New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-29
BANK DEPOSITORS
BLAME WHITMAN
Delay in Investigation of
Union Case Charged in
Damage Suit

Governor whitman's alleged failure
- axe prompt steps after his cleo
,or two years ago TO investigate the
.sairs Of the defunct Union Bank OF
p-ooklvn figures in a new action
,.o,sht Yesterday in the Supreme
Cart BIZ Or. John Ellis Rohrer, chair
an q the depositors' committee for
,;-seIf and in behalf Of other de-
.,,itors 70 recover $4,000. The de-
s.,dant is Daniel ". Quinn, j., who
"a, Special Deputy superintendent OF
ranks ia charge Of the work Of lqui-
Bstion Of the bank.
DR. Rohrer says in his complaint
hat "a committee Of depositors called
,bs attention of the present Governor,
charles S. Whitman. when he was
,,ndidate for Governor, to the wasteful
.sd fraudulent methods employed in
..s liquidation Of the banks in this
tate. and especially in the liquidation
- the Union Bank. The Governor as
,ured some OF the members Of the
eonmittee that, upon his election, ne
vould investigate said condition and
.vnmarily remove any official, within
~ mower Of removal, as soon as he
.oula verify their complaint. but not
sntil nine months after taking office
!. Governor did he appoint Frederick
I Groehl, a former deputy in his
sFee when ne was District Attorney,
a the commissioner TO investigate the
p,nkine Department, with special ref
srence 20 the Union Bank in hquida-
ton"
What Happened to Groehl
DR.. Rohrer goes on TO say that Mr.
croehl made an investigation and that
Il became known 20 Governor WHIT
ns, and % the Banking Department
that the administration Of the Union
Rank BY the latter department was
wAsteful and illegal"
Then Dr. Rohrer adds: and upon II
Incoming known 70 the superintendent
81 Banks, the Governor and the attor-
nevs for the superintendent, that the
aid Commissioner Groehl would ike 70
become magistrate Of the City OF New
YORK. the Mayor OF the City OF New
York was importuned 10 appoint said
Commissioner Groehl as such magls-
trste. and shortly thereafter be was
appointed.
aJohn J. Weiss, a law partner Of Mr..
Groehl, was appointed TO succeed the
latter as commissioner in the Union
Bank investigation. II IS alleged that
L d ~. 4 ar las % ~
the complained Of actions Of Quinn,
the defendant in the present suit, and
that while evidence was being intro
duced before Weiss the taking OF testl-
monv was suddenly abandoned. A re-
pert was prepared and fled with Gov
ernor Whitman, leaving out SUD
stsntially all the evidence offered 20
substantiate charges and claims made
hy the depositors and others, the re-
port. however. being that the admins
ustion Of the liquidation OF the Union
Bank was honest and efficient.
The plaintiff charges Quinn with
gross carelessness. A payment OF .
Der cent. amounting 10 SlsO,OOO, mas
been made 20 the depositors OF the
Union Bank from its assets, and there
Is nov pending an appeal from a de-
cislon oy d4sLlNe DeASNt~s l.~--44-4-e -
order a further payment Of per cent
and ordering that all the assets Of the
bank be sold and distributed on or
about December 7.
Justice Benedict held that there were
nOt sufficient funds after paying all the
claims against the bank to warrant an
other payment 20 the depositor credi-
tors, especially because Of the loan to
The bank By the Empire Trust Com
pany, amounting 70 $4,000, and a
losn By the Metropolitan Trust Com
parry OF 100000. There is also pend
hg claim by the law firm OF Grout &
Circuit o. s39. 600.