The New York herald., 1879-12-10
JERSEY CITY'S BROKEN BANK.

EVIDENCE ADDUcEp by THE PROSECUTION YES
TERDAY TO PROVE THE CoNsPIEAcY-THE
WORTHLESS ASSETS OF THE INsrITUrIoN-A
GLIMPSE OF THE LINE OF DEFENCE.
The trial of the officers and directors of the Me-
chanics and Laborers' Savings Bank of Jersey City
the indictment charging them with conspiracy to
defraud the depositors continued yesterday
before judges Garrettson. Brnkerhoff and Fry in
the Hudson County Court of General Sessions.
At the opening of court Jacob Dunning again took
the stand and his cross-examination was continued.
He testified that he had been examining the books Of
the bank since the 30th of April last. and that with
assistance. he could complete his examination in
four months more; he further testified that at the
close of the bank John Halliard. president. had u
balance of S30s 50 more than any other defendant.
Tie first glimpse of the for the defence OBJ
tanned when Senator Albeit asked. could person
not u bookkeeper, from examination Of the bank
books understand the condition of the bank?"
mo, sir" answered the witness.
On the redirect examination Prosecutor McGill
asked. Would not ordinary person. after looking
ut books discover that the bank was insovent?"
"a child could see that" answered the witness.
SOMETHING ABOUT MORTGAGES.
Mr.. Frank c. Hollins was then sworn. He testi-
fed that he a broker in this city,. and that for
the past nine years he had been in the brokerage
business in Jersey City; he remembered visit paid
him in October last by John Haiard. president of
the Mechanics and Laborers' Savings Bank, who
told him that he bad some mortgages to sell; vol
unteered to take 900 of them IT they were good;
l found that they only second mortgages,
and took but 81. 900 worth OF them spoke to Hall
lard and subsequently, to Secretary Donean abous
the condition OF the bank and the mortgages. and
remarked that the latter bad Investments;
Halliard answered that it made no difference; I
Donelan called at my office and told me that the
bank had some mortgages upon which they wanted
mortgages for inspection; DR.. O'Caiiag6an also
called upon me. and after telling me that he had
been elected president OF the bank said he wanted to
close the special deposit account and needed
$4,000 to do it; he expected to raise that amount
by disposng psa n of of = some mortgages; r I offered
them l took only $4,000 OF them, being all that
could find among them good for anything and Sc
cured DR.. OCallaghan subsequently told me not
to trouble about the bank. it had suspended; he
said he knew two years ago that it was insolvent.
but had hoped through subscriptions right;
Mr.. Donean also told me that he knew OF the banks
insolvency; examined $l12. 145 of the banks mort
cages. and the time told Hallsrd and the commit
tee that S4267O were doubtful worthless;
the bills and bonds OF the bank examined by me
were in very G bad shape saw & bond Of Mr, Hall.
in the names of Hugh W. Mckay, Harold Henwood
and j. q. Sweeney; Messrs. Mckay and Henwood
had refused sign the bond. and the only signature
to it was Sweeney's at meeting of the committee.
at which Father Senez and Father De Concilio were
present, Dr. OCallaghan suggested that the bond be
returned to Mr. Sweeney, and Mr.. Donelan remarked
that If any removed that bond he (Mr. Donelan)
would leave the Dank; the SZUsUU mOrtSaSe BiNeu
by Halliard on the property adjoining the Catholic
Cemetery included in the mortgages regarded by
the witness worthless.
..UNABLE TO RAISE A DOLLAR"
The witness here volunteered the remark that he
did not believe that Dr. OCallaghan wanted to close
the special deposit account.
''Why did you not believe it?" asked Mr.. Collins
because knew the banks condition" answered
the Witness and knew that 1t was unable to raise
dollar"
"wnat reason have you.' said Mr.. Collins. '-for
saying thatY'
'.Because at that tme." answered the witness. II
knew that DR.. O'Callaghan and Mr.. Donohue had
urged an acquaintance OF mine to make $1,000 spe-
cial deposit in the bank"
Counsel warmly asked the witness IL the decrease
in the special deposit account did not indicate that
1t was being closed and the witness hotly re-
torted that to him it appeared as II the bank was
seeking sufficient deposits to meet the demands OF
those who withdrawing their money.
Mr.. Michael Mullane. proprietor OF the Argus. and
Mr.. z. X. Pangborn, of the Eoensg Journal testified
that the bank advertised dividends in their respec
papers in 1877 and 1878 and the banking house
advertisement was published during that time in
the papers.
The Court then adjourned. Many of the female
depositors who were in the court room were in
half the day, and their sobs were distinctly
heard all over the room.