The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-08-02
TELLS ABOUT BANK JUGGLING
CLERK SAYS NE CAME ACROSS
EVIDENCE or FORGERY.
His story sf Doinss In the Mechanics
and Traders Bank Foii0wins the Dis.
cOvery He says He Made witnesses
C0rrOb0rate Parts Of His Testim0ny. I.

and Traders Bank FOliOwing the Dis.
c0very He says He Made witnesses
Corr0borate Parts Of His Testimony
At yesterdays session OF the inquiry
a. to the Affairs Of the Union Bank OF
Brooklyn a young clerk. George Frank.
gave testimony as 10 alleged goings on
in the Mechanics and Traders Bank
His story involved Paul Grout in an
alleged effort to cover up the condition
Of the bank. which was to open soon
afterward a. the Union Bank with Ed
ward NJ. Grout a. president.
Frank testimony made IL appear that
Paul Grout wanted the bank to reopen
in order that he (Grout) might get at
posited there. and that the lawyer had
suppressed criminal facts about the
administration Of the affairs OF the bank
for this purpose. Paul Grout after
the reorganization became attorney for
the bank and he now has large claims
against IT,
Frank testified that he came across evil
dences Of forgery and Justification while
he was doing general clerical work and that
he made some Of his discoveries known
to New York newspaper. but that Paul
Grout, David A. Sullivan. James T. Ash
ley and Kenneth o. Southworth by threat
and promise induced him to sign a re-
traction before the story was published.
He among other things testified that he
discovered that certain favored depositors
were permitted to withdraw their accounts
after the bank had closed its doors on
January 20. 1908.
The officials OF the bank had got
wind Of Franks activity. according to
his testimony. and he was invited into
the president's Office when he arrived
next day and was there confronted BY
Paul Grout and the three officials. A
proofsheet was laid before him by the
paying teller and he was asked to point
out the accounts that had been drawn out
after the closing Of the bank. Frank
called for the checks the signatures on
which he had taken for forgeries. He
testified that the proofsheet had been
changed and the checks substituted for
others. A Mr.. Seaborg and . Mr.. wha-
burg were asked to identify their sigma
lures as they appeared on the checks
produced on this occasion. and they did
40.
The names. according to Frank. that
were missing from the torn proofsheet
but appeared in the body OF it's pre-
tended duplicate--the one that he was
challenged to pick flaws in--were those
Brarwood Land Company, 81 200: Emery,
$500; Emery. $500. Prank testified that
he believed that the checks for the last
two amounts were forged.
Franks testimony was corroborated
by Sullivans secretary. and in the matter
telephone between Paul Grout and Clar-
ence j. Shearn it was amplified.
Frank had touched upon the con versa
tion in testifying about the third degree
to which he said he was subjected in the
presidents office. He heard Grout tell
some one. he testified that a story had
been given to a New York paper which
would r,iin him if it we're published;
that it would prevent the reopening Of
the hank and would cause him to lose
money which was involved.
Louise d Burkhardt, the secretary,
recalled the Frank incident and the con-
versation between Paul Grout and Clar-
ence J Shearn. She testified that she
heard !Grout say. Il have a retracting
statement signed by the individual that
left the paper at the office also some
thing to the effect that il would ruin him
tGrOutD " " were puDllsheO. tirOut then
dictated the retraction to her. the gist OF
which was that Frank admitted the error
of the four or Ave items he had taken to
the newspaper Office. Miss Burkhardt
overheard Frank crying and thought il
possible that he was coerced into signing
the statement.
The account Of Frank 's alleged coercion
was limited at by the first witness who was
called yesterday. Frederick W. Flottwell,
assistant cashier of the Mechanics and
Traders Bank up 10 the time OF the first
closing. Flottwell said that he had heard
an animated conversation in the presi-
dents Office on the day that Frank was
grilled. He gathered that George Frank
had taken a teller's proofsheet 10 a news
paper office and that the sheet purported
to give evidence that money had been
drawn from the bank after hours on the
day that the bank closed its doors He
saw Grout dictate something to Miss
Rurkhardt Flottwell didn't stay long.
Flottwell was the bank official who was
absent when the nocturnal visit was made
to the Atlantic branch OF the Mechanics
and Traders Bank
The inquiry was adjourned until Mon
day.