The evening world., 1911-02-08
s6OO,0OO LOANED
DUMMIES" BY
CARNEGIE TRUST
Transaction Seems to Have Es-
capped State Examiners Until
Shaw Had Retired.
GUN BY
Cummins Syndicate on Notes
for 100000 Paid for 1900
Shares to Dickinson.
FOUND BY WHITMAN.

iUnds of the Carnegie Trust ~
In favor Of two alleged dummies" for
the late c. c. Dickinson Is the latest
discovery made from an examination o.
the books Of the failed Institution now
In the possession OF the Distriot-At-
,orney.
Tit alleged dummies are Edward
ID. w. Langley. a former member Of the
Connecticut Legislature. living at New
Canaan. Conn. whose son. Edward
Langley. was a runner In the bank.
and Frank ID. Hearn OF No. col West
One Hundred and Tenth street. an OF.
hcer OF the Carnegie Safe Deposit Com
pany. a separate corporation controlling
the valuabl double decked vaults under
the trust company.
My fathers loans were assumed by
William J. Cumndns ard his friends
when they bought the stock of the trus,
company standing In his name.' said
young Langley to ar Evening World re-
porter to-day at the Grand Union Hotel.
Did your father own the stock:
was asked.
NO. It was Mr.. Dickinson's." replied
the boy.
Hesrn Dlekinson's Old Communion.
Mr.. Hearn declined to discuss his
part In the AFFAIR beyond admitting
that he had bought and sold a large
block OF the trust company's stock. and
had had some loans IN the failed trust
company As vice-President OF the
Carnegie Safe Deposit Company, MIR.
Hsarn receives n salary Of $50 a week.
He came to New York with Mr.. Dlckin-
son years ago from q small place ND
State. while the elder Langley was con-
nected with a company in which Mr..
Dickinson was at one time interested.
The necessity for the Langley and
Hearn loans arose at the time former
Secretary OF the Treasury Leslie N.
Shaw got out OF the Carnegie Trust
Company. Under the banking laws IL
IL a misdemeanor for a trust company
IN buy Its own stock. The holdings Of
Mr.. Shaw. the retiring president of the
company. had to be purchased, and Mr..
Dickinson. early in 1908. according to :he
State Banking Department. got around
the statutes by having the trust COM
pany loan the needed money to individ-
~~o ~ 'ithW rtOCh. AIE.
Shaw received 3l75 a skare for stock
that had cost him Slso a year previously.
The differences between MIR. Dickin-
son. the founder. and Mr.. Shaw. the first
President OF the trust company. arose
over loans Of 81. 1o 1000 to Patrick kier-
MS Fidelity Funding Company. for
which collateral In the shape Of notes
had been given. Mr.. Shaw's defense
was that his judgment was no worse
than that OF other bankers In the fnan.
cisl district who had accepted severa
millions Of the same paper. As the
capital Of the trust was only
N.too.0o n its surplus $3.50, 900, Mr.
Dickinson held that Mr.. Shaw's ictiv.
ity during his absence In Europe nettet
a surplus wiped out and IN impalr.,
capital.
Examiners Found Il, Later.
Hence the entrance OF Messrs. Lang
ley and Hesrn. Their notes appear {,
have been discounted In the regula
way by the trust company. while tn,
stock Of Mr.. Shaw. taken up with tn,
proceeds. appears to nave been held /,
escrow By the officials of the company
and voted by Mr. Dickinson.
this transaction should hav
apparently escaped the attention OF I'll
sxaminsrs Of the STATE Banking n
partmsnt until long aftsr Mr.. sha,
got ont Of the trust company, IN on
Of the amasing mysteries Of the who
scandal.
No sooner was Mr.. Dickinson upo
the tobogsan In the affairs OF Il
Carnegie Trust Company than the sta
banking Department demanded that Il
new interest In the trust compan
composed OF Mr.. Cummins and n
friends. tai up the Langley and Hear
loans. This was done. But the prese,
investigation shows that. general.
whatever the Cummins syndicate ~
In" was. II anything. worse tina WI
they took OUT TIT exchange on
Increased the load upon the company.
Among other things just come to lig
Is that the cummins syndicate new
paid Mr.. Dickinson for the 1900 shar
Of stock he surrendered to them ear
In 1910. Nj. Cummins. Martin ]. Co
don. Joseph u. Reichmann and c.
Moore Jr. are upon notes totalling so
900. which have never been discounts
but form a part Of the estate OF I
late Mr.. Dickinson. Mrs. Dickinson
a daughter OF Mrs. George KIDD of \
$50 Fifth venue. and her lawyer
Judge William II. Wadhams u No
Nassau street.
New Discoveries Daily.
Every day the officers OF the Eq
table Trust Company come upon a n
surprise IN their Liquidation Of
Madison Trust Company. formerly
Van Norden Trust Company,
founder Of which Warner NJ. V
Norden is o On China. Pad,
real estate valuations inherited tr
the Van Norden regime and seemin
worthless loans TO a string Of cumm
enterprises are reliably reported
have already gulped down that CO
panyfs surplus and a good share of
capital.
Creditors OF the cummins syndic
nave viewed with interest the aetivit
OF William Nelson Cromwell. the Il
yer. Mr.. Cromwell came in origin'
as counesl for {. A. Moore Jr, VIII
rich father for a brief period. at
request Of Mr. Cummins, sat In