The New York herald., 1879-12-09
JERSEY cITY's BROKEN BANK.

IT'S OFFICERS DECLARED TO HAVE PAID DIvI-
DENDs WHILE NEUTRALITY-SUSPICIOUS. In
TEARS.
AS the trial of the officers and directors of the
Mechanics and Laborers' Savings Bank OF Jersey
City for alleged conspiracy deraud the depostors
progresses the attendance ct the Hudson County
Court House increases. Yesterday. the fourth day
Of the trial. very large crowd present and
much interest manifested in the proceedings.
There large number Of females among the su-
dience and many of them were in tesrs during the
entire day over the loss of their money. One of tho
women. when spoken to by = reporter. burst into
tears and said that she had 800 in the bank. she
was . widow. with large family to support, and
knew not what to do to herself and family from
starvation.
DIVIDENDS AND DEFICIENCIES.
At the opening Of the court Jacob Dunning. the
expert. resumed the stand. His testimony which
occupied the Court all day, was confined to his
animation Of the books Of the bank. He testified -
Besides the liabilities given by him ON Friday there
loan account Of 950 to tho account of bills
pay sbe note OF 81. .000 for which tho bank had be-
come responsible, and credits not the books of
the bank. but appearing the books OF the deposit
tors amounting to $498 81; the total liabilities
sassis cI decns tho 'A passSooi entries fro%
tho liabilities the total deficit shown from tho faco
OF the assets is $26032 So; the books Of profit
cheney in the cash OF $15.8S7 ~, which had been
carried along the books since the present
tary elected The witness testified that
these matters were known for years the bank
tinued declaring dividends until the institution
was closed BY the Chancellor; when q dividend was
declared October 81 1877 the dehctt from the face
assets S4751 30 and at the dividend April 80.
1873. tho deficit was 39 according to the daily
cash balance books there deficiency Mt tho time
OF these dividends Of $4,000 aud on tho general
ledger false balance OF cash was carried from be-
ginning TO end the deficiency In the cash on April
ywa fha 1aflv Cuah hapk nj h..xv
$9436 06 actual cash, while tho general ledger called
for balance of $26630 60; the amount OF the divi-
dends declared was-May. 1877. SG.611 %; October.
1877. s6.923 90. and the May dividend Of 1873.
e6,350 81.
TIE cnoss-KxAMrnAr1oH.
Aftor recess the witness, upon cross-examination.
testified that the total amount OF savings deposits
was 81 100 635 56 of this smount $9l75i ~ repre-
sontod dividend and 81 l07. .554 07 money deposits;
the profit aud loss account contained q statement
OF interest good and accrued, but not colocted;
the book of Investments there appears the entry,
under date Of October 81, 1S72.-"S20,oO0 United
States hve-twenty bonds" and the following, In
brackets "Paid by bond and mortgage. j. c. Sweeny.
dated April 10, 1877" this account. there
being In reality no such bonds, but charged
In that namc by order Of John Hallard.
president; witness was OF opinion that from tho
entry sweony's mortgage was not an investment but
had been used to pay of part OF Halliards indebted
interest In the bonds had been carried up all
the same SO that on January 1873. IL amounted TO
$2,s95, John Van Vorsts account with the bank
began in 1869. and In April 1s73 he took up $25,OV0
In and replaced them with bonds and mort
was 524 %, and ON November 1s7s the date Of
suspension, tho actual deficiency was S15,By7 80,
showing an increased deficit of $500 Ga.
At this point the Court adjourned for the day.