New-York tribune., 1911-04-03
DIX ACTS FOR DEPOS|TORS
Asks for Cheney's Records in the
Carnegie Trust Case.
A. STUMPF SUES J. G. ROBIN
Imprisoned Financier Prepares
Statement on the Inside
Workings of Banks.

No, only tho grand jury investigating the
.fandal hut Governor Dix himsch wants
N know why the Carnegie Trust 'onhpai'H
was able 10 get into the condluoh t'"'
caused II 10 be closed. The Governor WI"
arrived st the Waldorf early last eVehihs'
,s making an Independent investigator 10
satisfy himself how far the state bahni"S
Donartr1eut was responsible for the preSe"'
e,tuetion. To this end he has asked ou-
ner,ntendent Cheney 70 convey TO MN at
h,e records and correspondence touchihS
upon the case
The Governor has received great many
letters from depositors in the carnegie
rrus, Cornpanv and from business men
.stinr him why the company was not
closed Iong before II was. Some OF his cor
,..nondents have said even that banK
examiners had reported TO the State Bank
,rr Denartment that the condition OF the
trust conpany made its closing imperative
rba Governor has not brought these
oto-soe officially 10 Mr. CheneYs atten-
<,on He has not seen the Superintenden'
of Banks since Mr. Cheney's return rom
Denver. where he attended his father :
funeral
Ny Cheney's term Of office expires oh
April 70. The Governor is anxious that 'i'
records and correspondence OF the depart
,nent involving the Carnegie trust Coin-
ranv he turned over 10 him before i"a'
date He has not yet decided on MT
c,benev'e successor George Van Tuyl. OF
,he Albany Trust Company. is the most
talked of man for the place. but was said
10 he stu in the role Of an applicant
Anthony Stumpf, Of the Stumpf Publish
1ne Company. No. Pine street, FORMER
close associate uf Joseph G. ROBIN IN the
Northern Bank the Washington savings
Bank and other Robin enterprises mas
brought suit against his old mentor IN the
SnanciaJ field 10 recover $4,000 which ne
said he advanced Robin as a contribution
5n putting through the deal eliminating IN
.he purchase of the old Norris PARK race
track property Frederick X. Morris Roh-
rs confidential man" and James NJ. Gf-
,ord. who Robin said. was his personal at
,oruov from the inception Of his tnanclai
career are also named as deSendantS
The $4,000 which Stumpf handed 10 Robin
was 70 go toward the purchase of an "p-
,ior on the racetrack Robin raised the
vest Of the money needed among other
friends and bought the option. Stumpf salo
for 100000 Then he formed the Fidelity
Development COMPANY and sold the option
,o the company. Stumpf said he made
SSNoO profit in the transaction. and wanted
his share of the profit az well as his initial
contribution. which he sworc Robin agreed
10 return 20 him.
The connection Of James NJ. Clifford. Of
The law firm of Clifford. Hobbs a Beard
No = Nassau street. with the suit recalled
the old story of how Clifford and stump
Two davs before the Northern Bank was
closed. went M 20 Robins apartment near
Gramercy Park. and while Robin lay III
iu he'd took from his strong box bundle
of securities
Robin accused them of stealing these
securities. but thoy have said he gave his
consent. their object in taking IN" secuil
Ties being 10 make good = shortage the\
feared would cause the failure Of the
Northern Bank. or. failing 10 torestall d
failure. 90 safeguard their own interests as
directors.
Among the securities these two men took
from Robins strong box We're 500 shares Of
the Fidelity Development Company. which
Stuupf said Robin was holding for him as
his share in the profit mentioned above.
The stock was issued in the name of
Frederick x Morris and indorsed in blank
fy Morris Unfortunately for Stumpf. he
turned over what he had sOt from Robin :
strong box 10 clifford, who locked II all
no In a safety deposit vault. He said Gil
ford refused to give up the 900 shares 10
which lie was entitled
Robin is now preparing a statement 50
Samuel j. Goldsmith. his lawyer. said yes
terday. covering the New York banking
situation. II will reveal TO the grand jury
investigating the Carnegie trust case, Mr..
Goldsmith thinks. the inside workings Of
banking institutions. large and small. and
"the methods by which their evasions of
the law are permitted 70 continue" The
statement will make no specific charges.
however. against any one bank or indi-
vidual 1t will be Robins contention that
the competition among banks Is so keen
and that the big banks are so anxious 10
crowd the little ones TO the wall that no
small bank can exist without breaking the
fou