The New York herald., 1879-12-12
JERSEY CITY'S BROKEN BANK.
DAMAGING EVIDENCE AGAINST THE ALLEGED

DAMAGING EVIDENCE AGAINST THE ALLEGED
OBSERVATION-DISCLOSURES IN THE COURT.
The trial OF the officers and directors of the Me-
cnanics and Laborers Savings Bank of Jersey City.
for alleged conspiracy to defraud the depositors.
was continued yesterday in the Hudson county
Court OF General Sessions. Fourteen witnesses were
examined for the State. but many Of them testified
to nothing except their balance in the hank and how
they were induced 10 deposit their money. The i'm
portant testimony is appended.
( James Caysnagh testified that he had balance In
the bank Of 81. lao 30 when he deposited his money
Donelan told him that the bank was in aourishing
condition and was doing business of sl00.O00 q
month"; at the time of the failure witness told DIR.
OCallaghan that il there were of rebuilding
the bank he would allow them the use Of the money
without interest for Ave years; DR.. O'Callagha
thanked him. said that the bank was in = bad con-
dition and that President Haniard was 10 blame for
It all.
James d. Manning testified that after commenting
ON some improvements In the bank he was answered
by Donelan with. business Is Hourishing." and also
the statsment-"This is the safest bank in the
State"
''FoR THE CHURCH"
Mrs. Kate King next took the stand and kept the
room in roar of laughter with her recital of her
meetings with tho bank officers. She testified that
the day the bank closed she called tho bank and
asked to see Donelsn. when. said she. "a brat OF
boy came ont and said he was not in. and knew he
was. because could see him through the screen
fused to 90 away. and Donean Snay appeared and
told her to return on Monday. when he would give
her all the money she wanted, She returned on
very cold she sxid-"meself and the baby
when Donelan and Father Senez came up; thoy
and then he opened q big safe; after that he took
out the full Of your hat with money four times and
mine" she said. getting excited. che told that
the money he gov Father Sonez for the Church.
and then gev me ten cents and told me to 90 to Hal
"Dd You see HaiiiardY. ssked the prosecutor.
81 did. indeed. she answered; II found him In
his dne office. down near the ferry, sitting by
the re. with enough pictures OF ANGELS. bishops and
priests all around the walls to make you think he
.well." asked the prosecutor. "whst took placer
"He gave me an order for . barrel Of four" an
me $40 worth OF groceries.' Mr.. Collins began to
cross-examne the witness. whom his client Donelsn
% over sn, 70 % 70 n% I'M. s the ire
client. continued. that little snip is whispering
lies to ycu Sure all We want with him is to get our
money"
The witness was severely reprimsnded by the
Court for this outbreak, and after that she was
quieter. In answer the prosecutor she said that
while In DR.. OCallag Office, she heard the
doctor h say .h to ssnsemsn 1--WE are bothered @ 70
can't be tolerated any longer II they want law we
will give them plenty OF It. with their own money
too"
WHO WAS THIS FRIEND?
Michael Kelaher testified that he was superinfen-
| dent OF tho Hudson County Catholic Cemetery he
had some money deposit in the bank. but he was
| told by o that the bank wasn't good. and on
October 81 he Withdrew all OF It, amounting to over
| $500.
@. Who was the man Who told you tha.s A.
Q. Didn't you ever see him befores A. didn't see
| him at ILL
Q. How then did he tall your A. He Left word at
| my house with my wife.
Q. Is Mr.. Donelan connected With the Catholic
| Cemetery A. Yea, he 10 the secretary.
Rev Spencer NJ Rice D. D., rector Of Grace Epis-
copal Church. testified that the bond and mortgage
for $4,000 In his name found In the bank assets had
| been paid years ago.
John ]. NcPhillips. clerk In the Court Of Ses-
sions. testified that he assistant bookkeeper in
the bank from 1871 until its failure; he did not
know of the banks insolvency. but knew that it
BANK Examiner he heard DOneian tell him that he
animation put OF until November; he aud
! Donelan went out to . saloon and when DON
| STAYED that off," during 1873 when checks were
presented witness obliged to take them down 10
Halsrds Office to get the money. becsuse 1t was not
| in the bank; this occurred every day; month be-
fore the failure he heard Donesn tell Mr.. Reid
| II the bank failed then 1t wouldn't pay over hfty
| cents on the dollar.
Patrick Meehan. director. testified that he hrst
knew Of the banks condition two months before the
failure. when he told Of It by Dr.. O'Calaghan;
ct the bank directors meeting the 1lth OF Novem
ber Donehu reported the true condition OF affairs.
and In reply TO question by the witness said that
the irregularities had been concealed because 1t
deemed wiser to do
The State will probably rest this morning and the
defence will open In the afternoon.