The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-01-08


- Although Mr.. Prendergast furnished a
copy of the guarantee he was somewhat
disturbed yesterday because he could not
find the original He says he gave that
to Mr.. Hyde. the City Chamberlain, who
according to current report il absen
from the city again. Mr.. Prem dergas
reports that the Withdrawals al the rat,
of S50,O a week were discontinued afte,
Mr. Hyde came back from Europe and the
amount was left az SSpD, ,OOu II j. SGjD. no,
now, owing to recent Withdrawals OF SljO,
600. But what the Comptroller wants
to say most is thai Hyde did nothing &c
make the deposit secure and that he HIM
self. having authority from the MaNoi
to Withdraw the whole deposit last sum
mer, did not tn ink best to do so
ONE CITY DEPOSIT RoNpEp on FRIDAY
No proceedings to make the city secur.
under the guarantee can hc begun until
the original has been found Nr Prendef
gast SAYS he gave II to MIR Hyde on Dctu-
ber 81 Mr. PrendergaSts copy is not
even "a certified copy
Deputy Chamberlain Walsh, who has
been running the chamberlain office
practically from the beginning of the
wear was asked YESTERDAY To find the
the strong boxes in which the bonds and
other valuable papers belonging To the
City Chamberlan's office are kept. but
could not find it, 1t was suggested in
the City Chamberlain office that perhaps
MIR. Hyde had the paper IN his own safe.
which cannot be opened until Mr.. Hyde
returns to the Office. He may be back
on Monday.
Although Deputy Chamberlain Walsh
would answer no inquiries yesterday, II
was learned from other sources that in
refusing to interfere with the deposit
at the Carnegie company when Mr.. Prem
dergast suggested, he was acting ON
orders Mr. Walsh endeavored yesterday
until late in the afternoon To locate Mr.
HYDE so that he could communicate
with him. but his efforts were unsucccss-
full Comptroller Prendergast said yes
terday that he had been informed that
-fhe personal relations between the
controlling interests of the Carnegie
Trust Company and Mr.. Hyde We're very
close. To all inquiries as TO just what
these close relations We're Mr.. Prender-
gast refused to give any answer.
In the absence of MIR. Hyde Deputy
Walsh is likely To withdraw the cttys
deposits from a number of little banks
on his own responsibility. He got a
bond on Friday covering the unsecured
deposit in one bank
James j Martin, former City Chamber
lain. said last night that the city's deposit
in the Carnegie Trust Company had been
made since he Went out of Office. January
1, lUl' nv Sttltl llldl pressure ldtl IttIl
brought during his administration to pro-
cure a city deposit for the Carnegie. but
that he had resisted it He said also that
the city's deposit in the Northern Bank
had been made in 1910.
TRusrFrLNFss OF rHF Z s. COURT.
When Leslie VI. shaw. " ith the halo
that surrounds former Secretary of
the Treasury Nf the United States, was
president of tho Carnegie concern in
1907 he got the company made the Off
cial depository of funds of bankrupt
estates in The hands of the United States
court here There il said "a be about
81 ,0Oo,ooO Of this money tied up 10y the
closing OF the trust company. The order
dated May % 1907, making II the official
depository was entered on MIR. Shaw's
petition by Judges Adams. Hough and
10 secure the deposits. Two days after
the date Of the order the United states
Fidelity and Guaranty Company pu,
up the s25.UoO bond.
Since then trustees and receivers in
bankruptcy proceedings have been max
ing their deposits in tire Carnegie. One
OF these receivers. Harry Osterman,
has 500 600 on deposit, and another
William Henkel. Jr., has 10000 One
receiver succeeded in holding up a check
for substantial deposit Yesterday,
having heard Of the Carnegie company
embarrassment Just in time.
The Federal statute which authorizes
the Judges 10 select "A depository for
bankruptcy funds reads as follows
"Depositaries for money. The L. :
statutes prefer the "a" to the "o"l a
Courts Of bankruptcy shall designate
by order bankin Institutions a. depos-
ltaries for the money of bankrupt estates
as convenient a. may be 10 the residences
of trustees and shall require bonds 20
the tnited States. subject to their ap-
nrnNnl h.l an hy such ha, r,,,y
instit tutionS, and may from time to time
as occasion may require by like order
increase the number Of depositarles or
the amount of any bond or change such
deposit ares.
A large number Of compositions and
settlements III bankruptcy are likely
TO be held up by the closing of the trust
company doors.
, At the time Of the failure the officers
OF the company We're Joseph T. Howell
president; K. l.. Smith, vice. president;
X. B. Moorehead, secretary; A. r. Chand-
Ter, assistant secretary; W l.. sampson
assistant treasurer. Stanton {. Dick nson
brother Of &. {. Dickinson. organizer
OF the company and long its president
was treasurer up to last summer when he
resigned. His place had not been filed.
The directors were David H. Bates. W. J.
Cummins, one of the most prominent
bankers and business men of Tennessee,
who was most influential in control; A. B.
lnanuleT, formerly president Of the Pos
tai Telegraph and Cable Company: NJ. j.
Condor. George W. Courts. W. A. keener
and l.. l.. Lewis of the law firm of keener
4 Lewis Samuel II. Kress. G. A. Moore.
Jr., B. +. O'Neill, Joseph B. Reichman,
formerly pres dent of the National Starch
Company; Charles NJ. Schwab, George G.
Smith and John b. Stanohfeld John
Cudahy, the packer, Is on the list. but says
he IL not a director.
EXPECT TO PAY DEFosIToRs IN PULL.
President Howell and several of the
directors said they We're confident that
the company would be able to paw de-
positors in full and pay to stockholders
very nearly full value for their stock.
Some OF the officers were still hopefiu
Of assistance from Mr.. Carnegie and ac-
cordingly of an early resumption of bust
ness. But most Of them were not at all
sanguine of success in this direction
President Howell in a formal statement
said:
This deplorable crisis was most unex-
pected II came practically without warn
ing II Is th" result OF sudden and heavy
Withdrawals o""a~Oned by the unsettled
conditions brought about by the recent
bank failure The name of The Carnegie
Trust Company was unwarrantedly con-
nected with certain Interests involved in
tha, failure. Distrust was created without
any foundation IN fact. The cash re-
sources immediately available were in