The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-01-08

deposits OF interior banks with which
ne had done business as Secretary OF the
iIeasury. He sent to interior bankers
u ieuter reading in part as follows:
while Secretary of the Treasury tried
70 assist the country bankers and II had
not thought could be still helpful would
not be here. The Carnegielrust Company
uoeS not expect to pay more Tor Dusliless
, than It's competitors. but II Will go TO the
limit OF conservatism. Does liberal inter
est allowance ON active account, with
the assurance of equally liberal treat
ment should you need assistance in bridg-
ing a temporary period Of unusual local
demand, look attractive? | should be
glad of at least a portion OF your New
York account and feel sure you will like
our manner of doing business"
by this frank and candid reminder
Mr.. Shaw built up "A good business for the
company as correspondent for interior
banks. but at the same time the company
incurred the hostility of many bankers
in this city who did not relish that method
of doing business For various reasons
also there was in banking circles broad
hostility TO Mr.. Dickinson. In the course
OF its existence the company never got
much help from other banks in this city.
| lhere were some very influential
directors in the company at that time,
among them Paul Warburg of Kuhn,
Loeb Il Co; George Arendts of the
american Tobacco Company. Alton u.
Parker. Jacob Rupert. Jr., Charles NJ.
Schwab, Frederick lewisohir and George
! y. lalcott, now vicepr eSdent of the
National City Bank.
HElNfE's NAME 40 HELP IN 1907
But the company had in Arthur p
Heinze director whose name wasn't so
useful when the October, 1907, panic came
along MfhHeinze who was the youngest
brother of Fritz Augustus Heinae, was
head over heels in the United Copper
| pool, and there were Withdrawals of de-
posts from every bank with which he
was connected MIR Shaw promptly
! announced that though Arthur =. Hein2e
: was on the company's list of directors.
he had never qualified and insisted that
there was not "A Henze loan in his bank
Nevertheless, Withdrawals continued and.
as declared by former officer, IT was
necessary for the management to secure
| assistance from Andrew Carnegie.
After the panic had been weathered the
! search for good names for the board of
directors continued and at one time and
another prior TO 1909 it was announced
, that there had been elected such men as
Frederick Weyerhauscr. the lumber man
of the Northwest. sometimes reputed to
be as rich as John ID. Rockefeller: Adolphus
Busch of the Anheuser Busch Brewing
Company of st, Louis: David II. Francis,
formerly Governor of Missouri and Secre-
tary of the Interior under President
Cleveland; William p. q. Harding presi-
dent of the First National Bank OF Bir-
mingham; James W. Lusk, president of
the National German American Bank of
St. Paul; George f. Roberts, former
Commercial National Bank of Chicago;
John Sherwin, president of the First
National Bank of Cleveland; Sol WeSler,
vlce-preshent of the Whitney Central
National Bank Of New Orleans: Alexander
Mcdonald the Standard Oil man of
Cincinnati; Newman Erb, dealer in rail-
roads, and many others.
Some OF these men never qualified as
directors. Others did not remain long
on the board. and the personnel of the
directorate was shifting so frequently
that list would hardly be printed before
some advertising from such names as
these. but in the end, 80 frequent were
the resignations. 1t probably did more
harm than good
sHAw-DICRINsoN QUARREL.
After the 1907 panic some OF the Car
negie officers also attracted attention by
an effort to secure for their institution
the depositors OF one of the banks which
had failed. An anonymous advertise
ment appeared in the newspapers calling
"A meeting of depostors for the Carnegie
Lyceum. Hundreds of them responded.
motion was made to appoint depos-
tors committee headed by Mr.. Shaw
w 'ousiueI ~ tdht over Int aC-
counts of the suspended company But
lawyer representing another meeting
was on hand and punctured the Carnegie
plan in a speech that nearly led 10 riot
The meeting broke ny in disorder and the
only result was another black eye for the
trust company.
Soon after this meeting Mr. Dickinson !
and Mr. Shaw disagreed. II DEVELOPED
that the former had much more influence
with the directors, and Mr.. Shaw resigned
and sold out his stock. Mr.. Dickinson
said the trouble with Mr.. Shaw was that
he had Presidential bee in his bonnet
and spent most of his time in making
speeches and in politics.
He let ambition mock his useful toll
declared MIR. Dickinson. and here were |
the many friends Of Mr.. Shaw alena,ed
al once.
The Oriental Bank failed soon after
MIR. shaw got out Through The infiuenc. !
of At'orney-t General jackson Mr.. Dick in |
son secured fJr the trust company ap-
poiniment a. one Of the receivers. Mr. |
Dickinson al once took the assets Of the |
Oriental and put them in his trust com
pany. and presently found himself in "a |
controversy with Clark Williams then |
Superintendent Of Banks. Mr.. Williams |
Insisted that the assets be turned over !
TO him and he gov them after the quarrel ,
had been thoroughly aired in the papers |
Subsequently the Carnegie put in "a claim |
. e-oV'V'' ioi lees. ne |
Bank ing Department contested il and the |
case was hung mp in the courts until last
summer, when the claim was compro-
missed for Sl50OO. Result. more I'M
pleasant notoriety.
KEIRAN SCANDAL HURT.
In the latter part of 1908 the Fidelity
Funding Company which had been organ
lied and run by +. j. keran TO lend money
on the property of Catholic institutions
and to assist in handling the funds of
these institutions. went down in one of |
the most unpleasant scandals of the wear.
The Carnegie Trust Company had loaned
to the keran company large sums. A
former officer Of the company said YES
terday that the keran loan amounted
to 81, ,25O 600 at first and was made by the
company while Mr.. Shaw was president
and Mr. Dickinson was abroad When the
latter returned he got the loan cut down
to $500. coo and secured from Keiran the
best collateral he had. Nevertheless
after the kelran company collapsed the
State Banking Department insisted that
other collateral be substituted The trust
company did not lose much as a result
of the transaction. but got more bad ad-
vertising
WENT AFTER VAN NORDEN BANKS
In the following spring Mr. Dickinson.
who kept increasing the deposits and adj.
ding to the assets of the company desnite
many discouragements, broached his
most ambitious pian. He announced that
IL