New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-25
TELLS or $4,000 BR|BE
Bank Examiner Says 1t was
Offered Him to Withhold Report.
WANTED BILL OF HEALTH
Reveals Proposal in Union IN
quiry, but Declares otfer
Had Nothing to Do with
That Concern,

That Concern.
William j. Hayes a former state BANK
examiner. testified yesterday az tho exam
ipation into the closing Of the Union Bank,
of Brooklvn in MAY. 1902 that h. had re-
ceived an offer of $1,000 TO withhold re-
port and give a clean bill OF health
30 the officers Of an institution which no
had examined.
Assemblyman Louis Goldstein, who. as
special attorney for the state Banking De
rartment. IS conducting the investigation
tried 70 make Hayes admit that it was
tho officers OF the old Mechanics and Trad
ers Bank. which became tho Union Bank
when il reopened after its failure following
the manic Of 1901. who offered him the
hribe. but this HAYES would not do. lie
insisted that the bride offer had nothing 10
do with the Union Bank or the oiu Mo
chani-s and Traders Bank.
The testimony in regard TO the bride was
brought out while Mr.. Gcldstein was tryins
IN show that David \. sullivan, who was
president OF the Mechanics and traders
Fark. had been admitted at night TO the
Atlantic branch Of the bank, with other
officers of the institution, after the failure,
Il was charged. would show dummy loans
and the payment Of bonuses or loans to
the officers Of tho bank, had disappeared
after this visit The upshot Of the test-
r,ouv Of various witnesses was that sui
Ivan. with Christopher j. Brooks former
manager Of the Atlantic branch Of the
hank. Kenneth e.. SouthTorth. assistant
cashier in the main office OF the bank, and
charles NJ Smith. who succeeded Brooks
"a manager of the Atlantic branch, had
gone TO the bank one evening In tebruary'
rcas and examined the books, while FRED
erick ". Flotwell. formerly clerk IN the
loan department Of the main Office OF the
hank. testified that a few days later ne
heard Brooks say that he had used the blue
-crou freely ON the books IN the Atlantic
ersnch. .,.,-
g1srk Williams. president OF the windsor
T-r7st Company. and Superintendent OF
Ranking az the time Of the failure Oh the
Mechanics and Traders Bank, vas put
ON the stand irst 20 show the dummy
loans. The examination then Jumped to the
Investigation By the Kings County Grahd
.ury in February. 1905 Mr.. Williams tes'
,,aos that William J. Hayes mad been let
ont If tho department In June, 1905 be-
,..rze he WAS not considered Trustworthy.
HIVES was next put on the stand 10 tel
of his Investigation OF the Atlantic brarcn
NJ the bank and hin testimony before the
srsnd jury.
Admits $4,000 5ribe Offer.
- said that his examination showed
,-.t the bank got the benefit Of tie
b,,Yses. and ne considered 81 70 have been
r.s testimony before the grand jury that
go .r,t body 70 absolve sullivan Of all
blame in the matter
r. was az this point that Mr.. Goldsten
,-,srf-.rad his question about the brlOe
OFF, .uo YOU remember. he SAID that
,ou we're offered $4,000 20 withhold oer-
tam report and give clean o'u OF nea''h
90 the officers of 2 bank
That has nothing 70 DO with this case
HAYES replied.
The question requires a plain answer
yes-or no." said Goldsteiu Was that
offer made 70 you:
That is So" said Hayes.
HAYES aftervard insisted that the ofer
had nothing to 10 with the Mechanics ana
Traders Bank II am a witness here 70
said. and Goldstein forced me 70 give
certain answer but the offer had nothing
IN 90 with the Mechanics and Traders
Bank or with Sullivan. Il bad nothing 70
do with this case.
Referring % his testimony before the
grand Jury Hayes said he had been called
OIL 20 produce certain figures showing the
conduct Of the Atlantic branch OF the
baak He had gone 20 the bank 70 got the
fggres. taking with him james 7. Ashley
yfce-president of the bank. 20 did not
know Of any special reason for taking
Ashley except that he was familiar WITH
the banks affairs lIe would not admit
am knowledge Of the visit Of sullivan,
Brooks. Southworth and Smith 90 the At
ls-+ic branch tho evening before be went
there with Ashley.
TO the question Do you know that the
records were falsided distracted or de-
s,royed2" nc answered emphatcaIy' mo
Sir"
.pid YOU give an order for the keys Of
tho hank u be left with the janitor for
sullivan" Hayes was asked.
THAT did not happen" he replied.
Tste- Cusick the janitor OF the Atlantic
brunch Of tho bank, testified that one day
in Februar,. SOS. Sllas 4. Stafford the az
au.nor in charge Of the Atlantic branch
hsd given him orders TO admit smith and
somebody coming with him that evening
90 End something in the rank. Smith ar
rived az about 40 o'clock and Sullivan ana
Brooks a little later, while Southworth
came last They stayed until about half
past ten or eleven o'clock. examining books
which boz got out of q back room at
smiths ORDER Smith. according 20
Cusick. did not open the safe, 80 Stafford
hsd left Two Of the safes open when he
went away
Wanted 10 Examine Books.
Charles Il smith. manager Of the Myrtle
srerua branch Of the Corn Exchange Bank,
nd formerly manager ~ the Atlantic
brsuch Of the Mechanics and Traders
Bsns. SAID that ore afternoon I'm Febru-
ar,. 1875 sullivan telephoned him and
asked II be- might look at the records OF
'0e bank. explaining that he was 20 be 81
AHMED bv the grand Jury on tho question
Of bonuses being paid 70 the banks officers
Smith said that he called Stafford ~ tho
telephone ana heard Stafford say. AL
gt' and Stafford a!tarward told him 10
admit Sullivan IN the evening 80 look over
the books The combinations % the safes
had been changed. smith said, and Stafford
lft them open. Sullivan. Brooks ana
socthvor.h came in the evening and
iocs@a ever the old ledgers and records.
Ffeg said tn. they u-avfad the iuf0rrna-