Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1923-05-29
IL co. OFFERS RETURN
OF $230,000 FUND TO STATE
TRY To Show Burton
Got Coupons From
Bonds Given Cannon

TRENTON May 29-Attorney
General Thomas j. McCran created
another sensation in the Perth AM
boy land purchase investigation this
afternoon when he made known that
he recently held conference with
George i. Burton, of South Rive,
former chairman of the Edwards
State Highway Commission, and said
that information obtained from him
at that conference and testimony
taken today had "opened the abso-
iute implication that Burton had
deposited part of the coupons from
the bonds which had been given 20
B. NJ. Cannon by the Donnell Com
pany.
Miss Agnes Mcclure, stenographer
and bookkeeper for the Donne!l
Company told the Investigators that
Cannon had a conference behind
secretary, and Alonzo McDowal,
president of the Donnell Lumber
Company on May IA of this year,
the date of the investigation boards
hearing in the city hall at Perth
Amboy.
After Cannon Again
Before the questioning started
today, Attorney General McCran
made known that subpoena servers
had been unable to find Cannon in
Metuchen or Perth Amboy, they be-
| ing told that he was out of town.
He said further that another sub
poena will be issued for his presence
| at the continuation of the hearing.
Burton Resigned
| Robert Fountain. cashier of the
First National bank of South Riv-
er, told the investigators that Bur-
: I,n 1.o1 nv If a
bank for three or four years, had
voluntarily resigned on May q of
this year. Burton's excuse, accord
ing to Fountain, was that the pub
licity in this bridge investigation
had cast a reflection upon him. He
/ is therefore no longer director of
the bank.
The cashier explained certain ac-
counts since January / of 1921 to
May 22nd of this year. Fountain
made known that the Donnell COM
pany had made a $4,000 deposit on
October "a of last year and he de-
! clared further that while Burton
! had something to do with getting
this deposit, he was mainly respon-
sible inasmuch as he was working
| to improve the business of the bank.
Fountain produced two deposit
slips made out by Burton, both for
| interest on bond coupons. One de-
post was made on August of last
year for s205 and the second on
August IL for $50. The cashier said
these bonds were forwarded as cash
to the Irving National Bank of New
York. The attorney general tried to
! find out from Fountain the names
| of the bonds, but the cashier said
! ha had 9-ornrd lila lln wit n
| him. He. however, promised the in
vestigators to look into the matter,
saying that he believed William /.
Armstrong, the assistant cashier,
may have kept such record.
The attorney general asked the
! cashier if the bank had ever pur-
| chased bonds for Burton and he re-
piled by saying that he had found
| only two bond transactions in the
records, one on August II of last
year when the bank bought $4,000
worth of Canadian Northern Rail-
way u per cent bonds, maturing in
1916. These bonds were purchased
/ from the stock and bond department
/ of the First National Bank of New
| York City and on February Of this
| year the same bonds were bought
from Burton by the bank through
| the firm of Freeman q Company or
New York City.
McCran then pointed out that the
| two deposits of coupons by Burton
could not have been from the bonds
| purchased by the bank for Burton.
! A certified cashiers slip dated Feb
ruary Srd for $S,3S7.S2 showing pay
ment by the bank to Burton, was re-
| ferred to by the cashier.
At this point the attorney general
/ told of going to Burton's office and
/ of conducting a lengthy examination,
/ the interview was voluntarily given,
the attorney general said, and a
stenographer was present. At the
time of the conference, the date
which was not given, Burton told
McCran that he did not own any
bonds. The deposits were referred
to and it was said that possibly they
belonged to some of Burton's clients.
McCran said that this action of
Burton in depositing these coupons
after he had denied owning any
bonds opened the absolute implica-
tion that Burton was depositing part
of the coupons from the bonds which
had been given Cannon"
Miss Mcguire was the next witness