The Sunday morning news. [volume] (Jersey City [N.J.]) 1886-1891, 1889-12-15
ALL RESPONSIBLE
Each of the Mechanics
and LaborerS' Bank
Directors Liable. 4.

of Chancellor McGul IN the mechanics
and Laborers' Savings Bank have given
rise to so much uncertainty chat no one
of those interested could tell exactly how
the decision affected him, nor could the
depositors make up their minds as 10
what they had gained.
gRHE JERSEY CITY News Isl enabled to
tdAy'to present the fullest possible and
the fullest intelligent abstract Of the de-
cision, and show the amounts for which
each one of Tie directors isliable.
$50 QUESTIONS IN THE CASE.
The case was declared by Vice Chan
cellor. Van Fleet, who considered one
phase Of it to be one il not the most COM
plicated of cases in the history of the
CoHrtof Ghancery. On the argument,
Mr. c. Corbin said the cause presented
$50 ctistiuct issues. In view of these facts
some idea OF the work which the Chan
,cetiorshas had to perform in arriving at
conclusion cap be obtained.
~ The opinion begins with the history OF
the bank and the connection Herewith OF
elrch-oue Of the twenty-five detendaGts--
Sidney b. 5evins. George ? Brock,
Henry Carol, Adam ]. Ditmar, James
w. .DuneIsops Aneas Fitzpatrick, Patrick
FaFreily, John ltaIIiard, Joseph Kerry.
john MeSuigitn, the executors OF owen
r. W. Mcdonald, Putricll sMeehan, John
Miller, Matthew Monks, JohI9R Murphy
Thomas G. OCallaghaii, Charles ": Per,
vail, executors of Patrick reilly, James
j. Reid, executors of jeremiah Sweeney,
Patrick Sheran aud Robert Sinyth.' p
POINTS fNaTHE BE0IsfoN.
He, finds that us between the receiver
Representing the depositors and the de-
PENDANTS, the defendants are all liable TO
the extent Of the amounts found against
them, but as to their liability to each
other, that obey are 10 settle between
themselves.
Tie twenty-five loaps, which the re-.
eeiyer claimed were made on inadequate
landed security, is next considered.
These the Chancellor finds were made
qtate, and then he proceeds to fix the
liability therefor. .s5
CARELESS TREASURER.
Patrick Reilly, who WAS treasurer of
the bnnk, he declares, performed his
duties as such treasurer in a grossly care
less and improper manner. He would
sign sheets of blank checks in the check
book and leave the book at the bank.
Halliard, the president, would take as
many of these checks as he might need
and fill them in TO suit himself. The
Chancellor lays great stress upon the
point thaua single inspection or the books
would have led careful man to an in
quiry which would have disclosed the
condition OF the bank.
Sin the bylaws the opinion goes on
TO say, cit Is made the duty of che Execu-
tive Committee to examine the books,
and il they had done so this culpable in
fraction of business rules would have
corle to light"
The gameineglect appears in the exam
ination OF securities A bundle of papers
anda list were provided by the secretary,
and the examination consisted simply in
checking the items as they We're called off
by the secretary. s.4s stfsA t
Even fictitious mortgages, the Chan
celIOr says, were put IN to account for
missing money. The finance committee
seems to have exhibited similar indifs
ference. A4.
DEGREES OF CULpABILITY.
where loss has resulted from dishon-
esty, disregard of the charter require
mepts or culpable negligence" says the
opinion, ''all the defendants who are
chargeabfe with such faults. must be
held alike RESPONSIBLE so far as the re
ceiyer Is concerned, without reference to
the degree. of derelictien; but among
themselves there may be degrees Of cnl-
pability."
The i've classes of culpability are then
fixed as published in THE JERSEY CITY
NEWS of yesterday, and the question of
the loans on second mortgages is dis
cussed at length.
The Chancellor arrives at the conclu-
ond mort cages was hnwise and grossly
iinprudent, and those who consentedto
such transactions must be held resronsi-
ble.sg Ass then takes each loan of thfs ma
ture and fixes the, liability as follows.
PATRICK .fsEILLY'S LOSS.
Loan of 81, 10 to Patrick Hyland, with
interest from May /. 1878. John Halliard
primarily and Patrick Reilly secondarily
Loan of $40 to John Winkler, with in
terest from October |. 1876. John Halliard
primarily. Patrick Reilly secondarily.
Loan OF $3.50 TO Arthur Dundon. with in
terest froHfrAiareh 1, 1871. John HaIfard
ACKNOWLEDGEMENTS Reilly seconttarily.
Loan OF Sl,00Q.to Betsey Robertshaw.s
An accounting on this loan is ordered.
and il it appears there was d loss to the
bank such loss falls primarily on John
Halliard and secondarily on Patrick
I.ejsst ots 81, pe0 ID Patridk o sBricn, with
interest from November l, 1915. John
Hailiard primarily and Patrick Reilly
secondarily. At<
Loan to Arthur Fl. Dlndon OF 81, 20oy
with interest from November ~ 1877.
John Halfiefd for the whole amount;
Patrick Reilly for $60l and interest.
Loan TO Matthew \. Maloney for $500.
The property, was bought by the bank Tor
s., 50A and some rents We're collected by
thereCeixer. An accounting is ordered
On this loan and the liability placed upon
those who were managers of the bank at
the tina ,ss r,ss s m
Twoslots On Grand street were ptar-
chased afor 81, 427.97, and were !. subse-
quent loss To The bank, John Halliard
and Aneas Fitzpatrick are held liable
primarily and Patrick Reilly seeondartly.
Loan on properly of Jeremiah O'Sulli-
van, $500, with interest from May l,
lS1S-sJ0hn Hslliara PRIMARILY, Patrick
Reilly secondarily.
Loan to Richard II. L. Tighe Of $1,000
with interest from Navelnber1. 1873; John
Halliard primarily, Patrick Reilly second
arily.
Loan to Martin Doyle of $500 The bank
bought the. property in for $3.50 onfore-
closure. When sold at public auction by
the receiverit was soheayily encountered
with UNPAID taxes that It brought oaly
s35. joan Haliiard is held primarily for
the loss and Patrick Reilly secondarily.
Loan Of $4,000 to David NJ. Medley,
nephewso Hailiard. of which 81 ,5SS. 20
Was lost. John Halliard alone held LA
BILE. -
Loan to Adam j. Ditrnar of 81 500. An
accounting ordered TO ascertain loss apd
Hailiard and Ditmar alone responsible.
Loan of $4,000 TO Owen T. w. Melon
aid, s., 600 of which was lost John Hall
lard and OW en- L. W. Mcdonald respon-
sible primarily and Donelan, who at this
time had become a manager, and Patrick
Reilly secondaiily.
The Chancellor also holds those who
werel managers at the time these foans