The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-11-11
TELLS STORY Of HIS
RAPID RISE AND FALL
William j. Cummins, of Car
nesie Trust Company Fame,
on Witness Stand.
BEGINS AS A NEWSBOY
When Crash Comes He IS at
the Head of New York
Financial Concern.
BEGINS AS A NEWSBOI

NEW YORK. Nov. io.-smiins snc
confident. William ]. Cummins. on tr'a
charged NTH the larceny OF aio'ooo II
connection with loan transactions OF the
Carnegie Trust company took the stano
today In his own defense
Aftor detailing the story OF his eris'
from n newSboy and applemonger on 'h'
streets of Paris. Tenn. where ne wa
born Gfty yoars ago. to a partnership N
: merchandise business IN NesIN ~ ~
Tenn. that ncIted him Slo,ooo year
Cummins plunged Into minute Tcci'ai ol
the events that cnt snort ms career "
= captsin OF finance in New York.
lie canie into the Carnegie Trust com =
pany. he said. et the Invitation OF tnV
late G {. Dickinson. then presto enl OF
The company. who promised him, he said
that tho company would purchase Sn,uoc
600 of tho bonds of his Nashville business
on condition that he bought stock ~ INC
Carnegie company and cot h.ooo.oo IN
now deposits.
C.unimins said he obtained 81 200 600 de-
rosty for tho Carnegie company. but
Dickinson failed IL keep his promise 10
couldn't take that because he had been
forced 10 pay Andrew Carnegie n loan OF
81, 500, GEO
The Carnegie Loan.
Dickinson said" explained Cummins,
that during the panic or 1907 Charles
NJ. Schwsb and Alton s. Parker had ne.
zotIated = loan of 4 million and a half
ia steel bonds from Mr.. Carnegie and Mr..
Carnegie had taken all OF the assets OF
the Carnegie Trust company as security,
IN addition 70 The guarantee AZ Mr..
Schwab and Mr.. Parker. Mr.. Dick'n son
said that as the money from my deposits
csnlc IN he bad given it to Carnegie
!u-t what The J%socia ted uectlon
WAS between Mr.. Schwab and MIR Parker
snd the Carnegie Trust company I'm the
negotiations of this lean was NOT brought
out In the testimony. Shortly afterNsrd
Dickinson proposed tu him, Cummlns
said. consolidation Of the Carnegie
Trust company with tho Van Norden
Trust company, because the Carnegie
Trust company Was short Of cash and the
Van Nordcn Trust company had lots of
II -ppeared that Dickinson had al
resdN purchased 1000 shares Of the Van
Norden company stock according 10
tuWmlns. raising she money by four
notes agSresatiue S2.t"oooo put into the
tsiucElc Trust company and indorsod bv
various FERTILIZER concerns IN which Dick
lnson and Cummiua wcrc interested The
state banking dersrlment objected TO
those loans and This led up 10 making tho
t-,a"",o ooo loan in i-rlied states steel
bonds from Andrew Carnegie, which
tumnius said he applied Ia tho reduction
~ ihe oans, Andrew gle. he testI-
rcd. iatcr furnished Si20. o00 additional
Tor this purpose on Cummings personal
note.
Companies Consolidated
Because The osnxtnE department then
objected Ia loans made bv the Carnegie
Trust company tc its directors. Cunmns
said further negotiations were started
for the consolidation of the Carnegie
Trust company with the Van Norden
Trust company. 10 which Bradley Martin
Jr.. head of the Van Nordcn and also of
the Nineteenth Ward bank assanted
j told Martin said Cummins. 'rha,
II We could raise enough money To pay
off certain loans in the Carncgie Trust
company and the other banks 1T woul;
5rcatly relieve tho general situation
This resulted In the execution Of plans
hy which the Van Nordcn Trust COM
plny and the Nineteenth Ward bank pro-
vl9"d the necessary cash secured by the
notes OF Martin and others.
y said that In my opinion $500 OU0
would cover the general situation and
tho directors then voted for the loans
10 be made said Cummns.
Was anything said about the money
being used only % paw the Van Nordeu
loanS?' Cummlns was asked
Not a word" Cummins replied "'rhc
loans were voted without any stipulation
with regard 10 them"
That there was no stipulation il the
point on which tho defense relies to