New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-26

but after practically admitting that he
was an expert accountant, bookkeeper, and
at the same time cashier of the bank. he
said he didn't know. The inqusitor pressed
him on this point. and Ashley finally said
he wished to withdraw the answer and
decline TO answer
You can withdraw the. answer II II was
wrong but not IL It was right" said Mr..
iCropsey.
at was a wrong answer" said the wit
ness.
The investigators produced the Union
Bank books and Mr.. Cropsey asked Ash'eS
to show him any item in any of the DOCKS
which showed on its face how much Tue
Union Bank had paid for the Peoples BANK
The witness couldn't do 1t. MI CroPseS
showed by calling the witnesses auehuoh
70 various circumscribed accounts In the
orr company and elsewhere, that the
Union had actually paid $4,000 for the
Pennies Rank while the Union directors
had authorized the expenditure Of only
s74o. 600. and the actual book value of the
Peoples Bank was s520,OOO
Mysterious Bonus Of $4,000.
IL developed that only $4,000 appeared
on the books Of the Union Bank as the pre-
MUM. or bonus, paid for the Peoples Bank
Mr.. Cropsey was not so sure but that
amount might have been an extra bonus
over and above the $500, 900. Ashley thought
not The major part Of the bonus was
charged TO "blls discounted" Three items
amounting to the $4,000 were credited
and debited TO the account OF the Orr Con-
tracing Company on the same day. Mr.
Cropsey wanted to know how 100000 had
been sent to the Peoples Bank as part OF
the purchase price on the day before the
merger was ratified at the meeting OF the
stockholders of the Union Bank
eve might have telephoned it up to
them" Ashley suggested.
How could you telephone $i1o,oOO?'
asked Mr. Cropsey.
why tell them to draw on us for that
amount" SAID Ashley in a surprised tone.
And then you would confirm it later by
letter." ventured Mr.. Cropsey.
NO, that wouldn't be necessary" said
Major Ashley.
"How would they know IT was your voice
on the telephone ?" asked Mr.. Cropsey.
They could telephone the bank anG find
out" said the witness.
Mt. CIOpSey pointed out lIdl 1lIt IHel Sti
| had not been ratified on that day and there
was nothing then in common between the
two banks. The witness admitted that, but
didn't believe the whole transaction had
any very unusual banking features
That may be all right in the world Of
high finance suggested Mr.. Cropsey, "but
it doesn't appear to be plain, square deal
ing"
The two Orr brothers, Robert p. and
John. who with Ashley constituted the in
corporators, board Of directors and officers
Of the orr Contracting Company, testified
to how little they knew about the COM
pany's affairs. They merely left everything
to Ashley, in whom they had implicit conf
dence, they said.
! Francis r. Ketchum, a stockho!der in the
Peoples Bank. testified that he sold his
stock at the time of the merger for 1895 a
share. The price authorized by the Union
Bank stockholders was 1870. The price
actually paid was s405. The so difference
went for commissions, Ketchum said but
ne didn't know who got the commission.
He couldn't explain why the price had been
raised from 1870 to s405. The witness con-
sidere6 the sale pretty good" one from
the Peoples Bank side OF 1t.