New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-11
HAD TO DROP SULLIVAN
HutChins Tells OF Friendship with
Union Bank Head.
BEGAN TO HEAR THINGS
Examiner Says He Did All He
Could to Evade Taking Part
in Bank Inquiry.


A passing acquaintance, which afterward
ripened into a close friendship, including
many mutual friends and several pro-
tracte1 automobile trips. between the fam
flies Of David \. Sullivan, the indicted
president Of the old Mechanics and Trad
ers Bank. which under reorganization be-
came the Union Bank, Of Brooklyn, and
Melburn ". Hutchins. chief bank ex-
aminer Of the State Banking Department.
was a subject Of exhaustive inquiry yes
tcrday at the resumption Of the hearings
I'm the investigation OF the Union Bank +
affairs before Edward l.. Dodge, Deputy
Bank Superintendent. in Borough Hall
Mr. Hutchins was recalled as a witness
by James G. Cropsey and allowed TO make
statement I'm regard TO the Sullivan
Hutchns "intimacy."
The interchange Of cordial courtesies be
tween the two families began in the latter
part of Octot or. 1906. the witness said.
when Mr.. Sullivan called Hutchins up on
the telephone one night and inquired
whether he could bring Mrs Sullivan
around with him and call on the Hutch
inses. The call was made and resulted In
Mrs. Hutchins 10 take an automobile trip
with them. which was followed later by
other automobile trips and an exchange Of
calls until the two families became very
friendly. Prior 10 that time he had only
met Sullivan casually.
In August. 1909. Hutchlns began 10 hear
things which reflected on Sullivan and his
management Of the bank. he said, and told
his wife that they must terminate their
friendship with the Sullivans. After that
he declined several invitations extended by
the Sullivans and only met Sullivan on
the street with a casual recognition two
or three times. the witness said.
u regret now. after an the talk II has
created. that We were friends said Mr..
Hutchins. but I wish 70 assure you Mr..
Cropsey. that I did all IN my power 20 be
relieved from taking any part in the OK
animation OF the Union Bank.
The witness told how he wrote the Bank
Superintendent within thirty DAYS after
this intimacy between his family and the
Sullivsns began. requesting 10 be relieved
from the duty OF making an examination
into the affairs Of the Sullivan hank in
order 10 avoid any possible criticism. His
friendship for Sullivan was common knowl-
edge in the Banking Department as he
had Informed all his superiors. he said.
Did YOU ever get present from Sui
Ivan" suddenly asked Mr. Cropsey.
Absolutely none said the witness
when the Su'livans returned from Eli
rope Mrs Sullivan gave a small Swiss
clock 10 my vife-that is ALL
The bank examiner said after tho first
two or three automobile trips he insisted
that the expenses should be Dutch The
longest trip was 10 Boston, when they
were gone four days and three nights on
another occasion they went down the Jer-
sev coast TO Philadelphia and Atlantic city
three-day trip also included Philadel-
phia. Gettysburg and Delaware Water Gap
SuUivau's car was always used. as he had
none of his own, the witness said.
I'm answer TO further questions by Nj
Cropsey the witness remembered that ,he
had used an automobile "once or twice
belonging TO the Union Bank in going be-
tween the various branches when De had
charge OF the examination Of the bank in
1896 He said that the presidency Of the
bank had been offered 10 him Just after
the panic in the fall Of 1897. but he had re-
fused IT,
Taking up the Hutehirs report 10 the
State Banking Department in l''6 as PEE
suit of the examination of the Sullivan
bank in the fall OF that year, Mr.. Cropsey
read several extracts, which We're couched
in glowing terms in regard to the excellent
condition Of the hank
Now. in the light Of what We know ~
present about the bank. doesn't that seem
Iudicrous2" asked Mr.. Cropsev.
The question caused general laugh
among the spectators i'm the room. boz
which M Hutchins Joined heartily.
We'll. ] have never claimed that bank
examiner couid not be fooled no said.
Moses g. Kun and James Barnett. former
directors Of the Union Rank. testified o.
the opposition 20 the reelection of SUI
livan as president of the bank al the an
nual meeting Of the directors I'm 1907 Ger
tain directors thought IL was time to term.-
nate Sulivan's presidency as they sur
missed bonuses We're being paid. and doubt
cd If the bank was receiving them, hs
said. A motion was also made at that
meeting 10 have the bank examined lbs
expert accountants. the witness said
sullivan and his followers on the board
defeated both objects OF the opposition. and
several Of the directors resigned forthwith
The hearings will Ice continued FRIDAY
at 10 a. ID.