The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-09-16
GRUET HELPED
. SENATOR BAILEY
Basis of the Suit Against H.
Clay Pierce OF the Waters
Pierce Oil Company.
DEFENDANT ON THE STAND
SERVICES OF NO VALUE TO THE
TEXAN.

st. Louis Sept 1.-THE hearing Of wit
nesses in the suit of John p Gruet, for
mer secretary OF the Waters Pierce OH
company, against II. Clay Pierce, chair
man or the board of directors, for S25. 900,
which Gruet claims is due him as back
salary, was continued today until next
week in order TO secure additional wit
nesses.
On the witness stand Mr.. Pierce testi-
Iied that he had obtained Gruet from the
otanoard OIL offices in New York over
sixteen years ago and that Gruet had
rendered the Waters-Pierce company val
uaole services during a long term of years
IN FEBRUARY, 1905, Gruet was dropped
rom II m the company; and later appealed for
position with the Pierce Investment COM
pany.
Turned Over TO Bailey.
Immediately after Mr.. Gruet's employ
ment, effective April /, 1906" said Mr.
Pierce, Mr.. Gruet came TO see me i'm New
York. I told Mr. Gruet that the affairs of
the Tennessee Central Railway Co. OF
the Tennessee Construction company of
the Briar Hill collieries and the Cumber-
land Coal company required investigation:
and as had placed my interests in these
matters in the hands of Senator Bailey
or Texas, with power OF attorney for me
70 handle them as he saw fit; wished
Mr. Gruet 10 place himself at the disposal
OF Senator Bailey and make such inves-
tigation into the interests mentioned as
Senator Bailey desired.
Was Given instructions.
Mr.. Gruet readily assented to my sug-
gestion and returned to st. Louis within
day or two. where he met Senator Bal
icy and received instructions from Sena-
tor Bailey in regard to the investigation
which Senator Bailey desired made at
NASHVILLE, Tenn.-which was the head
quarters for all these companies.
~
der instructions from Senator Bailey, and
remained there some time.
He returned to ST. Louis and was elect
Ell by Senator Bailey. who had charge of
these companies. president of the Briar
Hill Galleries company, and. l am not
sure, but / think he was made a director
and president, and I think he was given
some official position i'm connection with
the Cumberland Coal company and also
the Tennessee Construction company.
Work of No Value.
'He became auditor OF adjustment OF
accounts Of these properties and Senator
Bailey ell of this time; and practically up
10 the end of Gruet's employment by the
Fierce Investment Trust company"
Pierce went on to explain that Gruet
put Ia several months in Nashville MAX
ing investigations under the direction OF
Senator Bailey and then went to New
York to make report to Mr.. Pierce. Mr..
Pierce continued:
Senator Bailey expressed THE opinion
that Gruets examinations at Nashville
had been without value, that he had sim
ply copied the accounts instead of inves-
tigating and checking them up as he was
sent to do. and the reports were OF no
value; he had simply repeated the state
ments he had copied from the books and
the work of subsequent auditors put upon
the work proved that Senator Bailey's i'm
pressions were correct and that Gruet had
simply gone TO Nashville and copied the
books. and came back here, and came to
New York, and he did not even turn in
his report"
On cross-examination Pierce estimated
his own interests in the properties at 3d.
OO0,OO