New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-24

Odd you In 1910. or at any other time
! select a compartment in the premises oc-
cupied by the Carnegie Safe Deposit COM
/ pany for your own use? -,
/ OF the Carnegie Trust Company uon I
| know even where II was. cid not hlVN
| there was any sucn company TINS II the
O'-What was the total amount of the
bonds that you lent to the Carnegie Trust
| Company?
I exactly 5000 600: my secretary-he tells me
I that / authorized 100000, but he would
not give so much. and that he gave upon
| the collateral that they gave him S,929 oO.
! Q.-Do YOU recall Mr.. Schwab coming 10
see you when this loan was wanted for
| the benefit OF the trust company, he and
some other gentlemen. in July. 1907?
| Ayes, he came.
pany. named the Carnegie Trust Company;
was in need OF funds and asked YOU 10 lend
them 100000 in Steel bonds?
o-And YOU authorized your secretary
TO make them a loan OF $3.50" in Steel
/ bonds?
to my secretary ample security and per
sonal Endorsements. The loan was nor
made 70 the trust COMPANY II was mace
Q.-Thev told YOU that the loan was lot
/ the benefit Of the trust company?
A-Certainly.
! 0.-Mr Carnegie. it is a fact is it not,
that in January l9lo you mace b he SfSf'e II
/ the trust company OF 100000 or steer
1 bonds isn't that a fact2
A-Yes The first bonds having all been
returned. according 10 the agreement OF me
trust company. a second application was
made. but I do not remember
Mr.. Carnegie was pressed for an answer
81 was induced TO loan the same amount
I second time" he replied
Q.-The first loan had been repaid almost
two years before YOU made the secohd
loan?
Q-Now. this loan OF S2"ogce-you hrst
/ loaned them 60 o1or1 or Steel bonds on or
about December p. 1870. Is that correct
iOA-Yes sir that is what / du'horlZeu
my financial secretary 70 90 nab.
I later in January. 1910, you loaned mem on
/ these Steel bonds which you had previously
/ loaned them s2lo0o"I in money ana some
additional funds?
1 Q.-That debt has not been repaid to date
/ has ito ~, 49, .bo.
/ II has not been. have never seen any OF
/ the bonds 7 loaned.
/ Mr. Carnegie said William J. Cummins
called upon him about the loan. but
whether he arranged the loan with him or
with another director Of the company he
/ said. II refer you 70 my financial secre-
| tarv do not remember the men who
came 70 see me I could not give you their
names IN not know when the meeting
| took place. 7 was busy man with other
] matters. and We would sit and talk a r."
minutes and they would go away. ] must
refer Won TO my secretary for details.
Guessed" Mr. Cunnn1ins Called.
| M Carnegie guessed" that Mr. cum
Minis came 10 see him four CT FIVE times
/ as he described He could not recall that
| Nj Cummins called az his home on his m
| vitation on or about April .. 1910 II ala
not refresh NJ Carnegie memory % have
/ # recalled that on the same date clark
! Williams. state Controller. asked his per
mission TO call. and then went to his home
with orion H. Cheney state Superinten-
dent Of banking The witness could not
remember Mr.. Cheney. Nor could he re-
member that Mr. Williams. who had recon
r7ended Mr.. Cummins. had told him that
/ from what he had learned later about the
/ MANAGEMENT OF the trust company II was
/ unsatisfactory.
/ Another question that Mr.. Carnegie colIo
NOT answer with any certainty was: do
Won recall ar that time stating that you
were distressed 10 learn that the manage
ment was not what it ought to ne ana
that depositors ought 10 be protected ana
their money made safe?'
O.-And do YOU recall that you said t lt
YOU would endeavor 10 ma a man pN"'i''VN
90 wow You are on ground that know
| about ] remember all ABOUT IL "a
. Cuwmius was not a trained bdIhet' O. ~
none realized II better than himsei lhd( ne
could not expect to run a odhh III ,-, -
/ York successfully. He told me mat la n
] Williams was 10 accept the pIeslutit.C- e.
/ that impressed me very IaNoraoiI W
+ Cummins. as / have SAID, was h"t u a -.i,
4 banker and ne made the best selection
that / know Of in Clark Nllhams wa,
O-Now do YOU recall tnat Mr.. III
+ Jams when he was here on TINS occasion,
,oi5 vol, rbat under no circumstances Would
he accept the presidency OF the 'arneslc
Trust COMPANY. but that the company
needed some good man as pieSlaen. do
A-No sir. ] do not recall mat. l. 40
not recall ever having mentioned 10 Clai n
! Williams that ] knew he was 20 oe pre''-
dent 49, ,....u,.,.r, ea,.-
/ ine that YOU would find q proper man 10
/ take control of the company as us piesl-
/ dent? ...,. .,,a.
I Nlr Cummins said 20 me that ne wanted 70
/ oct a man ~ for the presidency. ana that
I IL could not find man m Ee" oIh'
/ that Nj Cheney had ADVISED MN tIal d
. %aW York man was almost essential Ut
v,bicb agreed with Nj Cheney do not
wish 10 imply from that that Nj Shehe!
/ was there hun probably was. 40 HOt
remember him. but Mr. Cummlns then
said Il have man IN the IouS il., ma ~ !
. know is an excellent trained banker ana
/ have proposed TO lir. Cheney tnat ne
should come up and Mr.. Cheney onlects,
and he said. well Nlr. Carnegie, can YOU
6eiip me to get New York man ana .
said. We'll Nj Cummins, J VIII see what
can do for you' and / sent FOR my
friend Mr. Frissen OF the Fifth Avenue
rank. and ] told him the situation.
IL said MI Carnegie. ! Will tell you
,ta+ I shall inv hard" and after several
dave he came back and said 20 me. II IS
ir7noseihle ] have tried % get several OF
the Youngest that l Thought would answer
fur they an decline : then advised MT
/ Currins that since he could not get a
/ ~ Vo~k man IL was better 10 get some
one that was a trained banker. Mr. cum
minis told me after that ne mad lnducea
] AIr. Cheney to accept h!m-this man IN tie
, So,.+h-or agreed 81 him. and that NJ
lad sent for him. Now that mans name
vas Howell ] had never heard OF MI.
Howell b4fOre-ueVtr knew he was lVlnS
and never saw him before Mr. Cummlns
brought Mr. Howell here
Do YOU RENE mher giving m your sec
retarv before YOU sailed for EUROPE on or
/ ebout MAY g. 1910 writing letter on an
envelope. in which YOU stated DID substance
nat Won though, that Howell ought % be
/ given a trial as president or tnat ne shouln
r. given an opportunity .....,..
A-Yes. and that was az the suggestion
OF Mr. CummIns.
O DO YOU recall what YOU wrote on that
cnvelonee J think Howell should be tried
because he is the only one available; he
knows banking" signed "A. CO?
Mr. Carnegie answered afflrmatively
Mr.. Carnegie did not remember asking
any of his friends about Mr.. Howell The