The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-08
CIRCUIT FIGHTS MOVE
TO BRING IN NOTES
Items Called Worthless by
CrOpsey Again Figure in
the Trial.
PROSECUTOR rs CHECKED

Charles NJ. Smith. former manager OF
the Atlantic branch of the defunct Union
Bank. was called to the stand by Dis
trict Attorney Cropsey yesterday after
noon in an effort to show that ex-City
Comptroller Edward NJ. Grout. now on
trial before County Judge Lewis and a
jury In Brooklyn for perjury. had guilty
knowledge when he signed the false
bank report. OF March rs. 1910.
The entire afternoon session was taken
up with Mr.. Smiths direct examina-
ton. He was there to identify letters.
notes and judgments which are intended,
| taken collectively. to show that Circuit
OF the Union Bank but actually was
personally familiar with many worth
less items CARED In that report as good
and collectible" assets.
IL was shown that Smith wrote to
Grout shortly after the reorganization
Of the bank advising him to bring suit
against creditors with whom we have
been very lenient." Mr.. Grout agreed
to this, and even verified some OF the
complaints from his own personal knowl-
edge. according to letters bearing his
signature. Yet judgments secured on
these complaints and subsequently re-
turned to the bank unsatisied we're
ignored in making out the report to the
state Banking Department, the state
alleges.
Mr.. Cropsey charges thai worthless
notes on which these judgments were
secured went to make up the 1000, 900
and more OF overstated assets signed
by Mr.. Grout-and sworn to by him.
Some OF the judgments were obtained
by Mr.. CIRCUITS own law firm OF Grout
4 Grout. and all the notes were brought
TO his personal attention by his written
direction, II appears. The evidence
showed that Mr.. Grout kept In close
touch with the affairs of the bank.
Twenty-Five OF these notes are among
the eighty-ive supplemental items which
Mr.. Cropsey Is permitted to introduce in
addition to the forty-eight items con-
tanned in the indictment. The eighty
live items total less than $4,000; the
forty-elght amount to more than So
900, 200.
Mr.. Cropsey's interruption OF his
presentation OF the major Items In Or
der to bring In the supplemental ones at
his time kept stephen H.. Baldwin.
counsel for Grout. OF his feet during the
greater part OF the session. lie OBJ
jected particularly to the introduction
of evidence tending to show that Mr..
Grout had personal knowledge OF the
litigation conducted for the bank by the
Grout law firm. He also held that the
prosecution must prove its contentious
that no presumption is permissible in a
criminal case. ON this point Judge
Lewis reserved decision and Mr.. Cropsey
vas forced TO abandon his effort to show
that Grout had guilty knowledge of this
kind, temporarily at least.
He did submit evidence. however, TO
show hat judgment WAS secured on
seventeen notes. that all these notes
were carried as good aud collcctihle'
assets In the false bank report. though
ron was ever satisfied. and that the
complaints on which some of these judy
ments were secure we're verified by
Grout himself.
In the forenoon Kenneth 4. South
worth. Jointly indicted with David A..
sullivan for n forgery alleged to have
been committed during S%ullivan's presi-
dency of the bank. was before Judge
Lewis on the District Attorneys mo-
ton TO have the date OF his trial fixed.
II was set down for June Is. subject to
change. Southworth will now have to
appear as a witness against Grou;.
The direct examination OF Mr.. Smith
will be continued to-day.