New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-26
INVITES COURTS ACTION
E. M. Grout Writes to Dodge He
Would Prefer This Course.
DELAYS UNION BANK CASE
Goldstein, After Conference with
Authorities, Says They Up
hold the Commission.

GOlQSteln, A1ter conference WIFI
Authorities, Says They Up
hold the Commission.
The question OF the appearance of Ed
ward NJ Grout as a witness at the investi-
scatlon of the closing of the Union Bank. of
Brooklyn. now goes TO the courts, accord
ing TO James c. Cropsey and Assemblyman
Louis Goldstein. who are conducting the
investigation for the State Banking Super
intendent Mr.. Van Tuyl. Mr.. Grout not
only acouiesced in this. but invited it in
letter he sent yesterday to the Deputy
Banking superintendent. MIR. Dodge, who
is presiding al the investigation. and has
prepared for a hard legal fight by employ
Ing Martin w Littleton as his counsel
The investigators made their last trial
Yesterday 10 get Mr. Grout on the stand
before going TO the courts to compel his
attendance A letter had been sent TO him
asking him to come last Monday. and a
subpoena was served on him requiring his
attendance on Wednesday. Fearing pos
sble flaw I'm the first subpoena second
was prepared and served. requiring his APP
rearance yesterday. When the hearing
opened Yesterday morning John c. r.
Raur. member Of the Union Bank de-
rostcrs' committee. took the stand and
testified 10 serving the second subpoena on
Mr. Grout
Mr. Crcpscv then read letter from Mr.
Grout in which, after acknowledging the
service Of the subpoena. he denied the pow
or Of the State Banking Department 10
conduct the investigation. but offered 10
supply any information to you / have In
nv possession. provided YOU will indicate
.-iV IN such
precise and definite manner as to enable
me % gather il together and present 1t 70
YOU i'm an orderly and intelligent manner
and. If necessary, afford me access to the
books. records and papers Of the bank I'm
your possession. and which have not seen
f,r a year and a half"
Mr.. CIRCUITS Statement.
Mr.. Grout then continued;
If ven decline TO do this, as you have
heretofore persstently declined. and you
think that by any possible construction OF
Section of the banking law. or Section
OF the executive law. or Section oil OF inc
public officers law. you nave any rle'l ~
compel my attendance before you ten
YOU very frankly ! would prefer 10 nave
YOU make Your application to the court anu
demand notice Of such application. so tndt
! may present my rights TO the court loi
II is perfectly ridiculous that I should be
subjected To any criticism or anlmadVer1,
sion by your department because WI
not submit 70 an unwarranted ana ll,cEdI
heckling about matters which you nave
perSistently refused 10 accord me an oplo'-
tunity To famiarizc myself with ana IN q
hearing conducted without any nleCeu'HI
IN the law or banking history Of this state
After the Grout letter was read the hear
ing was adjourned to Monday morning,
and Mr.. Cropsey went to the offices of the
Union Bank 10 prepare the exhibits in the
case for Attorney General Carmody. As
semblvman Goldsten took the papers to
Albany Yesterday afternoon and it was
expected that proceedings would at once
be started 10 compel Mr.. Grout to appear
as witness 1t was said that the At
torncy General might ask for an order Tor
the Sheriff 10 bring Mr.. Grout before Mr..
Dodge TO testify. or he might ask for an
U order for Mr. Grout TO show cause why he
y should not be punished for contempt. In
either case an appeal may be taken and
the question be before the courts FOR many
months.
There has been considerable correspond
ence between Mr.. Dodge and Mr.. Grout
and Mr.. Cropsey is anxious To ask MI.
Grout about some of the things in these
letters If there is 10 be long delay III
securing Mr.. Grout as witness these
matters may be reached first through other
witnesses.
Assemblvman Gohsten had the follow
ing statement read into the record OF the
hearings yesterday:
Yesterday | had a conference with the
Governor and the superintendent OF BANKS
and also with the Attorney GengiaI IL
carding the matters connected WIN lue
Union Bank and as a result OF that con
ference they requested me 10 49, '@tV &c &C.
they had at all times been IN RerI ,be az s
cord with the manner in WhlCh me tN-
animation into the bank was being con
Quoted. and had II all times gwen 'heH
f,Il eupDort and cooperation 10 tnat eN-
ar,in,tion and that they had been made
familiar with every step in the inquiry
as il progressed. and That every GeldII Hdu
been carefully considered. ana tndt mere
never was time since the hIeS,iEa'loiss
began when there was any intention OF
modifying the scope OF the INQUIRY IN
anv manner as IL was being conducted Uy
the department. and that all along the Cd
iect has been 10 secure all the facts IN
connection with the banks UanSacuons'
and that until such facts have been de-
IGloped TO the satisfaction of the depart
ment the inquiry would continue.
The Governor added that ne Wauted 70
see every one punished VINO was guilty or
any legal wronEdOng in connection with
any of the banks affairs. and was paruc
~ den~sitors, money and 10 have every
mems taken 20 insure tic payments 10
the depositors Il their money.
Albany. Aug. 25.-Contempt proceedings
are 10 be Instituted against Edward NJ.
Grout Of Brooklyn. former Controller OF
Kew York city for failure to obey sub
mona directing him to testify at the state
Ranking Departments investigation into
the affairs OF the Union Bank Of Brooklyn
Asselnblyman Goldstein. of Brooklyn and
Deputy Attorney General Parsons to-day
preuared papers for the action for presenta-
ton 10 A New York Supreme Court justice
tomorrow.