New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-24
BANK HEARING ADJOURNS
Counsel to Confer with Attorney
General as to E. NJ. circuit.
HE WILL RESIST SUBPOENA
Carmody Writes Him, Applica-
ton Will Be Made to Com
pei His Appearance.

The Union Bank investigation met with
another delay yesterday in the failure oil
Edward NJ. Grout to appear as witness
in response to the subpoena served on him.
As result Assembyman Goldstein has
gone TO Albany to confer with Attorney
General Carmody on the steps 10 he taken
to compel Mr. Grout to appear as wit
ness. Mr.. Grout had taken the matter To
the Attorney General himself, however as
disclosed by correspondence made public in
Albany yesterday.
When the hearing was called TO order
yesterday James G. CrOpscy. who is assist
ing Assemblyman Goldsten as counsel.
called Mr.. Grout as a witness. There was
no response and Mr.. Cropsey said that the
hearing might as well he adjourned to
tomorrow morning
Mr.. Cropsey Assembyman Goldstein and
Deputy Bank Superintendent Dodge had a
conference Immediately after adjournment
and Assemblyman Godstein said that the
question OF compelling Mr.. Grout to, appear
in response to the subpoena would he taken
up with the Attorney General at once
Goldstein said that he and State Bank SUI
perntendent Van Tuyl were in thorough
the investigation.
II is understood that the proceeding will
be to apply for an order for Mr.. Grout to
show cause in the Supreme Court why he
should not respond to the subpoena. 1t will
! then be possible for either side 10 appeal
to the Appellate Division and ultimately to
the Court Of Appeals. The result may be a
| long delay i'm the Union Bank Investigation
as Assemblyman Godstein said yesterday
that the phase of the bank after the re-
opening under the presidency of Mr.. Grout
would not be taken up until Mr.. Grout had
been secured as the first witness. In the
mean time there are many matters i'm con-
nection with the administration of the old
| Mechanics and Traders Bank still to be
| looked into.
John {. Judge. attorney for David y. sui
livan. formerly president Of the Mechanics
and Traders Bank. who has been indicted.
has filed his demurrer 10 the indictment
with District Attorney Clarke Of Kings
County. The demurrer finds several faults
with the manner in which the Indictment IS
drawn. District Attorney Clarke said YES
terday that no had drawn the indictment
himself and was satisfied that it would
stand the test.
Albany. Aug 23.-Attornoy General car
mody to-day sent to state Superintendent
of Banks Van Tuyl . copy of correspond
ence had with Edward W. Grout. Of Brook
Ign, in relation n the powers Of the State
Superintendent Of Banks 10 enforce the
attendance Of Mr. Grout as witness be-
fore Special Deputy Superintendent Of
Banks Edward l.. Dodge, in tho Union
Bank Investigation i'm progress in Brook
lyn.
I'm letter 10 Mr. Csrmody Mr. Grout.
who is 4 former president Of the Union
Bank, requested that If any proceedings
are contemplated by the state 10 test the
validity Of his position in questioning the
powers of tho state Banking Department
TO compel him 10 testify at the inquiry
that he he given an opportunity to present
the facts to the court
Replying 10 Mr.. Grout. the Attorney
General says he will gladly comply with
his request if the matter comes into his
Office. The letter says:
Thus far ! have acted only rs tho sd
wiser of the Superintendent OF Banks In
that capacity ! have advised him that the
law confers upon him the power TO OK
anime into the affairs Of banks I have
further advised him that the condition of
llc UNION bd0k OF BIOOklNn. disclosed
by him TO me, certainly demands investi-
cation at his hands. | have also advised
him that the law gives him power in terms
10 compel attendance of witnesses i'm such
examinations as the one he is now CON
Quoting.
From his statement TO me Of your prior
connection with the Union Bank OF Brook
lyn. il seems clear that YOU have informa-
ton that would be Of value i'm this investi-
cation. and should he produced i'm the
examination ] prefer to think that your
refusal TO appear was due to "A dispute as To
the method Of procedure, and not to your
declinatiOn 10 give pertinent testimony i'm
regard to the subject matter of the in
quiry
Should you persist in refusing TO appear
I'm the examination undoubtedly an appli-
cation will be made TO compel your an
pearance. and then. if you wish TO dues-
ton the validity of the provision Of the
statute in reference to such examination