Union Bank (New York, NY)

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UNION BANK DIRECTORS

New Members of Board Announced -To Open Next Week. The names of the new directors of the Union Bank, formerly the Mechanics and Traders', were announced yesterday. Announcement also was made that the rehabilitated institution, which has been in suspension since last January, positively would be reopened next week, although the day has not been definitely set. The new directors are Bridge Commissioner Stevenson, Nathaniel H. Levi, president of the Broadway (Brooklyn) Board of Trade: ex-Representative Frank L. Wilson; Jacob L. Greatsinger, former president of the Brooklyn Rapid Transit Company; John R. Stine, president of the New York Leather Belting Company: Thomas J. O'Donohue, William H. Lynn, E. J. Stalker, formerly cashier of the Chase National Bank, and William H. English, vice-president of the Empire Trust Company. The five directors elected in January, who took office a few days before the bank closed, will continue as members of the directorate. They are C. E. Donnellon, of the Chauncey Real Estate Company; S. J. Harding, E. A. Fitter, Paul Grout and Edward M. Grout. Of the old board the following, who represent various branches of the bank, are to remain: Henry Albers, Barth S. Gronin, W. F. Corwith, William Strasser and Charles Straus. The directorate is thus cut down from twenty-four members to twenty. Edward M. Grout, president of the reorganized bank, said that the banking interests from whom the credit of $1,000,000 was obtained without commission or bonus are the Metropolitan Bank and the Empire Trust Company. At the meeting yesterday steps were taken in compliance with the report of Clark Williams, Superintendent of State Banks, to change the name of the institution to the "Union Bank of Brooklyn" and to change its place of business to the present Union branch, at No. 44 Court street.

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NEW BANK INQUIRY HELPS CLARK WILLIAMS

Kings District Attorney's Office Probing Pre-Panic Troubles. At the suggestion of Clark Williams, State Banking Superintendent, the District Attorney's office of Kings County within the last few days has been making an investigation into the conditions which led up to the recent financial troubles in the Mechanics and Traders' Bank. The institution temporarily closed up while David A. Sullivan was president, five months ago. It is now back on its feet, and on Monday it will reopen as a strictly Brooklyn concern under the presidency of ex-Controller Edward M. Grout. It will be known henceforth as the Union Bank. Mr. Williams, it is understood, did not ask the co-operation of the District Attorney earlier, as the bank was being reorganized and the announcement of an investigation at that time would perhaps have been injurious to the concern. Now it is again on the highway to health. Assistant District Attorney Francis X. McCaffry has been placed in charge of the investigation. and has examined several witnesses as to the transactions that preceded the closing of the bank. What he has learned he will lay before the next grand jury, which will have its first session on August 25. It is said that he has discovered several forgeries that will involve important persons in banking circles. When asked last night to tell what he had been requested to do by Mr. Williams and what he had 80 far discovered, Mr. McCaffry said: "Mr. Williams asked the District Attorney's office to investigate the conditions that led up to the suspension of the bank. The investigation was not directed against any particular person. It does not affect the bank 2S it is now organized in any way. There is no reason for any one interested in the Union Bank to be alarmed by the investigation into the affairs of the Mechanics and Traders Bank Mr. Williams discovered certain transactions which he thought should be looked into by the District Attorney's office of this county." Mr. McCaffry said he had the power of tracing into New York County or any other county of the state any transaction which had begun in Kings County, but he spoke as though he had not found It necessary to cross the river.

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UNION BANK OPENS Old Mechanics and Traders' Now a Brooklyn Institution Solely. The Mechanics and Traders' Bank. which suspended on January 30 last as a result of the panic, tying up over $10,000,000 of deposits, was reopened yesterday as the Union Bank of Brooklyn. The main office. at No. 44 Court street, Brooklyn, was thronged all through banking hours by depositors who wished to deposit money, and there were few withdrawals. Edward M. Grout who succeeded David A. Sullivan as president, said that the day's deposits were over two and one-half times the amount of the withdrawals. Mr. Grout was well pleased with the opening day's business, both at the main office and at the seven branches, all of which are in Brooklyn. He said that he had received the promise of the hearty support of a large number of influential Brooklyn business men. The bank starts business with a capital of $1,000,000 and a surplus of over $800,000. When the Mechanics and Traders' Bank closed its doors its main office was at Broadway and Prince street, Manhattan, and it had two branches in this borough and eight in Brooklyn. Prior to the panic it had total deposits of over $24,000,000. but the heavy withdrawals of the panic period reduced the deposits by over one-half. The bank was a consolidation of the old Union Bank of Brooklyn and the Mechanics and Traders' Bank of this borough. Through the latter bank it had a membership in the New York Clearing House Association. The capital was increased to $2,000,000 at the time of the merger The depositors in the old Union Bank of Brooklyn did not like the idea of having the headquarters removed to Manhattan, and many left the bank After the suspension it was decided that the best thing to do would be to quit the Manhattan field altogether. and to this end the capital was reduced to $1,000,000. The mair. office at Broadway and Prince street was given up and the headquarters of the reorganized bank was transferred back to No. 44 Court street, Brooklyn, which was the old home of the Union Bank of Brooklyn before the merger. The old name was also restored. The branches at Times Square and Madison avenue and 59th street, this borough, were discontinued. as was one of the Brooklyn branches Manhattan depositors of the Mechance and Traders' Bank will not. however, be inconvenienced by the dropping of the Manhattan end of the bank's business. They will be paid off at the old main office and at the Times Square and Madison avenue branches, just as if the new bank were actually operating in this borough The plan under which the bank was reopened provides that depositors may withdraw 10 per cent on resumption of business, 15 per cent in four months, 20 per cent in eight months, 25 per cent in twelve months and the remaining 30 per cent in sixteen months. Prestdent Grout expects to be able to anticipate a number of these payments. The bank will now be conducted purely as a Brooklyn institution with no connections outside the borough. It is not a member of the Clearing House, the membership having been the property of the old Mechanics and Traders' Bank, and having been forfeited at the time the bank suspended. There has been an entire change of control and management. A majority of the stock is in the hands of three voting trustees-Morgan J. Brien, Mr. Grout and William H. English, vice-president of the Empire Trust Company. The new board of directors consists of Henry Albers, William F. Corwith, Barth S. Cronin, C. E. Donnellon, William H. English, E. A. Fitter, Jacob L Greatsinger, Edward M. Grout. Paul Grout, S. J. Harding, Samuel M. Jarvis, Nathaniel H. Levi, William H. Lynn. Thomas J. O'Donohue, Henry Ollesheimer, Edwin J. Stalker, James W. Stevenson, John R. Stine, William Strasser and Dr. Frank E. Wilson.

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BRYAN BEGINS SPEECHMAKING

"Mr. Bryan started on a seven days' trip, and began his speechmaking at Des Moines, Iowa. He attended a council of the state leaders in the afternoon and spoke on the tariff in the evening. After a three days' conference with his campaign managers in Chicago he will speak on the trusts in Indianapolis and on financial legislation in Topeka, Kan. His tariff speech was an attack on protection and an argument for a tariff for revenue only. He also advocated an income tax. "James Schoolcraft Sherman, the Republican Vice-Presidential candidate, received official notification of his nomination at his home in Utica. In his speech of acceptance he said that the overshadowing issue of the campaign was 'Shall the policies of President Roosevelt be continued?' not 'Shall the people rule?' Mr. Bryan's issue, because the people did rule. "Governor Johnson of Minnesota was renominated by the Democrats, and despite his reiterated statement that he would not run he accepted the nomInation. "The Appellate Division of the New York State Supreme Court decided as constitutional the legislative reapportionment act of 1907. The racetrack gamblers had counted in event of a contrary decision on unseating Senator Wallace, the loss of whose vote would have made a tie vote on the racetrack gambling bills." "Any more returning prosperity harbingers?" "The Mechanics and Traders' Bank, which suspended in Manhattan on January 30, reopened as the Union Bank of Brooklyn, with Edward M. Grout as president. The Commercial National Bank of Chicago made a study of commercial, financial and farm conditions and found that the conditions in all three show that a return to normal business times is under way. Another sign of returning prosperity was given by the New York Custom House receipts of Tuesday. They were $300,000, the largest of any day since the financial flurry."

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BROOKLYNI BANK IS CLOSED DOWN STATE SUPT. OF BANKS TAKES OF UNION CHARGE BANK, WHICH HAS CAPITAL STOCK OF $1,000,000. By Associated Press. New York, April 5.-The doors of the Union Bank of Brooklyn were closed this morning. The institution has seven branches. O. H. Cheney, state superintendent of banks, has taken possession of the bank. The president of the bank is Edward M. Grout, former comptroller of the currency of New York. The bank has a capitalization of $1,000,000, with deposits of $6,500,000. The bank was organized in 1908 and took over the business of the Mechanics and Traders Bank, which closed during the 1907 financial panic. President Grout said he believed the assets were ample to pay depositors in full. It is not believed that the closing of the Union Bank will adversely affect any other financial institution.

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BANK In Brooklyn, N. Y. Suspended This Morning I New York, April 5.-The Union Bank of Brooklyn suspended this morning. The bank has seven branches. The state bank superintedent is in possession.

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ANOTHER BANK CLOSES BOROUGH OF BROOKLYN IN CHARGE OF STATE OFFICIAL. Liabilities Carried from Panic of 1907 Are Too Heavy for the Present Management. NEW YORK, April 7.-The Borough bank of Brooklyn closed its doors today and the superintendent of banks has taken possession of the institution. The bank has a capital of $200,000 with deposits aggregating $2,000,000. E. R. Shears is president. This is the second bank failure in Brooklyn within a week, the first being the Union Bank of Brookyn. At the office of the state superintendent of banks, the following statement was given out today: "A meeting of the board of directors of the Borough bank of Brooklyn was held at the office of the banking department, 52 Broadway, at 6:30 o'clock Wednesday night, the meeting having been called by President Shears. "After a conference with the superintendent of banks regarding the unusual demands being made upon the institution at its Eighth Ward branch and considering the character of the assets, for which the present management is not responsible, the board decided to request the superintendent to take possession and thus preserve the best interests of all depositors. "Pursuant to the request and the provisions of the banking law, the superin:endent has taken possession of the property and business of the corporation. No further statement regarding the condition of the bank will be made until the inventories have been completed. There has been no withdrawal of deposits from any other institution.' Supt. Cheney said that the conditions attending the closing of the bank were almost identical with those which led to the closing of the Union bank. As was the case with the latter, the Borough was obliged to suspend during the panie of 1907, and was reorganized after the panic was over. The new management was obliged to assume liabilities which have been a heavy load. Suspension of the Union bank had a bad effect on the Borough, which was known to be in the same position.

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BANK SUSPENSION IS CAUSE OF DEATH NEW YORK, April 9.-Shocked by the sudden suspension of the Union Bank, Frederick Marble, manager of a branch of the institution, died last night following a fainting spell when he saw the notice on the bank door that business had been suspended. Marble had not known the bank's affairs were in a bad condition, and when he learned of the trouble he collapsed.

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DIX ASKED TO AID DEPOSITORS OF THE UNION BANK Fold Not a Dollar of $4,000,000 Held by Brooklyn Institution Has Been Paid Them. ALBANY, May 3.-Gov. Dix's aid was asked to-day by a large delegation of depositors of the collapsed Union Bank Brooklyn to use his inuuence to bring bout the passage of Assemblyman Gold'stein's bill appropriating $50,00 for a legislative investigation of the Union Bank and any other State bank or trust company in process of liquidation which would warrant investigation in the committee's judgment. Assemblyman Goldstein, as spokesman for the delegation, told the Governor of the failure of the bank during the panic of 1907, of its subsequent rehabilltation under the presirdency of Edward H. Grout, former Comptroller of New York City, and of its reopening with the consent of Clark Williams. who was then State Superintendent of Banks. When it again closed in April, 1910. 1t had on deposit about $4,000,000, and not a dollar has been received by the depositors. Clark Williams was criticised for permitting the bank to reopen and Superintendent of Banks Cheney for allowing it to continue, while District-Attorney Whitman of New York was praised for his "fearless and honest prosecution of the banking thieves that wrecked the Carnegie Trust Company and the Washington Bank." Supt. Cheney, who was president during the thearing, was asked by the Governor if some of the real estate loans made by the bank were not excessive. Mr. Cheney replied that they would have been under present laws, but were not illegal at the time they were made. When the Governor asked If the Banking Department ought not to have interfered and investigated matters complained of, the Superintendent declared that he was not at the head of the Banking Department at that time. The delegation attended a hearing on the Goldstein bill before the Assembly Ways and Means Committee later in the afternoon.

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Former Examiner Swears Offer Was Made by Relative of Receiver. HELD OUT FOR RAISE. Suspecting Plot, Says Witness in Union Inquiry, Tried to Draw Howe On. The investigation of the State Banking Department into the circumstances of the closing of the Mechanics and Traders' Bank of Brooklyn and its reopening as the Union Bank, since closed, went on at the Kings County CourtHouse to-day. William Justice Hayes, a former State bank examiner, who had talked at previous hearings regarding the offer to him of a bribe, told a different story under oath from the informal statement which he made last week. At that time he said that the only bribe offer which had been made to him was at a time when he was a Federal examiner in California. To-day he said that it was in connection with the investigation of the Jenkins Trust Company in Brooklyn says RELATIVE OF OFFICER OFFERED $50,000. "A man came to me," he said, "who was related to one of the officers of the bank, and told me that there would be $50,000 in it if I would go easy on my report." Assemblyman Goldstein, who was examining the witness, demanded the name. "Moe Howe, brother of one of the receivers," was the reply. "I thought it was part of a plot to discredit me and get me out of the department, so I pretended I meant to accept, just to see what was up. I said the amount was not enough. I asked how much money

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MAY HALT BANK HEARING

Cropsey Would Examine Grout Himself as to Union's Affairs.

There is a possibility that to-day's hearing in the Union Bank investigation, which is being conducted at the Kings County courthouse by Assemblyman Louis Gold-stein, may be adjourned if Edward M. Grout does not appear in accordance with the subpœna served upon him a couple of days ago.

Ex-Police Commissioner James C. Cropsey said yesterday that he did not intend to take up the conduct of the bank during Mr. Grout's presidency until he had a chance to examine him, as he did not wish to put the lawyer on his guard. At to-day's hearing, some witnesses may be examined as to the transactions under the Sullivan regime and at the time of the suspension, If Mr. Grout does not appear.

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CROPSEY PLANS

TO FORCE GROUT

ON THE STAND

If Ex-Comptroller Doesn't Answer Wednesday Attorney Will Go to Court.

FOREMAN GOT STUNG.

Signed a $50,000 Note and Union Bank Investigators Wanted the Money.

Queer banking methods during the time when David A. Sullivan was running the Mechanics & Traders' Bank were revealed at the investigation into the failure of the Union Bank before Deputy Superintendent of Banks Dodge in Brooklyn to-day. The evidence taken once more brought into the affairs of the wrecked institution the name of Heinze, but whether it was F. Augustus Heinze or some other Heinze who figured in the transaction was not revealed.

James C. Cropsey, counsel to Assemblyman Goldstein, who is running the investigation, announced that on Wednesday morning, unless Edward M. Grout changes his tactics before that time, an application will be made to Justice Putnam in the Supreme Court for a body attachment for Mr. Grout. The object of the move is to force Mr. Grout to testify as to affairs in the Union Bank while he was president of the institution. Mr. Cropsey has mapped out a plan whereby he believes he can have the legality of the investigation and the power of Mr. Dodge to compel witnesses to testify settled by the courts without much delay.

Randolph Hulshart was an interesting witness in to-day's proceedings. He is a building foreman and some years ago was employed by Gilbert Elliott, whom he had known for many years. "Mr. Elliott came to me one day," said Hulshart, "and asked me to sign a note in blank. He said it was to go to the Mechanics and Traders' Bank to take up a note made by one Heinze and that it was merely a matter of form and I wouldn't have to worry about it.

"After the Union Bank failed I was called upon to pay a note for $50,000. That was the first I knew of the amount of the note I had signed in blank. I couldn't pay $50,000 or a considerable part of that sum. I never got a cent of value for the note."

John A. Sell, President of the People's Security Company, a Sullivan concern, from 1907 to 1910, and Charles M. Smith, manager of the Atlantic branch of the Mechanics and Traders' Bank, testified to transactions which they were ordered by Sullivan to carry out. Smith said Sullivan called him on the telephone on one occasion, told him the bank examiners would be around the next morning and directed him how to make entries covering up transaction which would not have passed the scrutiny of the State Department of Banking.

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"Union Bank depositors of a hasty habit of mind have announced in publice places that they would like to have Mr. Grout tell - his bank did with their gavings and running accounts. of course they can't find out from Mr. Grout. A depositor in a defunct bank in Brooklyn has the same individual rights as a deaf and dumb man at a political convention. "After trying in various ways to get a peep at their money, or a smell of their money. to say nothing of a feel of it. a committee of depositors got Assemblyman Goldstein to roar for them. Mr. Goldstein solicited and obtained the aid of the State Banking Department and of Mr. James Cropsey, who is said by policemen to be one of the best lawyers they ever worked under. Mr. Goldstein and Mr. Cropsey set about a.scertaining from Mr. Grout if he knew whether the $4,000,000 deposited in hi; bank is still on the job. "Now Mr. Grout has attacked the inquiry and invoked the aid of the law and Martin W. Littleton. He sets forth that Assemblyman Goldstein is not a proper person to inquire about the Union Bank depositors' money and that Mr. Cropsey's motives are open to suspicion. In the meantime the statute of limitations is working twenty-four hours a day. Brooklyn people have always been

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Charged With Falsifying Records

NEW YORK, Oct. 11.-Indictments charging misdemeanors in making false reports to the state banking department were found by the grand jury today against former City Comptroller Edward M. Grout and James T. Ashley, cashier of the suspended Union bank of BrookIsn. of which Grout was president. Both pleaded not guilty.

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COURT FAVORS GROUT

Indicted Banker Wins Appeal-New Question of Law. New York, Feb. 3:-AH investigations by the state banking department into the affairs of collapsed banks where dishonesty on the part of officers is suspected is now suspended. The reason for this was the decision rendered by the court of appeals in the case of the banking department against Edward M. Grout, formerly president of the Union bank of Brooklyn. This decision holds that Mr. Grout was correct in his contention that he could not be forced to testify at the investigation into the affairs of the Union bank. The court says that while the department has every power to investigate the condition of a bank while the bank is doing business, it has no power to hold examinations after it has taken possession of the Institution. Mr. Grout. David A. Sullivan and four other officers and directors of the Union bank have been indicted by the grand jury of Kings county on the evidence brought out at the banking department's investigation. District Attorney Cropsey. who was inquisitor general for the banking department in this case. said he did not believe the decision of the court of appeals would interfere with the trials of the men indicted.

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CALL MORE UNION BANK MEN Other Indictments Hinted at When Inquiry Is Resumed. At the resumption of the Union Bank hearing yesterday it was hinted that several more indictments might be forthcoming before the end of the month. The inquiry was directed on the note transactions of the Sullivan regime. Several of the directors at that time were summoned to the grand jury investigation yesterday. Among those called were Barth S. Cronin, Leo Schlessinger. William Strasser, F. F. McCook, James N. Brown and Charles E. Ring. These men. it is said, owed the bank money at the time of the panic in 1907. F. C. Penton, who had charge of the Clearing House work of the Union Bank during the panie, and was used as a dummy by James T. Ashley, the cashier. and David A. Sullivan, the president, both of whom are under indictment, was summoned. He signed papers as a trustee in a $148,000 note transaction. and was also used in the Hamilton Bank deal. The latter transaction is to be probed in June, and it is probable that he will be summoned to testify. District Attorney Cropsey is personally in charge of the work, and is aided by his assistant, Louis Goldstein. and the State Superintendent of Banks.

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BANK CAN'T PAY IN FULL But Union Depositors May Get Whatever Is Coming Soon. E. L. Dodge, a Deputy Superintendent of Banks, in charge of the liquidation of the Union Bank, announced yesterday that the Institution would never pay dollar for dollar, according to the recent inventory made of its assets and liabilities. Other experts who have recently looked into the affairs of the bank have asserted that 50 cents on the dollar was the most to be expected. However, what little is coming to the depositors may come soon. The payment of $240,000 on a $500,000 note held by the Metropolitan Trust Company is the chief obstacle to readjustment, it was pointed out. Mortgages on nearly all the real estate owned by the Union Bank are being held by the trust company as collateral, part of the security being $191,000 in bonds and mortgages on the Liberty Avenue Theatre, in Brownsville. These bonds are not due. Mr. Dodge secured the release of a $48,000 obligation against the Union Bank due to a lease which had four years to run. He rented the rooms which the bank had leased at the Temple Bar Building to another bank. According to his investigation, once the Union Bank is released of its $240,000 obligation to the Metropolitan Trust Company, it will have as part of its assets about $500,000 in real estate. Suits involving more than $1,000,000 and now pending are expected to add several hundred thousand dollars to the assets.

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would not be another train along for some time, Sullivan feared he would have to spend the night outside the prison walls.

### Helped Him Find Warden.

Patrolman Ford, however, was able to find the warden before he returned to Ossining. Another member of the Yonkers Police Department will be on hand to substantiate Ford's story and give additional information.

Further evidence that Sullivan, whilc supposedly behind the bars at Sing Sing, was mulcting the Union Bank was put in possession of District Attorney Cropsey yesterday. It was in the form of a check for payment of interest on a mortgage formerly held by the bank, which bore Sullivan's signature as indorsement. The check was paid by the rabbi of a synagogue at 228 Christopher av., East New York. The amount of the mortgage was $2,500, and the check was made out to Mrs. Sullivan. It bore Sullivan's signature, however, and was cashed, it is said, by Miss Burkhardt. Mr. Cropsey believes he is on the track of other mortgages of the Union Bank, which disappeared mysteriously. Some of them were recovered from the Joralemon Security Company, organized by Sullivan, of which Augustus F. Gardner, clerk, served as dummy president. When the Union Bank failed, mortgages held by the security company were assigned to Sullivan, who has since been collecting the interest which should appear as part of the assets of the wrecked financial institution. It has been estimated that Sullivan managed to conceal in a similar manner more than $1,000,000 of the bank's assets.

The report of the Governor of Superintendent Riley, in which he exonerated Warden McCormick of granting unusual privileges to Sullivan and said the ex-banker was selected to drive the warden's car because he was the only convict at Sing Sing familiar with the operation of an automobile, elicited a great deal of jocular comment yesterday.

A pedigree of all prisoners is taken by the clerk of the court in which they are sentenced, and sent to the warden along with the prisoner. At the prison another pedigree is taken and tre man's former occupation learne', for purposes of determining the work to which he may be most advantageously assigned.

An investigation by The Tribune yesterday of the records of convictions from New York County alone, shows that there are a great many chauffeurs at Sing Sing. In all, there are within the walls about 400 men capable of running automobiles.

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WARDEN ADMITS

SULLIVAN WENT

ON MOTOR TRIPS

Sing Sing Head, Under Suspension, Tells Governor's Investigator So at Probe.

OSSINING, N. Y., Oct. 29.-T. J. McCormick, warden of Sing Sing prison, now under suspension, admitted today that David A. Sullivan, now serving a sentence in Sing Sing prison for the part he played in wrecking the Union Bank of Brooklyn, had frequently been outside the prison on automobile rides.

Mr. McCormick's admission was made on the witness stand in the investigation started here today by Stephen C. Baldwin, of Brooklyn, Governor Glynn's special commissioner. McCormick testified that Sullivan had been detailed to drive the automobile and that the detail was in line with McCormick's policy of having all work done by prisoners wherever possible.

According to statements declared to have been made to Assistant District Attorney Goldstein, of Brooklyn, while in Albany yesterday, Sullivan had enjoyed liberties before unheard of in the prison's history. He is said to have motored where he pleased, to have visited Broadway restaurants here and to have conducted business affairs of the failed Brooklyn bank, whose depositors are fighting to recover their lost savings. This last phase of Sullivan's case is the subject of inquiry by the Kings county grand jury.

Coming on the eve of State and congressional elections, the charges against Warden McCormick have created a sensation throughout the State. The situation in Sing Sing will be the attack of politicians as a feature in all campaigning for the remainder of the week.

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The case referred to is that of E) M. Grout. lawyer, former City ' troller and once president of the Bank of Brooklyn, which seems to made trouble for every one who tx it. David A. Sullivan, the Sing joy rider. whose pastimes while S a prison term caused the dismis Warden McCormick of Sing Sin who has just been indicted on more counts in connection wit manipulation of the Union money. preceded Mr. Grout as h the wrecked institution. Grout was indicted before Mr. sey's incumbency began, but h only indicted for a misdemeano Mr. Cropsey caused his indictme a felony, charging that he com perjury in making a report to the Banking Department. It is allege Grout swore falsely to a statem the bank's assets and liabilities. in ing the former and decreasing the It was while District At Clarke. Mr. Cropsey's predecesso in office that the Union Bank. re tated after its suspension durin panic of 1907. failed again whi Grout was president. Mr. Clarke time was in Europe: Robert H. was Mr. Clarke's first assistant an in charge of the office. It was who caused Grout's indictment misdemeanor. In December, 1913, Mr. Cropse Grout indicted for a felony, and then the case has been in cou peatedly on various motions. Grout's prominence and the inte the public particularly deposite all the affairs of the Union Ba some one to ask Mr. Cropsey wi would put Mr. Grout on trial. and a reference to this in the speech the Fulton Street Board of Trad has caused all the commotion. This 15 what Mr. Cropsey said "Bomebody asked me when we gong to try another bank pro awaiting trial. I said we were go try him without fall. and in my and I am trying to get a handpicked. and one or rather a lap fri the man who is to be tried. and . who WITH at least give the pe for trial. I have reason to

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DAVID A

SULLIVAN TO SELL INSURANCE Bank Wrecker, While Waiting for New Job, Assists Union Liquidation. David A. Sullivan, the Brooklyn bank wrecker, who was recently in the limelight because of his "joy rides" with ex-Warden McCormick of Sing Sing, has a new job. He will soon go to work writing policies for an insurance company. Meanwhile, however, he is devoting much of his time to straightening out the Union Bank's tangled affairs. Sullivan, who was formerly its president, will assist Daniel W. Quinn, jr., special Deputy Superintendent of Banks, who is in charge of the institution's liquidation. He appeared at the liquidation office yesterday and was soon assigned to a

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CAN SELL HEINZE STOCK

Court Allows Richards to Dispose of Collateral Held by Union Bank. [From a Staff Correspondent of The Tribune.]

Albany, Feb. 22.-State Superintendent of Banks Richards by a decision of Supreme Court Justice Chester to-day is permitted to sell approximately $200,000 in collateral for notes put up by the late F. Augustus Heinze with the broken Union Bank of Brooklyn. The collateral represents shares and mortgage bonds of the United Davis-Daly and Ohio Copper Companies.

When Mr. Heinze put up the securities he gave the bank permission to sell them, but later alleged that he had made a subsequent oral agreement with David C. Sullivan, the bank's president, now serving a term in Sing Sing prison, to keep the securities from being sold. Litigation resulted, first with the bank and, after the bank's failure, with the State Superintendent of Banks, as receiver.