New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-12
CIRCUIT AND ASHLEY ARE
INDICTED IN BANK CASE
Condition Report Alleged To Be
False Basis of Charges
Against Both Men.
STATE OFFICIALS TURN NEXT
Former Controller Issues State
ment That He Is Innocent and
Asks Public to Suspend
Judgment.

menu IndJ ne Is 4lHOCeub duu
Asks Public to Suspend
Judgment.
Edward NJ Grout and James T. Ashley.
president and cashier OF the defunct Union
Bank Of Brooklyn were indicted oy the
Kings County Grand Jury yesterday on
charges Of making a false report 70 the
/ State Banking Department on the condi-
ton Of the bank Indictments are expected
next week Of three officials Of the State
Banking Department who were concerned
at various times IN examinations OF the
bank while the investigation will include
A thorough overhauling OF the State Bank
ing Department under three former heads
The indictments against Grout and Ash
ley are identical ana charge misde-
meanor on two counts. The first count Is
knowingly concurring in making and pub
fishing a written report and statement OF
the affairs and pecuniary condition OF
corporation OF which he was an officer
containing a material statement which
was false
The second count is knowingly emitting
and concurring in emitting statement re-
quired by law 10 be contained in written
report and statement Of the pecuniary con-
dlton Of corporation Of which he was an
official"
Concerning the second count. the indict-
rent recites that on December l., 1913. the
Metropolitan Trust Company at the re-
quest of the Union Bank Of BROOKLYN
loaned 20 the Orslow- Moore Company SO
600 on a note Of the Onslow-Moore Com
pany. payable June To- 1910. The loan was
made. the indictment saws, only on condl-
ton that the loan should be guaranteed
by the Union Bank, and the bank exc
cuted an instrument IN writing guarantee
inG the payment of the loan.
Say Condition Statement Was Wrong.
The state Banking Department called for
a statement Of the condition Of the bank
AZ the close OF business on March p 1910.
This re7o~t was signed by Grout and Ash
lev. and though no part Of the loan had
bear raid on that date and the obligation
Of the Union Bank guaranteeing the pay
D-ent was in full force and effect me
.si5 liability. Of the said Union Bank OF
FroozIvr for repayment Of the said SI7'''
as aforesaid was omitted from and nor M
serted or written IN the aforesaid state
rreDt and report Of the said 1hloh nd'N
Of Brooklyn.
A. -ne same time that tho $1,000 loan
was made 10y the Metropolitan Trust com
ra--- 10 the OnsIow-MCore Company an
orbe~ loan of $4,000 was made 10 the
scotland Company. the Indictment SAYS on
the same condition Of the payment oelns
guaranteed oy the Union Bank and as in
fba case Of the Ors.ow-Moore company
loan This liability was omitted from the
-s7o-. NJ March .. 1910 The Grout indict-
ment continues.
Ard Edward 81. Grou5 as slcn ofnc7r
al FL s-ores7t4. then ana there. well
. i-,-,v-,r-- fine lforesaId Liabilities ana lhal
-I-a, were liabilities OF the sara COT poIaS-.ttt
existing and in force ana eIIe0l On .lle 80 80
oav of March. IN the Year lt-'' az ~ 80
. of business of that dav did unlaWtully ana
knowingly concur in making ana puoLl5l'l5iiS
the said report and statement, anu Llo
knowingly and unlawtully omit anu Co r,,1..
~ -,o-i--,-,v from said statement and report
the aforesaid la biliCes. ana old then anu
there as such otiIcer or salo ~ 49, -
ZION sign Jhe said report ana s1dteiLlTi5,l
,,.i-b irra~+ that the same should - pun
1+zbed ana transmitted 70 the sald super -ll-
terlert Of Banking. ara he dld cause W
said report 10 BE- as aioreselu, pu -sr,17..7+
and transmitted 70 the SAID cuperlht-ilussLL
~ ps-E+rr and 10 he received as ana for
The --r0~t and statement as required by
ia7.
The first count Of the indictment charges
t-s- .r tho report Of March %. 1910. signed
av Grour and Ashley. the loans and as
counts Of the bank. which were resources
were given as S+,e54.l63 81 and the bills paw
able az 81 5S2. sS5 81. the bills PAYABLE being
SAID 90 be due in December, 1910
Indictment Tells OF Loans.
These statements we're false the indict-
n,ert saws. in that the loans and discounts
did not amount 20 more than s4.'ol.i2+ -
while the liabilities were correct IN amount.
rrt The bills rayable matured before Mal1h
- a loan Of S297 SIS 81 due 90 the Metro
gorftan Trust Company marured prior 10
March q. 1910. and was due and payable on
that dale 4 loan II Ssl5CJ" due % me
Empire Trust COMPANY matured BEFORE /
March 70. 1910. and was due and payable on
that date A .oan Of 5000 from the nan
over National bank matued before MaTeH
= 1910 ana was cue ana PAYABLE on mat
GATE The Indictment continues.
And r,a said Edward NJ circuit then and I
there wei knowing me said material state /
ments were then and there false ana -l /
tr-.l as Aforesaid. then ana tAere una" !
~tf,Itsffng the said report and statement |
r,- r-er and there as such president Of the ]
CORPORATION. as aforesaid, signing the sara |
report and statement with intent tnaI ll- /
..-7,a should h. published and transmitted. /
s- a f0reSald % me said superintendent ol !
Banks.
circuit and Ashley were in court when the !
indictments were presented, and through !
their attorneys entered a plea Of not
sg.r-v resarving the customary right 10
denu~ or change the plea within ten DAYS.
c,rout was represented By Stephen C.. Bald
win and Ashley by andrew Van Thln, jr
After the plea was entered Judge pike.'t 20
whom the Indictment Was handed. asked II
the question Of bail had been discussed.
-Ir is for a misdemeanor. said District
Attorney Clarke.
That beins the case" said Judge Dixie,
"I VIII parole the defendants in the Gus
to5, OF their counsel. the purpose OF bail
reing in any case to assure the presence OF
the ACCUSED ON the day Of trial in court.
and i am sure that there viii be- no failure
IN these cases. The defendants are paroled
tr The custody Of their attorneys.
After the proceedings in court Mr.. Grout
gave out the following statement
desire 20 assure ny. friends who have
tean so loval 10 me- these past months,
and the public from whom 4 ask q sus-
pension OF Judgment. that ! am innocent OF
these charges as well as Of any other
criminal act
have been refused a hearing by the
grand jury Notwithstanding my most per
-teut efforts 20 obtain one. ] thought tlat
ms nifty years IN this community and the
confidence and respect lu which ] believe
that / have heretofore been held would