New-York tribune., 1911-09-27
CIRCUIT DENIES CHARGES
SAYS Questions of DepoSItorS
Were Framed as an Attack.
NOT SULLIVAN'S ATTORNEY
Former President of Union Bank
Insists He Knows Nothing of
Questionable Deals.

Edward NJ. GroUt. formerly president OF
the 6efunct Union Bank. Of Brooklyn, re-
rlieo Yesterday I'm an open statement TO a
list ~ questions submitted to him by w 5.
Wcodenh,irv. secretary Of the Association
NJ poposltors Of the Union Bank. After an
s,,eriue Mr.. Woodenbury's questions in
most Instances with a general denial Mr..
Crout said the questions appeared 10 have
beeu written more with the view Of max
inc newspaper attack than OF getting the
facts"
..You have not asked a single question
without Incorporating in It some unsup-
ported charge upon some person or other W
he said. and without including in it some
hair truth or distorted statement Of facts.
Indeed. your questions are so like those put
before Mr. Dodge"-the Assistant Superin-
,endent OF Banks in charge Of the Union
Bank irvesa igation-"that l strongly sus-
pect him Of writing IN your name.
alr Grout again defends the course he
has taken in declining TO obey the subpoena
10 appear before the Assistant Superin-
tendeni OF Banks as a witness and con-
testing the authority Of the Banking De-
partmcnt TO enforce such subpoena and
says: ,-.-..,,..-. -.,..o ,,,
and fair statement from me Of the facts
within my possible knowledge. or to ask me
a lonC string OF questions as 10 which,.
under the circumstances. I could only have
said 4 don't know or can only partially
renember'? Let him give the information
I have asked for. and access to the books
and papers and he will get my testimony.
The FIRST question asked by Mr. Wooden
bury pertains 70 Mr. Grout's letter 10 J.
Ellis Pohrer. chairman Of the depositors'
committee. dated August Il. 1908. in which
he said. The bank will resume business
next Monday morning under entirely new
MANAGEMENT" Mr.. Woodenhury wants 10
know how he raConciles this statement with
the retention of Kenneth a. Southworth.
now urder Indictment for forgery. James
T. Ashley. cashier OF the bank. and Charles
Y Smith. manager OF the Atlantic Branch.
Mr.. Grout says that Il never was in
tended or understood by anybody that every
manager or enplove Of the bank was 10 be
changed and nothing but chaos could have
resulted from so doing. II was not true
that Mr. Cheney then Superintendent Of
Banks. urged him To dispense with Mr.
Southworth's services, he said.
81 kept him because the bank needed his
services because Of his acquaintance with
its affairs and customers. The best answer
however. 20 both Mr. Cheney's testimony
and 10 your question, is 10 recall 20 YOU
that after the bank closed in April, 1910,
Mr. Cheney himself kept Mr.. Southworth
for FIVE months in the employ Of the Bank
ing DEPARTMENT
Mr.. Grout dismisses the cases OF Ashley
and Smith with similar reasons. Conunu-
ing, Ee says.
yoI ask whether I approved the action
0f Iuv brother Paul GrOut, In charging the
bank $1,000 in arranging 4 loan. You are
i'm r.r0r He did not charge for arranging
% .oar but for legal work which was nee
ae=arv In carving the loan through. This
work was very considerable in amount, l
am advised Il have no personal knowledge,
heEing been in at the tme), and the ques-
q N Of the charge Is now IN the Supreme