New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-09
CHENEY GIVES TESTIMONY
Continued from first page.

terests of the bank. Mr.. Grout said that
the bank owed the Metropolitan Trust
Company $4,000 Mr.. Cheney testified.
The letter of Dodge to Hudson on No
vember 20. 1910, calling attention to the
Union Bank report of March %, 1910,
was read to Mr. Cheney.
Was this the first time il was called
to your attention that that report was
false?" Mr.. Cheney was asked.
't don't recall" ne replied.
Several letters from Mr.. Dodge We're
read to Mr.. Cheney. or passed to him to
read calling attention TO alleged irregu-
larities in the management Of the bank,
and he was asked why he had taken no
action. He said Mr.. Dodge was in
charge Of the bank. with full power to
act. II told Mr.. Dodge to leave no stone
unturned" he said Mr.. Dodge saw
District Attorney Clarke. Dodge said
that the records were lacking; that he
couldn't prove what looked wrong. He
had full power. He was my deputy. |
don't know whether / advised him to
hold examinations"
Miss Ethel W. Clough. a-niece Of Mrs.
Gilbert Elliott and employed in the office
Of Gilbert Elliott, was called to tell what
she knew about the destruction OF the
checks by which Elliott testified on Mon
day he paid bonuses on loans to Sui
Ivan. Elliott testified that all his checks
prior 10 1905 were destroyed by accident
stcnoerspher Destroyed Checks.
Miss Clough said that she was a
stenographer for Elliott, and that a year
and q half ago she had cleaned out
place in a bookcase for some new
stationery She had thrown the checks
away with a lot Of other old papers.
She said that she had been careful not to
throw away any checks later than 1907.
She denied that she had had any in
structions about throwing away checks.
and said that she had selected the checks
after 1905 for preservation arbitrarily AZ
her own discretion.
refused 10 carry on the books of the
Onslow Moore Company. Of which he
was president. a loan Of $1,000 from
til, Metropolitan Trust Company, as il
was part Of a loan 70 the Union Bank.
and he did not want the property Of the
Onslow Moore Company taken 70 pay
the loan. He said that the loan had
been made at the request Of Edward NJ.
and Paul Grout after conference in
the Union Bank Edward NJ. Grout
Yesterday made the following statement
in reply to Mr. Eliott's testimony:
Mr.. Elliot is entirely mistaken in the in
ference which he draws or which others
draw from his statement Of converse
ton had with me and Mr. Paul Grout
This conversation was some time prior TO
November q, 1919, II related 10 an entirely
different loan trunsa ction from that which
was afterward carried out. The transac-
ton then contemplated was 20 turn all the
banks rca' estateynterests into new cor
poration, upon whose securities the bank
was TO borrow.
This plan was rejected by the Metropoli-
tan Trust Compsnys attorneys. But mean
while was taken ILL., and continued so from
November y TIL after Christmas. after the
transaction bad been completed, and [
knew nothing of the specific loans effected
not even i'm the most general way, until
aftorward. and then nothing Of the details
signed none Of the papers and was pres
ent al nona of the meetings OF the directors
which authorized the transaction. These
facts can be proved by a score Of witnesses
7 wish 10 reiterate, however, that this
loan. as il was actually made, was re
ported accurately and truthfuy. according
10 the practice known to and approved by
the Banking Department I'm the case Of the
hanks loan on bond and mortgage made n
year and a half before this. where the de-
partment never for an instant suggested
that any separate entry should he made Of
the liability on the bond. deeming il sufi-
Gent. rs We did. that the sum borrowed
was shown by deduction from the valuc OF
the assets borrowed upon.
The requirement Of the law ne 10 these
reports was that they should he in the
form required ny the superintendent, and
this tho bank did
May ] humbly inquire whether the pur-
pose OF this Investigation is simply TO set
ahoat false accusations and TO aid Mr.
Godstein in procuring a denomination or
to bring out the truth? II N IL really the
latter il would seem that more effort you'd
he devoted TO inluiring into the making OF
the 10000 Of bad assets. which wreck ed
the bank than 10 straining 10 find a tech
meal violation Of law on the part of those
who were trying to save tho wreck after
the Banking Department had certified to
81 1900 OF capital and surplus which didn't
exist.