The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-04-10
PRICE TWO CENTS.
BANK DEP0SITORS ALARMED.
WAS An EFFORT MADE TO BRIBE A DE-
POsITORs' COMMITTEE,
What Caused suspicion In the Case OF IN.
Peoples ssvinss Banh OF Newark Mr..
Hosan's story-what Col. Alien SAYS

What Caused Suspicion In the Case Of tho
Peoples savings Banh OF Newark Mr.
Hosan's story-what Col. Allen Says.
Trouble has broken out again between the
officers and depositors OF the dsfunct Peoples
Savings Institution Of Newark Tho bank took
advantage OF the 90-day rule. on the nth OF No.
vember. the depositors having rapidly with
drawn t150.0OO. II was announced that tho
balance duet depositors would bo paid nearly
In full, II the bank was given time to realize Oh
its securities. Mr.. A. Bishop Baldwin. who was
subsequently appointed receiver. reported to
Chancellor Runyon. on March 2, that he found
tho assete only t38 O75 including $3.65 in cash
in tho North Ward National Bank. The liabili-
ties were t64104 Nearly 10000 OF tho assets
were in worthless loans. the balance being
almost covered by obligations OF tho President
Vicc-Prcsident. and Treasurer. Very little was
left to pay the $52,639.73 duo depositors. The
last annual statement gave the liabilities at
s177.o71 surplus. f7.695.
The President. II. NJ. Rhodes, had borrowed
$4,000 from the bank. and the Treasurer. VIM.
N. Randall had given his notes for 81 800 and
the notes were secured by stock OF the Citizens'
Insurance Company. Messrs. Rhodes and Ran
dali subsequently went into bankruptcy. and the
Citizens Insurance Company suspended On
Feb. 5. The officers and managers OF the bank
were largely represented in the Board OF Direc-
tors Of the Citizens Insurance Company, and
Mr., Rhodes, President of the bank. was tho
Treasurer Of the company. He was at one time
President Of the North Ward National Bank,
and the three institutions were run by nearly
Peoples Savings Institution prohibited him or
any officer OF tho bank from borrowing money.
directly or indirectly. from the bank. II also
prohibited the bank from issuing notes or bills.
or Ioaning money on bond and mortgage. ex-
cept on unencumbered real estate OF twice tho
ipyaetQ1 IN I'm m
shall not invest in the stock or loans OF any
incorporated company, whatever" Any viola
to indictment.
The depositors. alarmed by the receivers ex-
Hogan. Frederick Bra1dt, Lawrence Brady.
and Justiceof the Peace L. W. Barnard a COM
and il tho result justified Il to make complaint
before the Grand Jury against the officers and
managers. Ata meeting Of the depositors last
week Mr. a. q. Sayre nsnuated that some OF
the committee had offered to resign II tho bank
officers would pay them their deposits. and he
managers. He was hissed from the room. Mr..
Patrick Hogan then said that President Rhodes
had sent MIN a letter asking n private inter-
view. The depostors have since thought that
there was game on foot to bribc the committee
not 70 make any trouble unit the Grand Jury.
which II now in session. should adjourn. Judge
Dcpue called attention to the savings bank In
his charge to the jury last week. and said that
his personal benefit. Il was an indictable offence.
To reporter for The sun Mr.. James Garri-
after the depostors appointed the committee he
wa authorized TO tell Mr.. Hogan that II he re-
signed from the committee he would be given
his money. as he had been induced 10y the SEQ
retary to return II to the bank after he had once
withdrawn IL. Two days later he found Mr.,
Hogan closeted with President Rhodes and Col
Allen. He refused TO tell Col. Allen who author
iz'd him TO promise Hogan his money. and he
then washed his hands OF the matter Ho know.
however. that Hogan agreed to resign and not
push the officers Of the bank II he got his money.
Mr.. Patrick Hogan was found at his saloon.
Eighth avenue and Spring street, He was for
| Railroad depot where Mr. Rhodes was in the
commission business then. He said: =" Jim
Carr gan sent for mo on the night OF the 26th OF
March. and told me II dropped the depositors
agitation my money would bo paid to me. We
| had no meeting on that night. Two days later
| was taken into IA back room by Mr.. Rhodes.
| Col. Allen was present. Mr.. Garrigan came in
| later. and he refused to tell who authorized him
| 10 promise me my money, and Allen said:
| That's right. jim, don't tell Allen and Garri-
| gan went out. and Rhodes talked TO me OF our old
money II | resigned from the committee and
tried TO keep the casc from the Grand Jury. He
asked mo II had private room in my house
whore he could come and talk without being
seen. sntd yes. and he promised 10 come next
day. But lac wrote me next day that he had to
go out Of town. then made up my mind that
II was a sharp game drew my money out OF
the bank ON the 18Th Of July. because lknewth
bank was shaky. but Mr. Reeves the secretary.
induced me 10 put II back again. He said the
bank was good.and that in any case would get
my money"
The Grand Jury will. it is understood. begia
iuNpstinat the hunk nj oueo