The sun., 1879-06-24
EX-PRESIDENT HALLIARD.
on TRIAL FOR ALLEGED EMBEzzLE-
MENT IN JERSEY CITY.
The six 81 900 Bayonne Bonds that were IN
BON. aud Belonged to the state Fire In
surnnee Compnny-Mr. HalIIard's story.


ings Bank and the State Fire Insurance Com
pany Of Jersey City For several years Mr..
Haliard had been n well-known and respected
citizen OF Jersey City His credit had been re-
puted good for almost any amount He was n
devout Roman Catholic. and constant at
tondant In st. Mary's Church In Second street.
Jersey City. SO implicit was the confidence re-
posed in him, that tho other officers and the
directors OF the two institutions over which he
presided intrusted the management OF the bust
ness in his hands exclusively. Ho exercised an
unrestricted authority over their affairs. and
controlled their securities and their invest
ments. In November. 1873 tho Mechanics and
Laborers Savings Bank suddenly suspended.
II was announced at the time that payments
would be resumed in few days; but on the
application OF several OF the depostors. Master
in Chancery Williams was directed to examine
tho condition of the hank and his report dis
closed the fact that II was hopeessy insolvent
Soon afterward the State Fire Insurance
Company wns obliged to discontinue its bust
ness. owing to the impairment OF its assets. Its
suspension was attributed TO tho alleged con-
version by Mr.. Haiard of certain property be-
longing to the institution to his own use The
subject was brought to tho notice OF tho Grand
Jury, and after a thorough Investigation they
indicted Haliiard Tor conspiring with certain
directors OF the Mechanics and InbOrers' Say
ings Bank for tho purpose OF defrauding tho
dcpositors.
him for perjury in falsely swearing in his re-
port TO the Secretary OF state that the state Fire
Insurance Company hnd ccrtnin assets that at
the timo IL did not possess. The third ndict-
ment was for the alleged cmbezzlement Of 50. 900
worth OF bonds belonging 10 the insurance
Prosecutor McGill. In the Hudson County
Court OF General Sessions in Jersey City yes
terday moved the trial q Haliard on the last
the l4th day OF May, 1878. the defendant did
lraudulently take and appIy TO his own uso and
the city Of Bayonne. OF the value OF 81 900 each.
the said bonds being then and there tho prop
erty Of the state Fire INSURANCE Company Of
Dir. Halliard is OF middle age. His figure is
tall and lank. His hair ia slvery grny. and the
top OF his head is bald, His features are ema-
ciated. and tho hollow lines OF his face contrast
strongly with his large Roman nose.
Andrew Clark testified that he was director
OF the company until yesterday, when Mr.
Edward Young OF Jersey City, who had been
appointed receiyer. qualified. Five or six years
him that tho company had some money which
he. Hallinrd. wanted to invest In good security.
and asked the witness 10 find tisfactory in
vestment. The witness accordingly bought six
81 900 bonds Of Bayonne city. They were do
lvered To- Mr.. Halliard aud paid for by him. In
October last, when the witness was elected
President OF the company to succeed Halliard.
who had been compelled 10 resign. he made n
search for these bonds In the oflice of the com-
pany and in the Hudson County National Bank
but could not lind them. Tho box in which they
were always kept was empty.
/ asked MT. nNlllNfl.' tONtlnueQ tle Wiz
ness, what he had done with those bonds. At
first he said that the company didn't own any
bonds. told him II certainly had owned So 600
in Bayonne bonds, for | myself had bought
them. He then made some excuse-I could not
understand what II was. He told mo to-day. as
we were entering the Court House together.
that he had paid to the company all the money
he had ever got from the sale Of these Bayonne
Hugh ". Mckay testified that ho had been n
director of the company from 1869 until tho
appoiniment OF a receiver In 1875 the com
They were produced at meeting OF the Board
OF Directors by Mr.. Hallard. who said at the
time that they were the property OF the com
Iany and a portion of its assets. Whom the
bonds were missed the witness asked Hal
lizard what had becomc OF them. and Halliard
replied that he had 20 raise money on them to
take up notes that he had put into the banks for
money that he had borrowed for and applied to
Cornelius Znbriskie. a broker OF AZ Montgom-
day OF May 1878 he had bought six t1OOO
BaJonne City bonds from John Haliard. The
witness had given, IN payment for the bonds,
his check for 60 l3s.4. drawn TO the order Of
David Taylor. The cashier OF the Hudson
Why aid you make your check payable to
Mr.. TaylorY' asked the Prosecutor.
" | did 50 at the particular request OF Mr..
Halliard" B." the witness answered.
The check was then identified by Mr.. Zabris-
kie. and offere'l In evidence.
George :. Mclaughlin. who was secretary Of
the State Fire Insurance Company up 10 Janu-
airy. 1876. testified that he had seen the Bayonne
City bonds among the assets OF the company
and that their numbers were 49i 1875. 1876. i97.
4si. and is2. The Prosecutor offered rs evil
dcnce the ledger OF the Hudson County National
Bank aud the articles OF incorporation Of the
State Fire Insurance Company The State then
rested its cus@.
The detcndnnts counsel asked Judge Garrett
| son 10 direct the jury 10 acquit on the ground
| that no fraud had been proved. and that It had
not been established that the bonds which Hal
| lard sold were the bonds Of the insurance COM
pany. But. asslruin ng that Ia be tho fact. 1t had
| not been proved that the loans which Halliard
huH rau1I NNlf frTu a. G4la Of fhs
| bonds had not been contracted for the benefit OF
| the company.
Judge Garretson deuied.the motion. and Mr..
| Collins took an exception.
Mr.. Haliqrd was then called to the stand. He
sad; g Do oJ dGposl,ed thiS check o. mine Tor
and dre% sS cSoeR Tor P sS on the same SEU
day in favor OF the Hudson County National
Bank to take M my individual call loan for
| 81 900. The consideration for the "a 500 note
Of TS and Sss S ns
Fire insurance Company. and the 81 500 from
the Hudson County National Bank went TO the
| company l suppose. l Was in the habit OF
advancing money to and borrowing money
| from the Insurance company. | have advanced
at different times $4,000 10 t35 600 TO the
company, / managed the affairs OF tho com
pany without reference TO the directors. In
dsposing Of these bonds had no intent to de-
fraud the company"
Whnt collateral security did you deposit foi
| cross-rNamiuntion.
Il deposited water bonds Of Jersey City"
| Who owned those bonds p
The Mechanics and Laborers' Savings
Bank"
- Yes, SIR.
The 5000 loan" the witness continued
| was represented by two notes Of mine. Ono
| for SS2G.5O. WAS payable 10 Thomas Lynch, and
the other, for 81 1880. was made payable tc
James G. Martin"
Who was Thomas Lynch ?" asked Mr.. Nc
Gill, ..,-,,
" He was the coppany's office boy"
| And who was James c. MOrtOnf'
| He was man with whom happened to bC
talking when made out the note.'
Why did you make the notes payable tc
Lynch and Martini"
"Because / didn't want the people in the
Second National Bank to know that the com
pHnV WAS in need OF money.
Mr. llpllnrd did mol remnmbar whv or WheT
he borrowed the 81 900 from the Hudson Colu
| " National Bank. He supposed he borrowed i
Tor the company. ma he did not require II fol
himself Al different tmts he had borrowed
money on his own individual note for the STATE
Fire Insurance Company, for the Mechanics
and lAbOrers' Savings Bank, and for tho Hud
son County Cemetery. He had no recollection
| Of the 81 500 lOun from the Second Nntiunn
Bank. but believed that he had raised Il Tor tn
insurance company. llo had endcnvorod 4
trace these two loans. hut Ind not succeeded.
Mr.. Recd WAS recalled TO prove that tho Lyncl
aud Martin notes had been charged TO the credi
Of tho company.
The court then adjourned.
| EINaNffIaJ fNn HnMHIrRfrT