New-York tribune., 1881-12-03
BANK OFFICERS PUNISHED.

There was an unusually large attendance at the
Court House IN Jersey City Yesterday morning,
drawn there by the announcement. made two weeks
ago. that the officers of the broken Mechanics and
Laborers' Bank would be sentenced. The defend
ants, John Halliard, president James w. Donelan,
cashier, and Thomas C. OCalaghan, ex-Assembly-
man, Patrick Sheeran, ex-Aldeman Jeremiah
Sweeny and Adam J. Dittmar. arrived at the Court
House earv but did not show themselves at first.
At II o'clock Judge Garretson and his associates
took their seats on the bench and the defendants
called. Ex-AttorneY General Gilchrist made
an appeal in behalf of Halliard. He followed by
ex-senator Gilbet, who pleaded for Sweeny and the
other directors he intimatng that the chief respo
sibiity for the banks failure rested with alllard
Gilbert Col made an earnest appea for all the de-
PENDANTS except Hallard and then the judges retired
for consultation. In about an hour they returned,
and Judge GarretsonprOnounced the sentence or the
Court. He SAID that no case had been tried while
he had had place on the bench which had given
the Court more trouble. The defendants were con-
ycted of msmanagement OF bank, ana OF con,
spiracy TO delraud its depositors. The Court dld
not feel disposed 10 question the verdict Inc trlal
fair and impartial; the finding OF the jury was
in accordance with the testimony and 1t met with
the approval of the Court. The evidence
showed difference in the degree of crime on the
part of the Defendants which would exert an lniti,
eDce on the Judgment of the Court. John Halllard
was the president of the bank, ard had the absolute
control that officials of the same standing nave IN
similar institutions. The bank was carried on until
eyes to his responsibility. When Donelan was made
secretary, he called the attention Of the directors
TO the deficiency IN the banks funds, ana Halllaru
was called TO explain. He made statement.
but In the opinion of the Court that statement was
false. 1t was then resolved to keep the insolvency
of the bank secret and to continue business, al
though Halllard know at the time that
the bank could not be revived Donelan
and O'Callaghan knew of this agreement
to continue business, and induced people to
put money the bank and prevented Others from
drawing their money out. Sheeran and Sweeny
knew of the agreement. and eXerted themselves 10
strengthen the institution. The Judge then sem
fenced ailiard State Prison for eighteen months,
fined Doneian and OCallaghan $500 each and
costs, and sentence suspended In the cases OF
the other directors payment OF costs. Ihe
general opinion in Jersey City is that the sentences
are very light.
The Mechanics and Laborers' Bank was organized
in 1869, and failed on November 2, 1873 with
deficiency of nearly 100000. The depositOrs were
all poor people, many of whom had been lnIuced to
put their savings in the bank because the officers
were all Catholics and prominent in church
circles. The failure caused great distress,
aud so much indignation was aroused among
the deposItors that at time 1t gas feared
that the officers would be lynched. The defend;
ants indicted Tor conspiracy to defraud ana
convicted. Before being sentenced they appealed TO
the Supreme Court, which after a years cOnsldert-
ton decided not to interfere with the case hal
lard was taken into custody Immediately after
sentence was pronounced, and removed to the
County Jail. The Others have not paid their lines