The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1911-01-13
HAD DEPOSITS
OF 100000
Carnegie Trust Company Is
Forced to Close Its Doors
IS HIT BY ROBIN SCANDAL

Funds Of Bankruptcy Court and State
and City Funds Tied Up-Uncertaln
Status of Institution Well Known In
Financial circIss-Many Changes In
Management Since Its Organization
Much Money Withdrawn Recently
New York, jan "a third bank
across which the shadow of Joseph G.
Robin, the indicted promoter, had
fallen has closed its doors and the
state superintendent of banks Is In
possession of the Carnegie Trust COM
pany, an institution with wide south
ern and western affiliations, with de-
posits of nearly 80, 900, 900.
United States bankruptcy moneys,
state and city funds are all tied up,
bonded In varying degrees Of sufi-
cheney. The company was named the
official depository of federal receivers
and trustees of bankruptcy appointed
by the United States district court, on
application of Leslie M. Shaw, who
for period became president of the
company following his resignation
from the treasury department.
A bond of SIS, 900 was put up, but
there are now on deposit $3.50, 900 of
moneys involved in compositions and
settlements, all of which will be in
definitely delayed. The city, which
at one time had 81 900, 900 on de-
post, still has $3.50, 900, secured by
the individual bonds of the directors.
The state has $S9, 900 on deposit,
amply secured by 800, 900 bonds.
The future Of the depositors and
stockholders will not be known until
the state superintendent makes pub
lie the report of his findings, but Will
liam A. Keener, one of the directors,
and formerly of the firm of Keener &
Lewis, counsel for the company, said:
Bank on what President Howell says
the company will pay dollar for dol
lar"
In 1909, when the Carnegie Trust
company was under the presidency of
the late C. G. Dickinson, who died
tory last May, an effort was made to
consolidate the Carnegie Trust COM
pany, the Nineteenth Ward bank, the
Twelfth Ward bank and the Van Nor
den Trust company under the man.
agement and name of Carnegie. But
the state banking department for
babe the merger under a ruling that it
would be impossible for a trust COM
pany TO consolidate with state banks.
The closing of the Carnegie Trust
company was no surprise in financial
circles. On the street the uncertain
status of the company had been a
matter of common knowledge. In its
brief career-it was organized in 1907
it had already passed through one
serious period of depression and had
known four presidents.
So many changes in management
had not strengthened the bank in
public favor. 1t is evident from its |
report to the state superintendent, |
Nov. 10, that its business had greatly |
declined during recent months. Then
the shadow of Robin fell across its
doors.
Dickinson and Robin had been
friends and allies Robin was on the
first directorate but resigned. When
the Northern bank was closed, and
Hotchkiss of the state
Of Insurance made public
his investigation into fits affairs, 4
draft drawn by Robin on the Carnegie,
with which he had no account, cropped
up. From that time there began a
steady but continuous withdrawal OF
funds by depositors who had lost con-
fidence. II could scarcely be called a
run on the bank, but in its culmina-
ton IL proved quite as effective.
The Carnegie Trust company occu-
pied expensive banking quarters on
he ground floor of lis Broadway,
which extended from Broadway TO
Trinity place. An enormous rental
was paid.
New York, Jan. 0.-Unattended
by counsel, Joseph g Robin, the
banker whose financial operations are
alleged to have resulted in the clos
ng OF the Northern bank, entered 9
'ormal plea OF not guilty to eight in
iictments charging him with the lar
,env Of S207 600 from the Washing
on Savings bank. of which he was