The New York herald., 1879-12-11
DELUDED DEPOSITORS.

0EL " DED OEIOOl OINo.
THE GRIEVANCES OF THOSE WHO PLACED THEIR
MONEY IN JERSEY cITy's BROKEN BANK
SWEEPING CHARGES AGAINST THE SECRETARY
AND OTHER OFFICERS.
The proceedings yesterday in the trial of the
officers and directors OF the Mechanics and Labor
ers' Savings Bank of Jersey City, in the Hudson
county, n j., Court of General Sessions on the
Indictment charging them with conspiracy to de-
fraud the depositors. were enlvened by the exami-
nation OF the individual depositors. The attendance
was much larger than any of the five preceding
days, and the testimony as given had marked
effect ON the jury and auditors.
When Judges Garretson. Brinkerhoff and Fry took
their places on the bench District Attorney McGll
called to the stand James Chester. who testified that
he resides Hoboken and had deposited in the bank
at the time Of its failure $4,000; led to de-
posit his money in the bank by noticing sign in the
window stating that the bank would pay six per cent
interest on all sums from s5 to $4,000. free from
government tax ho went in and asked the secretary.
Mr.. Donean, how the bank could pay six per cent
when all the other banks only paying fve
Donean answered him with :--"This is ah Irish
Catholic savings bank ana it is more honest than
the banks run by Professionals; there is only
$4,000 a year expenses attached to IL and
we pet seven pe- cent on our Investments and i'm
that way pay per cent Interest,"" he asked if wit
ness was Catholic and was told "yes witness told
him that he had some money to deposit. and Donelan
told him to deposit it with him; when he was told
that the money was in New York banks Donean
told him to withdraw it and place it in the Mechan
les and Laborers' Bank. where it would be taken
by Catholics he said the charters of the New
York banks were imperfect and the banks them
withdrew his money from the Union Dime West Side
and Metropolitan banks and deposited it with Done
Ian; Donelan told him that the bank was run by the
most responsible Catholics in the county and asked
him il he knew any of the directors; witness said
that he did not in June, 1875 witness went to the
bank for the purpose OF drawing some money to I'D
vance to o German on bond and mortgage, and Done
Ian said to him, what do you want to give your
money to that Dutchman for? Your money is safe
here and you get much interest it you would
get Oh q bond and MORTGAGE" Gin case you
sick ;" he added .'all the money you have is here
and you can get it, but if it was in bond and mort
gage you could not get it, by these representations
witness induced to refuse to invest in the bond
and mortgage.
'.THE ROGUE MADE THE MISCHIEF"
At the time OF the banks suspension. he testified
further. Donelan introduced witness to President
Haard and DR.. OCallaghan one of the defendants;
he was greatly excited over the loss of his money
and DR.. OCallaghan took him into his wagon; while
there the Doctor told him that he sorry for the
bank misfortunes and said that he would call at
for him; ION account OF our nationality and re-
lglon, said the Doctor, II will pay every dollar.
even if there isn't another man in the world" wit
called at DR.. OCallag hans office the 18th,
and was told that he had no money; but"
added the Doctor. "we have got rid az last OF
the rogue who has made all the mischief" witness
asked who it was, and the doctor said. John Hal
lard, the PRESIDENT the day after leaving DIR.
OCallaghan witness went to the bank and Done
Ian; he said he wanted money very badly and Done
Ian brought him inside to the private otice he said
to witness that he very sorry bank had all
notified him beforehand as he did his other friends,
but" said the secretary. II thought you were
rich old with plenty of real estate and could
stand the loss;' Donelan told witness that he had
Sl.650 i'll cash in the safe. and as soon as it was
opened he would give him more money than any of
the other depositors got
A GOOD MEMORY.
The witness, upon being croSs-examined by Mr..
Collins said that he had made no memorandum Of
the conversations with Donelan and O'Callaghan.
Then your memory said counsel, lis very
good"
..It is good enough" answered the witness. ''for
me to remember the men who drove me and mine to
the door Of the poorhouse.
Continuing his cross-examination the witness tes-
tilted that Donelan frequently assured him that the
bank the safest in New Jersey; that all the drec
tors good Catholics that they all respon-
sible men and the poorest was worth 100000 and
some of them worth S5O0.O0O witness testified
that he told Donelan some words he had said to him
"Were you sorry?' asked counsel.
81 religiously OBSERVATION-DISCLOSURES
the witness. Witness remembered meeting Assem-
| byman Sheeran. one OF the defendants after the
failure; he said he accused him of being implicated
in the plot to rob him OF his money Shocran told
| him he ga damned liar" witness retorted that
slseran and the others were "a set OF damned ras
James Dunn the next witness. q corpulent man.
probably fftyhve years of testified that he had
S9,360 in the Irving Bank. New York. upon which he
was receiving i've per cent interests he saw the ad-
vertsement or the Mechanics ana LaoOrers Bank to
pay six per cent and he brought the money and
deposited it with them: he afterward thought it
would be better to put the money in the Fifth Ward
Savings Bank. bur Donean told him the bank
unsafe, and he allowed it to remain where 1t he
had the money since the war; and had earned it by
selling lemons
''HE LAUGHED AT Me-
Julia McCabe. who was next sworn. testified be.
tween her tears that when the bank failed she had
$3.50 to her account and to the account OF her
husband she had 5000; she had all hcr III the
Provident Institution for Savings and told Donelan
that they paying only ave per cent he said they
were putting too much money in their own pockets
and advised her to place the money i'll his bank.
where she would get six per cent; he also told her
money would be safe; latter the failure" said wit.
ness, "when Invent to that man there pointing to
Donelan and bursting into tears he laughed at me
when told him wanted my money
Ex-Coroncr James 4. Cannon, the next witness,
testified that he had private account OF 1915 and
"Then, said counsel. "you had two accounts.
'Yes." answered the witness, ''just two too
many"
He continued to testify that Donelsn had besought
him time aud time again to deposit his money in the
bank, and finally, he did deposit it there; when
witness questioned the banks solvency Donelan
told him, 'Well my dear boy, this as safe any
answered that he knew nothing about it, and Dom
elan told him that he knew the directors anyhow;
I'm conversation with DR.. O'Calaghan the latter adj
mitted that he knew of the banks condition but he
said the directors expected to be able to get enough
out of Halliard TO put the bank in good standing
again.
After recess other witnesses testified pretty much
in tho vein those above and the Court ad-
journed until this morning.