New-York tribune., 1911-01-16
Long Missing City Chamberlain Arrives from
Florida, but Denies He Timed His Return
to Reach Here After Authority Of
Graft Investigators Expired
Graft Investigators Expire
SCOUTS RACETRACK FUND STORY
Says There No Danger City Money from Closing Of Banks
but Adds He Has Resources to Make Good if
Called on for Possible $4,000 Loss
Through Robin Complications.

had compelled him 10 place hlmselr De-
yond the reach Of newspapers or re-
that he had had no knowledge
Of the failure of banks which had been
selected as repositories for the city
funds until informed last Thursday by
Dan" Smith, a brother Of his secre-
tary; that he had left the affairs of his
office in competent hands, but had has
tened back as soon as he learned Of the
failure Of the Carnegie Trust Company
and other institutions. Charles II. Hyde.
City Chamberlain of New York, returned
TO this city yesterday afternoon Mr..
Hyde was accompanied by Dan" Smith,
but his family remained in st. Au-
gustine, and will proceed to Palm
Beach. when the houseboat, Stop-a-
While, has been repaired.
The Chamberlain was comfortably en-
sconced in Room G Of the compartment
car Glengyle, on the Atlantic Special,
when he was Joined by a representative
of The Tribune at Washington. Al
though protesting that he had practical
ly recovered his health, Mr.. Hyde looked
far from we'll and his clothing gave evil
dence Of considerable loss OF weight
He has been suffering from gall stones
and possibly other complications. and
complains that his nerves were worn out
from the espionage which, he contends,
robbed his European trip Of all bene-
fetal effect.
Mr.. Hyde denies that there is any
ground for aspersions which may have
been cast either upon his character or
the conduct of his office, and asserts that
he has no intention of resigning, but
that he expects to have a conference
early tomorrow with Mayor Gaynor.
Says No Loss Threatens City.
He deprecates what he terms "sensa-
tional reports" regarding the stability OF
the New York banks, and vehemently
asserts his conviction that the city Will
lose nothing from those failures which
have already occurred. He denies all
personal knowledge of the Astor Mort
gage Company, declares that the utmost
care has been exercised 70 protect the
interests Of the city and says that all
responsibility for the selection of city
repositories rests equally on the Mayor.
the Controller and himself.
On reaching the Pennsylvania Statlon
the Chamberlain submitted to a oom-
bardment from the rapid-fre battery OF
a score Of photographers, and then took
a taxi TO the KnickerbocKer Hotel, Where
he registered, after which he was inter-
rogated by half a hundred reporters
When asked If he expected any friends
70 meet him, he said he did not, as he
had notified no one but the newspapers
of his intended arrival, and he was not
disappointed.
Mr. HYDE said he left New York on
December and went by rail 10 Phila-
delphia, where with a party of friends
he boarded the houseboat Stop-a-Whlle'
and he had been on IT, TO all intents ana
r,rnoses. ever since. When asked now
II bappened that he had left S65OOoO in
,ba Carnegie Trust Company, when ne
had been warned as long ago as last
June bv Controller Prendergast that the
institution was in difficulties, Mr.. Hyde
said
"I had no idea whatever that the Car
nepie company was shaky, l received
no such warning. The city's balance IN
that institution has varied from S2oo'OCo
20 s1 noOoO It was designated as a
o,,,, denositorv, and there was no reason
WHY the balance should not have reached
81 900 900 at any time. However, TOOK
the precaution to secure the personal
guarantees of a number of the directors,
ca that am convinced the city is amply
protected
Not Intimate with Directors.
"rs il fact. Mr. Hyde. that you
have been on intimate terms with the
directors of the Carnegie Trust Com
pany?"
THAT is not true. l have sustained
rriendlv. but never intimate, relations
with them" -
"rs II not true that it was your desire
..,oc,aIIv 10 favor the Carnegie COM
pany?" -,
"Not AZ all But as l am told that
,nara NAV be some official investigation
30 the deposits in this bank, would pre-
,or not 70 discuss the matter further
mid YOU not confer with John b.
etanchfeld about the financial condition
=, the Carnegie Trust Company"
"I did not. was greatly surprised
,bnr heard the bank had failed.
nod never dreamed Of anything Of the
kind"
"Rut did you not say when you were
at,orney for Mrs. James Everard that
the Carnegie Trust Company directors
we're "a set OF thieves'?''
"I never said that. l did say that
,hav had tried TO get rakeoff OF S3O,-
900 on a $4,000 loan. but that was a
,,oar ago last summer. and the bank
then was under different management"
Ibid emissaries from you approach
.orce Of the big banks with the propo-
s,,ion that II the banks could see their
NAV clear TO certain reciprocal matters
thev could enjoy deposit OF city funds
=, from 100000 10 100000, which
sbonld lie dormant-should be practically
a permanent loan?'
mo emssary from me ever ap-
nroached any bank with such a propo-
sition. II any such proposition was made