New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-22
Whitmsn's Key TO Indictment.


District Attorney Whitman supplied in
his opening address. which he delivered
IN the morning. the key to the intricate
transaction which led to the Hyde indict-
ment lie said;
The evidence will show that when Hyde
had the conversation with Robin. which
will be proved. that such conversation
was had at the request OF William j.
Cummins who was the principal owner
and controlling factor In the Carnegie
Trust Company and OF Joseph b. Reich
mann, It's president Both OF these men
have since been convicted OF criminal
offences In connection with their dealings
with the Carnegie Trust Company Be
fore the negotiations between Hyde and
Robin. Cummins and Rechmann had
done everything In their power TO com
pei loan from Robin or his bank 10 the
Carnegie Trust Company and had failed
ThereupoD Hyde was summoned to
their aid, and the resources OF the City
OF New, York were used in this instance,
as We shall show they were used in many
other instances, TO save, for the time
being. the friends OF the defendant Hyde.
Robin at first refused the request even
when Hyde added his demand Finally.
however. Hyde threatened that he
would withdraw the clty's money entire
ly from the Northern Bank IL Robin con-
tinued In his refusal. No man living
knew better what that meant than
Robin. who pleaded with Hyde that he
the Golfers OF the Carnegie Trust Com
pany. A scheme was then devised 10
raise money Immediately. and a promise
was given that further funds Of the city
would be deposited In the Northern Bank.
The cash on hand. which the Northern
Bank then had, would not stand the
making OF the loan OF $4,000. II did,
however, have some securities in It's
gstlt he tuh trh iyht hx .zty
necessary money. and this procedure was
discussed at the conference, and Robin.
under the pressure put upon him by the
defendant Hyde, agreed that he would
cell these securities, get the money and
loan II TO the Carnegie Trust Company,
This was done, as we shall show you by
the testimony of witnesses, members NJ
the executive committee of the Northern
Bank.
The reason why the Carnegie Trust
Company absolutely had TO have the
money at that particular time, and WHY
a few hours delay might have been fatal
was this; The. Banking Department was
making one Of It's semi-annual exan,na,
lions Of the Carnegie Trust COMPANY
The examiners had found a shortage In
the capital investment Of the trust com
pany. Its officers were trying TO cover
up THIS hs.I the securities which
yestment, had been sold to raise cash. so
that the company's apparent cash reserve
would be over the legal limits.
This $4,000 transaction was only one
OF series Of connected transactions. In
various banks In the City OF New York
on a particular day, the Chamberlain de-
posted a sum OF money, sometimes SIS COO
sometimes 100000. and generally on the
same day the bank would make a loan
to Mr.. Cummins or some OF HIS associates
Of the same amount or an amount slightly
smaller than the city deposit These
loans TO Mr.. Cummins would not have
been made, and In many cases could not
have been made. except by the use of city
money.
Apparent Profit in City Money.
The money deposited by the Chamber
lain in the banks was at a uniform in
terest rate OF per cent. while the loans
by these banks made to Mr. Cummins
and his associates carried s per cent
interest st. but Sers secured oF In general
and his associates Apparently, the
banks entering into these transactions
made a gross profit OF per cent on the
city's moneys so received and loaned.
actions with other banks, but only for
the $4,000 transaction which was frst
mentioned. Proof of the transactions
with the other banks will be offered for
the sole purpose OF showing the criminal
intent and purpose Of Hyde In his deal
lngs with Robin In the transaction Of
$3.50 900.
A significant bit OF Robins testimony,
useful as an opening for the testimony OF
all those bankers who told the grand jury
that they had lent Cummins and the Car
negie Trust Company money following the
receipt OF city deposits, was this quota
ton from his conversation with Hyde on
that summer evening In Wall Street:
Hyde said to me-" said Robin. IL you
loan this money I'll give you as much
and more. Leave II to me, II you lend
the boys half a million I'll give you half
a million. If you have any friends in the
banking business who will lend them any
money I'll give them as much as they
loan and rs or 10 per cent more. Anything