Perth Amboy evening news., 1911-03-22
BANKER HELD
FOR LARCENY
Cummins OF Carnegie Trust
Is indicted.

New York, March 22.-William J.
Cummins, master of the Carnegie
Trust company and of the manifold
operations Of the syndicate of that
name, was arraigned before Justice
Davis. the supreme court on three
grand jury indictments charging him
with the larceny of $335,0OO IN con-
neetion with the failure of the trust
company In January.
He was accompanied by his counsel,
Stephen Baldwin. He pleaded not
guilty and was released in $50, 900 bail
furnished by the Pacific Coast Casualty
company.
The indictment of the Tennessee pro-
moter who ran the Carnegie Trust
company for almost two years and
who ratified of the name of City Cham
berlain Hyde when he was arraigned,
is the first of q number that the grand
Jury has indicted. Excellent reasons
exist for a delay In handing down the
other indictments. 1t is desired that a
number Of brisk financiers step around
to the district attorney and ease their
minds.
The grand jury finds that Cummins
was guilty of grand larceny in using
for his principal benefit the proceeds
Of a loan obtained from the Nineteenth
Ward bank and the Van Norden Trust
company on the understanding, solely,
that the money was to go to the Car
negfe for a specific purpose. Although
the money was secured by Cur1mins
and others on their apparently anse-
cured demand, there's was an agree
ment that the Carnegie Trust company
should receive the proceeds.
On March 81 Cummins, through John
B. stanchdeld or stephen G. Baldwin.
1t Is believed, VIII ask leave to with
draw the plea of not guilty in order
that permission might be asked to in
spect the minutes Of the grand jury.
District Attorney Whitman will oppose
this application.
In the event that the court denies the
application Of Cummins his lawyers
will, 1t Is supposed, Ale demurrers on
a number of points in the indictments.
II the demurrefs are not sustained the
time of trial will be set for a date
within the next two months.
In April, 1910. Cummins and his as
sociates learned that certain loans
which had been made by various
banks on the security of stock Of the
Nineteenth Ward bank and the
Twelfth Ward bank were in such a
condition that II they were not imme-
diately paid of the collateral held as
security would BIO sold. 1t was desired
that such stock should not be sold in
the open market for fear 1t would at
feet adversely the institutions whose
stock was being sold and other ingtltu-
lions known to be Interested In those
two.
They therefore made arrangements
to obtain money from the Nineteenth
Ward bank and the Van Norden Trust
company for the purpose OF paying Off
these loans and releasing the collateral.
or, ii 1t proved more advisable. to pur-
chase the collateral when the loans
were closed out. TO raise the money
needed TO hnanc6 liz TRANSACTION GER
tain notes were given to the Van Nor
den company and the Nineteenth Ward
bank, a~agregating S33h,000.
The indictments aied charge the lar
ceny OF these sumsi April 81. 1910,
$4,000; April az. 1910, $4,000, and
April 28. 1910, $4,000.
None OF these transactions appear
aver to have been entered upon the
books of the trust department Of the
Carnegie Trust company, nor, SO far as
can be learned. was there aver held by
the Carnegie company In trust for the
two institutions advancing the money
any shares Of the stock Of the Nine
tsenth Ward bank or the Twelfth
Ward bank.