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

SECOND DAYS PROCEEDINGS AGAINST THE
MANAGERS or THE NEWARK SAVINGS INsTI-
TUITION nai t8Ha-1%fn &#
The trial OF tho Peoples Savings Bank oflcals 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 crcoited TO William H.
Randall ono OF tho alleged swindnng managers,
and SIX 70 Mr.. Dorcmus, another manager;
all \ tho managers notes wore paid except
Randalis, and some OF hts wore taken up
On being asked how he Know Mr.. Rhodes, the presi-
dent OF the bank, had hypotnecased bonds tho wit
said 1.-THE bank wanted money oficcr of the
North WAra Bank said 70 me, Your report says you
have sovernn bonas but your president fRhodesl
says you have not; then inquired into the natter
Mr.. smith knew nothing Of tns matter until I toii
him; Colencl Alien did not know OF II, neithsr did
Randall; do not Know about she other dofend
tbis evidence was brought out by the dcfsnce with
view 10 show that tho experimentation OF bonds not
done as tno result OF . conspiracy-tne charge on
Afer recess MIR. Aionzc Somcrvilie, coehier Of tho
North Ward Bank, testified that Mr.. Rhodes haa told
him that he had used the Peoples Banks United
States bonds and had given The bauk check for tho
amount. Witness iurtaer tes,iaea tba. the North
Wari Bank had borrowed the Peoples United States
bonds through Mr.. Rhodes, and mad obtained money
on them.
III yupos DErux Stains rus casa
Al this point tho state rested, aud Judge Dcpuc,
speak, ng inc Court SAID that act
bonds 1hc question should be settled whether there
WIS fraudulent intent. Tho next question was How
many .deiendants knew VI the wrong done 2 There
was evidence against all but Colonel Allen yet he as
a member Of the Finance Committee, prcsuma uiy
knew these matters. No distinction should be
made so Defendants
pEysSoE orKys. s..
Counsellor Cout nov opened Tor the defence He
dwcit AZ hrst on the heretofore unblem,sned rcpuia
ton OF the defendants They had done what tncy
thought pest. Tho loans made ~ tho defendants
misht have been made contrary 10 The charter, put
tue Jury must DO satisfied that not only tho law
ansgressed, but that u was done TO defrAud tho
stitution. Illegal acts may have boon done with Tho
best OF purposes. In conclusion counsel urged that
tho accused could not DO hold respons tblo tor the
com depression aud us rosulss aud said tnat
the ililans ana Dercmus notes wo1la Os satisfae-
tory explained.
Ths defence then placed on tho stand ono OF the
accused, Colonel william Alien, a white haired,
white bearded, military looking man, evidently d
recent Invalid. fno Colonel testified that ne had
be.a connected with the bink from ITS orgsn,xatio
and always on the Finance Commi ttoe he had
known OF criminal misma nagomcnt; he did not
know that Mr.. Randall made any tning out Of any
TRANSACTION, nor ava he know OF any one who aid !:
for several years tho stock OF the Ciizens' Insur
ance Company was at par; before his failure MIR. Il.
G. Sn,ith was In good commercial standing; 80 was
No Randall
rne State mas several witnesses who have no, 70.
testified .f Yast }4#N