The evening world., 1911-02-02
District-Atttorney Whitman's
Investigation Reveals AS
founding Deal in Finance.
LOANS BUY n
Amazing Inside Story of Pur-
chase of Van Norden Trust
and Other Institutions.

Astounding transactions Of a financial
character have been revealed to Dis
'rict-Attorney Whitman from his ex-
ANIMATION OF the books of the Carnegie
TrIst Company. now in his possession.
These transactions, Il was learned to-
day, range from a queer juggling OF
figures In the so-called fertilizer
loans Of s2,ioo,Ooo. which the State
Banding Department finally threw
Down to more recent large loans upon
the collateral of i variety OF enter
rrisos in which william j. Cummins. a
poitician, promoter and captain Of in
dustry from Nashville, Tenn. was the
leading spirit.
Altogether tho properties organized
by Mr.. Cunmins and his friends owe
the Carnegie Trus, Company $4,000
according to a schedule prepared By
an interested creditor. A still further
Indebtedness OF $4,000 against these
same enterprises. which was thrown
out OF the Twelfth Ward anC Nine
teenth Ward banks by tho State Bank
ing Department Immediately ~follow!ns
the closing o. the Carnegie Trust Com
pany Jan :, will bring the local bank
ing Indebtedness OF Mr.. CUMMINGS
properties up to ss.sco.0 900.
The legal responsibility OF Mr.. Cum
Minis ami his friends as bank directors
for these loans viii, depend entirely
upon the extent OF their stock interest
An the various favored corporations.
which holdings are now being carefully
investigated by the authorities.
The city of New York has sGH,oo on
deposit in the Carnegie Trust Company
secured by a guarantee signed By Mr.,
Gun Minis and his associates.
High Finance.
An Inside view of high nance In New
Work Is found in the details OF these
TRANSACTIONS.
The so-callod fertilizer loans upon
which turned the whole unfortunate
situation within the Carnegie Trust
Company. originated as follows:
In the fall OF l90S. between seventy
1--WE and one hundred Independent manu-
facturers OF fertilizer. located %througa-
out the States east Of the Mississippi
River, attempted TO consolidate their
business interests under the name Of
the Independent Fertilizer Company,
? 9Th a capital OF 81 .0oc,O Jo. Numerous
>fncetings OF companies representing
z these interests were held in New York
during November and December. 1905,
and a temporary organization effected,
pnl n lr.st Sr0p Op NJ ,hn g4n0L ~ tho
Independent Fertilizer Company was
subscribed for, and paid for at par by
the fertilizer manufacturer who con-
.tcmpllted selling their properties to the
Independent Fertilizer COMPANY.
A ten-year contract for their entire
production OF sulphulic acid was negot..
a;cd between the Independent Fer. illzer
Company and the Tennessee Copper
Company. the $500, 900 cash from the in
f, itiai stock subscription OF the fertilizer
combine being paid to the Tennessee
Copper Company as advanced payment
on this contract.
After the aymen of the first $3.50, coo
TO the Tennessee Copper Company II be-
came apparent to the organizers of the
Independent Fertilizer Company ha; the
balance OF the payments could not be
arranged in accordance with contract
provisions. and one OF the officials OF
the fertilizer combine suggested thai
through his friendly relations with his
fellow townsman, William J. Cummins
OF Nashville, Tenn. he thought he might
be able to obtain q revision OF the con-
tract on a more favorable basis.
At this time Mr.. Cummins had formed
n banking connection IN New York City
with the late C. C. Dickinson. president
Of lhe Carnegie Trust Company and its
founder. who wal at Odds with the
banking interests generally.
Had Much Influence.
Mr.. Cummins was a fellow director In
the Carnegie Trust Company with
Frederick Lewisohn, president of the
Tennessee Copper Company, and It was
claimed that Mr.. Cummins had con-
siderable influence With Mr.. Lewiston
because Of political favors Mr.. Cummins
had secured for the Tennessee Copper
!, Company In connection with the smelt-
irg operations of that corporation at
Ducktown. Tenn.
Proper authority was granted the
4 trea surer of the Independent Fertilizer
Company to procure the assistance OF
Mr.. Cummins In these negotiations fol-
u a revision of contract, and within a few
Z days a revised contract on a much more
favorable basis as to terms OF payment
was rendered the Independent Fertilizer
Company. n the oficials OF that com
pany were authorized to execute such
modified contract. The total consldera'
ton In the contract remained the sams
as before. but whereas in the first In
stance 1t had called for entire payment
a. Aaah tha rauiaaA AAntsat nnrDnlftal
the payment of u, 900, 900 of the consid'
GRAFTON In Independent Fertilizer stock
The most surprising feature of the re-
vised contract was that the Indepen'
Z lent Fertilizer Company was instructed
10 deliver the 81. 500, 900 stock to William
j. Cummlns instead of the TENNESSEE
copper Company. All stockholders OF
the Independent Fertilizer Company N
: the time were assured that this wal