The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-04
C@ARPENTER'S NOTE
GAVE CIRCUIT $4,000
Hulsart Testifies He Had Moth
ing When He Signed the
Paper.
SULLIVAN PASSED IT on

\ sample OF the business done In the
defunct Union Bank of Brooklyn and
It's predecessor. the Old Mechanics and
Traders. was shown ut the trial OF ex-
City Comptroller Grout for perjury yes
terday when District Attorney Cropsey
produced a carpenter, Randolph HUI
sart of Marlborough. y. Y. who told
county Judge Lewis and n jury how
he happened 10 give tho Mechanics ard
Traders Bank n note for 100000 IN De-
cember. 1907.
Hulsart testified that this note-one
OF forty-eIsht items in tho indictment
agalns: Grout-was signed AZ the re-
Quest OF Gilbert Elliott. president of the
Essex and Lee Company. whtle he (Hul.
sart) was doing carpenter work for
Elliott AS collateral the note carried
'sundry mortgages" IIulsart said he
got no money on the note and never
would nave been able to pay Off any ap.
probable part OF Il ever had he been
asked to do so
Did YOU put up any mortgages. sun
dry or otherwise Mr.. Cropsey asked.
Didn't have any 70 pu; up replied
tho carpenter.
Carried ne nn Asset.
IIulslrt said he understood the note
was 10 he used BY David a. Sullivan.
CIRCUITS predecessor. When Grout be-
came president OF the bank after reor-
ganlzation Hulsart e to work as q
carpenter for William r. Pearce, pres
ident of the shetland Company. which
Grout had organized to look after the
zeal estate transactions of the bank.
Incidentally the bank held thirty-seven
notes OF this company. a~zgregatin5
$40. 900. when II collapsed the second
time. carrying Hulsart's note az a
good asset.
stephen II. Baldwin. counsel for Mr..
Grout, objected to the admission of
the note on the around that the bank
accepted II while sullivan was nresi-
dent. hut Mr.. Cropsoy pointed out that
MIR. Grout had carried IL right along
as n good asset after he took charge
and had included II AZ such IN the
sworn statement he made 20 the state
banking Department i've days before
tse bank closed.
ON cross-examtnaHon Nir. Baldwin
brought out that the note was secured
by three mortgages on some Sacknan
street property. The witness said he
had been old these mortgages were
TO be put up. but had never seen them.
He wasn't positive whether or not he
had signed the note in blank. The
| MORTGAGES. he believed. belonged "a
the Essex and Lee Company.
On stand Again To-day.
The three mortgages were for $4,000
A feature Of this transaction was thu
manner in which the foreclosure was eff
fected. the Essex and Lee Company fore.
closing and another company owned by
Elliott buying in the property. II il held
that In this way Mr.. Elliott was enabled
TO wipe out the collateral on the carpen'
ter's note while merely transferring hi
own equity in the property from one
pocket to another.
thing about the transaction except as 1
was called 10 his attention by docu
ments In Mr.. Cropsey's possession. IL
will be recalled to-day.
The Frederick W. Totwell item q
$1,000 WIS then taken up. F1otwell wa
formerly in charge OF the credit depart
ment OF the bank and the item repre-
SCENTS n note he gave the bank durini
S%ullivan's time. sullivan wanted him (,
become n director In h Home Bank
since closed. In order TO do this he hat
to buy ten shares OF stock. The bani
advanced tho money or his note. HI
got the stock when he qualified as d!rec
tor and restored II when the bank closed
He was ordered to do so by the banl
examiner.
Mr.. Baldwin produced an afidavi
sworn to by F1otwell as a director O
the Home Bank In which he stated tina.
he owned the stock in good faith an
that none OF 1t was hypothecated. Flot
well said he had sworn to the Statement
as a matter Of form that he never con
sidered himself owner of the stock.
The trial will go on to-day.