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CREDITORS DEMAND CLEVELAND'S REMOVAL (Continued from Page 1.) had not been deposited into the First Bridgeport National bank, the designated depository for Federal court funds. Cleveland answered that he did not think it was necessary to do so and State's Attorney Stiles Judson arose in behalf of his client to ask the referee whether such action was necessary. Referee Banks informed that the First Bridgeport National bank had been designated as the deposiMory. Resuming his examination Attorney Greenstein asked Mr. Cleveland how much money he had on deposit in the Bridgeport Trust Company was told, "In the neighborhood of $5,400." "Did you borrow any money in order to have it on deposit in case you were displaced as temporary receiver?" "No." Witness was then asked whether he at any time had need of $2,800 in order to make good any deficit in the trust fund and whether he had not borrowed that amount from his brother-in-law about three or four months ago. It was admitted that statements to that effect had been made by witness in the hearing of others, and that a note for $2,800 was in existence. Asked If he had not paid $250 as a bonus to have this note renewed, witness denied having done so, although he later qualified the statement by saying that the $250 had been paid in the form of attorney fees and other expenses. Questioned as to a suit for $40,000 brought by his brother-in-law, Norton, and a subsequent attachment of funds in the Bridgeport Trust Company, Cleveland admitted that the $4,000 trust fund was then included in the money on deposit. Asked if the witness had not later substituted a bond for the release of attachment the question was answered in the affirmative, "What did you do with this money?" asked the lawyer for the creditors. "I turned it over to the Surety Company as collateral for the company going on this bond," replied the temporary receiver. After considerable discussion among the lawyers, the motion to discharge the temporary receiver for the acts he had admitted, was made by attorneys for the creditors, and upon such verbal motion being ordered put in writing an adjournment of the case was taken until next week when argument will be heard and probable decision rendered.
