Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-15
TRY PRESIDENT
FOR BANK FRAUD
Petty Charged With Misdirect.
ing S30,205 of National In
stitntiOn's Funds.
TURNED MONEY OVER TO
TRACTION CO., IT IS SAID
AS a Result Washington Con-
Germ Went Broke" and Sus-
pended Payment.

Charged with the misapplieation Of
national bank funds, Robert M. Petty
former president of the defunct Wash
ington National Bank. of Washington
Is being tried before Judge John Rell-
stab and jury in the Federal Court
here today
Petty was also interested in the
Easton and Washington Traction
Company and served in the capacity
of Vice president and president. He
has been indicted on the above charge
on twenty-five counts by a federal
grand jury.
1t is charged that Petty got away
with about s30.295 of the bank funds
by transferring the money from the
account of the traction company in
the Washington bank to his own per-
a. ona1 account
Lon counts l to II it is charged
hat he transferred 1900 to his ae-
i count from the traction company's de-
posit, without showing a withdrawal
of that amount from the traction COM
pany's books. No checks, drafts or
memoranda of any kind were found to
show that the traction company or,
dered the withdrawal of the amount
from it's account.
The remaining fourteen counts
Aeharge that he transferred money
from the traction eompanys account
to his own by the use of the COM
pany's bonds left in the bank as coll
lateral for loans advanced.
There were eighty of these bonds
In the bank at the par value of $1,000
each. it is asserted that Petty from
time to time placed twenty-four of
these bonds in the cash drawer of the
bank, making out deposit slips in
his own account for an amount al
ways less than the par value of the
bonds so sold.
In this way ii Is claimed by the
government he got away with an adj
dtional sum of $685..
The bank was forced to suspend
payment on November 16, because of
its insolvency. An investigation of
the books showed the alleged shortage
made in the accounts of the traction
company by the transfer of bank ac-
counts In the bank without a similar
transfer on the company's books
The bank was Incorporated on April
16, 1898. Mr.. Petty served as a direc
tor. then Vice-president and later
president, which position he held when
the bank suspended payment.
The first witness called in the case
was William o. Hay, of Easton, Pa,
secretary and general manager of
the Northampton Traction Company,
which was formerly the Easton and
WASHINGTON Traction Company
He told how the eighty bonds were
delivered TO Mr.. Petty in the office
Of Peter b. Brooks, New York
broker, and said they were to be left
as collateral for the loans the bank
had made to the traction company.
He said he knew r, NJ Eilenberger
and knew also that he was treasurer
of the traction company and cashier
Of the bank.
He went on to explain the bust
ness transaction the bank and the
traction company had together and
explained how these were brought
about.
Thon.as A. Fl. Hay, a brother, of
. the former witness, was also called
and corroborated the testimony of
Mr., Day. lie said he was direc-
tor of the bank and also interested
In the traction company. The hear
ing is continued
: ~ The Jury.
The jury which tried the case was
!. as follows: Frank Il. Davenport,
! Newark Charles f. Petit, Whippa-
: ny; e. Frank Oliver, New Vernon;
! Charles S. Atldn, Trenton; Edward
II. Lum, Chatham; Philip II. Rut-
f. ter. Irvington: Henry *. Naar, Tren-
ton. Joseph f. Wood. Newark; Ed
2 ward H. Crozier, Hamilton Square;
! william Augustine. Newark; Will
lam Greathead Newark; Edward
D. Birkholz, Newark. Frank S. Dodd,
Newark = George f. Brandenburgh,
Newark, and Rodman p. Bowker, Mt,
Holly, were drawn and challenged
BY the government.
!, Charles H. Smith, Long Branch;
! George Aldred, Morristown: John G.
Wilson, Jersey City, and Steven c.
Griffith, Morrstown, We're challenged