New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-02-09
CROMWELL TAKES LEAD
Acts for Creditors of Three Car
negle Trust Directors.
M00RE'S AFFAIRS TANGLED
Lawyer Was Originally His At
torney, but Found He Could Do
Nothing Without Help.

Nhlle District Attorney Whitman Is eX-
aiming tho books Of tho Carnegie Trust
( company and looking into doubtful loans
ana transactions that appear on those
BOOKS William Nelson Cromwell, John 4.
Stanchheid and Crocker. Weekes & Lewis
are making themselves exceedingly active
in inc affairs of William j. Cummins, Mar
tin j. Condor and Joseph r. Reichmann,
three Of the directors OF the Carnegie Trust
Company and former directors of the Mad
ison Trust Company and the Nineteenth and
Twelfth Ward banks
Mr.. Stanchfield and Croker. Weekes &
Lewis are acting for Cummins. Condor and
Reichmann, while Mr.. Cromwelrs activities
are for the benefit of their creditors, among
whom are included Andrew Carnegie the
Carnegie Trust Company and eleven other
banks and trust companies Dir. Cromwell
is attorney also for Charles A. Moore
ir.. who was one Of the Cummins. Condor.
Reichmann group in the Carnegie Trust
Company.
he came into the affair a first as the at
torney for Moore. who found himself in
VOWED in maze of notes, securities, coll
lateral and financial transactions requiring
the aid Of lawyer Of the astuteness of
Mr.. Cromwell 10 straighten out. when the
Carnegie Trust Company failed M
Moore's father was in Rome, seriously in.
and the son Joined his father there. leaving
! 70 Mr.. Cromwell the work Of STRENGTHENING
out the tangle. The latter soon found that
nothing could he done without tho co-oper-
alton OF the creditors and thus became the
attorney for them rs well as for Moore.
/ Plans to Form, Committee.
/ His present attempts are directed toward
/ forming a committee OF the creditors to
handle the assets Of the former trust COM
! pany directors until their obligations are
! paid. when what is left will be turned
/ back to them. There has been talk Of an
| assets holding company. but it is believed
| that the creditors committee will be sub
! stituted
! Cummins, Condor and Reichmann spent
/ couple OF weeks in the Middle
! West and South soon after the Madi-
, son Trust Company and the 10Th and
| 18th Ward banks had been taken
away from them, following the failure Of
| the Carnegie Trust Company. bolstering
Up their line of credits and securities Last
| week they teephoned from Chicago that
| their efforts were being fairly successful.
and at the end OF the week returned here
to renew their work in this city.
! Their principal assets had been the Ten
nessee Stock Yards and Packing Company
controlled by Cummns, and the Platt Iron
| Works, Of Dayton. Ohio. which tho three
men bought a few years ago But tho
| principal part OF the stock Of these two
companies was pledged with Andrew Car
| negie for loans. and he refused 10 give II
| up except for cash.
While il is understood that he docs mt
/ hold the actual stock control Of the two
/ concerns. he is said 10 have 50 large an
/ interest in them that no move can be made
without his consent, and 81 becomes ne
| cessary 10 pay him IN order that the as
sets Of tho combination can no released and
their affairs worked out for their own
/ benefit and that OF the other creditors.
/ Al the time OF the failure OF the Carnegie
Trust Company the group had outstanding
obligations Of approximately 5000 on. but
with the Carnegie Trust Company. the
Madison Trust Company and the Nine
teenth and Twelfth Ward banks behind
them they were apparently perfectly safe
These obligations included $500 90 guar
COMPANY, 100000 due 70 the Nineteenth
/ and Twelfth Ward banks for loans and an
proximatoly 100000 borrowed from Mr..
/ Carnegie.
Millions Still Unpaid,
!. Pierpont Morgan paid off the 500 o00
duo 10 the Nineteenth and Twelfth Ward
! banks and took over these two banks. The
! Equitable Trust COMPANY paid Mr. Csrne-
gle 100000 and took over tho Madison
| Trust Company. There stu remains 70 ne
paid however. Mr.. Carnegies remaining
s20000n0 and more than 5000 00o in add
ton. a large part OF which is due 10 the
Madison Trust Company. For when the
officers of tho Equitable Trust Company
came TO examine the books and accounts
of their acquisition. they found that the
men from whom they had bought it were
heavily indebted 10 n.
Tho Nineteenth and Twelfth Ward banks
are the only concerns with which the com