The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-06
JERSEY CTTY'S BROKEN BANK.

PROGRESS or THE TRIAL OF ITS INDICTED
oFFIcERs-How THEY ARE ALLEGED TO HAVE
CARED FOR NEUTRALITY-SUSPICIOUS. rEsFI-
MoNY FOR THE PROSECUTION.
The third day of the trial OF the officers and direc
tors of the Mechanics and Laborers Savings Bank OF
Jersey City, on indictments charging them with
conspiracy to defraud the depostors by misrepre-
sentng and concealing their Insolvency. brought
much larger crowd to the Hudson county IN. ~
Court OF General Sessions yesterday thar has been
in attendance since the case began The defendants-
President John Halliard. Secretary james w. Done
Ian and Sessrs. Jeremiah B.. Sweeny. Patrick
Sheeran. Thomas G. O'Callaghan and Adam
J. Dittmar. comprising tho Executive Com-
mittee-were early in attendance. and oc-
cupied seats near their, respective counsel. who
are ex-senator Albeit. ex-yudge Blair and Gilbert
Collins. Judges Garrettson, Bripkerhon and Fry
occupied seats on the Bench. Washington b. Will
ams receiver OF tho bank. continued his testimony
Prosecutor McGill handed him several statements
which admitted in evidence, the objections of
the defence being overruled. The first paper.
the witness said. was statement of the condi-
ton OF the bank December 1. 1878. prepared by
Secretary J. w. Donelan while witness was making
examination OF the banks affairs. Senator Albeit
objected to the admission of the paper, because
he said it was Intended to use it as an adm MS
alleged conspiracy had ended, and he was Of the
opinion that 1t was not competent. The State said
bank was insolvent ana that one il not all the de-.
fendants knew OF its insolvency long before its
pension. The Court oyerrnlsd the objection. and
the Witness referring to the statement testified that
on December I, 1877 the assets Of the bank were
s223409 SO; liabilities 1851. 1887 OF. showing deficit
declared in the handwriting OF Secretary Done
Ian to the effect that some OF the assets included in
partly worthless, and that the deficiency was
much larger than shown by these figures; that
it would reach over 100000 The second paper read
by witness was q statement showing deficiency in
the actual cash Of the bank OF S14,6l5, which had
been carried along on the books since Donelan's
also the fact that $4,000 In United States govern
ment bonds. included in the assets, had never ex-
listed in fact. Tho next paper read by the witness
dition, submitted by Secretary Donelan to the bank
directors at their annual meeting GU October 81
showing o surplus Of assets over all liabilities of
$7.1O4 81. The witness also read paper. which he
said had been given to him by Donelan. containing
bank. which amounted to $l15,516 %. Another
paper which read by the witness q copy Of o
directors at their semi-annuai meeting May, l37s.
by Secretary Donelan, In which was reported asur.
plus over al liabilities OF se.4ss 81 In both the
missing government bonds appeared among the
assets. - "
The Court at this point took recesF. and upon re-.
assembling Mr.. Williams was crossexamined by
Senator Albeit for the derence. Counsel eudeavored
to get the opinion Of the witness to what hts
admissions had led him to conclude as to the
honesty and integrity of the defendants in the man
agemens OF the bank but the Court decided the
1t he had not reported to the Chancellor that from
his examination he found nothing showing lack OF
part OF the defendants. The Court overruled this
question also.
BANK EXAMINER VAN CAMPS TESTIMONY. =
The State then called Watson +. Van Camp, bsnk
examiner who testified that he resides In Trenton.
n J.; he made an examination of the condition Of
the Mechanics and Laborers' Savings Bank Of Jer-
sey City October 7. 1875 and was assisted in the
examination by Secretary Donelan: while making
laghan conversed with them upon the banks cordi-
ton; DR.. O'Callaghan was greatly exercised over
Halard's acknowledgement and said that he would
give $4,000 himself to save the bank; he admitted
that the bank was in very bad condition, but said
that Halard was about selling some land adjoining
could be contaminated the bank might be saved; DR..
OCallaghan and Mr. DonelAn asked the witness If he
whether he could not withhold it for tirne Wit
ness told them that he would give the bank all pos
ment and did not present the report at once; sub-
sequently he met DR.. O'Caaghan ana john Garrick,
counsel to the bank, at the residence Of serre-
tary Donelan; at that timc Dr. O'Callsgban
said to him that he afraid the bank would have
to close; he said that Bishop Corrigan had declined
that it heavily mortgaged than At Arst re-
ported they had also made other discoveries which
made them give up their efforts to save the bank;
witness then presented his report to Secretary
kelsey; DIR. O'Callaghan had told witness that il
they could get what Halliard owed them the
bank could be saved; he said that when
things came to q crisis the directors had forced
Halliard to make settlement to the bank his
indebtedness at that time-January ~, lS78-was
$67 095 49, and Hailiard to settle this assigned to
the bank three lite insurance policies Of 80 900 EACH
o $4,000 mortgage on the property adjoining the
cemetery. and gave his own demand note for
$32O95 70; In making his examinations witness dis
covered on the stock and bond account entry Of
$4,000 in United States government bonds: he
never saw the bonds The witness not cross
examined.
Jacob Cumming. an accountant residing in this
city, next for the State. lie testified that
he at present engaged III making examina-
ton of the books of the Mechanics and Laborers'
Savings Bank. He was directed to turn to the ac-
counts OF the defendants with the bank and state
how they stood when the bank closed. He testified
that October Is Patrick Sheeran bad balance OF
50 So to his credit the of the rm Of Sheeran
n Lahane had been overdrawn SO ~; James w. Done
to his credit of $40; Dr. Thomas c. O'Callaghan, on
October 30, deposited $3S ~ to overdrafr
and that balanced his accounts; Adam j. Dittmar
had q balance of 81 to his credit; jeremiah B.
Sweeny balanced his accounts in 1873 and never had
any account afterward after completing his ex
aminations of the special deposits he found tho
postinss for the tire period Of the banks existence
to have been follows deposits, So, 33S Osy OIL ;
drafts, s5.333,130 %; balance due depositors.
$6.955 90; less overdrafts. $097 &C. On the savings
deposits account he found the postings to be:-De-
pnsts 1877 635 Sc; drafts, 9S7 904 %; balance
due depositors. $2l2,75s AZ; less overdrafts Of
S327 30. ~
AT this point the Court adjourned until ton a. NJ.
on