The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-04-26
Did Not Tell Bank Depart
ment He'd Save the
Trust Company.
TO INDICT STATE OFFICIAL
Reichmann Admits That Cum.
Minis Considered Hyde to
Be His Best Asset.

that the way OF the philanthropist is hard, =
Andrew Carnegie told the Grand Jury
Yesterday afternoon after he had in
sisted for an hour that the use of his name
by the Carnegie Trust Company was
fraud and that he had never given
assurances to anybody at any time that
he would help the trust company out
of the mire
As the result of Mr. Carnegie's testi.
mony Orion H. Cheney. Superintendent
Of Banks. will not be called before the
Grand Jury. The Bank Department has
assumed that it was justified in letting
the Carnegie Trust Company continue
business after April 1910, because of
alleged assurances that Mr.. Carnegie
wouldn't let the company fail. The
District Attorney holds that no sort of
assurances were cash and that the Super
intendent had no right to let the insolvent
company stagger on.
William j. Cummins's chief lieutenant
in the management of the trust company
Joseph B. Reichmann. startled the jury
men in the late afternoon when after hard
pressure by the District Attorney he said
that he knew Chamberlain Hyde was
Cummins's biggest asset. and that he had
been informed that Cummins not only
could but did swing city deposits. Reich
mann, who is in poor health told the
Grand Jury that he wanted to tell the
whole truth. Another opportunity will
be given to him this afternoon.
Mr.. Carnegie was not eager to visit the
Grand Jury ro ON yesterday. He held
back until the District Attorney told
him that unless he came on invitation
the square bounded by Madison and
Fifth avenues and by Ninetieth and
Ninety-frst streets would be sentinelled
by subpoena servers. Mr. Carnegie
thought the matter over and said that
since the State needed him at once he
would accept the informal invitation
A little past O'Clock in the afternoon
he came to the Criminal Courts Building
with r. A. Franks. They went to the
District Attorneys private Office thereby
avoiding prowling snapshotters. ana
waited until the jurymen assembled
Mr.. Carnegie bore himself jauntily He
was dressed in black from shoes to derby
and wore rather an old fashioned string
tie. He did not have to wait long before
the summons came and he stepped in
briskly.
For an hour and fifteen minutes Mr.,
Carnegie reviewed his relations with the
trust company that bore his name. He
went back TO the days OF Dickinson and
the panic OF 1907; back OF that even. to
the time when what he described as a
distinct fraud first came to his attention
He was he said. very anxious to make
clear his position in order that possible
doubts might be eliminated from the
mind OF the public.
When hs first heard that a new trust
company had taken his name he was
annoyed. He didn't like the look oi
things He wrote to his personal repre-
sentatives and to his lawyers protesting
saying that he didn't want his name
tackled on to the concern. He did every
thing he could to stop the use OF his name
II was no use. He was told that Carnegie
was a common name and that the in
dividuals who had taken it had protected
themselves by leaving OF the ANDREW"
But fraud was practised." said Mr.
Carnegie. shaking his head solemnly
cit was distinct fraud. gentlemen, moth
ing else"
For some time he heard nothing d-
recty from the company. although there
were rumors. But along came the panic
Strong representations we're made to
HIM that il he would lend some money
a straight and honorable course would
be steered. So he loaned 32.OO0,OOO to
the trust company and took mighty good
security for il.
And never said would come to their
aid again." added Mr.. Carnegie. And
! may add that never was asked to.
have always been in a position to make
good my financial promises. may say
that have been reasonably successful in
business But l never made promises
to the Carnegie Trust Company or to
the Bank Department
He was asked what Cummins could
have meant by giving him as reference
vhat Cummins meant when he told the
Grand Jury. Gentlemen. II you want to
know any more about me go to my friend
Andrew Carnegie. and he will tell you
that William j. Cummins hasn't crooked
HAIR on his head
Mr. Carnegie replied that he had never
Snown Cummins well Their acquaint-
auoe had been formal and slight.
II knew very little about Mr., Cummins,
uon'nued Mr.. Carnegie; "too little to
r"commend him to anybody"
l." had never guaranteed Cummin'
I" anybody he said. and he had never
moir any promises to Cummins about
r"n"f that might he expected from him.
The little do know about him show'
that u" was a very bad banker. said Mr.
Carnegie. IL by the reference to hi
Aalr he meant to refer to his personality
] cannot say"
Toward the latter part OF 1909 or there
khout Cummins went TO Mr.. Carnegie
and unfolded the great scheme OF merg
ka vun MADAM kanLa n tho Car