New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-03-12
Maintenance Loans Turn Out
IN Be Juggling Of Drafts to
Help Weak Allies.
ri ARK WILLIAMS MENTIONED
Former superintendent of Bank
ing Refuses to Discuss
Story of Deals with
Cummins.

.orstsrtIv I'm need OF money. Nnen one
.,.he.a companies was in need Of money. |
I, vas learned. it would make a draft |
.or,a firm or individual in a city some !
s,s,ance from New York and this draft |
,orl6 be placed with the Carnegie COM
r.7v for collection, and the amount Of
-. draft placed 10 the account Of the |
.ornanv making the draft.
The draft would pass through the |
..,ds NJ an officer " the trust company |
4, the routine course Of the banking |
trs,nsss and he would take II in and |
,ut II on the desk Of one Of the mem |
bsrs of The executive committee. where |
!, would remain until the needy COM
many got the money together TO meet /
,be draft. These transactions were char
scterized yesterday as "forbearance !
hans and II was said that neither the |
o,hsr members Of the executive commit |
zee The remaining members Of the board |
n directors nor the state Banking De-
r,rtment was Informed of them.
one of these drafts is said 10 have |
escsped the usual course by an over
sight and n have been sent 10 the man |
On whom il was drawn. He did not |
know why "a draft should be made on
hin, and returned it unpaid. Having |
gone through the regular banking course |
snd appearing on the books of the trust !
company. some disposition had to he /
made Of il and il was carried as a loan |
to the draveo 3. +. O'Neil. Of Idaho
This transaction appears as time I
losn for S551o0 s3 made on December |
Is 1910. 10 B r. O'Neil and due Decen;-
hsr %. 1910 II is guaranteed by Will |
lam !. Cummins. Martin ]. Condor. !
Joseph 3 Eeichmann and Charles A.
Moore. ir.
It was said yesterday that from $780,
Oto to S2Oo0Oo Of the money Of the Car
neEie Trust Company was kept in con-
slant use in this manner.
syndcate's Lawyer in Despair.
William Nelson Cromwell. who has !
tssn trying to straighten out the affairs !
Of the Cummins syndicate for the bene-
fl Of the creditors. threw UP his hands |
YESTERDAY. Mr.. Cromwell had made |
valiant efforts to bring the creditors to-
eetherfn an amicable agreement for the |
joint name cement of all the syndicate's
affairs and until a few days ago expected
{ successful end TO his work.
i was acknowledged yesterday how
eytr. that the disturbance raised by the |
letter Of Governor Dix TO Mr.. Whitman |
and the continued talk Of the indict- |
mert Of some Of those concerned in the |
failure or the Carnegie Trust Company |
had made it impossible 10 get up any |
kind of confidence in the syndicate. The |
natural course Of events would not be |
sought to be impoded, 1t was said, and
in a short time all the concerns would |
probably be declared bankrupt.
The Banking Department is suing
Cummins and Rcichmann for loan made
by the Northern Bank Of New York. |
This suit is brought by Rollins & Rollins
in tho name Of Louis Kalodkin. clerk
IN the employ Of the law firm. Judg
ment was obtained by default in the Su-
prcme Court Yesterday against Joseph |
B. Reichmanu and Martin J. Condor for
&S2.531 % i'm favor Of James 5. Watson
on four notes made on August %, 1910.
by Condor. Reichmann. Charles a.
Moore. ir and William j. Cummns to
the Hungarau-American Bank and
10 Watson
fr., /
Crocker, Lewis & Wickes, Of which firm
Lston /. Lewis. counsel for the Car
negie Trust Company, and member Of
the board Of directors and the executive
committee of the Carnegie company, is
q member explained yesterday the loan
of $4,000 secured by stock and bonds
IN Robin enterprises carried on the
books of the Carnegie company in Fer
suson's name under date Of December
%, two days after Robins bank had
failed The loan was originally made
by Robin ON three notes. dated in June,
July and August. 1910
Denies Ever Meeting Robin.
I never spoke to Robin in my life"
taid Ferguson. u never had business
Transaction with him in my life. About
thee days before the failure Of the Car
u'gie Trust Company l was going from
luncheon 20 the Office of Keener &; Lewis
and Mr. Lewis called ne into his Office
End said that he wanted me TO come
Gown 10 the cfice Of the Carnegie Trust
Company with him.
He took me 10 the presidents room
snd we found there Howell. the presi-
'tnt Reichmann and Cummins. Mr..
lewis stayed and they all talked 10 me
~ once. so that ] could not say which
one made the proposition 10 me. They
'ola me that there was a run on the
@nk and said that they wanted me to
.gn q note. They showed me the bank
hg law. and told me that the state
Banking Department knew about the
transaction and had said that it was all
light
did not know whether the note was
'or j. cents or 2 thousand dollars.
Vas absolutely in LeWis's power The
nm n Keener & Lewis was about 10
% dissolved and Mr. Lewis had prom
SEQ 10 take me over with him 10 his
lev firm They told me that the note
would be secured by notes and securl-
is Of Robin ] never got penny for
Ne Transaction
Ihey told me that there were two
'aSong Whv thev ,ranted me 10 sign the
"'e. One reason was that the run on
~ bank made il necessary 10 get