The evening world., 1911-03-23
CITY KEPT IN DARK
ON CONDITIONS IN
CARNEGIE TRUST
CONTINUED From First Pase)

signed by W. J. Cummins
and Joseph b. Rcichmann. which. IL
IS understood. they Will attempt TO re-
pudlate. The letter to Cheney follows:
April 10. 1910.
I'm re Carnegie Trust Company.
my Dear Supt. Cheney: As you
have known from the outset, | have
been devoting practically half of my
time since March or April. 1909. to
the effort Of cleaning .up the 81
ranted condition that then existed In
the Carnegie Trust Company. Be
cause OF the character Of Its man
ageInent. | was not willing to act
as its attorney. though requested to
do so, or "a 20 on It's board as was
suggested to me many times by
those In control Of its affairs. ! had
met Mr.. william ]. Cummins, whose
home, until shortly before that time,
had been In Nashville, Tenn, where.
az was assured by persons OF
prominence. standing and trust in
that community. he was neld VI the
highest esteem and regard AZ y man
oof ability. integrity. energy n
wealth.
Why Hs Accepted Post.
.At his urgent request I told him
that ! would act for him and MS as
sociates, Mr.. Charles Arthur Moore
jr. OF Manning. Maxwell & Moore.
Mr.. Martin ]. Condor, President OF
the American Snuff Company. and
Mr.. Joseph Il. Relchmann. the Iresl-
lent of the National starch Com
pany and a trusted lieutenant OF Mr..
Edward Y. Bedford. as thelr personal
attorney In advising them what
should he done to put the Trust
Company In a liquid n proper con
dit!on. This was on the distinct un-
Outstanding. however, that | would
not undertake to intercedc for them
with you or the department; b n |
was free to tell the department what
ever | learned in advising them about
the affairs OF the company; that |
would not in any event consent TO he
attorney for the company until It's ar
fairs should be In q condition entirely
satisfactory to me. and, on tho other
hand. that they should not promise
to mike me It's attorney whatever my
success In aiding them In their
pressed purpose 10 accomplish a re-
suit most earnestly desired by the
department.
in these circumstances ] have
been advising them to exert
every effort toward collecting the
various notes and obligations held
nv the company and TO avoid max
ing any loans or advances except
on readily marketable paper or
securities.
Advised Quick Collcctions.
When Mr.. Dickinson resigned
as president of the company and
Mr.. Reichmann took his place, on
or about the 3lst OF last Decem-
Der. ] went TO the latter imme-
| diateiy ana told him that In my
opinion II was OF prime impor-
lance that he should spare no eff
fort 10 collect for the company.
as promptly as possible, all OF its
collectible Items, that this was
desirable apart from the needs OF
the company, In the way OF cash.
because II would disclose TO tho
new management whether the
books OF the company reflected It's
true condition and whether prom
ises or assurances had been given
customers but % made OF rec
ord.
since then 7 have repeated this
advice TO him and to Mr.. Cummins
on many occasions. When they hav,
suggested that they would get add.
tional deposits TO give them NOR,
ready funds, / have always TOLD
them that this would not better thcli
real condition, but would weaken IN,
company n such additional deposit,
should be large and be subject (,
check or immediate withdra wal.
Because OF these facts, | feel tina
~ tho present examination OF IN,
company, whcn completed by you
shall show that progress has no
been made along the lines urged b,
me, l should not undertake TO advls
you relative TO amy matter Whlcl
such examination may develop les
! should uncOnsciously be preju
diced either In favor OF or agalns
clients 20 whom I had given advice
acceptable or otherwise, looking Z
the attainment Of a most d,slrahl
= end A regards any such matter.
you viii wish, assume, too consul
your statutory counsel. the Alton
.uey-Goneral.
Gives No Advice.
] have already advised you th-
my firm are the attorneys FOR N
Carnegie Trust Company IN m
suit brought against 10 by n
Fidelity, Phoenix Fire lusurluO
Company. IN which the Trust Con
pany proposes to interpose a eoui