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

believed that with careful and 'onserNa-
tive management the confidence ol th'
publir could he gained and he AFFAIRS oi
the company placed beyond criticism
W. A Keener. OF - Of the directors cor
roborated MIR Howell's statement.
The trust company is absolutely sol
vent he said president Howell : state
ment is entirely correct.
stanton C. Dickinson. brother of for
mer President &. &. Dickinson. had thus
! to say.
The company was o X AT the time of
my brothers death If any statement
be made to the contrary Will prove my
statement
roMpANY's DEPOSITS WE'RE run DOWN
| recent report Of the company showed
! balance sheet as follows:
! liabilities 81 500. .oo0. surplus and
undivided profits, $4,000 individual de-
! posits. ssj?o,0 900, bank deposits. s3.o7s ,o"o
| trust deposits. s572 900. other liabilities,
: s3Io.po
| Assets - oans. 81 705 900. bonds and in
vr-,ments. s3.las. 900 due from banks
81 .2Si, 900 cash and exchange. si,o3o,H0
real estate. si2j 900; other reserve. sds5,oW.
II is noteworthy that very large part
! of the more than 5000. OOo deposits is
due TO banks The heavy bank deposits
were u result of the policy of Leslie Nj.
/ SHAW, NttTtIaTN oI l1le ~,
| when he was president of the company.
! Mr.. Shaw used all his influence TO secure
| the deposits of interior banks and was
| fairly successful.
If there is taken from the total OF in
divdual deposits the deposit of the city.
then ssU,oO. and the si,0OOW0 deposit
of trustees in bankruptcy and other public
moneys. there remained on the date
of the report November 10. less
than s.. 200. 900 in demand deposits due to
individuals That amount must have
shrunk in the course of the run since.
and IL seems improbable that individual
deposits subject 10 check amounted TO
more than 81 5OOOO0 at the time of the
failure. At the height of the company's
prosperity, in the latter part OF 1909, II
had deposits aggregating SIS. 10000.
IL puzzled downtown bankers yester-
day 10 comprehend why the officers
had not realized on their quick assets
Apparently they were in no danger OF
withdrawal of the city deposit OF of the
deposits Of trustees in bankruptcy, and
il seemed 10 other bankers strange that
they could not have raised enough on
their security holdings TO satisfy the
the Northern bank took place on De-
cember 20 and the officers had had abun-
dant proof of the individual Withdrawals
and abundant time Ia protect the bank.
Moreover, money il easy and time loans
on good security can easily be secured'
al per cent
Az far a. can be learned the officers
of the company did not go 10 any Of the
big banks for aid. Their failure TO do
SO is explained on the theory that. as
President Howell intimated. they were
expecting assistance from Mr.. Carnegie.
BANK WITH A STORMY CAREER
For "a proper Appreciation of the condi-
ZION Of the bank and the causes Of sus-
IL - 60 l,aD
the company's history. The run follow
ing the failure of the Northern Bank of
New York was the direct cause of suspen-
sion. but indirect and much more i'm
poriaut causes date almost from the
or ganlZation Of the company.
Undoubtedly there never has been n
banking institution which has had such
a stormy career C.rta inly there has
never been one in which so many incidents
narrowing 10 lis officers We're crowded
into SO brief an existence. From the day
of the opening May 20. l9Od up TO the lime
of closing yesterday the officers had only
brief periods in which they could hav.
felt content and confident,
The company had TO contend with
Andrew Carnegie's avowal Of lack of
interest in it, with criticism of bankers
attracted 10 II by progressive" methods
of soliciting deposits, with the unpopu-
larity Of its organizer, G. {. Dickinson,
among local bankers. with the noforiety
occasioned by the rupture between Mr..
Dickinson and Mr.. Shaw, resulting in
Mr.. Shaw's retirement from the presi-
dency; with the panic of 1907. with the
Fidelity Funding scandal. with the com
panv's transactions with George p Shell
don, who looted the PheniN Fire lnsur-
ance Company; with the collapse of the
Columbus and Hooking Coal and Iron
pool. with the resignation of Mr.. Dickn-
son as president. with Mr Dickinson =
Il al ..lrg,,. \. -.
spired rumors Of suicide and finally with
the Northern Bank and Joseph G.. Robin
There We're other minor matters too
attracting unfavorable attention and
unpleasant comment. When a bank fails
il is trite remark that the failure had
long been expected. but II is true remark
as applied to the Carnegie Among
bankers the wonder has long been that
il was able to withstand the criticism
repeatedly directed against it,
The organizer OF the rompany. Charles
{, Dickinson. was "a graduate Of Cornell
state banking examiner When ha gave
that up he organized several real estate
and cemetery companies. and was then
vice-president of the Colonial Trust Com
pany He resigned from that Office
when he undertook the organization Of
the Carnegie
Mr.. Dickinson controlled the Security
Assurance Company, which had charter
conferring very broad powers. and organ
iZed the trust company under this charter
rather than under the strict form of ths
State banking law This in itself attracted
criticism from bankers of the old school.
but MIR. Dickinson was successful in
securing subscriptions to 81 ,OOO. 900 stock
at $3.50 "A share and the company opened
with paid in capital Of 81 ,OOO.V 900 and a
surplus of S5OO,OU Mr. Dickinson
secured for il expensive quarters ON m.
first floor of the Realty Building. LAYING
5000 a year rent, furnished and deco
rated the offices eNtravagantlv and had
heavy running expenses 10 contend
with at the start.
The name Carnegie was attractive, but
it lost much of its glamour for the com
pany's purposes soon after the business
was begun. Mr.. Carnegie, who was then
abroad. gave ont an interview in which
h" said,
some time ago received note asking
me If ! would object to the use of my name
Tor "A financial institution. ! wrote 1
preferred it should not be used, as con
sldcrcd IT "A mistake to name anything
after man who il still living have
no interest in the trust company"
now sHAw cot COUNTY, RANKS IN.
But il the Carnegie name could not he
used To- i's full advantage Mr.. Dickinson
could ma another name that would he
of service, lie accordingly Interested
Leslie NJ. Shaw, then lust rounding our
ms career as SECRETARY OF the / raaS,Iry,
and presently Mr.. Dickinson stepned
down as preside and elevated Mr. Shaw