The New York herald., 1879-12-16
JERSEY cITY's BROKEN BANK.
CONTINUATION OF THE CONSPIRACY TRIAL TIES
TIMoNY FOR THE DEFENCE.

CONTINUATION OF THE CONSPIRACY TRIAL-IEs-
IIMoNY FOR THE DEFENCE.
The third week of the trial President Halliard.
Secretary Douelan and Messrs. Sheeran. Dttmar.
OCallaghan and Sweeney. officers and members OF
the Executive Committee of the Mechanics and
Laborers' Savings Bank of Jersey City. who are
charged with conspiring to defraud depositors.
began yesterday in the Hudson county. N j.. Court
Of General Sessions. Judge Garrettson presiding.
Mr.. Collins concluded his opening for the
defence, and called Washington b. Williams.
receiver Of the bank. to the stand. He
testified that. speaking generally, he thought
tho mortgages held by the bank at
the time they were taken worth their face value if
not more he had known John Halliard for ten or
fifteen years. and knew him to have been engaged in
extensive real estate transactions. The defence
sought prove by the witness the reputation of the
president for honesty and integrity in the CON-
mpnity, but the question was excluded by the
Court. George r. Evan. clerk in the Court of
Chancery. was then sworn. and produced the orig
inal papers in the suit between John p. stockton.
Attorney General. complainant. and the Mechanics
and Laborers Savings Bank, defendants, which fur
nished complete history of the banks insolvency.
Tho record was admitted in evidence.
Joseph Warren. the next witness, testified that Mt
the request Of Dr. OCallaghan and Mr.. Sweeney he
made apprasenent or the property belonging to
John Haiiiard, adjoining tn. catholic Cemetery;
he valued the land ut S125 900; at the time he made
the valuation he was not aware that Bishop Corri-
gan was thinking Of purchasing it.
WHAT THE LAWYER DID.
John Garrick. the legal adviser of the bank, upon
being sworn. testified that in winter OF 1S76-77
the bank. and had urged the directors to compel
him TO make y settlement; he also requested to
SEQ Halliard about q missing $4,000 government
pledged to procure some money In the Secaucus
property. owned by Bishop Corrigan; the Bishop
wanted to have the original take the property
back and In short time the negotiations would be
closed and the bond returned; the matter of tho
banks difficulty carne up at meeting just previous
ability Of Halliard to make good the deficiency; all
seemed to have entire confidence in him, and it was
suggested that If the bank closed the would
have to be sacrificed and the epositors would surely
lose; witness told him that they bound to take
would Of their own money. and that they must
else their best Judgment in the premises; they
came to the conclusion that it would be best
to give Halliard q chance, and asked witness if
they were justified in regarding the presidents
indebtedness assets Of the bank; his told them
IL they believed they could realize the assets.
Witness found mortgage OF $780, 900 given by Hal
lard to John Winner on the cemetery property and
Haisrd said he had reduced it to $30,0U0; when
asked to get certificate OF that fact from Winner he
produced torn piece OF paper which was not salts,
to Mr. Winner the latter told him that Halliard
said the mortgage had been reduced it must be SO;
Hallard then gave the bank his bond for $50. 900
on the property.
Brs4op' conRIaAN's POSITION.
Witness was directed to 20 to Bishop Corrgan and
urge him to buy the property. the sum required
($l00000) would 90 to the bank; also that he need
not pay the cash: that DR.. o o'Caaghan. Mr. Sweeney
and others would advance him the money and wait
years for it; the Bishop told the witness that
could not take the property. and that Hallard had
already involved him in considerable debt by the
purchase of the place ct Secaucus at cost of over
$10O.000; witness told the Bishop that Halsrd had
aud the Bishop replied that Halliard had not been
authorized to do anything Of the klnd after che
suit of this interview was communicated to the
directors they said the bank must Close
Other witnesses were examined, but their testi-
mony was of importance, and the Court ad-
journed until to-day.