New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-11-02
BLAMES MORGAN & CO.
Cummins'S Counsel Says They
Caused Clients Downfall.
BANKERS DEFENCE BEGINS
Charges Conspiracy Frustrated
Attempt to Put Carnegie
Trust on It's Feet.

Max d. Steuer. counsel for William ].
Cummins. began his defence yesterday
morning OF the man who is accused Of
stealing $4,000 from the Carnegie Trust
Company and the Nineteenth Ward Bank
by moving on several grounds for the dis
missal Of the case. When Justice Davis
had refused TO do this the lawyer launched
himself into an elaborate opening" In
which he contended that the purpose Of
the fund which Cummins is accused of
pilfering was not to pick up Van Norden
loans. but to put the Carnegie Trust Com
pany ON it's feet, so that it could success
fully accomplish the merger of itself with
tho Van Norden Trust Company and the
Nineteenth and Twelfth Ward banks.
Mr.. Steuer went on to point out that this
plan was frustrated by the enmity of j. p.
Morgan & Co. and the State Banking De-
partment. and i'm this connection he set
forth in detail for the first time the charge
of conspiracy against his client. at which
he has been limiting ever since the trial
began.
Certain fertilizer interests, he said in
substance, had combined and in corporate
form had made a contract with the Levi
tohns, who owned the Tennessee Copper
Company, for the purchase OF a certain
fertilizer material over term of years.
the contract calling for the payment TO the
Iewisohns Of s5,OOOOoO within thirty days.
When the fertilizer people found they
couldn't raise any such sum OF money In a
month they called Cummlns into the situa-
ton. This was about the time that Cum
Minis came TO New York from Nashville,
in the spring of 1905.
Cummins told his fertilizer friends, &C
cording to Steuer. that he couldn't get
them 5000 900 In thirty days, but that he
could get them the contract on easier
terms, and would do so provided they paid
him in stock OF the new corporation-the
independent Fertilizer Company-the diff
ference between the 100000 and the
smaller sum for which he would put the
deal through. They agreed, and when he
obtained the contract from the Lewisohns
for $500 600 on easy terms not only did he
receive sl5o0.0Oo of Independent Fertilizer
stock. but the promise Of 10000 from the
I.wisohns on the fulilment of certain
conditions.
But Mr.. Steuer emphasized the fact that
the Independent Fertilizer Company was a
$4,000, 600 corporation and that it took
fnancier Of some consequence to float such
a company. At all events. the proposition
was put UP to J. P. Morgan & Co, he said,
and In their office was handled by Henry
p. Dawson as the latter's first big deal
Mr. Dawson sent for Mr. Cummins ac-
Cording to the lawyer, and told him he
would give him $4,000 for his s1,5o0,00O par
value OF stock. and that II Cummins didn't
accent the offer he would put him out of
business.
Cuumins put the case before Jordan j..
Rollins. his counsel, and counsel for the
state Banking Department. in the pres
,nce of Clark Williams. so Mr.. Steuer said,
and was assured of their protection in de-
fving the house Of Morgan. Rollins told
Cummins. according TO Mr.. Steuer, 10 buy
steamship accommodations, and he, Rol-
Inns. would tell Dawson Cummins was
going abroad to get the money with which
10 finance the fertilizer deal. In the mean
time. Steuer said. Cummins agreed to pay
Rollins fee of $1,000 and to pay Clark
Williams % per cent of all he got over and
above the $780, 900 10 which Davison's terms
had limited him.
But ]. p. Morgan q Co were not TO be
blrffed Instead, said counsel for cum
minis. they accomplished the downfall oil
Cummins and the Carnegie Trust Com
pany with the help of Rollins and Will
Jams. who were now securely installed ~
the Windsor Trust Company
Several character witnesses. substantial
citizens of Nashville. testified that Cum
minis had always borne a good reputation
William W. Robinson. former secretary ol
the Van Norden Trust Company, said thai
although he had directed the payment o.
checks against the loans OF money Wmc'
,ummins has been charged with stealing
he never saw or heard of the trust agree
ment until after the Carnegie trust Com
many vas closed. Joseph p. Reichmann
former president OF the Carnegie Irus
Company. testified that the money was t'
lie used to save the Carnegie Trust Com
rany. and not 10 pay Van Norden loans.