Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-17
tf.S.PROSECUTOR
CALLS PETTY THUG
Both Sides Rest in Case of
Banker Accused of Mis-.
application.
ACCOUNTANT SHOWS HOW
FUNDS WERE APPROPRIATED
Former President of Washing
ton Institution Testifies in
His Own Defense.

In summing up the case for the
government today at the end of the
trial of Robert M. Petty. the Wash
lngton bank president. charged with
misapplication of bank funds, Assist
and United States District Attorney
Bacon mercilessly scored the de-
PENDANT.
He dominates by physical force"
said the district attorney.
Petty hasn't looked a man in this
courtroom in the eye. He can't do it:
but a few months ago he looked
Eilenberger. the bank cashier. in the
eye and demanded $4,000. And he got
ii. He had the old man scared into
thinking it was temporary loan.
IF an ordinary man did that he'd
be called a thug or a burglar. Petty
didn't use dynamite on the vaults,
but he took the money just the same
as a man does who dynamites safes.
He didn't have to use dynamite be-
cause he was the bank president"
The case went to the jury this
afternoon.
Chief Witness of the Day.
The chief witness called today was
Adelbert Hubert, the public account
ant who examined the books of both
the bank and the Northampton, Eas-
ton and Washington Traction Com
pany.
He testified in contradiction to
Petty's statement. that there was no
evidence of Petty having credited the
traction company with any of the
money he transferred from the COM
pany's account to his own in the
bank.
II found no evidence of any account
between Petty and the traction com
pany on the company's books" the
witness said, in answer to a question
from the district attorney.
Il gave Petty credit for everything
that was credited to no one else and
prepared an account. From July 80,
1902. TO November 20, 1911, | found
Petty to be credited with S12,84S.26,
and charged with $10,329.94. Giving
him the benefit for every doubt
find that his account ought to have
been no more than $2.511,32 on trac-
ton company books.
This does not of course include
the money he transferred or received
by the sale of bonds. I found no
credits on the traction companys
books for these transactionus.
Il made a record of what was
charged on the bank books and not
on the traction company's books and
found that the traction company
ought to have $63,S55.60 In the bank,
which was capitalized at only $4,000.
81 asked Petty for missing checks
and vouchers, but did not get them"
W. l.. Doyle. bond salesman of
Trenton. said he returned six bonds to
Petty as the president of the traction
company because there was no mar
let for the bonds and no money could
be borrowed on them.
Both Petty and Eilenberger were
recalled to the stand to clear several
points which had been misunderstood
Both sides then rested.
Petty's Defense on stand.
Robert NJ. Petty, president of the
wrecked National Bank at Washing
ton, took the stand yesterday at the
continuation of his trial on a charge
of misapplication of the banks funds
and told how the Traction company
was always indebted financially to
him and gave him bonds"
This, it was to be seen early. was
to be the defense offered by Petty's
counsel.
"Why, those bonds | sold to my
bank were the ones the traction COM
pany gave me to do with as l
pleased. Why shouldn't l sell them
II ! wanted top Petty said.
And every time | had any money
transferred from their account over
to mine, ! did it because ] had 1t
coming and the traction company
owed it to me. They always owed
me more than I had transferred and
mAde out checks for every cent too"
Where are those checks now?"
asked Assistant United States Dis
trict Attorney Walter II. Bacon, who
was conducting the case for the gov
eminent
Dunno" said Petty. Ought to be
in the bank"
Own witness a Boomerang"
The witness then told how ne had
notified Thomas A. II. Hay of the
fact that the bonds had been used"
The defense called Mr. Hay TO the
stand to verify this and his testi-
mony proved to be a boomerang.
He told me he had used them"
Mr.. Hay said land l took for grant
ed he had used them for the good of
the traction company and to adj
vance their interests. That's what
they were given to him for, as presi-
dent, to sell to the best advantage
of the company and not to put the
proceeds into his own pocket
Would you have been surprised to
learn that he had appropriated the
money to his own use and that he
had got the money, real good money,
out of the bank of which you were
Director" asked Attorney Bacon.
Huh! | surely would have BEEN"
he said quickly.
HE was supposed to get rid of
those bonds to the best advantage
FOR the company"
Before Petty took the stand Syl-
ster c. Smith, of counsel for Petty.
eplained briefly to the jury that his