New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-02
Grand Jury Moves Against
Chamberlain Under Law Max
ing Bribery Penal Offence.
ARREST WAS NOT ORDERED
Justice Davis Accepts Assurance
of Samuel Untermyer That His
Client Will Be in Court
This Morning To Be
Arraigred.


affairs Of the Carnegie Trust Company.
The indictment was found under Section
3T2 OF the penal law. which makes II a
criminal offence for any person who
executes any OF the functions Of pub
lie office TO ask. receive or agree TO re-
ceive q hribe
Samuel Untermyer. counsel for Mr..
HYDE. gave his assurance 20 Justice
Davis that his client would appear In
court for arraignment and pleading at
II o'clock this morning
The evidence on which the Indictment
IS based it is reported. was sufficient
n carry the conviction that there had
bcen an illegal arrangement between
TTvde and the officials OF the Carnegie
Trust Compeny, and that Hyde prohted
by that arrangement.
Joseph G. Robins story Of the $4,000
loan ne made through the Northern
Bank to the Carnegie Trust Company
under what Robin described as the coer-
sion of HYDE is known 20 be one OF the
basic facts brought out IN the evidence
on which the indictment was found. and
the loans to John " Smith, c. s. Eaton
and Charles p. Norcross. which were
found by the State Banking Department.
IN the paper assets of the Carnegie Trust
Company. are put down as the means
bv which the arrangement was carried
out.
| Early in December Of last year the
Carnegie Trust Company drew cashiers =
checks on the National City Bank 70 the
order Of John Y. Smith for $4,000. John
V. Smith is Hvde's private secretary. He
deposited these checks to his own ac-
count in the Northern Bank.
Within a short time Smith drew four
checks. aggregating S13.soo; two IN
favor Of Cash" and TWO to the order ot
Charles II. Hyde The two checks
drawn 10 "Casn" bore Smiths indorse-
ment. and beneath that the 'ndorsement
Of Charles n Fvde Those tro were
cashed in the Northern Bank.
The two 70 the order of Charles y.
HYDE were presented 70 the Northern
Bank with request FOR cashiers
checks n like amount. and those cash
ier's checks we're deposited by Hyde u
his own accounts in other banks
Smiths Cancelled Checks Found.
Smiths original four checks we're
found bv an employe ~ the state Bank
ing Derartrent working under the direc'
,iors ~ District Attorney Whitman,
among Smiths cancelled checks in the
Northern Bank
As told exclusively in The Tribune on
March s Smiths name appeared as the
maker of $1,000 note which was hsted
,n the assets Of the Carnegie Trust COM
many when the state Banking Depart
,,,ent took charge # that institution.
Attha, time. when the matter was put
I'M n Smith b. a Tribune reporter MS
answer. given before any accusative con-
e,ructior had been placed on the trans
action. was: u admit this one transao-
tion. but (; * entirely a personal matter
and 7 do not even care 70 mention any
ore else'a name. Even II l had owed
the bank 100000 ard paid H. don't see
that II is cry ones business. WHAT'S
"a 600 20 \ reporter. anyhow
According 70 a statement mace oy
Smith since that time. the actual pre-
Iiuinarv 70 the transaction first carried
through IN his name at the carnegie
rrust company was the following sug-
ees,ion from HYDE GO down 10 the
/ Carnegie Trust Company or some of the
hanks we are doing business with and
get me- sorla money
Smiths salary is 5000 a year. HIS
ro,e for 81. .ooO stood on the books OF the
Carnegie Trust Company. without either
| collateral or Endorsement
Two other notes which stood on the
| Carneeie's books az the time II was
closed are also believed now 10 nave
ho-r concerned in the transactions on
,.bicb tho Indictment ~ HYDE is based.
THESE are the c. 8. Eaton note for $40
nno and the Charles p Norcross notes.
which aggregate $1,000 II is reported
,hat tbs Eaton note for $1,000 was In
reality a substitution for $1,000 of the
$4,000 smith transaction. which left
the $4,000 standing against the name O,
Hvde's private secretary
/ Eaton had been an occupant ~ HNoe
Office and the Norcross notes were guar
anteed by HYDE.
The sequence of dates following the
eli n0o transactions of Smith runs some
thing i'm this order December - the
smith loan is made. December 20. HYDE
leaves his desk in the city chamberlain
omcs. December - HYDE telephones 70
smith from Philadelphia that he is on
his way 10 Florida: December IL 10
January II. HYDE remains a"ay' MS
exac, whereabouts a mystery unul ne
&c discovered i'm the Florida Evergladess
aboard his housebcat. the Stop-a-" hiie'
January : the Carnegie Trust company
closes its doors with a S6o"" deposit
Of city money: pan" smith. the pro'neF
of Fvde's private secretary. starts TOT
r,orida IN md HYDE and on January
- ,,hich is incidentally the day on
which the nowers Of the legislative IN
,.se,ioa,ine committee expire. hNoe re-
turns 10 New York week "'e.
smiths $4,000 note with interest Oh
Sl4 81 is paid. ,s
II was on August %. according 10 'ne
story of Joseph q. Robin. that ne was
summoned to a night conference IN
Hvde's law Office. at which were pres
ent besides himself Charles h. asae'
William J. Cumins and Joseph 3. Fe'cn'