The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-10
BOOKKEEPING CITED
IN CIRCUITS DEFENCE
Claims Methods lie introduced
In Bank Show He Tried to
Conceal Nothing.
MANY SACRIFICES MADE

Ex-City Comptroller Edward " circuit.
In continuing his testimony before County
Judge Henry Lewis In BROOKLYN ycster-
day AT his tria, for perjury. made the
claim that his Innocence of the charge
iS nj least indicated by the improved
system Of bookkeeping which he intro
duced into the Union Bank ny president.
When he succeeded David A. sullivan
he found a loose leaf system and no let
ter press book. Had he continued this
system much of the evidence, az he
pointed out. would have been lost to
District Attorney Cropsey. notably that
read nto the record from the letter press
book. II would have been easy too UNI
der the old system TO do away with
loose leaves containing ncriminating
evidence.
The reverse happened. The records OF
the bank were intact and Mr.. Cropsey
applied them to the alleged false bank
report In the test OF accuracy. Since
then they have served as a main issue
In his case. Mr.. Grout argues that he
would never ave left such evidence be-
hind him had he intended to violate the
law. In the latter event the loose leaf
system would have suited him better
than the system he introduced.
With this exception Mr. Grout held
to the general outline OF his testimony
OF the previous day. particularizing and
celebrating the assertions that he did no,
want to become president OF the Union
Bank hat he accepted the presidenc,
as n matter of public duty that he lost
money thereby. and that he had de-
pended upo subordinates. all expert
enced bankers. for the general accuracy
OF the reports and the character Of tn.
items therein.
Mr.. Grout said too that he firmly be-
lieved to the very last that a good stifi
fight would pull the bank on, OF it's diff
ficulties. and that he made that fight "a
the best Of his ability despite the pessi.
mistic views OF his vict-presldent. Ed.
win j. Stalker, who has testified against
him as to warnings given long before tn,
second collapse. Such was his faith thai
he traded on his own reputation and OF
his friendships with bankers he said, e
the end that SO, 900, 900 OF the 81. 900. 90,
deposits were paid of during his tenur,
OF office.
In c~ross-examining Paul Grout. the
defendants brother. Mr.. Cropsey had
tried to make It appear that the Grouts
were anxious to have the bank reopened
in order to save stock OF that insti.
tuition owned by them. Anticipating a
similar attack on Edward NJ. Grout
stephen c. Baldwin. his counsel. asked
Did you regard the Union Bank stocl
as worthless
II did not
biz % own any stock in the bank p
Yes; my brother and I held s,ocl
the witness replied. My wife hel,
twenty-five shares. which she had In
herited from her mother"
, Mr.. Grout said that the stock hel,
, by himself and his wife was not worti
more than $4,000 when the bank re
opened and hat II had nothing TO Il,
, with his accepting the presidency OF tn,
, institution.
The difficulties OF the reopened banl
:. and his W efforts to separate the goo,
4 assets from the bad were described b,
Mr.. Grout. Referring 10 sullivan
visits. Mr.. Grout pointed out that n
I feared that these visits might be mis-
. construed. II the latter paid frequen
4 visits to the r~eorganized institutio
4 people might say, Sullivan is still run
ming the bank" In order to avoid tn
: Mr.. Grout had mail relating to the Sui
livan loans sent to his Law Office /
v Manhattan and 1t was there that Sull,
van consulted with his successor.
The direct examination OF Mr.. Grou
will be esumed on Monday.