The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-08
CIRCUITS BROTHER ON
STAND FOR DEFENCE
Trstifics He Advised Union
Bank Head That Notes i'm
Question Were Good.
STATE OFFICIAL QUOTED

Paul Circuit. tcstifying yesterday at the
trial of Edward NJ. Grout, told how his
brother had been prevailed upon to be-
come president Of the Union Bank OF
prooklyn in August. 1908. and how he
u,aul) had advised him that several OF
the items carried in the report of March
Is. 1910. were good and collectible.'
This testimony of Paul CIRCUITS fol-
lowed lines identical with that given by
Charles Strauss. the witness who pre-
coded him. II dealt with the two main
contentious NJ the defence: that Ed
ward NJ. Grout accepted the presidency
Of the bank as a public duty. and that
having accepted. he depended largely on
others for legal and financial advice.
In reply to questions put by Stephen G.
BALDWIN counsel for the defence. Paul
Grout said he had advised his brother
not Ia accept the place. that he had
suggested Edwin j. Stalker in his stead
and had so written to Clark williams,
then Superintendent OF Banking. but that
Nj. williams had replied III Mr.. circuit
does not take the presidency the bank
will not reopen"
Inc NltUtSS ulu HOl recall teIllNg
Stalker. as Stalker has already testified.
that he tStalker) would be expected
as vice-president Of the bank to look
after new business only. while Edward
N. Grout as president would take care
Of the old business.
Il also asked Mr.. williams to relieve
me from going on the board. as I had
already gone on the board OF the Bor-
ough Bank against my WILL" Paul Grout
went on.
"Did YOU talk with your brother about
the condition Of the bank" Mr.. Baldwin
asked.
81 told him that I had examined the
reports Of Cole & Swasey. that in my
opinion the bank vas solvent and could
safely be reopened." he replied.
The witness testified that several
notes. including the H~igginbotham note.
were good in his opinion and that he had
- told his brother. lie had handled
? Si~igginbotham Indebtedness and had
learned things which led him to believe
the then Police Magistrate was solvent.
Mr.. Grout told how It was hat his
brother entered oans a~ggPegating ST.
0ls,o0o as not payable before December.
1919. when the notes showed on the
face that they were actually payable
six months earlier. He had negotiated
the Dans to meet the last deferred pay.
ment to depositors. his brother being i'll
at the time, he said. the understanding
being that the loans might be renewed
for another six Month
Were you n stakeholder in the bank
when II closed ?" was the first question
asked by Mr.. Cropsey.
Mr.. Circuit said that he was. II IN
answer to other questions replied tina,
he owned 100 shares, for which he had
paid about s2o.O0o. His brother and
his brothers wife owned about 200
shares between them, the witness said
but he IA unable to say how much
the shares had cost them. Mr.. Cropsey
then made an cffor, to have Mr.. Grout
admit that he was anxious to have the
bank rcopened. The witness finally said,
81 was not anxious"
"Did YOU wan IL opened:' Mr.. crop
sey asked.
Il did" said the witness.
"Did you think your opportunities for
d.spoSing If the stock would be better
n the bank was OPEN" Mr.. Cropsey
asked.
81 didn't give it Il thought" the wit
ness replied.
The cross-eXamination will go on to-
day.