The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-10-16
TRIAL OF BANK OFFICIALS.

HOW THE PEOPLES SAVINGS INSTITUTION OF
NEWARK CAME TO AN VICTORIOUS END.
SIX prominent officials Of the Peoples Savings Bank,
ofNewark, N j., were put on ,riai Tor swndiing IN
tho Court Oyer and Tsrmlner yesterday. Their
names Hiram " Rhodes, William Allen, William
N. Randall Joseph n. Smith, Peter +. Doremus and
Sias s Wilhams-all mon OF position and generally
respected IN the community. The charge made by
County Prosecutor G. n Abesl In opening the
case is one OF conspiracy 10 defraud The
depositora II 10 alleged that the officers OF
the bank borrowed It's funds ana permitted
Other persons 70 do 30, and wasted money in such
way that the Institution bankrupt. The pros
said that would show that previous to The
closing oil the bank certain preferred creditors who
relatives OF the managers had Withdrawn
their deposits In time TO save themselves aud that
oepositors Furthermors. that out OF $6o000 o. de-
posts from $4,000 TO $4s, 900 had been squandsrcd.
Counsel tor the deelce moved to qaAsh mo indict-
monts The ground that they were unawiuly
drawn. The motion was donied. In forming jury
tue aeisnce challenged snirty nance; Ferdinand
Bsad deposition. was hrst called 10 the stani, but
nlp,ey lesiined the amount OF his deposit, winch
WAS small Colonel A. Bishop BALDWIN, receiver OF
indebieanesa Of tho bank Was sea,ss4, and the 40
posts $52 $685. hs has collected ABOUT $4,000, and
Inc Remaining assets consist OF bonds cages.
Mr. Gcorss b. d Reeve, who WAS secretary Of tho
| bank. WAS next examined. Ae knew OF no money
having been loaned without the OF the fnancs
| committee; IN May. 1875, he SAID, the deposits
amounted 10 5000 900. out whom tho bank closed
there was emily $4,000.
4 STORY on CORRUPTION.
"In May, 1871 said Mr.. Reeve, "hI David N.
Rhodes, Of Orange, took $lO, 900 worth OF United
States coupon bouas belonging 20 the bank, saying
thst the vault OF Tue North Ward Bank was q safer
pace TO put them Ia ne gave me receipt Tor them;
when wanted them back We got the money Tor
them; tncy HAD been SOLD ~ New York; Mr.. Joseph
n Smith, Tue dee adant, has told me the bonds wcro
hypothccstcd by Mr.. Rhodes; the Finance Commit
tee knew Of lhis Dut look no action ABOUT III In Au-
gust 1877, heard The bonds mad been tampered with
and became alarmed; Mr. smith spoke 10 mr. Rhodes,
VINO. Mr.. smith says, admitted tn No had hypotne-
cuted them The matter rested until We got money
for the bonds OctoUer."
The witness then told how friends and relatives Of
the BANK officials had been accom- odated. IL Was
asked by the roscculion whether the managers and
their faines sneir deposits just previous
The collapse November, 1877. Mr.. Reeve that
duriug that month AIRS. Rhodes had Withdrawn
$1,000, ono son 500, daughter SIS and thc other
children smaller SUM. Mrs. smith had taken out
5000. Here Cour deneu the admission OF further
evidence on TINS point When croks-examined the
witness said that MIRA Rhodes had iong talked OF
taking out her money for the purpose oil getting
higher OF interest else here He also testified
that oil relatives partners OF the man
sgers had been cashsd by the banx. He was then
told examine the books OF tho institution closely
on this subject.
The case adjourned TIL to-day