user: Q: James Percival, 66, said he gave mouth-to-mouth resuscitation to newborn Jonathan Percival in the vicarage in Freckleton, Lancashire, in 2014.
But Ruth Percival, 30, said she had not seen him make any attempts to revive the baby.
The inquest was halted in October when new medical evidence led the coroner to refer the case to prosecutors.
In March, the Crown Prosecution Service said there remained "insufficient evidence" to charge anyone.
The hearing at Blackpool Town Hall was told that Miss Percival, who has some special educational needs, visited her GP surgery in August 2014 to arrange to terminate a pregnancy, but had been unable to have one because she was too far gone.
She agreed she had put her "head in the sand" about the pregnancy and had not told her parents because she was "scared" of their reaction.
Mr Percival, who at the time was the vicar of Holy Trinity CE Church in Freckleton, said after she returned home from work in the afternoon on 25 November she spent time in the downstairs toilet.
He said at about 15:30 GMT he saw her come out of the bathroom carrying a towel covered with what he believed to be excrement and went outside with her to put it in a bin "when Jonathan's leg came in sight".
He told the court: "I said to Ruth, 'this is a baby, you can't put a baby in the bin'."
He said he placed the baby on the towel on the floor outside and attempted to resuscitate him.
He said the baby "was very, very cold, absolutely lifeless", adding: "The baby was quite clearly dead."
The inquest heard that medical evidence showed the baby was alive at the time he was born.
Miss Percival said she thought she saw the baby trying to take a breath, but also said: "I kind of thought I did have a miscarriage because to me the baby was dead when he came out of me."
Miss Percival and her father gave evidence that Jonathan had the umbilical cord wrapped round his neck.
The hearing is due to continue on Tuesday.

A: A former vicar tried to revive his daughter's baby son after she gave birth in a bathroom, an inquest heard.


Q: The new shadow defence secretary got funding for a legal research assistant from Leigh Day to support her work when she was shadow attorney general.
Leigh Day has been referred to a legal tribunal for its role in representing Iraqis allegedly mistreated by UK troops during the Iraq war.
The Labour MP declared each donation at the time they were received.
According to Parliament's register of interests, Leigh Day funded three secondments worth a total of Â£48,125 between 2012 and 2014.
Two other law firms also provided funding for a similar research role during that period.
During Prime Minister's Questions, David Cameron said there were "questions to answer" over the Leigh Day donations, while Labour MP John Mann has suggested Ms Thornberry should return what he described as "vested interest money".
Friends of Ms Thornberry said that soldiers pursuing claims against the Ministry of Defence were among Leigh Day's many clients, who also included people suffering from the effects of the drug thalidomide, for whom the prime minister called for extra support on Wednesday.
In an interview with British Forces Broadcasting Services marking her appointment, Ms Thornberry said Leigh Day was an "outstanding" firm and the allegations against it "had nothing to do with any of the outstanding youngsters who gave their time to help us out here".
Leigh Day, she said, had offered "some of their brightest and best to help make sure the opposition had proper legal advice".
Leigh Day was referred on Tuesday to the Solicitors Disciplinary Tribunal to answer complaints about its handling of legal challenges brought by Iraqi detainees against the Ministry of Defence.
It follows the findings of the 2014 Al-Sweady inquiry, which concluded that the most serious claims against British soldiers had been "deliberate lies, reckless speculation and ingrained hostility".
The firm has said the decision to refer it to the Solicitors Disciplinary Tribunal was "premature".
It has strongly denied allegations of wrongdoing, which, it said, it had not been given adequate time to respond to.

A: Friends of Emily Thornberry have said questions over donations she was given by a law firm are a "desperate smear".


Q: Ellie Simmonds, Ollie Hynd, Jon Fox, Jessica-Jane Applegate, Josef Craig and Bethany Firth, who won her gold while representing Ireland, are all included.
Scotland's Abby Kane, 12, is the youngest on the team while Sascha Kindred, 38, makes it to a sixth Games.
The team features 20 swimmers who have previous Games experience.
Kindred, who has won six Paralympic gold medals since making his debut in Atlanta in 1996, missed the qualifying time at the recent British trials in Glasgow but was selected having achieved a time within 2% of the required standard.
Stephen Clegg, a younger brother of Paralympic sprinter Libby Clegg, and rising stars Lewis White, who is coached by Adam Peaty's coach Mel Marshall in Derby, and Jonathan Booth are also selected under the same criteria.
Four-time world champion Tully Kearney, who missed the trials through injury, has also been chosen.
Great Britain won 39 medals in the pool at London 2012, seven of them gold, and British Para-Swimming National Performance Director Chris Furber wants more for his squad this time around.
"We set the qualifying standards high because we wanted a quality team in Rio," he told BBC Sport after the trials.
GB team: Jonathan Booth, Stephen Clegg, Josef Craig, James Crisp, Ryan Crouch, Jon Fox, Tom Hamer, Ollie Hynd, Mikey Jones, Sascha Kindred, Aaron Moores, Andrew Mullen, Scott Quin, Lewis White, Matt Wylie.
Jessica-Jane Applegate, Claire Cashmore, Bethany Firth, Charlotte Henshaw, Abby Kane, Tully Kearney, Harriet Lee, Amy Marren, Stephanie Millward, Rebecca Redfern, Ellie Robinson, Susie Rodgers, Hannah Russell, Ellie Simmonds, Stephanie Slater, Alice Tai.

A: Six London 2012 swimming gold medallists have been included on the 31-strong Great Britain team for the Rio Paralympics.


Q: Members of the Southern Stars national team will now be the highest-paid athletes in Australian women's team sports.
The Southern Stars were runners-up at the recent ICC World Twenty20 tournament in India.
Cricket Australia will also increase its female player payment pool.
It will go from just A$2.36m to A$4.24m.
"Cricket is a sport for all Australians and Cricket Australia will continue to invest heavily in the women's game in the coming years," said Cricket Australia CEO James Sutherland.
"Of the more than 1.2 million people of all ages currently playing cricket in Australia, almost a quarter of them are women and girls.
"We are determined to make cricket the sport of choice for women in Australia."
Maximum retainers for Southern Stars players will rise from A$49,000 to A$65,000, and maximum retainers for the domestic Women's Big Bash League rise to A$15,000.
This means the best Australian women cricketers will earn a base salary of A$80,000, with match payments and tour fees taking them beyond the A$100,000 mark.
Minimum retainers will also rise, from $19,000 to $40,000 for the Southern Stars, and $3,000 to $7,000 for the Big Bash League. Travel and health insurance benefits will also be improved.
The recent success of women's cricket in Australia has surprised some commentators, with televised Big Bash League games routinely pulling large audiences.
Australian Prime Minister Malcolm Turnbull praised the move, tweeting "when women are empowered, the whole economy and community benefits".

A:

assistant: A large pay rise for Australia's women cricketers means elite players will be able to earn annual salaries in excess of A$100,000 ($76,000; £53,000).