The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-09
A QUESTION OF VERACITY.

a question of veracity has arisen be-
tween Andrew Carnegie and his per
sonal business representative on the one
hand and the State Bank Superintend.
ent Of New York, Mr., Orion II. Cheney,
on the other. The State official testified
before the New York county grand
jury that Mr. Carnegie's representative,
Mr., Franks, gave the bank superintend
ent every reason to believe that the
millionaire would stand behind the
Carnegie Trust Company TO prevent its
failure, saying that if the company got
into trouble he (the representative
would "throw it a rope,' and that
Franks on one occasion made this re-
mark to the Trust Company's new pres
ident: 'You are Jumping into
quicksand, but underneath the quick,
sand is the solid rock of Andrew
Carnegie standing"
Both Mr.. Carnegie and his agent had
already told the grand jury that after
Carnegie had twice helped the institu-
tion out of trouble. he not only gave it
no assurance of further aid, but also
positively refused to aid it when so.
llcited to do so. The feet that Mr..
Carnegie had twice helped the institu-
tion ont of trouble very naturally re
Enforced the assurance in the bank
superintendent S mind that he would
continue to do so, especially after the
remark about throwing it a rope, aud
" the solid rock Of Andrew Carnegie
standing beneath the quicksand
The fact is, however, that the com.
pany was insolvent more than year
ago, The Bank Superintendent, who
has wide discretion under the law in
such matters, permitted it to go on do
ing business for several months there
after, because of the Carnegie promises
and relief. But as the New York
Commercial points out, the Superin
an explanation. If the bank was in
solvent in April, 1910, as now ap-
pears, it was his business to close it up
instanter, and not allow of innocent
persons making any further deposits
therein, Apparently. however, in the
abuse of his discretion, he allowed very
heavy deposits to be made after he
knew that the company was insolvent.
without requiring such security as the
law requires for the safety of the
depositors. 1t was all well enough for
Mr.. Carnegie to help out the institu-
tion if he so desired. It was all well
enough for Mr., Franks, the representa-.
tive of Mr.. Carnegie, to say that he
would throw it rope, and that under
meath the qucksand the solid rock of
Mr.. Carnegie would be found. But
that sort Of thing is not valuable as
set as against actual money demands,
The presumption that, because Mr..
Carnegie had helped that swindling con.
Germ twice, he would help it again is
not proper foundation for a State
bank official to proceed upon in the per.
mission Of laxity such as this, which
has resulted in the gross swindling Of
large number of depositors. Mr..
Carnegie could not possibly be held for
on the presumption indicated,
nor on the indefinite talk about
throwing rope, or about being the
solid rock under the quieksand. That |
sort Of thing is no valuable asset for
a bank. 1t is nothing that can be
drawn upon in the form of cash or
actual credit. The Bank Superintend. |
ent Of New York was clearly derc-
lict in his duty. as the Commercial
points out, and is blameworthy in al |