The sun., 1878-10-16
BANK OFFICERS ON TRIAL.
THE CASE or THE PEOPLES SITINGS
INSTITUTION or NEUIRK.
six Conspicuous Citizens Aceu.ed OF Conspir-
scy 60 Defrnud-Notes by or 4" Manager.
or their Relatives bought by the Bank.

fNoffft hfVN VT WV ANN
six Conspicuous Citizens Aceuscd OF Conspir-
scy 10 Defrnud-Notes by or to Managers
or their Relatives Bought by the Bank.
In the Court Of oyer and Tcrminer, New
ark. before Judges Dcpuc and Tichenor. the
trial Of Hiram VI. Rhodes. William Allen Will
liam y. Randall Peter r. Dor, mus. Joseph NJ.
Smith. and Silas Il. Williams the indicted Off
cials of the defunct Peoples Savings Institution
Of Newark was begun yesterday. The ndict-
mcnt is for conspiracy, the charge being the
wiliul and reckless selling Of the securities Of
the hank. with intent to dcfraud the bank and
its dcpositors. The indicted persons COM
posed the Finance Committee OF the bank. and
they were also connected with the Citizens In
surance Company and the North Ward National
Bank. all three institutions being run at one
time by nearly the same men. The Citizens
Insurance Company failed in August. 1877, and
the Peoples Savings Bank on Nov II. follow
ing. The North Ward Bank is still in exist
ence. On March 2. 1873. Mr.. A. Bishop Bald
win " South Orange. who had been appointed
receiver Of the Peoples Savings Bank. fled
report showing the assets to be t2s O75 SO. and
the liabilities tGi. .lOi.55. The dcpueitors num-
b"rcd 100, and their claims ranged from 20
cents To 81 900. This report aroused the indig-
nation Of tn" depos tors who held several meot-
ings ana appointed committee 10 confer with
the managers of the bank Tho Grand Jury
found an indictment against the Finance Com,
@ ,t ~ ~, , ,, b srr i"i "9V" i'""
Tue indicted men have held high social aud
i, M IL HL Ia @ on T ,h, lar,c
real e estate i" V1 dnnsTs nv in N"wsrR c was con-
nected with several financial institutions, and
was sPpsdcTr4 E of ;',ic vbs bqtGsT BS
answering. he is indicted alone for embe2s,linF
the charge being that he apnropriatcd TO his
usS os hnin b , 9' brs ~ ~ M
~, aii ~ nS , u,'a'o - III wv ht,,,aN Wv, ~
L t@ ,,s NV ~ :. /. . @ Mns n, "uhuhb, Nioi
,, W. sI ~ a. ,h W., nt nrri,i
~ his ral s,,, I,,ri,, W. vi 81, ~ o, V" T., "a Wi
Ham LIE n I'm uuIr.E e,,9 s ,n,J ~ ,h
~. n,,u,,'.,, ., X y < \. a,,1 10 ~ & ~, w. i., ~
lS ~ ,,y,i 81 ~, ~ i ni,.i ~ NJ
Randall tbs 'rreasiir"r WAS wealthy fnrni
,.'o Va e,nteI "ds7e W. n,r"n,is
is IN" pr,sfdnnt ~ tbc N,wart Erown stone
WI, UT. a,sn w"s wv "a a,s w
tlr W O,,,n,'hs suIuce "ninInny, "r' "H''"s
rhere was large itien,dapce in court yester-
"trs VII Wy 30 u'.a. " a. u ~, A., .t,... n
10 m n'vnu was M. npsr ,, nsn H.
hgd s21o e the oapk Tnsn Il NiscI closed =, ho do
Ut a, p'shuh nH'IW,ni Nv, no,uaNcu "i t.y NJ, u1
mss ~ III" bank ~ SOY 2s4 deposits t?3 )o5 49,.
II has r1llrciri ~ liuVo. ana tho remtininS M as
! OltH"ns insurNn3r Comp9ny stock' ana mort
H. aE'H nN ns ~ havr vi Vrhsg hsn s Sh Wlc o T.
! l,ct only 500 on II; There is also mortgage
~ hhoic1 anu Doren,,us ldsiuhdhntls, i2r
] - i'p.Nuu Nu 'lultJ Aliii liNItEhs' pl 'hIIi'
| II. Pirrson for 81 OnO. The witness thought the
/ tttlnns Insurance. stock had no value The
! largest offer he could get on the Rhodes anu
| DQremus mortgage WAS $4,000.
George l.. y. Reeve. who was Secretary of the
| bank from May, 1879. until the receiver took
| possession. testified that no kept me books n
! pile oi whirh was gwen MN 70 refer 10. On
| sept 3. 1872. the Waichung Railroad notes.
| amounting to fH6Hls5, endorsed by d. NJ.
| Ropes. were o. lght by the bank. These noics
| wrr" renewed from time 10 time and nnniiy
| protested. Then Ropes gave mortgage. 1h,.
| Rhodes and Doremus mortgage was dated
| March is, 1874. and was bought by tho tinanc"
| Committee AT 70 cents on the dollar. and 1t was
him assgn-dto the bank. and the money in
payment OF the mortgage credited 10 khodcs
and ID D'remus. Then tS.5O OF the CltiUns
stock wn- received as coiat',ral Tor notes oi +.
G. Sniith \ sons, endorsed 10y VIM. y. Randall
which We're bought by the bank. smith sons
aftcrward Jailed. and Ran notes were taken
a. collateral Tor smith Sons nots; There
was mortgage made 10y Thomas hndder; pur
chased 10y the bank April 80. 1917, oi IL. VI
Rhodes, and assigned a. the Newark Savings
Institution November, 1877, There were indi-
cations previous 10 INC iaiiure that the bank
was shaky. - ~
IN May. ,isif, hhodes GOT from tne witness
tlOOuo ~ l hlted states bonus pclonglng e. IN,
hhnk, tellhi nlhl tiic NhuIts ol we Notln war =
hnhk W3u-lI ne tns raies, pisce iqr ,'ittn, ~ ~
august 80, thr WitIeSs spoho 70 nls uI'i''.et ~.
in-IhW J,,s'ph u oiult,, Mlu n,teiMaIu .olN
MN tnM l'l"irs hurih'iru ,lial ~ nuu nypo'tt'
'hted IN" 'ohnS. INC lnlA ~ w money lo'
thr bohIs "a " up'i' - & n" rInhhce 'nnl I'M
nlur" iooA 10 Wt,uh' ~, w W M''i'rG H. WI ~
M i&heu & ia aug ~ MI" i nv", tio NM i,