New-York tribune., 1911-01-08
that at that time he lent st s175o,ooo In
cash.

Isrre amount Of Columbus Hooking
securities In its vaults as collateral TOT
loans. The directors issued statement>
denying that they had any money ioaneo
on these securities. but run "ae
stsyted. and II was said that It was tne
nelp given by Mr.. Carnegie that puileo
them through.
While Mr.. Lewis refused to say last
night who was the person whose help IL
sa6 been hoped 70 secure In the present
trouble. Il was generally believed IN the
financial district that It was again MT
Carnegie.
The company had rad strong political
influence from the start and was an on
cial depository for state and city money
tho hsnkr,ptcv funds collected by the
receivers for the United States courts In
This district. the state Of Tennessee and
the Produce Cotton and Cohee eA-
changes. Al the close of business on
November 10, 1910, the official statement
showed deposits Of $S,S96, 700. When the
doors were closed yesterday the city had
on deposjt with the trust company $500
600. while the state had with it approHi-
rnateiy S1S5, 900. The bankruptcy funds
on deposit were estimated at S20o.ooo'
and Tennessee had $4,000 in the vaults.
Tho state funds are secured by de-
posit OF canal bonds. 1t was explained
at the state Controllers office yesterday
that whenever deposit OF state money
is made with a bank that bank is COM
pslIed TO deposit with the state similar
amount fl state bonds. In the case Of
she Carnegie company the deposit was
secured By canal bonds.
Bankruptcy Money Tied Up.
The appointment Of the Carnegie COM
psny as depositary for bankruptcy
money was brought about by Leslie NJ.
Shaw when he became president Of
the trust company after leaving the
Treasury Department The appointment
svss made on May 29. 1907. and the
order was signed by Judges George B.
Ad2rns, George c. Holt and Charles NJ
Hough of tbs United States District
Court. The bond required was only
$4,000. and was furnished by the United
States Fidelity and Trust Company two
days later. The receivers known to have
deposits with the institution are Harry
osterman. about $4,000. and William
Henkel jr., about $4,000.
william J. Cummins, chairman of the
board of directors Of the company, Is
said 70 have been largely influential in
securing the naming OF the Carnegie
g+o, FGr
money He was credited with securing
the deposit Of S1,OO0OeO that the bank
had from Mr. Hyde IN July. Mr.. Cum
minis was reported To have been in con-
sultation with Mayor Gaynor for sew
,ral hours on Friday night.
The first intimation that the financial
district had yesterday that the trust
company was closed was the finding OF
the brief notice from Mr.. Cheney posted
on the door when early comers went 10
transact their business. Mr.. Cheneys
notice said:
"The spperintendent Of Banks has
taken possession OF the property and
business Of the Carnegie Trust Company,
located at No I15 Broadway. Borough Of
Manhattan. Examination Of the affairs
a this company has caused the Super
irterdent 80 conclude that IL is in an un-
sound condition to transact business and
that II is not safe for It 70 continue
The examination is not yet complete. and
20 further statement can be made at the
present time
Excited Crowd Battles Policeman.
A crowd was soon clamorins at the
doors which the policeman posted at the
corner was unable 70 control Several
other policemen were soon on the scene
and for an hour or more they had an
exciting time with the crowd, that tried
to break Their way past and force IN the
doors Of the bank Several members Of
ths state Insurance Department were in
the crowd and they acknowledged that
they he'd let their deposits stay with the
trust company, though they had only re-
Gently been investigating Joseph @
Robin and knew Of bis connection with
the institution. They said that they had
become depositors with the Carnegie
company because q former member Of
the minor officers Of the trust company.
a couple Of hours after the doors were
closed ]. T. Howell. the president Of the
company, gave out the following state
caent:
This deplorable crisis was most I'm
expected It came practically without
warning. 1t IS the result Of sudden and
heavy Withdrawals occasioned by the
unsettled conditions brought about BY
the recent bank failure. The name Of
Uarrantably connected with certain in
rsrests involved IN that failure. Dis
trust was created without any founda~.
ton in fact The cash resources innme-
diately available were insufficient to
meet the heavy demands.
In twenty-for hours sufficient
amount Of money would have been pro-
vided TO meet the requirements. Nego-
tisticns we're virtually concluded which
would have met all the exigencies of ths
situation; IT was temporary relief only
which was required. The brief respite
needed. however, was not afforded.
Gale Assets Slow but Good.
There is no reasonable doubt that de-
poators will be paid in full In the
event Of careful liquidation. stockholders
should receive a substantial amount
upon their holdings. AS a consequence
Of the panic Of 1907 q considerable por-