New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-30
Elliott ASSIGNED Mortgage.

In December, 1907, BoGart demanded t the
surrender of his note and threatened sun
van with exposure. sullivan, 10 aPPTdSJ
Bogart. sent for Gilbert Elliott. ana mao
Elliott assign mortgage wlicn wa was eos go
bv the Essex and Lee Company FOR $zpVDo
10 Rogart as security. Bogart TOOK the 10
sgnment of the mortgage. neueElng nc Nc
this would relieve him from liao'Ilty on III"
After the bank closed Elliott deuianded
the mortgage back, claiming that ne, as
president OF the Essex and Lee 'ompdnE'
had no authority from the board OF uHt'
tors To make the assignment. BoSaII ~
fused TO surrender the mortgage. An NC-
ton was begun by Grout n Grout 10 coIi-
pei the surrender Of the mortgage anu an
application was made to the supreme ,oult
for an Injunction restraining Bogart from
dispOSing of or collecting on the morIsdE'
on tho application for the lnjunctlo
Gilbert Elliott made an affidavit IN Whlch
he swore that when he executed the as.
signment of the mortgage II was "luhou,
authority from or knowledge OF the hodI"
OF directors Of the Essex ana Lee TOM
pany The Indictment charges that lIliS
statement was false and untrue, ana al
leges perjury.
The grand jury was not discharged yes
terday. but was continued for another week
AT the request Of Mr.. Clarke, so that it
might complete it's Investigations
Further information in regard To some OF
the alleged dummy companies, when
were run as subsidiary concerns OF the
Union Bank Of Brooklyn was sought from
the witnesses at the resumption OF tic IN
vestigation Of the affairs OF the Union
Bank before Edward l.. Dodge, Deputy
Bank Superintendent yesterday. James T.
Ashley, former cashier of the Union Bank
and Robert T. Orr. president of TN" orr
Contracting Company. one Of the concerns
I'm question, were called as witnesses.
Returned" Money Not Received.
Joseph Michaels, a former director Of
tho Union Bank. who according to previous
testimony received a third of the $4,000
commission paid by the Union Bank at the
time il purchased the Peoples Bank, tes-
tilted that he returned his share 10 the
Union Bank. He was surprised TO learn
he said I'm answer 20 questions by James
G. Cropsey. that. according to the records
Of the bank. the money never went TO the
credit Of the bank. but apparently was
credited to the account Of the Orr Con-
tracing Company.
Mr.. Ashley, as he has previously testified,
was the pilot at the wheel of the orr
company. which he said was an arm OF
the bank and was used merely as sup
Elementary profit and loss account" of that
institution. This company has been ia
vorite subject Of inquiry by Mr.. Cropsey at
several OF the hearings. I'm the minutes Of
the first meeting Of the directors. consist
ing Of Mr. Ashley and the two Orr broth
ors II was said that the company started
business with 500, which was paid into the
hands of Mr. Ashley. He probably paid
the 800 himself, Ashley testified. There
appeared TO be no record of II on the books
Of the orr company.
Are you I'm the habit Of carrying 500 in
your pocket" asked Mr.. Cropsey.
yes, sometimes. but t'now,' replied
the witness with a smile.
"Of course. all the officers II the bank
seemed TO have plenty of money at that
time" said Mr.. Cropsey.
The inquisitor read statement purport-
ing 10 have been dictated by Ashley to the
manager Of the credit department of the
Union Bank. which on its face was entirely
misleading as to the condition Of the orr
company. The witness stoutly denied that
he dictated the statement.
Mr.. Orr was questioned in regard To an
other statement pertaining to the financial
condition Of the orr company which was
s,Ipposed TO have been obtained from him
by a representative OF Bradstreets on May
1905 The statement set forth that the
company was capitalized at 5000, all Of
which had been paid In cash, and that II
owed "a few small bills"
The books showed that the company owed
the Union Bank about $4,000 at that time.
The witness could not remember that he
ever made such a statement.
The hearings will be continued Tuesday
al 10 a. m. I'm Room No. in the Borough
Hall.