New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-23
BANK SCANDAL UP TO DIX
Investigators Hope He Will Com
pei Grout to Testify.
SHOW MORE DUMMY DEALS
Robert P. Orr Tells of Big Trans
actions in Which His Little
Concern Figured.

word was received from Albany yester-
.,v that Governor Dix is firm in his in
,srtion not 70 issue an executive subpoena
.rrnn,onins Edward NJ Grout to testify in
49, r-r;on Bank case. However, Assem-
S,,,,rsn Goldstein hopes that the Governor
ill change his mind for he had previously
...ts.5 to aid the investigation II any
sss.r,,.tion arose in getting witnesses.
r,.o refusal Of Mr. Grout 10 testify has
-, ,,smple for many other important
ILLNESSES who have seen fit to decamp
-.,bor than appear. Unless Governor Dix
comes 70 the aid Of the Investigation
80 M Goldstein. tho inquiry will soon
come 10 a standstll
Robert r. orr. president Of tho Orr Con
,-ar,lng company. n concern which figures
,-ou,inently iu the Union Bank case, told
a, the Investigation yesterday how his
name had been used by persons on the in
,ide fo cover the purchase OF stock IN
,tbs- institutions. in two ana half years
an. Orr company had received credits at
tho hank amounting 10 Sl450.0oo. although
!, originally was Incorporated at only $500,
nlrn no one WIS SURF Idi htN4i paw 'tlr
orr said trot James T. Ashley. cashier Of
the bank. was also an incorporation Of the
coupany and whenever such a sum as
t4a0 on was TO loo deducted from the con-
eern's account uc left the entire business
70 Ashley.
orr also -sid that his brother was con
necteI with tho company and that he did
not know where he was at present, but If
the District Attorney wanted him he would
get him.
When Orr was asked how tho company
had come 10 be incorporated he said Ash
jey had suggested 10 iu order that IL might
do business with The banks. After the
6rz, meeting no minutes We're kept. and
the company neither issued amy stock nor
kent stock Book orr said that he never
asked whether or not the company was
making money and showed much igno-
rance as 90 tho companyS loans. When
asked II ho knew the reasons for any II
the loans ne said one was FOR the purpose
or purchasing stock I'm the Peoples Bank
ana another % acquire a bond and mort
sage company.
The Peoples Bank stock had been bought
IN Orrs name at am auction with the
banks money after a talk with David \.
sullivan. me said and he made personal
note 10 the bank for the amount spent.
lie didn't know whether the stock was put
I'D as collateral or not, but said that lie
never paid interest on the notes and got
them all back but one. When Mr.. Crop
scy asked orr if he didn't know that V
was against the law for a bank TO secure
stocks iu another institution he said he
supposed it was.
When Ashley was called TO the stand
and asked about the 100000 credited TO r.
p. Orr he said ne guessed the money was
used for the merger with the Peoples
Bank and that Orr's account was used as
clearing house. lie admitted that the
credits 90 the orr company were probably
par. Of the deal put up in the purchase.
When tine grand jury met to-day wit
resses were kept in the inner room and
the outer doors were all closed. The Dis
tic, Attorney and his assistant arc TAX
in- great care that no information escapes
from The grand jury room, and this IS Civ
fr- rise 90 the feeling that more than one
Indictment viii be issued on Friday, when
the jurors will be discharged.