modern hnancial history. Mr..
Dickinson Interested a number of
prominent financiers in the
and Leslie NJ. Shaw, former secretary
OF the reasury, who had a large bank
following in the west. was made presl-
uent. Through Mr.. Shaw's connection
the business of the company became
iarge.
The name of Andrew Carnegie was
used by the organizers in order to lend
strength to the undertaking, but Mr..
carnegie shortly after the formation Of
the repudiated the use of his
name. Mr.. Dickinson, the organizer,
became vice president Of the company.
and Mr.. Dickinson became president.
Troubles Soon Beain.
Troubles Of the deyeloped
when Mr.. Dickinson attemnted to form
a chain Of banks with the Carnegie
Trust as a parent INSTITUTION Contro1
of the Van Norden Trust the
Nineteenth Ward bank and Twelfth
WARD bank was s anu a syndi-
Sa.e nau gained control or the Van
Noiuen n was heavlly pur-
t ha securl1les OF other banks When
sne state panKlng department put a
stoP 70 the pan.
during the Dickinson regime the
I e trust became involved with
me Fioellty which
.a.eo. causlng many Catholic 1nsti-
.ulioLs the country consld-
efaote loss.
Dickinson Forced Out.
Mr.. Dickinson resigned and Joseph
B. Reichmann temporarily took the
presidency in order to affect some re-
forms and eliminate certain paper held
by the institution. Mr.. Retchmann re-
tired several months ago and J.. T,
Howell. formerly president of the
Fourth National bank, of Nashville,
Tenn. became president.
The city Of New York had on de-
post with the Carnegie Trust company
at tne close OF business Yesterday $780,
wy: MOI long after Mr.. Dickinson had
.elileu he dieu IN a hosp1tal here and
~ was SAID that the cause Of his
oeaen was the inhalation of poison
gus gas IN me laboratory Of a chem
Isl IN cranton
lne Carnegle couples handsome
qaarsers on In the heart Of
the nnanclal district.
Causes Much Excitement.
News Of the suspension spread rapid
ly and hundreds Of depositors had as
sembled about the doors even before
the usual hour of opening. The fol-
lowing notice was pinned on the
doors:
Pursuant to the provisions or SEQ
ton 10 of h banking laws of the
| state of New York. I have this dav tall
en- possession of the Carnegie Trust
company.
20. Il. Cheney.
superintendent of Banking"
This notice was posted shortly be-
| lure ~ U ClOCk.Alne SIA1eH Ot1ntQl1 had
made their plans earlier in the day md
1t was evident their action had been
anticipated as a throng had ALREADY
begun to gather. The doors of he in,
stitution remained closed and no in
formation concerning the conditions Of
affairs was given out BY the bank Of
fcials or state authorities.
Cheney Has / ;ttIa "a s,v
Tho foI,o,ying s+a+an,a
nv snnerintanden os 3 Vas issued
re,atiya to the nJosins as Cneney
~ ene trust
..Tha nner,ntanaan+ -
taken nossession of tha nro ua,ks mas
business If the Garnas;a pt ~ ana
VIZ SoA hS6lS 4IQSI COM