New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
CHENEY AND WILLIAMS
CONTRADICT CARNEGIE
Both Defend Bank Department
for Allowing Trust Company
to Remain Open.
LONG SILENCE EXPLAINED
Carnegie Asked Him Not to Close
; Institution, Cheney Says, and
Williams Quotes Warning
Against Cummins.

A double barrelled explanation ~ the
State Banking Departments attitude
toward the Carnegie Trust Company.
contradcting in important details the
reported testimony Of Andrew Carnegie
before the grand jury. issued yesterday
from orion Fl. Cheney Superintendent
of Banks. and Clark Williams, his imme-
diate predecessor in that office. Mr..
Cheney said Mr.. Carnegie pleaded with
him not 10 close the trust company and
Mr. Williams incorporated in his state
ment n second letter 10 the ironmaster,
telling him 10 beware OF William J. Cum
Minis.
The reason both men gave for keeping
silence SO long was that they considered
It. improper TO talk FOR publication until
the grand jury should complete IT'S in
vestigatOn. Both upheld the State Bank
ing Departments course in allowing the
trust company 10 remain open with the
utmost conviction Of its wisdom.
This department said Mr.. Cheney,
cannot be blamed because the company
was not saved i'm the end, the efficiency
of its efforts and the wisdom Of its
course are esta bshed beyond question
by the fact that when the end came the
loss 10 It's depositors, both actual and
proportionate. was far less than IL would
have been at any time prior thereto"
The end" was thus graphically de-
scribed by the Superintendent:
Notwithstanding all OF the efforts direct
ed toward the rehabilitation Of the COM
pany the affairs of certain OF its directors
finally became peculiarly pressing Loans
upon which payment was expected were
Northern Bank and the Washington Saw
ings Bank were closed by the department
/ ordered an immediate investigation OF
the affairs OF the Carnegie Trust Company.
and found that large Withdrawals were
being made.
Confers with Andrew Carnegie.
on the morning of January ). 1911, the
phOned TO the trust company 10 ascertain
what step II taking TO get additional
cash. In reply ne was advised that Mr..
,ummins and Mr. Franks would immedi-
ately call al the office OF the department.
They arrived promptly. and Mr. Franks
stated that Mr.. Carnegie had not as yet
said the last word. and that cash would
be furnished within twenty-tour hours. IL
necessary.
The Withdrawals continued and on Janu-
ary s. 1911. at o'clock I'm the afternoon.
received such reports from my examiners
as convinced me that the company should
be closed the following morning. unless
additional cash were provided before then.
I'm company with my attorney. Mr case
OF Messrs White & Case | had a confer
ence with Mr. Andrew Carnegie that same
evening In the course OF which told him
him that unless at least 5000 In cash was
furnished the company not later than 2
o clock the following morning 7 could not
allow the company 10 open for business
Mr. Carnegie pleaded with me not 10 take
such step. saving that he had given in
structions during the dav TO Mr. Franks
10 release 10 certain OF the directors and
officers a large amount OF collateral held
nv him as security for their loan. and that
this action was done 10 enable them 10
raise further funds for the benefit NJ the
trust company. lie stated that he had tele-
rhoned 10 Mr.. Franks az Pittsburg 10 re-
,urn al once and de'iver this collateral
unon his arrival on SATURDAY morning
I informed Mr. Carnegie that IL would be
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