New-York tribune., 1878-10-16
NEWARK BANK OFFICERS ON TRIAL
PRESENTING THE CASE FOR THE PEoPLE-IESn-
MoNY FROM THE SECRETARY.

MONY FROM THE SECRETARY.
The trial of Hiram M. Rhodes, Colonel VIII
liam Allen, william N. Randall, Joseph M smith, feer
T. Doremus and sas Williams, the indicted directors
OF the broken Peoples Savings Bank OF Ne"afK' was
begun yesterday morning before Judges Depue ana
Tchenor at Newark. The State Is represented
by the County Prosecutor, Colonel ADeel
and the defendants by Messrs. Thomas NJ
McCartef william y. Guild. jr and Joseph CouiI nv
the outset Mr. Cout moved TO quash the conspiracy ln
dctment, the ground that 1t contained TWO counts
and each did not set forth an ohence 0uuto
Depue denied the motion TO quash, saying that, - no
understood it, there was but one count The county
Prosecutor recited the offence with which the de-
PENDANTS are charged He said that the institution was
chartered in 1871 and that the cter provides thot no
manager shall directly indirectly borrow any money
from the institution He should insist that these mana
mfcS ot6rg MANAGERS TO do likewise, but wasted the
money Of the bank IN such way that lie III a.
dcfment ne could include offences that had been com
mttcd any time within years preceding NAY 1919
is7G r.cklesS loans hid been made 10 panaser,
on property OF insufficient value tnat p pdi l3r
~ fc closing institution certain preferred credl
tors of the bank who relatives OF these managers
had withdrawn their deposits IN ie % 10 t nay tbe
defendants liable. He wOnd show that S2OOOO Oh ul
81 ann 81 me mds Of he bank had
propery IN the Eighth Ward OF inconsldeIabie value
ard on property Ia Orange, also OF lDconsideia
A. BeDOp Baldwin the receiver OF the Dank, tesinru
tgt the present indebtedness OF the Dahk Is SC0Zo4
The drposIts are $50 553 73. He had collected ABOUT
SI4 COO remaining assets are bonds ana lnOItRaEcS
and OOO st"ch the Ciizrns Insurance COnpahy'
"A mOrrgag q Of David N. Ropes OF Orange ON wICn ~
due 81 go mortgage of Rhodes Doremus Tor Sll-
ODO .n, equity mortgage OF Carrie H. iicisoh luI
$4,000 fHs Impression Is that the Citizens Insurance
stock mas no va ne. He undertook % sell RnueS's
mort gage, and got $3.50 IT, Tie was OH'red S3,OOO
for the RaodrS & DJICmls mortgage. 80,
George g. d. Reeve tho secretary OF the oahk, ttsleu
that in Nav 1879 the Finance Committee was hfcssrs
pier r. Durelnus, Joseph VI. smith, william NJ
Randall william Allen and Hiram NJ. Rhodes
I,rcsJo of the Dlnk eX-DiCO. TINS Fl'hncc Commit
lee was rcappOmtcd IN 1871 There has been the same
Finance Committee since 1874. The highest an"ln 9I
acuuss al any time S2COOs3 II, Ia May 1870
November l. 1871 the deposits were SI2sl2 II; Wutu
tGe bnuk closed tnty had down To about S2O,OOO
There were Indications previous 10 the ldure OF u" DLk
tDt il WAS ruined. In May, 1917 Rhodes gOt from the
witness 81 900 m UntCd STATES bonds belonging u the
bank telling utm that Tie vaults oil the Norm Ndtd
Na Ona B.nK would be a sa.cr place Tor the Oonds In
Aa-u,t 1871 as jLc bonds were moi IOrtncOmlng tbc
witness spoke to Joseph NJ Smith, his OrOlhc-n-laW,
about ma aud smith Afterwards tOld nl khuur5
had admitted To hin thai he hal MO ,hecated
inc bonds; the bank got the money for the b"nus
in October 1877 Ten thousand doIars in registered
DauK. In August. 1876 a. loan of $1,000 was made 10
Charles NJ b. len one OF tc managers, on no Cs Of r.
X Day, indOrscd by blm. The check mus. Lave Oceh
sgned by Rhodes, the president ana Randh tie treas
urcT. Tue secretary uJ not remember ever naNibE
gwen check % Transaction Of TINS kino that was mol
signed by president ard treasurer, Tue case VIII
probably occupy the remainder OF tue week.