The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-10-17
BANK OFFICIALS ON TRIAL.

SECOND DAYS PROCEEDINGS AGAINST THE
MANAGERS OF THE NEWARK SAVINGS INsrI-
The tral OF tho Peoples Savings Bank officials, Of
Newark, was continued yesterday. Mr.. Reeve. late
secretary OF the bank, recalled. He stated that
he had examined the notes bold by tho bank for
years, and found twenty-five credited TO William H.
Randall one OF tho alleged swindling managers,
and six to Mr.. Doremus, another manager;
all tho managers notes wore paid except
RandnIl's, and some OF his wore taken up.
On being asked how he Know Mr.. Rhodes tho presi-
dent OF the bank, had bypotnecatcd bonds tho wit
SAID :"Thc bank wanted money an officer OF the
North Ward Bank said 70 me, Your report says you
have government bonds, hut your president fhodes)
says you have not; then inquired into the natter
Mr.. smith knew nothing OF tns matter until 4 ioii
HIM; Colonel Allen did not know OF II, neither did
RandalI do not know ABOUT she other defen dsnts.n
this evidence brought out by the deiepcs with a
show that tho hypotnecation OF bonds not
done as mo result OF conspiracy-tho charge on
Ancr recess MIR. Alonzo Somcrville cashier Of the
North Ward Bank testified that Mr.. Rhodes haa told
him that he had used the Peoples Banks United
States bonds and had given The bank check for tho
amount. Witness TURNER testified that the N orlh
War Bank naa borrowed the Peoples United States
bonds through Mr.. Rhodes, aud mad obtained money
them.
At this point tho state rested, aud Judge Dcpuc,
speaking the Court SAID ina tho argcd
bonds ire question should be settled whether there
was fraudulent intent. Tho next question was How
many dcIcndnpts knew vi the wrong done There
was evidence against all but Colonel Alien got he as
member Of the Finance COMMITTEE, presumably
knew oil these matters. No distinction should be
made as so Defendants
THE pEFgxug orEys. us
Counsellor Couit now upvncd Tor the defence He
dwcit at nrst the heretofore unblemisn rcpuia-
ton OF the defendants. They had done what they
thought pest. Tho ionns made nv tho defcndants
might have been made contrary TO tho charter, put
tue Jury must DO satisRod that not only tho law
traDsgrrssed but that II was done 10 deraud the In
kttuuon. Illegal acts may have boon done with tho
best OF purposes. In conclusion counsel urged that
accused could not DO held reepons ible Tor the
commercial depression aud It's results aud said that
the Williams Dorcmus notes wolld be satisfac-
torily explained. V
me defence then placed tho stand OF the
accused, Colonel william Alion. white-hsired,
white bearded, military looking man, evidently a
recent Invalid. rne Colonel testified that ne had
be.n connected with the bunk IRON It's organs xa,ioa
and was aiwDys tho Finance Committee; he had
known OF no criminal misma nagomcnt; he did not
know that Mr.. Randall made anything out OF any
transaction, nor ara he know OF any one who aid /:
Tor several years Tho stock OF the Citzens' Insur-
ance Company was at par; before his failure Mr.. f.
G.. smith was In good coninsrcia Standing; SO was
Nj. Randall.
fno STATE mas several witnesses who have no, yet
testified.