New-York tribune., 1911-01-08

fairs of the Carnegie Trust Company
came yesterday morning at the beslh-
ming of banking hours, when a notice
was posted on the doors OF the olhCes'
at No. 115 Broadway, stating that the
institution had been closed by order OF
o. II. Cheney, State Superintendent OF
Banks
The closing came as a direct result OF
the failure of the Northern Bank OF
New York and the arrest and innictrneh'
Of Joseph @. Robin. who had been al
one time director Of the Carnegie
Trust Company and close frlend ano
business associate Of the late Charles =
Dickinson. who founded the Carnegie
company and was its president up 10
year ago.
The trust company was mentioned IN
the report Of the State Department OF
Insurance on Robin and his operations
which was made at the time Of the clos
ing of the Northern Bank OF New YORK.
and II was known that Robin had made
a loan of $4,000 from the trust com
pany as late as December 10 Thls loan
was secured by Robins bonds for what
ever they might be worth.
But the damning fact was Robins for
mer connection with the trust company
as an official. and when the Northern
Bank of New York was closed the de-
posltors added Robins name to the long
list of unfortunate occurrences with
which the trust company had been con
cerned, and started a quiet run, which
eliminated on Friday, when payment
was refused on four checks aggregatlng
$3.50, 900. This constituted an act or In
solvency in the eyes Of the law. and MI
Cheney took possession before the open
ing Of business yesterday.
Probe Reaan Five Days Ago.
On account OF rumors of trouble In
the company he had had his examiners
at work on the books five days ago. Al
that time he ordered that SoO0,Uo0 OF
securities held by the company as col
lateral for loans be replaced by other
securities that would be satisfactory 10
the Banking Department. This demand
was too much for the company to COM
ply with when 1t had at the same time
TO meet the run by the depositors.
The directors. however, all said yester-
day that the institution was solvent and
would pay all the depositors In full.
They called the action Of Mr.. Cheney
hasty, and said that twenty-four hours
more would have given them time to
meet all demands. An official statement
by ]. T. Howell, president OF the COM
pany, said:
"In twenty-four hours a sufficient
amount OF money would have been pro-
vided to meet the requirements. Negoti-
ations were virtually concluded which
would have met all the exigencies OF the
situation; II was temporary relief only
which was required. The brief respite
needed. however, was not afforded"
Liston l. Lewis. counsel for the COM
pany and one OF the directors, said last
night that II the company had been al
lowed two or three days more 10 work
there would have been no necessity to
close the doors as negotiations were un-
der way that would have brought the
trust company through all It's troubles.
"I do not want to say with whom We
were negotiating" he continued, 'as the
bank has now closed its doors, and II
would do no good TO give any name now
II might prevent our being able to take
up the negotiations again, II we find that
we are going to have chance to get ir
shape 10 resume business"
Tells When Carnegie Helped Them.
NO. will not deny that Mr.. Carnegie
was the man." he said In answer TO I
direct question. "Mr. Carnegie came q
the help OF the company in the panic o.
1907. It has been said that he helped
,nca more at the time Of the collapse o.
the Columbus & Hooking pool In Janu'
ary. 1910. but this is not true. We die
not have any assistance from Mr. Carne'
gle at that time.
The 1907 loan of s2,OoO,ooO In United
sEABoARD FLORIDA LIMITED.
| one night out to Palm Beach. Tampa anc
Orlando Ivs n Y. lll6 4, NJ eommene-