The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-01-09

/ Francis walsh d Co., tnc pro"ot
ers Of that institution. The cash
Ter OF the Metropolitan says,
however, that not more than $4,-
600 belonging to this institution
was on deposit there.
The Peoples State bank had
running account with the Carnegie
Trust Co.. making most Of the De-
troit collections for them. There
was no money belonging TO the
Peoples State on deposit in the
! closed New York institution.
NEW YORK, Jan. 9.-The Car
negie Trust Co. was closed today oy
State Superintendent OF Banks
Cheney.
The company was chartered IL
1907 and had a paid up capital o.
81 .500.0 surplus and undivided
profits of $4,000, and gross deposits
OF about SS,900,000. J. I. Howell was
president.
o. II. Cheney, head or the state
banking department, issued the fol-
! lowing statement:
The superintendent of banks has
| taken charge OF the property ana
| business of the Carnegie Trust Co.
| The examination OF the affairs OF this
company has caused the superintend-
ent TO conclude that IL is in an un-
sound condition TO transact business,
and that IL is not safe for IL 10 con-
| time.
The examination is not yet COM
| plete and no .urther statement can be
| made at this time
The late Charles &. Dickinson, who's
mysterious death on May "a, 1910, fol-
| lowing gas poisoning while witness
! ing a chemical demonstration in
Scranton, Pa, has never been thor
o-ghly solved, was one of the prime
movers in founding the Carnegie
Trust CO.. which opened for business
Jan. /, 1907. After the company had
been doing business for few months,
Dickinson resigned in favor OF Leslie
NJ. Shaw, formerly secretary OF the
treasury Dickinson remained as a
vice president and virtually manager
of the trust company. Shaw held the
presidents Office only a few months
and Dickinson was reelected
Shaw's resignation was due, IL is
said. to politics, Dickinson alleging
the former secretary was beset with a
United States"
The Carnegie Trust Co. grew under
the aggressive policy OF Dickinson.
Ris management. however, eventually
drew considerable criticism because
OF certain unsecured loans made TO
George p. Sheldon, President OF the
Phoenix Insurance Co., who died under
Indictment. II wah authoritatively
insignificant In amount and that the
trust company sustained no loss.
4 short time before Dickinson's
mysterious death. Rudolph Kleybolte
& Co., got an order from the court
for the examination OF Dickinson. his
brother. and Robert b. Moorehead,
secretary OF the Carnegie Trust Co,
In the matter of loan of $1,000,000
adj to p. j. Keiran, Of the Fidelity
Funding Co, which had been put part
ly in the name of Kleybolte & Co., II
was alleged, in order TO avoid having
SO large a loan in the name OF Keiran.
Dickinson died OF pneumonia and
kidney disease, IL was said. but IL was
further declared that the contributing
cause of his death was the inhalation
OF poisonous gases in F. w. Lange's
laboratory in Scranton, Pa. II was
said that Dickinson and others were
there witnessing the experiments OF
chemist on non-corrosive metal,
while other stories were that LANCE
claimed to be able to make silver or
gold from baser metals. The mystery
was never cleared up, for the Scran-
ton chemists denied that any gas Dick
inson has inhaled had contributed to-
ward his death. There were reports
that Dickinson had committed suicide.
but these reports were strenuously
denied. Some time before his death,
Dicki ION was thrown from his horse
in Central Park and his skull frac-
tured
Joseph G. Robin, the indicted
wrecker of the Northern bank, was
indirectly responsible for the closing
OF the Carnegie Trust. He was one OF
the original directors OF the Carnegie
but was forced out two years ago.
The fact that Robin had been connect
ed with the institution, however, start
ed the run that caused the suspen-
sion.
Big southern brokers and fnanclers
Of Georgia. tennessee, Mississippi
and the Carolinas are hard hit by the
suspension.
Despite it's name Andrew Carnegie,
the steel millionaire was never in any
way connected with the Carnegie
Trust Co. IL was rumored in 1907,
that, for sentimental reasons, Car
negfe advanced the concern funds TO
permit il TO weather the storm. The
Standard Oil Co. has been reported
to have small minority interest in
the Carnegie company.
Controller William A. Prendergast,
OF New York city. in statement is-
sued this afternoon. accused City
Chamberlain Charles Fl. Hyde, OF fav-
oritism In the matter of keeping big
deposit I'm the Carnegie Trust Co. in
the face OF unfavorable stories con-
corning the affairs of the institution.
He says that in July lie told Deputy
Chamberlain Walsh that $l,000,000.
the amount which the city then had
with the concern, was too large a sum
10 deposit in a banking institution
whose methods were the subject or
unfavorable discussion
Withdrawals were made for time
ana then ceased, according to the con-
troller, as few weeks ago the ac-
count stood at 100000
WASHINGTON, Jan. beyond a
slight fury, national banks will not
be affected by the closing of the Car