davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
ATTACKS CEMENT MERGER
Millions Misappropriated, Says
Sir Sanford Fleming

b. Ielecrdpn 70 ne lFlUAll-
Ottawa. Ont May 12-Charges made hy
Sir Sanford Fleming alleging "extraor-
dinarv incorporation Of capital in con
nection with the cement merger, were the
feature Of z hearing TO-DAY before the Pr
vate Bills Commute Of the Commons on
the bill of the company which seeks 70
create eleven millions Of debenture stock ~
be exchanged for preference shares. sir
Sanford forwarded correspondence 70 the
committee obiecting to the measure. de-
mandins that a certain gentleman ana
his associates should account for thirteen
millions Of watered stock obtained. he al
leees. improperly and by artifce He asks
for parliamentary inquiry
In the documents inclosed he wrote
will he found evidence 70 establish that
an extraordinary incorporation 81 capl-
raj has been effected through an inter
rnedisrv agency al the very inception OF
The Canada Cement Company. and that
such INSTRUMENTATION was effected by de-
liberate artifce under the SuiSe OF law.
The results demonstrate that this hrst
act Of vrongdoing appears 10 have led 70
the necessity Of seeking power from Far-
lament 70 substitute FER cent debentnre
stock for the per cent cumulative
Another document forwarded by sir
Sanford was his letter OF resignation ana
third is letter 70 Sir Wilfrid Laurier
He said IN the latter that II came 10 his
knowledge last year that several NIL
lions of the capital stock Of the company
had improperly passed into the hands OF
one man and his associates
Sir Sanford Fleming is president Of the
International Portland Cement Company,
NJ Hull and until recently honorary presi-
dent of the Canada Cement Company
-,,lich IS the title under which eleven Of the
leading cement companies Of Canada
we're merged Two years ago with capital
of 100000
The cement merger was put through by
n Aiken. Young Canadian fnancier
. Montreal. who was elected 70 the British
11o,,se Of Commons in the last general cleo
- as I-nionist representative for Ashton
,,.dar-rvne He Is The head OF the BOND
and share Company Of Montreal. which con
...o,ed for the securities Of the eleven &C.
ar, conpanies in the merger
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
the s2,lo4ooo with which the fertilizer
notes were taken up.
Mr. Cheney summed In az foIlnus

Thus were concluded what I believe to
nave been the most active ,rsjsteat and
thorough EFFORTS ever made nv a banking
department 70 keep fully advised regarding
me dHairs ana condition Of a financial in
stitution under its supervision IN eliminate
objectionable assets through the substitu-
ton OF cash or It's equivalent and TO cor
rccl Una, when was criticisabie in manage
ment' NO che familiar with the facts can
question the sutilclency OF these efforts.
During my thirteen months in office /
had held l3s conferences regarding the al
tar TAR OF ne COMPANY of sufficient impor.
in the department For more than ten
months OF that period I had exacted daily
reports from the company. which kept me
constantly Informed as 10 its cash posi-
tior and bled me. n ANYTHING appeared
in those reports OF an unusual nature or
suggestive OF the need Of an inquiry, 10
institIte an Investigation. while from tune
10 me mad these reports verified oy
SPECIAL examinations Ten such special
eXar tnatlons were had In addition 70 the
regular examinations
During. the period as direct result OF the
efforts of the department $4,000 600 Of DOUBT
full assets had been turned into cash. Dur
ing the same period the claims Of deposlt,
ors against the company had been reduced
from Si.CoDGo 10 s. 500 coo
In the interest solely Of that public con
| fdence which should be reposed In the
Banking Department | desire that tnis
brief report should be given publicity; Ous
examiners are trained and experienceI
men. they are faithful in their work. loyai
10 the department, their honesty and OF
ficiency have been proved on many occa.
sions. The advantage 10 me personally Of
making public these facts is OF no conse,
quence. but II is OF great consequence ano
Importance 70 the business community thal
il should be known that the banking Jaw
in letter and spirit was at all times fear
lesslv administered by this department IN
the case of the Carnegie Trust Company;
as in all other cases Of which | have mao
anY knowledge
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
Writes Carnegie Again.

Following this letter 10 Mr.. Carnegie he
made TO inquiry Of me regarding the com
pany. nor did 7 have communication with
him again until April 2s 1910. At that time
on learning Of certain unsatisfactory con-
ditions in the Carnegie Trust Company
deemed II my duty Immediately 70 advise
Mr. Carnegie that I had lost the confidence
in the management which | had expressed
Cun1nins that I proposed 20 do SO al
once addressed the following communal
ton 70 Mr. Carnegie.
New York April &c. 1910
Ny Dear Mr.. Carnegie. Allow me 70
recall myself 10 your mind as FORMER
SUPERINTENDENT OF Banks and the present
Controller Of the state.
communicated 10 me by Mr.. Franks
letter regarding the management OF the
Carnegie Trust Company. The impression
which that letter was intended - convey.
and doubtless did convey in part was that
rad confidence in the present manage
ment OF the company 10 attain ultimate
TN light Of present information ] have
reason 10 be greatly disappointed In the
nroeress made. and because Of the letter
above referred 70 and your apparent interest,"
in the situation which then existed | deem
it nv duty 10 SUCCESS that you possess
yourself at the earliest possible moment OF
The facts developed through an examination
now in progress by the State Banking De
partment.
"T am returning 10 Albany al noon to-day,
hi, in case YOU desire 70 see me | shall he
glad 10 return 10 New York al your re-
quest. Faithfully yours.
CLARK WILLIAMS.
Address. Clark Williams, State Control
ler's Ofice. Albany. y. Y.
p S-Meanwhile Mr.. Jordan j. Rollins.
nj No % Nassau street telephone No. 2222-
Tohn) my personal counsel. Is entirely IA
niIiar with the conditions and will be glad
10 consult with you should YOU desire II.
CLARK WILLIAMS"
Two DAYS later. at Mr.. Carnegies re-
ouest / called al his home. and in the pres
ence 81 Mr.. Franks and Mr.. Cummins. told
Mr. Carnegie that I had lost commence In
Vr Cummns and certain or his associates.
Mr. Carnegie was further advised In detail
III my reasons for this loss OF confidence
nv Mr. Cheney. the then Superintendent 81
Panks who had accompanied me for that
nurpose The letter above quoted IL pub
iished with the consent Of Mr.. Carnegie.
communicated To me throufh Mr.. Franks.
| had repeatedly been urged 10 accept the
presidency OF the Carnegie Trust Company
by those In interest ! had always declined
10 consider such a proposal. on May B.
IeIQ. Ct a personal interview with Nj Car
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
RAID ALLEGED OPIUM DEN
Police Take Eleven Prisoners-Four
Mer Lying UNCONSCIOUS

CAPTAIN McReidy. Of the oid "esi -O''
street police station. who was for some 'iine
connected with the detective bureau, was
responsible FOR raid made upon an alleged
opium Joint at No. 22s Seventh avenue Iate
last night McReidy saw man "hom lie
recognized as a devotee Of the drug entering
No rs and ordered Patrolman CIohlh 70
send fer a patrol wagon
When the wagon arrived Detectives Den
nison and Stanton with several paroihen
mounted the stairs. They saw man com
ing out Of a door on the third moor ana
rushed into the room According 70 the
notice eleven men were found there, -FOUR
OF whom were lying on couches UNCONSCIOUS
All were arrested. one OF the number, who
gave his name Jack Edwards. Of NO
2n West 4eth street. being charged with
being the proprietor OF the place and the
others with disorderly conduct.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13

Jury, in the Supreme Court Some Of ths
collateral put up by Chapman. IL was al
legged, was stock In the United Security ana
Insurance Company, Of Baltimore, which
was subsequently, ousted from doing bust
ness in this state and liter vent into the
hands OF receiver. and stock Of the Ameri-
canAFiano Company.
Other collateral consisted Of notes sfgnef
b. z. J. Knabe. who controlled both thoss
companies. and stock and bonds Of ths
Titusville Northern Railway, which vas
never built. Chapman said the sale Of tbs
collateral was a violation OF the terms Of
the contract that he had with the Car
negie Trust Company. The case win bs
continued on Monday.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13

negie, held at his request, he urged me TO
take the presidency of the institution.
which / then declined as before.
Charles II. Hyde. former City Cham
berlain, when seen at his Offices in Cham
bers street yesterday afternoon at 4:1j
o'clock. said the only information he had
regarding any superseding Indictment
morning papers. All activity in the
Criminal Courts Building having to do
with the Carnegie Trust case was con-
fined 10 an examination conducted By
clerks and stenosraphers of the contents
of Cummns's private safe.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
Clark WilIiams's Statement.

Clark Williams not only warned MIR.
Carnegie again Cummins and his friends
following his former letter 10 the IRON
master recommending the Tennessee pro-
moter. but he declined Mr.. Carnegie
proposal that he become president OF the
Carnegie Trust Company. In Mr.. car
negie's testimony before the grand jury
1t will be remembered, was the assertion
that the ironmaster had lent the ~
| 104 600 to Cummins and his associates
on the distinct understanding, fostered
by Mr.. Williams. that Mr.. Williams was
10 become president Of the merger or the
Carnegie and Van Norden Trust COM
panies and the Twelfth and Nineteenth
Ward banks.
Mr. Williams said:
| have made no statement regarding ne
| articles published Of late relating 10 the
Carnegie Trust Company. Any coIhnein, |
based upon official knowledge ana ; w...e
| these matters were under judicial lhVes-
tigation would obviously have been I'M
/ proper. -
/ | became Superintendent Of Banks by
Governor Hughess appointment on OCTOBER
l
November II. 1909 During that period
claim a full measure of responsibility tor
every act and transaction Of the Banking
( Department Of the state, whether or super
l vision or Of examination. Without fear ol
I contradiction by those Of impartial ailu
honest Judgment; / assert that the super
vision over the $50 financial institutions
/ then under our jurisdiction. with tnelr
/ total resources equal 70 90 per cent OF the
ban hiking power OF the whole country, was
/ most painstaking. thorough and ericlent.
! This is fully established by the records OF
| the department. which. unfortunately, are
not available for publication.
/ There are rLatters, however. concerning
which knowledge should generally be had
/ in justice &c the truth and in FAIRNESS 10
| all interests involved
| first met William J. Cummins in lsOs
/ He presented letters evidencing the esteem
| in which he was heli ov prominent men IN
/ Tennessee. many OF whom ! knew person
ally These letters In their Endorsement
/ We're exceptionally strong and accrenteu
/ him "a a man Of unquestioned integrity
| and worthy Of every confidence Later. as
/ a director Of the Carnegie Trust Company
/ he repeatedlv expressed a desire 10 CO.
operate with the Banking Department IN
every possible way TO improve the condl
/ lion OF that COMPANY and during my al
rninistration he and his associates accom-
/ plishad much in strengthening the instltu-
/ ton \ result Of the frequent meetings
with him, due 70 the constant supervisor
| 70 which the Banking Department sub
| iected that company. was high regard for
| his ability and professed purposes.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
p. r. r. PEACE IN SIGHT,

Pittshurg. May lz.-As the result Of q
conference between General Superintendent
r. l.. O'Donnel OF the Western Pennsyi-
vania division Of the Pennsylvania Rail-
road. and representatives OF the striking
shopmen. II was reported unofficially to-
day that a tentative basis Of settlement had
been arranged, on which the strikers are 70
vote. Another conference will be held next
week. when. II is believed. the result OF tho
ballot will he reported 10 the company.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
CARNEGIE TRUST SUES BROKER
Seeks to Recover on Notes Secured by
ALLEGED Worthless Collateral.

The suit Of the Carnegie Trust Company
10 recover from Charles w Chapman. a
stock broker, on notes 10 the amount OF
$1,000 less 1881, which the company re-
ceved from the sale OF the securities de-
posted by the defendant. came 70 trial yes
terday before Justice Greenbaum and a
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
lBv Tho Associated PIES. ]

iBv Tho Associated Fress
Mexico CIV May That all those Who
urged General Reyes 10 run for the Vice
Presidency. OF even the Presidency in The
issi political campaign have not proved
6isiovel was shown tonight when repre-
sentatives Of the Reeves clubs" IN the cap
itsl held 2 meeting The public had almost
forgotten th6 existence OF these organiza-
tl.ls bur it appears that The coming Of
Pe~es mas served 20 give them new life.
a-l r. may be- that he will not be long in
regaining his former following. Plans were
nae tonight 70 welcome him on his ar
rival az Vera Cruz, where delegates will be
sert 10 accompany him 70 the capital
r. means OF reports brought BY couriers
- points where telegrap hic communication
rev he had with the capital the War De
Tartnent to-day learned that Luis Moya
and a formidable band OF insurgents were
planning an immediate attack upon Tor
reon. the Coahuia city AZ the edge OF the
llch Laguns cotton region An unsuccess-
~ attack was made on Torreon a, few
DAYS ago A. that time Moya and his man
arny we're many miles 70 the north but
the reports received to-day are that he Is
- near that his attack AT any time will be
no surprise Ar the time the courier leit
fcrreon. early this morning, shots had
been exchanged between the garrison
ouiDcsts and the advancing rebels.
P tfeneral Iojero. ia command Of the small
eonJ of fsderals. has made every possible
PREPARATION for the defence Of the city, but
Is feared that. unless he receives rein
iorcements. which are expected tomorrow,
twill fan
from the south. the region controlled by
''e figueroa brothers. the government has
~ alarming reports The leaders appear n
OBSERVING the spirit OF the somewhat
asue peace pact negotiated for them BY
Professor Figueroa.
'esiaeSt Diaz appears 10 have recovered
~' usual good health.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
SOCIALIST BEATEN FOR MAYOR.

stuttgart, Germany, May l2-An exciting
uavorslty contest which attracted nation
al attention. ended to-day in victory for
t1orr Lautenschlaeger National Liberal
over Or Lindemann Socialist. whose cleo
ION had been expected.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
CONTRADICT Mr.. CARNEGIE.
Continued from Grst page.

impossible 70 allow the company 20 open
unless the money was in hand by 2 o'clock:
He thereupon said that he felt that he had
done all that could he expected of him.
The cash was not produced and | took
possession Of the company before the open
ing NJ business on the following day.
Mr. Cheney's statement was in the
form Of a letter TO Governor Dix This
is his opening paragraph
Dear Sir Some time since 7 asked per
mission 10 submit TO you a written repor,
regarding the Carnegie Trust Company ano
its supervision nv the Banking Department
in order that such report might be maus
public As stated 70 YOU at that time and
since. II was my purpose 70 refrain IRON
submitting this report until the grand jury
should conclude the Investigation OF the
affairs Of that company, as | believed tina,
nothing should he made public which could
by any chance hamper them in their work
Meantime | have furnished TO the District
Attorney Of New York County the RECORDS
OF this department and Of the company
and have rendered him all possible assist
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
DEADLOCK OVER PEACE
insurgents Awaiting Move from
0iaz Government.
CUSTOM HOUSES OPENED
Madero's Provisional Govern
ment Continues Work on Or
ganization at Juarez.

Juarez' Mexico, May 12.-The provisional
government OF Mexico made such progress.
Win IT'S work OF organization to-day that
WITHIN Few days 1t is believed. Chihuahua
ana sonora will be administered by pro-
Vlslonai state and municipal officers.
Inc establishment Of garrisons in various
places IN Northern Mexico. the installation
OF local ofhcers and the opening Of railway
and telegraph lines is going on rapidly
uhder the direction of Madero and his Cab
net
Although nothing was done today by Of
ncers OF the provisional government re-
specting peace negotiations. the fact that
there is deadlock over procedure became
more clear. The federal government and
the provisional government arc standing
their distance. each waiting for the other
10 make the first move
The insurgents contend that Judge cara
balal suspended the negotiations after they
had submitted a proposition asking Presi-
dent Diaz 70 announce his intention OF re-
signing. Now that President Diaz has done
that, though the Insurgents say IL was done
in vague manner, the insurgents are
awaiting some word from Judge Cara tal.
who has maintained the status quo, not
having received any instructions 70 10
otherwise. Unofficial go-betweens are again
busy in an effort 70 bring the two sides TO-
get her
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
May Present New Argument.

They expected 10 get an audience with
Madero to-day. but were not successful.
Tomorrow. II is expected, he will listen 70
what is believed 10 be their new argument.
Having dissolved their original peace COM
mission Of three the rebels now NAV con-
duct their peace negotiations through their
newly organized Department OF Foreign
Relations. OF which DIT Vasquez Gomez is
secretary.
I A CLEAN of hope for peace is contained
| in the fact that some rebel leaders have
declared they would be willing to accept
/ General Diaz's manifesto as sufficient evil
dence Of his intention 10 resign. and TO go
ahead with peace negotiations, provided
/ the government consent TO the immediate
appointment of governors for fourteen OF
/ the twentv-seven states and 10 a general
| transfer of power 70 the hands of the revo-
lutionarv party What will come OF this
\ plan is not known. but il is said TO be IA
vored by prominent insurgent leaders.
With the question OF the Presidents res
ignation eliminated, progress toward peace
would be certain.
| on the other hand. some Of the insurgent
leaders believe that their military sue
ces.es soon will include Mexico City, where
| the provisional government VIII he moved
and that submission a. this time hardly
would afford as complete transfer Of
i political power as would follow a military
triumph. II is pointed out that the rebel
chiefs in the south would consent TO moth
ing bur immediate abdcation by President
Diaz. vet authentic adyices on this point
are lacking.
The provisional government. by taking
possession of the custom house to-day. viii
begin 70 receive lis first tax income. Tariffs
will be exacted as heretofore and the funds
twill be used 70 prosecute the revolution.
A report that arms could be passed
through the American line was ioyously
received. and arrangements are being made
for the purchase Of ammunition and artil-
lery. The insurgents in the north are well
supplied. but those in the south and west
have little equipment
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
NAVARRO MAY BE TRIED
Talk If Court Martial for Surrender
of .Tu9rez

Mexico City NAV Pit IS reported here
that General Navarro will he tried by
court martial for the surrender Of Juarez,
and that the court will eft AZ Chihuahua
within few days Although reports re-
garding the defence ~ the city indicated
that the federal commander had made 4
heroic stand, the fact that he displayed the
white flag when apparently in good fight
ing condition Is considered remarkable
II Is believed that the evidence at the
court martial may indicate him. as II is
understood that part Of his command
fought two DAYS without food or drink. and
some reports are that Navarro handed his
sword 70 Colonel Garibaldi only when he
could no longer endure the sight ~ the
suffering OF his men. hardened campaigner
though he Is.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13

Juarez Mexico. NAV General Ma
varro heard tonight that he proba bly,
would be tried by court martial for sur
rendering Iuarez He explained that he
was guided by Humanitarian motives
Four hundred soldiers thirsty. hungry
and with no possible chance ~ victory
over a force that numbered nearly nD0
were saved in his opinion from a pitiful
fate by the surrender
General Navarros friends say that he
was unable 70 maintain his outer trenches
because he did not wish 10 fire into Amer
lean territory. the insurgents entering the
town with the American line behind them.
He thought his only chance for victory
was 70 remain well within the town and m
his fortifications The insurgents. how
ever soon cut of the water and food SUD
niy The federal soldiers began 10 suffer
severely after the second DAYS lighting.
when the insurgents were throwing bombs
and setting IRE 10 frame buildings
General Navarro's conscience is clear.
he saws. He thinks he was right in sur
rendering when he did. INSURGENTS 10 a
man agree with him, az do Americans who
watched the night
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-13
Warned as 70 Need Of Money.

On Nav 81. 1910. Mr. Franks introduced
me 70 Mr. Joseph T Howell. stating that
an effort was being mao" 10 induce MN
~ accept the presidency Of the company.
IN Tune 1910 al the request Of Mr.
Carnegie's attorney, Mr.. Mitchell, ! had a
i've hour conference In M office with Mr..
Howell Mr. Franks and Mr. Mitchell. AZ
that interview | set forth in detail 10 Mr..
uoweU ,he departments conclusion re
qardinz the affairs Of the Carnegie Trust
Somnanv. and advised him not 10 accept
the Office Of president unless ne could ps
Tho event that any sudden call for funds
snuuia result Of the efforts OF Mr.. Franks
NJ foseph T Howell finally consented 70
taco,,e president Of the trust company.
nos dlIv elected and took office on Octo-
her 70 1910 Mr. Howell stated To the
Banking Department thar ne was given
Ssrner,e would render financial assistance
N the company and support In its manage
nent I refer you &c a copy OF me letter
rIeived from him whseh is attached
bes made. a copy Of which is also attached.
From both his letter and the affidavit I
o,Iote the following
"T was twice In New York during the
-,onth 81 August-preceding and following
~ vacation Mr.. Franks called upon me
an botI occasions. and urged me 10 accept
me presidency ~ the company At that
time he said 70 me. ! VIII ask YOU 10 take
n
a., n Is ONLY fair 10 say 10 you there will
hs rocks a, the bottom and ropes around
,,ou and Won shant 90 IN over your
head
Both Mr.. Carnegie and Mr. Franks. II
was understood. told the grand jury that
AZ no tine had they given Mr.. Cheney
Mr. Howell or any one else the assur-
ance that Mr.. Carnegie would come 10
the assistance Of the trust company
though Mr. Franks thought his zeal n
nrotect his employers loan to the di-
rectors of the company might have
raised that inference In Mr. Cheney's
mind. Mr. Carnegie went even further
II was reported, and absolutely denied
that any one had ever asked him TO as
sist the trust company after lie had len,