New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-08
.CRQPSEY AIDS G0LDSTE|N
ASsembIynan Finds Union Bank
Case Too Big for One Man.
M'C00EY DENIES THREATS
100000 Loan Never Entered
on Books Of Onslow Moore Co,
It's President Says.


Assemblyman Louis Goldstein IN the In
vestisation Of the closing Of the Union
Bank of Brooklyn Yesterday. Mr. Cold
stein stated at the opening OF the hear
ing that he had found the work Of the
investigation too much for the mental and
! physical strength Of one man. and that he
had called on Mr. Cropsey 10 help him
Deputy Bank superintendent Edward L.
| Dodge. who Is presiding at the hearings.
expressed his pleasure that Mr. Cropsey
was to take part In the case. and a. once
swore in the former Police Commissioner.
Mr. Cropsey's part was soon evident in
the rnaHy questions he prompted Mr.. Gold
stein 70 ask Of the witnesses.
There were several points touched on In
the course Of the hearing. Or. ]. Ellis
Rohrer chairman of the executive com
nttee Of the depositors committee, tod
of threats made that the political influence
OF John n McCooey. Democratic leader or
Kings County would be used II the In
vestig0tion were not stopped Mr. Nc
Cooey denied all knowledge Of the threats,
and Mr. Goldstein endeavored 70 bring out
through Mr.. McCooey that work had al
ready begun 10 prevent Goldsteins re-
election to the state Legislature on account
Of the investigation McCooey reluctantly
admitted that he was leader Of the Kings
County Democracy. but denied that he had
done anything antagonistic 10 Goldstein.
Gilbert Elliott. lawyer and real estate
operator % No a. Court street. who or
ganized and was president OF three Of the
real estate companies that secured large
leans from the old Mechanics ana Traders
Bank when David A Sullivan was lis
president. told about those transactions.
According 70 Elliott. checks for the
bonuses on the loans were made out 70
Sullivan and paid 70 him. but he said that
he did not know whether Sullivan or the
bank got the money.
Elliott told also Of the part that one Of
his companies the OnsoV-Noore Com
panv. took in the $4,000 loan made by the
Metropolitan Trust Company for the ben
eft Of the Union Bank when Edward NJ.
Grout was president of the bank.
Elliott said that he was called 10 the
bank and there met Edward NJ Gront ana
Paul Grout Edward VI. Grout said that
the bank was trying to raise the money 10
nav the next dividend Of 80 per cent 10 the
depositors who had come in on the de-
ferrsd payment agreement after the Me-
cbanics and Traders Bank tailed. he
smoke Of the Onslow-M Moore Company max
ing a loan Of $4,000 from the Metropolitan
Trust Company. Elliott said that he re-
piled to Mr.. Grout. Il won't stand IN your
way DO what YOU like
"-Tbe loan was never considered loan 70
the Onslow-M Moore Company SAID MI
Elliott 1T was never credited on our
hooks. We expected TO paw our debts 20
the bank. and / objected 10 credltins inc
loan on our books. az the Metropolitan
Trus, Company might call on us TO pay
thu loan and sell our valuable properties
n satisfy the loan We had property worth
s4oo COO and l was afraid we would lose H.
demanded a settlement of the $1,000 loan
from Paul Grout. and he said that Edward
NJ Grout would sign an agreement that
the bank would protect the loan
In expIaining the organization Of the
Onslov- Moore Company, the Essex Lee
Company and the> Camden Construction
Company. Mr.. Elliott said that he first mad
q contract with Charles 2. DonneHy'
brother-in-law Of David A. Sullivan. 70 do
2 real estate business. for which Donnelly
was 10 furnish the money and Elliott the
rrorertjes 10 be- dealt in Elliott said that
all the negotiations were conducted with
Sullivan. and that when he needed money
70 buy a piece Of property he would IN
form Sullivan. and on the day named The
money would be In the bank
The time came. according to Elliott when
Dornellv had so many notes I'm the bank
that il was considered advisable 10 or
ranjze the three companies. They Dor
.rowed the money from the bank to take
the properties of Donneny's hands and
lot him pay his notes 20 the bank.
nov cent bonus was charged when deals
we're made. and Elliott said that he A.
vidod this bonus with Sullivan and his
associates. making the checks payable 70
Sullivan.
He said that he could not produce the
checks and show where the money ulti-
u7ately vsit. as three years ago one If MS
clerks had accidentally destroyed all or
his checks A check stub book was pro-
1uced however. showing the payment OF
si2S45 I'm bonuses to Sullivan at one time.
but Elliott could not say whether the bank
ever got the benefit Of the payment though
he believed it had.
The missing minutes Of tho Interrogation
made of tho Mechanics and Traders Bank
by A special grand jury I'm August, 1872
were found yesterday morning. District
Attorney Clarke Of Kings County explained
that they had not been transcribed from tho
stenoCrapher's notes. as no Indictment had
been found, and his had made the search
difficult.
William j B. Washburn. who was fore
man of the special grand jury testified that
The grand Jury had been dismissed with
out being allowed 60 carry the investigation
as far as 81 wanted "a. nuoppnas We're
icrued for more witnesses. he said. and the
Grand iur,- asked FOR another week 10 IN
voeticate the bank, Int Justice Rogers. WI"
has since died. refused 10 continue me
work SAVING that De had another appoint
,,4errf sif fbe state