Richmond Palladium (Daily), Volume 36, Number 342, 16 October 1911 — Page 8

THE RICHMOND PALLADIUM AND SUN-TELEGRAM, MONDAY . OCTOBER 16, 1911. PAGE EIGHT.

SPECTACULAR CASE TO BEGIN TUESDAY

W. J. Cummins, Master Mind of Carnegie Trust Co., to Be on Trial. (National News Association) NEW YORK. Oct. 16. One of the most spectacular careers in American financial annals, comes to its criois tomorrow when William J. Cummins, "master mind" of the Carnegie Thust company, now defunct, goes on trial : tomorrow before the Criminal Division or the New York State Supreme Court charged with grand larceny of 1140.000, misappropriated, it is alleged, from the funds of the institution. The trial is on one of the eleven counts found against him in the indictment or the grand jury on March 21, the total alleged defalcations amountjlng to $350,000. The entire hanking world is watch'ing for the developments or the trial, ' which may be vital and iar-roaehing in their results. Not since the trial of (Charles W. Morse have financial cirlcles been so enwrapped in excitement. LA political upheaval in the state is lone possibility that may result from the expected revelations. ! The star witness for the prosecuIt ion is Joseph O. Kobin, former head of the wrecked Washington Savings bank and Northern bank, who was convicted for his "skyrocket" schemes 'and is awaiting sentence. Following fthe verdict of "guilty" last saring. friobin decided to turn State's evidence and testify in the trial of Cummins iand of former City Chamberlain, Chas. ill. Hyde, who is under indictment for alleged criminal action in depositing fNew Work city funds with the Carnegie Trust, when he was alleged to know of its unsound condition. Robin's banks had extensive dealings with the other company, and he has said that his testimony will disclose conditions unparallelled in records of "'high finance." Reichmann a Witness. I Joseph n. Reichmann, president of ; the Carnegie Trust company until shortly before it was closed on January 7, of this year, who Is now under five months' sentence for violation iot the banking laws in connection rwUh the Carnegie Trust's operations, kalso Is expected to prove an important '-witness for the state. He is out on tond pending his appeal to the Appellate division of the Supreme court. Reichmann declares he was merely a tool In the hands of Cummins, who I he says, controlled the institution and all Its big dealings with an iron will. Cummins will be represented in court tomorrow by some of the fore-i-most legal talent of the state, led by I Max D. Steuerm, a brilliant pleader nd criminal lawyer. Arrayed against rthern will be District Attorney Whitinan and a corps of special assistants, lwho have been working on the case for '.months hunting down evidence and preparing it for presentation. The maximum penalty in case of conviction results is ten years in the penitentiary. The Carnegie Trust company, in which Cummins made his last operations produced sensations from the day it was founded by the late Charles C. Dickinson, former Btate bank examliner. It attracted public attention toirst through its dispute with Andrew Carnegie over the use of his name. Mr. Carnegie at first objected to havqng the institution named after him, Kind even went so far as to consult awyers and authorities in Washington with a view to compelling the flounder to rechristen it. Failing in that after it had been alleged that the mime had been taken from a town in tPennsylvania and not from him, he .tolerated the institution, and after (Charles M. Schwab, one of his friends, llms been induced to become a direcK"or of it, he became quite friendly to t. Shaw Was President. Leslie M. Shaw, former secretary of ,the treasury, was made president of the institution Immediately after he 3eft the Cabinet. It was during his regime that the company became connected with P. J. Kieran of Fidelity Funding company fame. Kieran made 4hipes of almost every Catholic church iand religious order of that church in ithe United States, and when the explosion came, the trust company had to carry more than $500,000 of his securities. Dickinson, who owned the stock control In the institution, then broke with Shaw. The latter sold his holdings nd retired from the presidency, which was resumed by Dickinson, who set About seeking the business of coun

try banks and sold much of the stock to small bankers all over the United States but principally in the Southwest Cummins, who has since been so much in the public eye, then a commission merchant in Nashville, Tenn.. and interested in the Fourth National bank of that city, was one of the men to whom Dickinson sold some stock. Dickinson having learned that Cummins was associated with the Cudahys' and other men- of money, flattered him by making him director of the Carnegie Trust company. Cummins soon after this came back to New York. About this time, the Van Nordens, who owned control in the Van Norden Trust company and the Nineteenth Ward and Twelfth Ward banks, desired to retire from the banking field. They offered their stock Id a syndicate of the Kmpire Trust company directors. While the latter were dickering over the price, Dickinson and Cummins heard of the proposed deal

and snapped up the stock, as they j said, right under the noses of the Empire Trust people. Decided on Merger. Then they announced their plan to merge the four institutions, but the State Hanking Department, then under the superintendency of Clark Williams, opposed them on the ground, as alleged, that the law would not I permit the merging of banks and trust companies. The real reason, however, it. was said, was something entirely different. Cummins is trying to learn the secret, discovered, it was said, that the real trouble was caused, by j the personnell of the management. Cummins promised to bring about a change diplomatically, and soon thereafter Mr. Dickinson, who had been severely injured by a fall from his horse in Central park, retired. Joseph H. Reichmann, the young head of the National Starch company, generally regarded as a Standard Oil affair, was selected by Cummins as the fitting president for the Carnegie Trust company. Although in delicate haalth, he accepted the post. The first trouble the company experienced under the Reichman regime came in connection with a loan the company had made through a broker ta a man who turned out to be an exconvict. The broker and his principal quarreled, with the result that the latter rushed to the District Attorney's office and said that he had been defrauded out of $400,000 in bonds. This was distorted into the report that $400,000 worth of bonds had been stolen from the vaults of the Carnegie Trust company. The name of the institution was linked with the crash in the Columbus Hocking Coal and Iron company stock pool, which had been under the management of James R. Keene, and a run on the institution was the outcome. Subsequently President Sheldon, of the Prcenix Fire Insurance company, was exposed as an embezzler, as a result of stock market gambling, and some of the securities belonging to the company which he had pledged, were found in the Carnegie. That started another run. $30,000 Stolen By Boy. Meanwhile a messenger boy had stolen a registered package containing $30,000 and had eloped with a Jersey City girl. This brought more unpleasant notoriety on the company. The boy was not prosecuted, however. He is the nephew of a well known New York politician. Finally Roichmann resigned as president and was succeeded by James Howell, of Cummins' Fourth National -bank in Nashville. The selection of Howell was approved by Carnegie, whose attitude toward the institution had changed so much that he had helped it on the occasion when it had been hard pressed by the runs caused by the various unexpected happenings. This help had been extended at the aiQiniHrM) people need more coal, clothes and doctors than the strong, robust and hearty. Scott's Emulsion saves coal bills, tailors bills and doctors bills. mx oHuaaimrm 11-55

En The Home The Westinghouse Electric Iron is always ready for use, in any room in the house, at any time. No fire is required to heat it; dust, smoke, and heated atmosphere are eliminated. Simply screw the attaching plug into the lamp socket, turn on the electric current, and in a few moments the iron is hot, ready for use. No matter whether used by the servant or a member of the family the Westinghouse (Electric Iron will do the work more quickly and under far better conditions than any hot-stove iron. Has no delicate parts to get out of order nothing to adjust. Has no clumsy attachments to catch the clothing. The ironing face is evenly heated so that goods cannot be scorched by the iron overheating at any point. The Only Eelectric Iron Geiraateed Not to Bora Out. Price 94.25 Jones Hardware Co.

request of Mr. Schwab and consisted of th loan of more than $2,000,000 of United States Steel company bonds. Finally he became tired of aiding the concern, and, on the night of the crash, when appealed to once more for assistance, declined to extend it on the advice of banker friends. Cummins himself spent all that night, January 7, in the house of Mayor Gaynor, pleading with him in the absence of City Chamberlain Hyde to direct the latter's deputy to put $500,000 more of the city's money on deposit with the institution for twenty-four hours. The mayor declined to interfere and the next morning the State Banking Department descended on the institution and closed its doors forever. Then it was found that the company at one time had $1,000,000 of the city's money on deposit, and at the time of the failure' the balance due the city was $650,000. The money had been deposited by City Chamberlain Hyde. Instead of calling loans when in position of stress, the bank had obtained the city deposits. During that time Cummins was spreading out in every direction. He bought the Piatt Iron Works, financed the Tennessee Packing company and a Mexican smelter. In the West he lent money to a lumber concern and

other enterprises and he also financed projects of various sorts in the East. Many of these were of fantastic nature, most of them lost money and, as a result, the Carnegie Trust company, which bore the brunt of the operations, finally went under. Shortly after the closing of the Trust company's doors, the State Superintendent of Banking, Orion H. Cheney, was removed from office and later City Chamberlain Hyde resigned. It is believed likely that both will testify at the trial of Cummins. Shooting a Fish. A fact known by every one is th peculiar apparent bending of a stici when thrust Into clear water. Jt i due to the refraction or bending o light. Now, if one saw a fish in fre. water and desired to shoot it the gii must be pointed under the fish, for i must be remembered that the fish ar pears as did the submersed end o the stick too far up. If the fish we: directly under the observer, however the light would not be bent, and i' could be shot straigbt at. Chicag Record-Herald. HEADACHES are nature's DANCER SIGNALS. They indicate a deranged stomach, or functional disorders. Don't disregard them. Caparine stops pain OftJf quickly, removes the 1 -AMIWHg tiyatem. Capsule form only. Mc or 35c at Sold by A. moid, Ind. G. I.nkrn A Co., Rich- " The Bigjest Little Store in Town " DIAMONDS MOUNTED AND UNMOUNTED WATCHES Solid gold, gold filled and silver. All makes: Hamilton, Waltham, Elgin, Illinois, Dueber- Hampden, and other makes of good timepieces. We also have sterling silver and silver plated ware, gold and gold filled jewelry, cut glass and novelties. Moore's Non-Leakable Fount a i n Pens. Fred Kennedy JEWELER 526 Main Street

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