The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-03-23
Cummins Syndicate Soon
Got Loan From. Him
Of $2,100,000.
FORGERY TO HIDE A LOAN?
Bank Superintendent Indorssd
Cummins as an Intimate
Personal Friend"

Toward the middle Of January, 1910.
when the syndicate headed by William
j. Cummins. the man indicted on Tuesday
for stealing s3s5, 900. was scurrying for
cash to keep the Carnegie Trust Com
pany from going under, Cummins himself
handed to Andrew Carnegie this letter
from Clark Williams. who had been Super
ntendent of the Banking Department
until few weeks before:
?e3 Madison avenue. January ~. 1910.
The Hon. Andrew Carnegie. Ninety-fra
street and Fun openue. NeW York:
DEAR SIR: At the request OF some mem-
bers OF the directorate of the Carnegie
Trust Company l write to advise you that
during my incumbency OF the ONCE Of
Superintendent of the State Banking De-
partment became familiar with the affairs
Of the Carnegie Trust Company.
have no hesitation whatever in stating
| that in my opinion such growth and i'm
provement In conditions as the Carnegie
enjoyed was largely due TO tho work Of
william J. Cummins and those directors
his associates.
may say that know MIR. Cummins IA
an intimate and great personal friend.
have the highest regard for his ability and
integrity OF purpose. ! feel sure that he
and his associates are making sincere and
praiseworthy efforts to improve the con-
dition OF the trust company and to obtain
for it more favorable regard on the part
Of the bank ing community.
| believe that the condition which thay
are now seeking to improve does not in any
manner reflect on or impugn their integrity
or honor. and II you should determine to
como to their assistance you would be
helping in the accomplishment OF great
and distinct good. Faithfully yours.
CLARK WILLIAMS.
Thirteen days after the date OF this letter
Mr.. Carnegie went to the assistance OF
the Cummins syndicate with $2,1OO.O00
worth OF Steel bonds. He had taken some
little time to make up his mind. Once
before at the solicitation OF financier.
then master OF the trust company which
bore a name spelled like his and who
compared him to Napoleon and Washing
ton, Mr.. Carnegie had put up 81 10000
a sum which carried the trust company
over the panic Of 1907
Persons who knew the contents Of tho
letter written by ex-Supt. Williams
and placed in the hands of his friend
Cummins for delivery 10 Mr.. Carnegie
recalled yesterday the tight circumstances
of the syndicate at the time the letter was
written.
In March 1909. after the demise Of
Cummins's $50. 900 900 Independent Fer
tilzer Company. Charles G. Dickinson.
in furtherance of his ambition to consol-
date into one big institution the Carnegie
Trust Company and string OF banks
owned by the Van Nordens. got Cum
mins's assistance to persuade I. c. Mead
ows. i. n. Anderson. the independent
Fertilizer Company and Southern
fertilizer company whose name doesn't t
appear as yet to make each a note for
S8OO, 600 The Southern concern was
pried loose from its note with the promise
that il was only wanted two days for
exhibition purposes. The guarantors OF
all four notes were Charles c. Dickinson.
William J. Cummins. Martin j. Condor.
Charles A. Moore, Jr.. George G. Crabbs.
Liston l.. Lewis. William A. Keener and
Samuel A. kress.
Adding to the notes stock of the dead
and buried Independent Fertilizer Com
pany the management OF the Carnegie
Trust took s. 400 900 from the vaults and
purchased heavily of Van Norden stocks.
But in November. 1909. the Southern
concern not only protested. but sent
up several earnest Southern gentlemen
who carried shooting irons and threat
ened to use them il the note for $500. 900
wasn't given up. Whereupon the inter-
ests in front of the guns gave up the
note and little later got George l.. Dyer,
an advertising man, who says himself
he wasn't worth 5000 at the time. to
make new note for $780, 600.
Although the bank examiners. so far
"a has yet appeared. didn't order the four
notes detached from the assets Of the
Carnegie, there arose for some reason
great necessity that they should be
wiped out. SO Cummins and friends began
to hustle for regular money to pay back
to the Carnegie company. Several indi-
viduals in whom Mr.. Carnegie had great
confidence went to him on behalf of the
needy syndicate and spoke highly of them.
Mr. Carnegie was told among other things
that he needn't worry about the condi-
ton Of the trust company. for the excellent
reason that it would always have enough
city deposits to maintain its health. Al
any rate, such representations. written
or spoken. were made to Mr.. Carnegie
that finally on January rs he loaned to the
Cummins crowd the s2.lO0.ooO that saved
their bacon.
Somewhat later Mr., Carnegie. who was
, not to be caught mapping. repurchased
the bonds that Cummins sold in the ope.
market to get money for satisfying thu
four notes. He bought them back at q
4 profit. paying 81. .s00, ,OOO so that in addition
3 to the $500. 900 that lac saved on the dea
he had ~ security for the loan the con
/ troll OF the best OF Cummins's properties
Q the Plstt Iron Works. ths Tennessee