New-York tribune., 1911-03-23
Former Banking Superintendent
Wrote FIattering Letter to
Andrew Carnegie.
THEN FOLLOWED BIG LOAN
Assured 1ronmaster He Would
Be Helping in Accomplish
ing Great and Dis
tinct Good.

.,i,,s Impressed 10 the extent ot nat
-. ,ottar Of recommendation. Clark
u-luan,s. former state superintendent
- Ranking is the author ot letter to
..a~oc. carnegie which Nr. CumminS
,,bo is now under Indictment for grand
,-carv. delivered to the ironmaster
,orsonally. This letter. whose existence
-. h4en known to some ten men, reads
as follows
aq2 Madison avenue, January y. 1910.
Hon ALdTeW Carnegie, 9lst street ana
Tiuh avenue, New York city.
1v Dear Mr. Carnegie. At the re-
otest of some members of the director
stc Of tho Carnegie Trust Company
write 10 advise YOU that during my
,,oumhency Of tho office of Superin-
,er6ent of the state Banking Depart
mont became familiar with the ahalrs
~ the carnegie Trust Company.
have no hesitation whatever an stat
ine that i'm my opinion such growth ana
,mprovcmcnt i'm conditions as the com
many enjoyed was largely due TO the
work of Mr William j. Cummins ana
those directors whom he brought INTO
IN hoard and made his associates.
may SAY that ! know Mr.. Cummins
oe an intimate and great personal friend.
! have d. vast regard for his ability ana
Integrity of purpose. ! feel sure that ne
and his associates are making sincere
and rrais.worthy endeavors 10 improve
ibe Condution of the trust company and
g. obtain for il more favorable regard
on Tho part OF the banking community.
beiie\c that the condition which
,hey ar, now seeking 10 improve does
not I'm any manner reflect on or impugn
their integrity or honor. and if You
should determine 70 come 10 their as
,istanco You would be helping in the
accomplishment Of a great and distinct
good Faithfully yours
CLARK WILLIAMS
Mr Carnegie did so to the assistance
Of Mr.. Cummins and his associates
Reichmann. Condon and Moore. He lent
them on their personal notes. backed ap
hy collateral. 81. 10000, which ne CON
veved 10 them in the form of United
states steel bonds They still owe him
the greater part OF that sum.
Tie date Of this loan was January p
1910 and the occasion for il, it will Oe
remembered. was the presence in the
Carnegie Trust Company's vaults of four
notes for S6oOVD each. executed by T.
&. Meadows. r. NJ Anderson. the lnde-
pendent Fertilizer Company and George
J. Dyer. These notes. secured by the
stock Of the Independent Fertilizer Com
rany a paper concern, replaced S2,iO-
ceD which the late G. G Dickinson had
taken from the Golfers Of the trust com
rany and used in purchasing the control
# the Van Norden Trust Company and
nc Twelfth and Nineteen Ward banks
They were made as an accommodation
{, tro four directors named and pressed
io' payment
Loan Of Double Tnelness.
T. Happened that OF January ~. he
tween the date Of the Williams letter and
that cf 'he carnegie loan. the Hooking
pools 90 arsed 1t was rumOred at ths
'1no that the Carnegie Trust Company
held iot NJ Hooking stock as collateral
for loans. au untrue report. aud run
threatened The Institution. MIR. Carne-
eie.s stance. therefore. was of double
tne'ness
III CsrreEio's steel bonds had a par
Value Of 8 20nO0o The Cummins syndi-
cs.e s.'d them for =. 100000 and took
hr fte not g named with the proceeds,
7'nne out the obligations of Meadows.
Anderson and the independent Fert'li7-r
COMPANY and leaving Dyer with An i'm
ceotrd0ose of $2HG.cDo which includes
the interest due on an the notes.
NJ Carnegie has since bought back
the bonds for 81 500 go. 4 prof Of
100000 as an Offset against his ultimate
Joss in the transaction. Iic - also I'm
fan vac go =et half million for tho
stock Of tho Madison Trust Company
numbered among the collateral secur-
ir5 his loan. and he retains through
tins eamc collateral controlling interest
n the P'ltt IRON Works. Of DAYTON.
Ohio. the Tennessee Packing and stock
YARD, Company. of Nashville. aud the
Merchants and Manufacturers Secur-
ties Company, a holding concern for
Cnmmius properties
Mr Williams. when asked last night
10 comment ou his letter recommending
'lmml- ~ Mr. Carnegie. eaid he had
nothing whatever 10 say on the subject
Mr Carnegie. II is known is much in
'e',ol orcr the loan transaction. tho
us of his name by the trust company
end The publicity hc has got out of the
whole affair In the first place lie al
lowed his name 20 be- given 10 the com
iant iH fosrousc 20 a letter from the
kie o.. r. Dickinson its founder. liken-
9.
Lincoln and suggesting the appropriate
h@ss ~ 81 monument of finance to So
sr0a, "a figure m the industrial history
~ th. country
T~ice Called on for Help.
.r Carnegie replied that he was not
tnaious that monuments be erected 10
MIN until after his death. but that in
This case lc would make an exception
and grant the request. He has sine,
bon persuaded on $50 occasions TO lend
'hf company or 10 officers money 10
save a.s name from unpleasant notoriety
a''' nGani on the company's collapse.
oroe Do 1904 following the panic, when
he lent the company itself S2.opppoD 20
tide % over. and the second time in Jan
urE 1910 as described The first loan
Was paid In full
bHt more materialistic arguments than
mat 'onccrning the good of his name
"0c used with effect ou tlc Laird pf
Hkibo. clark Wiliians's letter is an eX-
ample and among others Was the as
Sulauoe given that tho trust company
NdS f0 have pientV of citv money Mr..