Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-16
Petty's Former BOOkkeeper
Corroborated In Charges by
Another Witness.
ACCUSED PRESIDENT is
NERVOUS UNDER STRAIN
Peculiar Methods In Accounts
Shown in Case of the Wash
ington Institution.

stand today.
The counsel put her through a
severe ross-examination, but she did
not waiver
She explained the various transac-
tions as she did yesterday and en-
phasized the fact that she often
made credits and charges against
accounts with no more authority
than somebody's saysos
Her statements, it seemed, greatly
troubled Petty, the defendant, who
sat at the table with his counsel
He nervously smoothed his short iron
gray hair and eurled his moustache.
Then he would lean over and make
a suggestion to his counsel in ex-
planat ton of the testimony.
lie Corroborates Her.
After the futile attempt to i'm
peach Miss Fritz's testimony she was
excused, and Walter II. Bacon, as
sistant United States district attor-
ney. called Rueben NJ. Eilenberger,
cashier of the bank and treasurer of
the Northampton, Easton and Wash
ington Traction Company. He cor
roborated the testimony offered by
Miss Fritz and further explained the
bond exchanges directed by Petty.
The witness said that Petty would
occasionally bring him traction
company bond worth at par $1,000
and have this sum placed TO the
credit of Petty's personal account.
What would he say when he gave
you a bond?" Mr.. Bacon asked.
Debit bond account $1,000. Then
a bookkeeper would make debit at
my direction and Petty would fix up
his own account so it would balance,
explained the former cashier.
"When you charged up $1,000
bond and there was. $1,000 debited to
the traction company and you got
deposit check from Petty Of only
$3.50, wouldn't that leave $50 cash.
asked the attorney.
Surely, but l suppose Mr.. Petty
would take the $50 cash to make 1t
straight He entered the credit on
his own account himself" the witness
said.
During the eross-examination the
cashier was asked by Mr. Kelsey If
Mr.. Petty ever placed any money to
the account of the traction company.
He replied yes"
The receiver said the assets Of the
bank amounted to about $b1,OOO and
the liabilities to more than $223,O0O
There were about $4,000 in notes and
an overdraft of $500 and s94, 900 worth
of debenture bonds found in the bank,
which. however, could not be included
in the assets.
According to the banks books, the
receiver said, the traction company
owed the bank about $4,000, but an
investiga ton showed that the com
pany was only indebted to the bank
to the extent of s3,5OO
Bank Behind $1OO,OOO
When the accounts were straight
ened up as far as possible. Mr. Til
linghast said. he thought the bank
was behind about 100000 in its pay
mentS.
After the suspension the traction
company paid the bank $4,000 and re-
ceived in return $4,000 in debenture
bonds which had been left in the
bank as security. according to the
receivers testimony,
1t also developed during the testi-
mony that the account of the traction
company in the bank had been over
drawn on one occasion and that Mr.,
Petty's account had also been over
drawn.
Mr. Tillinghast, when asked to ex
plain how certain bonds were missing,
said that twenty-four bonds worth
81 900 each had been taken from the
package of eighty bonds left by the
traction company as security, and
sold to the bank, the proceeds be-
ing applied 10 Atr. Petty's personal
account.
twenty bonds were in the
banks name oetright," he said, and
ten more we're just there" These ten
could not be accounted for.
Miss Lillian Fritz explained the en-
ries in about half a wagon load of
books which were piled in the court
room. She said money had been
charged against the traction COM
pany's account and applied to the
credit of Petty as follows
May 4, 1909, $4,000 charged against
traction company and credited to
Petty; Pettys account then was over
drawn $3,5OO; transaction in Petty's
writing. July 10, 1909. $1,000 against
traction company, credited Petty in
his writing; short $225S at this time
July IA, 1909, $500 from traction com
pany to Petty's credit in his writing;
short 1888 at this time. July 10, $500
more. transferred same way. August
IA, 1909. $500 charged against traction
company and credited to Petty N226
overdrawn at this time.
No checks or drafts were drawn for
hese transfers, Miss Fritz said, as
far as she knew. but the transfer was
made because someone said So
Peculiar methods of bookkeeping
were exposed during the aking Of the
testimony, causing several Of the
jurors TO ask questions about the
usual way" of completing similar
transactions.
Miss Fritz explained that anyone
working in the bank was permitted to
make entries in many of the books
and do posting" and that accounts
were often charged or credited with
out checks. notes or drafts. on some
ones say So with nothing more to
show for it.