New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-17
Banker Is Held in $4,000, but
Fails to Furnish Bond.
COURT REFUSES HIS HOME
Southworth, the Former Cashier,
Said To Be Ready to Turn
States Evidence.

David A. Sullivan formerly president OF
/ the Mechanics and Traders Bank OF
BROOKLYN. was arraigned in the Kings
County Court before Judge Dixie yesterday
on an indictment charging him with for
! gerry IN the third degree ana held in $4,000
/ Lail.
Kenneth A. Southworth, the former
cashier Of the bank. who was named in a
similar Indictment will be arraigned this
morning. lie was placed under nominal
arrest yesterday bu, was not sent TO jail.
II is said that he has broken down and -
ready to turn states evidence.
The indictments against the two were
found by the Kings County grand jury on
Tuesday morning and bench warrants wer
issued Mr.. sullivan was arrested In the
evening and taken 10 the Raymond street
Jail. TO which he was returned after his
arraignment yesterday. and he was not
balled out up 10 d late hour last night
Leading to the view that Mr. SOUTH
worth will aid IN. the investigation ~ the
Mechanics and Traders Bank. il was
learned yesterday that he appeared before
the grand jury on Tuesday afternoon and
made statement.
the now famous Cheseborough forgeries,
which. II Is alleged. Mr.. Southworth car
red out under the instruction Of Mr. Sui
liyan by transferring 100000 from the ac-
count Of Mrs Elizabeth Cheseborough 10
cover bad loan on the eve Of the ap-
pearance OF the inspectors II the state
Banking Department Assemblyman Louis
Goldstein specially designated by Governor
Dix 10 conduct an inquiry into the Affairs ~
the Union Bank. the reorganized Mechanics
and Traders Bank whose investigation
'disclosed the alleged forgeries, was desis-
mated Yesterday as special prosecuting off,
Ger 10 assist District Attorney John +.
[ Clarke This was sanctioned by Judge
Dixie. Meanwhile the grand jury Is pro
ceedinc with the Investigation Of the bank
and other indictments are expected.
Mr. sullivan was brought from the jail,
where ne had spent the night, Icy Detec-
uves piehm and Mulcahev. Of the District
Attorneys staff 4 handkerchief was
tucked about his neck. and ne appeared 10
have had q hard night. At the courtroom
he was greeted by Father James Wood, Of
the Holy Cross Roman Catholic Church.
10 whose parish ne belongs. Another
friend who appeared was ". q. pamron.
of No. 2f5 Montague street who has been
associated with Mr. Sullivan 10 many trans
actions
The grand jury handed 10 judge Dixie
two indictments. but Mr Clarke explained
that only one was TO be used az the time.
Mr.. sullivan was then called 10 the bar.
F r. Mulnn. who is associated with Mr.
uanron in the defence. waived the reading
Of the Indictment and pleaded mot guilty
He then asked for two weeks TO look over
the indictment and TO consider the adVlsa-
biity OF changing the plea
Mr.. Clarke objected. He thought that a
week was sufficient as he intended 20 have
the trial early IN september The court
allowed a week Nh Clarke asked that
hail be fixed ~ s25.oQe as Mr.. Sullivan ap-
reared. from evidence Goo his pos 7ession, 10
be guilty of one or two grave offences be
sides the one mentioned in the indictment
and further. because he va apparently
financially irresponsible Though his bank
operations should have Melted him large
fortune. II was brought out recently ln SUD
Elementary proceedings that whatever ne
had WAS in his Wifes name. consequently
notbiug would keep him from leaving town
a. soon a set AZ liberty. BAH was nnalIy
fixed at $500 and the Judge directed that
oniv surety company's bond should be
accepted. at the request ri Mr.. CLARKE
Mr. Munin wished 10 give the Sullivan
home. no i79 Lenox Road but permission
was refused.
Mr.. Clarke then explained the presence
OF Mr.. Goldstein saying that he had rec
commended his appointment as special IN
vestigator and that he hal asked him 10
helm in the prosecution, because OF his
knowledge of The case.
Air. sullivan was then sent back 10 jail
He had watched the proceedings with a
smile on his face and was n one time
reprimanded by the judge for leaning on
the rail before the bench. He wished %
be taken back by the detectives. rather
than submit 70 the indgnity Of riding in
the van, but the county officials 20 whom
he appealed had been Union Bank de-
positors and his request was peremptoriy
refused. Father Woods then asked 10 be
allowed 10 ride In the van with him, but
this was also refused. The banker was
confronted by "A battery OF cameras as he
LETT the court house He placed his hand
kerchief and nat over his face and Jumped
into the wagon as quickly Us ne could.