The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-03-25
Tell Of City Deposits That
Followed Kindness to
Cummins.
TWO BEFORE GRAND JURY
Hyde Says Prendergast Asked
Him to Select the North.
ern Bank.

vice-President r. ". Jones. Jr.. of the
National Reserve Bank and W. r. Halo
way. formerly president Of the Hun
garian-Am merican Bank. told the Grand
Jury yesterday afternoon that they made
big loans to William J. Cummins because
they took Cummins's word for it that he
knew what he was talking about when
he told them that he could get City Cham
berlain Hyde to favor the National
Reserve and tho Hungarian with city
deposits.
For two hours Mr.. Jones and MIR. HALO
way explained their dealings with Cum
minis. and the name Of Charles H. Hyde
appeared continuously in their testi-
mony. Mr.. Jones said frankly that hav-
ing observed Cummins's ability to deliver
the goods he spoke to his friend Holloway
about Cummins's connections and sug-
gested to Holloway that helping Cum
Minis would be a profitable thing for the
Hungarian-American.
Mr.. Holloway. admitting that he had
taken advantage Of the suggestion.
said that he was under misapprehen-
eion. He had supposed that Jones meant
that loan to Cummins would result
in large private deposits and was sur
prised when he was told Immediately
after he let Cummns have 500, 600 that
the Sl25.0O0 in city deposits that came
was the direct outcome Of the loan.
Tho officials in charge OF the investiga-
ton regarded the work OF the Grand Jury
Yesterday a. the most important 40 far
in the inquiry. Mr.. Jones was the first
Of many bankers who are under sub
pGna to tell what they know OF the stories
that city deposits followed loans to the
Cummins syndicate He was the first
from whom the Grand Jury has secured
confederation Of the stories told by Robin
Il the Northern Bank Mr. Halloway's .
testimony was further confederation.
MIR. Holloway and MIR. Jones are close
friends and have been for years When
Mr.. Jones was connected with the Orien-
tal Bank Holloway was running trust
company in Birmingham, Ala Mr.
Jones thought thai man of Holloway e
ability would find his proper field in New
York city and induced him to come here
Shortly after Holloway cam he was
made president of the Hungarian Ameri-
can. then controlled by Robin through the
ownership of 800 shares OF stock voted
by President Metcalf OF the Atlantic
National OF Providence, Il !.
Mr.. Halloway became known to bankers
a. Robins representative in the Hun
Garian.
In April, 1910. the Hungarian was
reaching out for more deposits. seeking in
legitimate manner. MIR. Holloway says
ioincrease its strength. Anthony Stumpf
sdirector OF the Northern and an associate
II Robin, who has already told the Grand
Jury how he went to Cummins to ge,
HYDE TO deposit more city cash in the
Northern Bank. went TO President Halo.
way about this time with the news that
The Northern was going to get city de-
posiis He asked Mr.. Holloway il the
hungarian wouldn't like little
Mr.. Holloway said emphatically tha,
'hs Hungarian would thank anybody
"' b'' I" ~ otu"P'' huha'"hS VIA
''e matter couid be arranged by paylne
Va" usuai commission ot per cent tt
'e so-pe'~eens' which expense coulc
'H looked as advertising. lett Mr Halo
way leaving that banker under the I'm
Pfe'sloh that such would DO the pro
''uurs
NeNV appeared Nice-President Jone
WIN an interesting experience to relate
!" hal!oway Mr.. Jones, speaking iron
HIS own experience, said that II Haliowa,
Nouid lend Cummins money Cummin'
would surely make good Cummin
isNeu halloway shortly alterward ant
he'old the n-American presiden
mat Jones' OF the National Reserve hat
uhuersiated, II anything, his pull Th'
upsAot oil Cummins's call was that MIR
haIoway feit perfectly safe in letting
nm nave loan OF 100000. That wa
Oh May y, 1910, and on the same day
'ree hours later-Si25,0O0 in city none.
was deposited IN the -Ameri
ian