VOL L NO. 242.
JERSEY CITY. SATURDAY DECEMBER 14. ' 1889
PRICE TWO CENTS.
Each of the Mechanics'
and Laborers' Bank
DEGREE OF CULPABILITY*
This Statement Shows Just llow
Much Each Will Have
The published extracts of the decision
of Chancellor McGill in the Mechanics
and Laborers' Savings Bank, have given
rise to so much uncertainty that no one
of those interested could tell exactly how
the derision nffected him, nor could the
depositors make ud their minds as to
what tney hail gained.
The Jersey City News is enabled to
day to present the fullest possible and
the fullest intelligent abstract of the
decision, and show the amounts for
which each one of the directors is liable.
Γ 850 QUESTIONS IN THE CASE.
The case was declared by Vice Chancel
lor Van Fleet, who considered one phase
nf it. tn hp onp if m.r r.hft most comolicated
of cases in the history of the Court or
Chancery. On the argument, Air. C. Cor
bin saicl the cause presented 350 distinct
Issues. In view of these facts some idea
of the work which the Chancellor has
had to perform in arriving at a conclusion
can be obtained.
The opinion begins with a history of
the bank and the connection therewith
of each one of the twenty-five defendants:
—Sidney B. Bevins, George P. Brock,
Henry Carrol, Adam J. Dltmar, James
W Donelson, Aneas Fitzoatrick, Patrick
Farrellv, John Halliard," Joseph Kerry,
.Tohu McGuigan. the executors of Owen
T. \V. McDonald. Patrick Meehan, John
Miller, Matthew Monks. John H. Murphy,
Thomas C. O'Callafrhan, Charles λν. Per
vail, executors of Patrick Reilly, James
J. Reid, executors of Jeremiah Sweeney,
r Patrick Sheran and Robert Smyth.
POINTS IN THE DECISION.
He finds that as between the receiver
representing the depositors and the de
fendants, the defendants are all liable to
the extent of the amounts found against
them, but as to their liability to each
other, that they are to settle between
t.h emsel ves.
The twenty two loans, which the re
ceiver claimed were made on inadequate
landed security,is next considered. These
the Chancellor finds were inadequate,
and then he proceeds to fix the liaDility
A CARELESS TREASURER.
Patrick Reilly, who was treasurer of
the bank, 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 es
many of these checks as he might need,
and fill them in to suit himself. The
Chancellor lays great stress upon the
point that a simple inspection of the books
would have led a careful man to an in
quiry which would have disclosed the
condition of the bank.
"In the by-laws," the opinion goes on
to say, "it is made the duty of the Execu
tive Committee to examine the books, and
if they had done so this culpable infrac
tion of bnsiness rules would have come to
ΦΗλ α α m ex π a (riant onnoarc in ί.ΐια ova m i _
nation of securities. A bundle of papers
and a list were provided by the secretary,
and the examination consisted simpiy in
checking the items as they were called off
by the secretary.
Even fictitious mortgages, the Chancel
lor says, were put in to account for miss
ing money. The finance committee seems
to have exhibited a similar indifference.
DEGREES OF CULPABILITY.
"Where loss has resulted from dishon
esty, disregard of the charter require
ments or culpable negligence," says the
opinion, "all the defendants who are
chargeable with such faults must he held
alike responsible! so fttr as the receiver is
concerned, without reference to the de
gree of dereliction; but among themselves
there may be degrees of culpability."
The five classes of culpables 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 con
clusion that for a savings bank to take
second mortgages was unwise and grossly
impurdent, and those who consented to
such transactions must be held re
sponsible. He then takes eacli loan of
this nature and fixes the liability as fol
PATRICK REILLY'S LOSS.
Loan of $1,120 to Patrick Hyland wit ! ι
interest from May 1, 1878. John Halliard
primarily and Patrick Reilly secondarily.
Loan of $340 to John Winkler with in
terest from October 1,1876. John Halliard
primarily. Patrick Reill.v secondarily.
Loan of $750 to Arthur Dundon with
interest from March 1, 1871. John Hal
liard primarily, Patrick Reilly seconprily.
Loan of 81,000 to Betsey Robertshaw.
An accounting on this loan is ordered,
and if it appears there was a loss to the
bank such loss falls primarily on John
Halliard and secondarily on Patrick
Wei Π ν
Loan of $3,000 to Patrick O'Brien, with
interest from November 3, 1875—John
Halliard primarily and Patrick Reilly
hoan to Arthur H. Dundon of $1,200,
with interest from November 1, 1877—
John Halliard for the whole amount;
Patrick Keillv for $(J00 and interest.
hoan to Matthew T. Maloney for $500.
The property was bought by the bank for
Sy,300 and some rents were collected by
ihe receiver. An accounting is ordered
on this loan and the liability placed upon
those who were managers of the bank at
Two lots on Grand street were pur
chased for $3,427.27 and were a subsequent
loss to the bank. John Halliard and
Aneas Fitzpatrickare held liable prima
rily and Patrick Reilly secondarily.
Loan on property of Jeremiah O'Sulli
ran, $2,500, with interest from May 1,
1S78—John Halliard primarily, Patrick
Loan to Richard H. L. Tighe of $1,200
with interest from November 1,1S73; John
Halliard primarily, Patrick Reilly second
Loan to Martin Doyle of 8200. The bank
bought the property in for *850 on fore
closure. When sold at public auction by
the receiver it was so heavily encumbered
with unpaid taxes that it brought only
$35. Jehu Halliard is held primarily for
the loss and Patrick Reilly secondarily.
Loan of #10,000 to David -VI. Neeley,
nepliew of Halliard, of which $2,688.23
was lost. John Halliard alone held
Loan to Adam J. Ditmar of $1,500. An
accounting ordered to ascertain loss and
Hniliard and Ditmar alone responsible.
1 jOtiu of -Ή,000 to Owen T. \V. Mc
Donuld, $3.000 of which Vas lost. John
lalliard and Owen T. W. McDonald
jesponsible primarily and Donelan, who
ut this time had become a manager, and
Patrick Reilly, secondarily.
The Chancellor also hold those who
were managers at the time these loans
were (made to bo liable for losses as fol
For the Dundon loan of $750 and the
Winkler loan, Bevans, Carrol, Ditmar,
Fitzpatrick, Halliard, MeBride, Mc
Guigan, Meehan, Miller, Peryail, Rellly,
Sheeran and Smyth.
For the Hyland loan the above defend
ants together with MonKS, Farrelly and
Sweeney, who had been added to the
committee at that time.
For the Dunden loan of $1,200 and the
Maloney loan the same directors are held
as they were in office at the time.
For the loss on the (irand street lots
and the Doyle and O'Sullivan loans the
same directors with Murphy added.
For the loss on the Tighe mortgage,
il ,200, the same are held svith the addi
tion of McKay.
For the McDonald loan of $3,000
Bevans, Brock, Carrol, Ditmar, Donelau,
Halliard, Kelly, MeBride, McKay, Mec
hlin, Miller, Monks, Murphy, McDonald,
O'Callahan, Reilly, Sweeney, Smyth and
Sheeran, who were manager» at the time,
LIABILITY FOR DOCUMENTS.
The matter of the discounts made by
the bank are next considered by the
opinion. In answering this part of the
bill the defendants were divided into
Those who claim that they did not
know that any discounting was going on;
those who claim that they thought that
the bank could discount to the extent of
the special deposits, and those who claim
they thought that they could discount
from any deposits.
The chancellor demolishes all these
claims by showing that there would be
no foundation tor them if the directors
had exercised ordinary business precau
tion, and proceeds to designate the liabil
ity of each for the losses sustained by the
bank through these discounts.
The bank lost $15,440 on paper of John
November 10, 1873, Bevans, Carrol, Dit
mar, Fitzpatrick, Halliard, Keary, Mc
Bride, MeGuigan, Murphy, Monks, Far
relly, Sweeney, Miller, Pervail, McKay,
Keilly, Smyth and Sheeran are held li
boss on J. R. Montgomery's note $3,000,
with interest from November 13, 1871.
Bevans, Carrol, Ditmar. Fitzpatrick,
Farrell-,-, Halliard, Kearney, McBride,
MeGuigan and Meehan. Miller, Monks,
Pervail, Reid, Reilly, Sweeney, Smyth
Note of Sererin T. Bruin, $57 with in
terest from June 3. 1871. Bevans, Carrol,
Fitzpatrick, Halliard and Keary,McBride,
Pervail, Reilly and Sheeran, liable.
Note of Charles W Pervail, $1,550, with
interest from January 6, 1871, same de
Note of Richard McAghon, $120, with
interest from December 1, 1871—Bevans,
Carrol, Ditmar, Fitzpatrick. Halliard,
Keary, McBride, MeGuigan, Meehan. Mil
ler, Monks, Pervail, Reilly, Sweeney,
Smyth and Sheerau, liable.
Note of Joseph Harford, $200, with In
terest from July 24, 1872, last named de
fendants and Murphy liable.
Note of John MeGuigan, $800, with in
terest from December 3,1872, last named
Note for $75, with interest from October
15, 1S7K, last named defendants with
Brock, Kelly, McKay and O'Callaghan
Note of Lahey, 130, and interest from
May 5, 1876— Bevans, Brock, Carrol, Dit
mar. Halliard, Kearey, Kelly, McBride,
McKay, Meehan, Miller, Monks, Murphy,
McDonald, O'Callaghan, Reilly, Sweeney,
Smith, Sheeran, liable.
Note of David Walsh, $15, with interest
from August 21, 1875—Last named defen
dants with Donelan liable.
Note of Pa. rick Lee. $25, with interest
from September 30, 1876—-last named de
Note of John Halliard, $500, with inter
est from April 17, 1876—same defendants
Note of Adam J. Ditmar, $200, with in
terest from February 0, 1877, last iiamed
Note of Ellen Flannigan, $125, with in
terest from March 12, 1877, less small
credits paid by Father Brennau, same
Note of S. E. Allen, $160, with interest
from February 9, 1878, same defendants
Halliard took from the bank openly,
without security, $4,000; for this, with in
terest from March 3, 1875, Bevans, Brock,
Carroll, Ditmar, Sweeney, Halliard,
Reilly, Keary, Kelly, McBride, McKay,
Meehan, Miller, Monks, Murphy, McDon
ald, O'Callaghan, Smyth and Sheerau are
Halliard also took $2,000 in December,
1871, and $5,000 on October, 1, 1872; for
these sums with interest from their dates
Bevans, Carroll, Ditmar, FitzpatrickJ
Farrelly, Halliard, Keary, McBride, Mc
(iuigan, Meehan, Miller, Monks, Murphy,
(only to $5,000) Pervail, Reilly, Sweeney,
Smith and Sheeran.
Halliard & Haloren secretly withdrew
$32,300 on October 31, 1872, for which, with
interest from that date, Bevans, Carrol,
Fitzpntrick, Halliard, Keary, McBride,
McGuigan, Meehan, Pervail, Reilly and
Sheeran are liable.
On October 1+ Halliard withdrew $700;
on November 2 $2,241.11 and $321.11; for
these suni3, with interest irom date of
their withdrawal, Bevais. Brock, Carrol,
Ditmar, Keary, Kelly, Halliard, McBride,
McKay, Meehan, Miller, Monks, Murphy,
McDonald, O'Callaghau and Reilly,
Sweenev, Smvthe and Sheeran are liable.
THE PERSONAL LIABILITY OF BACH.
These findings make John Halliard
primarily responsible for $21,640.27 on the
mortgage transactions and $07,859.22 ou
the discounts making a total of $1.0,490.49.
The estate of Patrick Reilly is secondarily
liable on the mortgages for $15,852.27,
and his proportion of $67,077,22
of the losses by discounts,
making a total of $83,529.40.
The other directors of the bank ara held
collectively and individually liable for
their proportion of the following ac
jL>ûVitiiB, υαιιυι α-ιινι me J.USS
by mortgages, #14,137.27;, on the loss by
discounts, $67,859.22: total. $81,996.49.
Keary. on mortgages.. $3,000; on dis
counts, *67,889.22; total, S70.S59.22.
Pervail, on mortgages, #11,137.27; on
discounts, 560,597; t.otal, $71.784.27.
Meehuu, on mortgages, $8,010; on dis
counts, 149,592.22; total, #57,602.22.
Miller, on mortgages, S14.137.27; on dis
counts, $26,958.22; total, $41,089.49.
McDonald, on mortgages, $3,000; on dis
counts, $3,202.22; total, $7,262,22.
O'Callagliau, on mortgages, $3.000; on
discounts, $8,392.22: total, $11.392 22.
Keid, on mortgages alone, $2,000.
McGuigan. on mortgages, $11,087.3·; on
discounts, $57,735; total. $68.822 27.
Ditmur, on mortgages, $14,647.27; on dis
counts, $38,962.22; total, $48,599.49.
Fitzpatrick, on mortgages, $10,017.27;
on discounts, $59,542; total, $69,559.27.
OouelaD, on mortgages, $3,Λ)0; on dis
counts, $1,025; total, $4,025.
Sheeran, on mortgages, $14,137.27; on
discounts, $67,859.22; total, $81,996.49.
Smyth, on mortgages, $14,137.27; on
discounts, $33,752.22; total, $47.889.49.
Sweeney, on mortgages, $10,647.27; on
discounts, $33,752.22; total, $44,399.49.
Monks, on mortgages, $i3,647.37; on dis
counts, $26,952,22; total, $39,599 49.
F.irrelly, on mortgages, $8.947.27; on
discounts, $24,440; total, $33,387.27.
.Murphy, on mortgages, $10,327.27; on
discounts, $29,832.22; total, $40,159.49.
McKav, on mortgages *4,200; on dis
counts, $23,832.22; total, $28,032 22.
Brock, on mortgages, $3,000; on dis
counts, $8,232.22; total, $11,232.22.
AS BETWEEN' THEM3ELVES.
These figures do not represent each
man's total liability, but only the sums
of which each is responsiole for a share
to be determined.
If he is the only one good for the
nmouut lie is liable ior the entire sura: if
two or more are good they are liable for
their proportionate share.
THE BOOKS ALWAYS OF!.
The Right to Examine Tax
Records Not Denied
to Martin Logan.
President Lawrence nnd his colleagues
of the Tax Board are properly indignant
at the statement made by Martin Logan
at the meeting of the Fourth District
Property Owners' Association held at
Kessler's Hall on Thursday evening to
the effect that he had lieeu denied acees3
to the assessment hooks, and that Mr.
Lawrence had personally appealed to the
Corporation Counsel to find some means
to prevent him Irom examining said
"The statement is false from beginning
to end," said President Lawrence to me
this morning, "and here is Mr. Connelly,
the clerk, to bear me out in the assertion.
HOW IT HAPPENED.
"This man Logan came down here some
time in August last, during; the absence
o£ the commissioner, and asked to see to
a valuation fixed upon his wife's property
on Summit avenue. The clerk violated
the instructions of the commissioner
through personal friendship for Mr.
Logan and permitted the request. The
books were not at that time reudy for in
spection, and Mr. Logan knew that the
clerk had violated his orders.
"He came down again and wanted to
make some further investigation, threat
ening meanwhile that ne intended to
make it hot for the Board and for the
president in particular The clerk, anti
cipating personal trouble with the Board
for having violated his orders, refused
ill lu access.
THE BOOKS SOT IiEADT.
"The books were at the time being
written up; in other words, transcribed
by the clerk from the field books and had
not been submitted to the Board of
Finance. When the books were open to
public inspection Mr. Logan had as free
access to them as any other man or
woman, and he knows itl
Commissioner O'Donnell said:—"Mr.
Logan has applied for access to the books
no less than a dozen times siuce they were
confirmed by the Board of Finance and
every facility has been afforded him for
examining them as often as he wanted
It seems to be the impression of the
Board that Mr. Logan is seeking a cheup
notoriety, and they propose to pay no
further attention to his ranting.
THREE MEN M1SS1KG.
A Susquehanna Train Plunges Through
the Little Ferry Draw.
An accident that is believed to have
can sen the loss of three lives occurred
just before noon today on the New York,
Susquehanna & Western Road.
Λ heavy train bound in this direction
approached the draw at Little Ferry,
about nine miles from this city, when
draw was open. Engineer William
Nixon did not notice the opan draw and
his locomotive plunged headlong into the
Hackensack River. Twenty coal cars
piled in after the engine till the gap had
oeen choked up.
The engineer and the fireman and the
head brakeman are missing, and it is be
lieved that they lost their lives.
, Wreckers were sent to the scene and
efforts are being made to find their
Trains are being run in the meanwhile
over the West Shore road via Ridgefield
The name of the fireman was Har
rington. He lived at Wortendyke.
The brakeman's name was W. Seeley.
Twenty-three of the cars went into the
water. The train was east bound and
at„ the company's office it was thought
that the snow was so blinding that
the engineer could not see the signais.
The officials do not attach any blame to
the signal man.
Traffic was delayed only a few min
utes. It will take several days to clear
away the wreck.
CUTTING COAL KATES.
You Can Get It Very Cheap ill Bayomie
Some two weeks ago G. C. Smith, super
intendent of the Co.Te Brothers' coal
docks, constructed a yard in that vicinity
aud connected it with several sieve shut.es
leading to the trestle. Mr. Smith then
had t he report quietly circulated that lie
would deliver coal in carts at t he yard for
Λ4 per ton. Many persons hastened to
take advantage of the offer, and the
drivers charged fifty cents for carting,
makiug the price of coal when delivered
at one's residence $4.50. These facts
coming to the ears of Mr. Thomas Brady,
Mr. A. A. Smith aud the other coal deal
ers here, they at once reduced their prices,
so that one can now have c >al delivered
from any of the city yards for $4.00 oer
Mr. R. Fogakerly, assistant superin
tendent of the Metropolitan Life Insur
ance Company, was tendered a surprise
by the members of his staff a few days
ago, the occasion being his birthday, arid
was presented with a line silk hat.
Kev. VV. K. Paul, of West Port Rich
mond, S. I., will preach tomorrow in the
Bergen Point Baptist Church.
Kev. A. C. Turreil. of Drew Seminary,
will preach tomorrow evening in the
Methodist Mission Schuyler Hall.
The Montchiir Club's Concert.
The Montclair Club gave a graud con
cert last night in the theatre attached to
iis new club house. The house was for
merly opened in November, and the con
cert last night was the first of a series
of entertainments that will be given
during the winter. The club house cost
ίφ,ΟΟΟ, and the theatre is very beauti
ful and fitted with all modern stage ap
The audience last night was composed
of the swells of the Montclair society,
and many well known people from New
York, Brooklyn and Jersev City. They
were very enthusiastic, anplauding the
artists heartily, especially Miss Inez
Carust, whose wonderful playing on the
harp created a decided sensation. For an
encore to her last solo, "The Last Rose of
Summer," Miss Carusi sang a ballad with
harp accompaniment which, judgiug from
the outburst of applause that greeted it,
was a delightful surprise to the audi
The other artists who appeared during
the evening were:—Miss Brtha Behrens,
violinist; Miss Lizzie Webb Cary. Miss
Sopha Church Hall, Miss Jessie Finney,
Mr. J. H. McKinley, Mr. Carl E. Dulrt
and Mrs. J. H. McKinley, accompanist.
The entertainment committee of the club
consists of Mr.Seelye Beuedict, chairman;
Messrs. F. T. A Juukin, Charles E. Van
Kleck, James Cunningham, \V. S. Bene
dict, Dr. C. W. Butler, W. L. Ludlam,
V. Gillaudeau, C. L. Toplitf and A. C.
Has the Street Been Dcdicatetl.
Application was made this morning by
Counsellor Fuller, before Judge Knapp,
for an order to open East 22nd street,
Bayonne. It was opposed by Counsellor
Man on behalf of the Central Railroad
Company, of New Jersey.
Colonel Fuller attempted to show that
the portion of the street required by the
city was virtually dedicated to the city
yearn ago by the Rnilroad Company, and
referred to one of the city maps on tile.
He told the Court that the city wanted
the ground and that the street was »
necessity and should be optned.
Mr. Mann interposed a number of learal
abjections, all ot which were purely
technical, and Judge Knapp took the
papers and reserved liis decision.
Λ STRUGGLE FOU A KISS.
Did Mrs. Smith Invite It by Squar
ing Off for the Boatmen?
Martin McCarty, of No. 2T Hudson
street, was before .Justice Stileing
charged with attempted assault upon
Mrs. Mary Smith, the wife oi proprietor
Smith, who keeps a saloon at the corner
of Essex and Hudson streets.
On the stand Mrs. Smith, who is rather
a good-looking Austrian brunette, testi
fied that while her husband was at church
Sunday morning last McCarty came to
the side door of the saloon and was ad
mitted. He called for a drink and she
gave it to him. Eddie Lange, a strappin.ee
young boatman of twenty-two years, was
in the saloon at the time.
McCarty became merry, demanded a
kiss, and in the scuffle which followed
pushed her into an adjoining room sepa
rated by curtains, threw her "ifffon a
lounge and attempted by force to kiss
Mrs. Smith prides herself upon her
muscular strength, and succeeded In
keeping McCarty's face from her's, and
McCarty didn't get the fought-for kiss.
Counsellor Puster appeared in Court to
prosecute .vu'v iiri v.
The questions which McCarty put to
Mrs. Smith and the letter's answers
marte it somewhat clear that Mrs. Smith
first began the playful scuffle by catching
McCarty by the hand and complimenting
liim upon his strength, at the same time
priding herself upon her own muscular
powess. Subsequently she "squared off"
with the strapping young boatmen.
Lange and McCarty, and thumped the
manly breasts of each.
Mrs. Smith indignantly denied that she
thus tested McCarthy's manliness; but
admitted that she playfully struck the
young boatman's chest in pushing him
away from her. The three had a Peek-a
Boo chase around the pool table, and Mc3
Carthy, finally catching lier, pushed her
into the adjoining room where the strug
gle took place for the kiss.
McCarty, for whose good character his
boarding " house mistress vouched, was
held in the sum of $360 to appear next
Monday morning, when Boatman Lango
is expected to testify.
THE CAMKliA CLUB.
A Novel Exhibition at tlie Oakland Ave
nue Kooms Last Evening.
The first public eutertainment of the
Jersey City Camera Club last evening, at
their rooms, No. 4 Oakland avenue, was
an enjoyable, instructive event to the
throngef ladies and gentlemen who filled
every square foot of room, many of whom
were compelled to stand, but they were
too much interested to become tired.
The entertainment consisted of a lantern
exhibition, the pictures being for the most
part from slides made by the Camera
Club, measured from their own negative -
and some made bv members from photo
graphs or other pictures. As a picture
was thrown upon the scene the maker of
the slide made" such reference to it as the
subject demanded. Many views were of
great local interest, and rnaQy European
scenes were warmly applauded.
Mr. C. G. Sutherland had charge of
Πιρ ln.nt,prn«. which he handled skilfnllv.
everything; being carried out without a
hitch of any kind. Mr. Sutherland's
slides were mainly representations of
scenes in Great Britain and Ireland, and
there were many specimens of colored and
The Jersey City Camera Club has rea
sou to be «ratified with the success of its
first effort entertaining its friends, al
though last night's display of the club's
skill, demonstrated that the success was
merited. It is to be hoped that the
marked appreciation of their ability ex
hibited by the audience will assure an
other similar entertainment in the near
The club is to be congratulated upon
having such a competent, gentlemanly
committee, to whom great credit is due
for the manner in which the club rooms
were decorated, and pictures made by the
Amoug the members present were
Messrs. Lansing, secretary: Bellows,
Blake, Payne, llaynes, Crosby, Steidel,
Sutherland, Crane and Myers, and Presi
dent Grouert and Vice President Lever
Among the visitors I noticed Mr. and
Miss Steidel. Mr. Kaestner, Mrs. George
A. llaynes. D. W. Lawrence, Mr. Hirsch,
Miss Bushman, Mr. Reynolds, George
Eaton, J. Maher, Orlando Taylor, E. S.
Cowles, Mrs. Levering and sister.
The following meinbeis of the Hobokeη
Camera Club were present:—Vice Presi
dent Thomas, Secretary Beyer, Treasurer
Beakers, and Messrs. Alien, Alexander
Beakers, Sax, liuprecht, Muenah, Grimm
ii τυ ι for guilty.
How the Croniu Murder Jury is Said to
CHICAGO, Dec. 14, 1SS9.—A rumor es
caped from the Criminal Court building
at two o'clock this morning that on a
ballot taken about that hour the jury
stood 11 to 1 in favor of conviction of
Cougblin, O'Sullivan and Burke. It was
also reported the odd man favored con
viction provided capital punishment
should not be imposed.
State s Attorney iwongnecker was ot
the opinion that the delay in reaching a
verdict was due to a failure to reach a
conclusion as to BeKgS and Kunze, for lie
could not believe that any of the twelve
men would hesitate a moment in deter
mining the guilt of Burke, O'Sullivan
and Coughln. A good many others in the
court room shared the little prosecutor's
opinion, but the lawyers for the defense,
who were present, were inclined to believe
that the delay meant, poor tidings for
The live accused men were in a state, of
feverish anxiety all niirht until a jail
guard informed them of J udge McCon
liell's order adjourning court. Free from
the scrutiny ot curious eyes and free to
indulge their own emotions at will with
out exciting the belief that they were
breaking down or showing the white
feather, they looked wholly different from
the self-contained men they have been
in the court room. Their anxiety, how
ever, was but natural, and apparently
was not due to fear.
It is given out that an agreement has
been reached as to all the prisoners ex
A Sudden Death.
William J. Howard, aged forty-two, a
colored laborer, living at No. 431 Tenth
street, complained of pains in iiis chest
Thursday morning and yesterday morn
ing he died without having been
medically attended. The County Phy
sician was notified.
Λ Report Celitlrmecl.
Report No. 47 of the Tax Adjustment
Commissioners was handed Judge Knapp
this morning by Senator Kdwards, and it
Beechan's pills cure bilious and nervous ills.
THE GEEAT Til SUIT.
Points of Difference Be
tween the State and
The argument of Mr. William S. Gum
mere, on behalf of the State iu the great
Morris & Essex arbitration suit, while his
chief duty was to argue in support of the
facts in the case, brought, forth many in
terrogatories from the arbitrators which
involved every point of law* that there is
in the case. Now, in order to make this
matter understood by the reading public,
it will be necessary' to state some facts
which have been more or less correctly
referred to in various newspaper articles
HOW ΤΠΕ STATE'S CLAIM IS MADE CP.
In the first place the amount of the
State's claim is some $1,250,000, of which
amount about #500,000 is for interest, the
principal being about #750.000. Kven if
the arbitrators give a decree in favor of
[the .State, it is more than doubtful If they
' will allow any lutereat on whatever claim
the State may be found to have.
This principal referred to is made up,
as the State claims, of unpaid taxes as far
back as 1853, that being as far bark as tne I
complaint of the State goes; and the rea
son they did not go back any further was
because no record could br;iouud among
the archives of the State of any reports by
the company to the State prior to that
year, uui «governor ueuie, wuen it came
to his side of the case, put statements by
the railroad company to the State in evi
dence as far back as 1845, which he
had found in the Legislative documents
o£ each year from. 1845 to 1853. But
before these had been put in evidence,
the State had proceeded to go back to
1845 in the company's books, tn order to
learn what the books showed the net pro.
ceeds had been for tlio.se years prior U>
1853, and Mr; Gummere's insistnient all
through his argument was that the books
of the company showed that seven per
cent, on the cost of the road had been
earned as far back as 1845. If the arbit
rators And that this is so, and that they
were taxable on that basis, some $10,000
or $12,000 will have to be added to the
State's claim for unpaid taxes back of
1853, which is the earliiSt yearmentioned
in the complaint.
IS ALL CONSTRUCTION" COST?
Now. what are the questions that are to
te decided by the arbitrators? In the
lirst place, it is for them to say whether
ail the construction accounts as contained
in tlie books of the company are syu
ouomous with and properly part of the
cost of the road. Mr. Gummere's insist
nient is that construction and cost of
road are synouomous terms. On the
other hand, ex-Governor Bedle will no
doubt argue the other way.
Another matter of importance is as to
whether the railroad company had a right
. to pay for betterments out of earnings
and thereby decrease net proceeds so as
to bring them below the seven per cent,
when the whole cost o£ road becomes
taxable. Mr. Gummere's insistment has
been that while under the act of 18(52, and
by virtue of the decision in tiie Somerville
& Easton case, the company is not liable
to pay a tax on cost of equipment, never
theless, equipment is part of the cost of
the road and that the company (especially
as their books show that the money ex
pended for equipment was a capital ex
pense ), cannot deduct the cost of equip
ment from earnitigs and thereby bring
cent, tax limit.
The dismission between Mr. Gummere
and Judge Dillon on this point, is of con
siderable interest. Judge Dillon said
that in his experience the earninus of the
railroad company were as shifting as the
sands of the desert, and he quoted a very
celebrated case as to what the earnings of
a railroad company were. His remarks
were to the effect that the original Pacific
Railroad Act provided, and the Govern
ment aided the Pacific road with land |
iinn bonds, aud to reimburse the coinpauy
the road should do the government trans
portation at reasonable rates, and that
one-half of all its earnings should be ap
plied to the government debt annually,
aud in addition thereto five per cent, of
ihe net earnings.
AN IMPORTANT CASE IN POINT.
"Now," said the Judge, "that's the
only clause in the Act of IStt'J on that
subject, that live per cent, of the net
earnings annually shall bo applied to the
payment of the debt to the government.
Now, the Pacific road went, on aud built
uew stations, they bought new loco
motives und uewcars, they put machinery
iu their shops, they built a hotel tor the
accommodatiou of the passengers, and
the question that came before tne United
States Supreme Court was as to whether
they could deduct these expenditures
from gross earuiugs in order to uscertain
net earnings, upon which net earnings
they were to pay the government five per
cent., aud the Supreme Court of the
United States said that they might.
Then came the Tliurman Act, which
increased the contribution which this
company was to make to the United
States Government from five per cent, to
twenty live per cent, of its net earnings,
but that act undertook to define how to
ascertain what were the net earnings,
auil the way tne net earnings were to be
ascertained was by deducting from the
gross earuiugs each year thesum of money
actually paid during the year for keeping
the road iu repair and operation, aud the
amount of iuterest paid ou the bouds,
which are prior iu lieu to the United
States Government; aud that was the
basis uiion which the road was to pay
twenty-flve per cent, of its net earnings to
the government each year. Under this
act a dispute arose between the govern
ment and the company as to what net
earnings were. The company put In new
rolling mills at Laramie, they built α new
station at Council Bluffs, new water
works and artesian wells five
1 1 1 *· .1 .1
costing several hundred thousand
dollars; they built snow sheds, and added
several Hundred ears and scores of loco
motives to their plant; and the Court o£
Claims decided that that was a proper de
duction to be made from gross earnings
in order to ascertaiil net."
WHEN DOES THE TAX LIE?
Another question of vital importance in
dispute between the railroad and the
State, is the question whether the com
pany was liable to pay taxes on the
money expended each year on its various
Improvements, such as thé* Boouton
branch, and the tunnel through Bergen
hill, the construction of which occupied
The law says that the company shall
pay a tax of one-half of one per cent, on
the cost of its road within one year after
the road is completed aud in operation to
Phillipsburg, aud annually thereafter.
Mr. Gummere's insisttneut is that the
company was liable to pay a tax on the
cost of its road annually, after it was
completed and in operation to Pliiliips
burg; for instance, he claims that the ex
penditures for each year for un ν aud all
improvements should be added to the
taxable cost of the road for that year. On
the other hand, Governor Bedle will claim
that under the terms of the charter and
various supplements the company was
uot liable to pay any tax on the cost of
any improvement until the same was
completed and in oi^ration; and, of
course, if Mr. Bedle is sustained in this
point, it will make alarge deduction from
the claim ot the State.
DISCOUNTS AND INTEREST.
Another question of importance in this
case is that of discount and interest, as it
involves about (200,000 of the principal or
the State's claim. Stevens, one of the
arbitrators, said that it struck him that
the cost of the road must necessarily be
what the Morris & Essex Company paid
out in money to build it; that is, the
actual amount of cash they paid to the
contractors and others for building it.
Mr. Gummere's insistment is, that if
the company made an improvement that
cost $100,000 and issued its bonds for
*110,000 to pav for that improvement, and
the SI 10,000 in honds sold in the market
for only $100,000, the cost to that improve
ment to the Morris and Essex Company
was ?110,000, together with the interest
which they are bound to pay on the bonds.
On the other hand, Governor Bedle will
insist and did insist before the arbitrators
the other day that on the hypothetical
case just stated the cost of that, improve
ment was only the amount of money the
company laid out for the improvements.
If the Governor is held to be right in all
these matters and questions to which this
article, has reference there will be little of
anything left of the State's claim.
THE STATE YIELDS THREE YEARS' TAXES.
It was brought out by the argument,
also, that the State makes no claim what
ever for taxes against the Morris and
Essex between the passage of the supple
ment of 1862 and the act of 1865, although
these three years are Included in the
While it has been stated above that the
upholding of all the points which will be
raised by Governor Bedle would practi
cally wipe out the claim of the State, on
the other hand, if the arbitrators should
decide against the G 'vernor on all the
points he will raise it would not be a
great while before the State would be
richer from the coffers of this corporation
by several hundred thousand dollars.
Attorney General Stockton will make
his argument before the arbitrators next,
beginning on Tuesday next.
NO DEFENCE WAS MADE.
Hobokeu Laborers Secure a Judgment
Agaiust the City.
At the last meeting of the Hoboken
Council Mayor Grassman vetoed the
resolution providing tor the payment of
the laborers on the Adams street sewer.
In his veto he stated that the Council
knew that there was no money in the
sewer fund, and, if they took the money
from the contingent "fund, they were
liable to indictment. Councilman Kelly
moved that the money be taken from the
contingent fund, notwithstanding the
Mayor's veto. The motion was lost and
it looked as if the men would not get
The only resource they had was to pool
their issues and sue, which they did, and
the case was tried in the District Court
before Judge Smith yesterday. Corpora
tion Attorney Minturn represented the
interests of the city. Counsellor Sey
mour, who is a clerk in Mintnrn'a office,
looked after the interests of the men.
As there was no defence attempted on
the part of the city judgments were
rendered for the plaintiffs to the amount
A .Dead Baby Found.
While Policeman Timinonly, of the
Weehawken police force, was patrolling
his beat on the road to the West Shore
ferry yesterday his attention was at
tracted to a paper bundle tied with a
piece of cloth. On opening the bundle he
was horrified to And the body of an
infant female, entirely nude, apparently
about two days old. The body was
brought to the station house and the
County Physician notiiied.
The Valencia Boat Club will begin next
season with the followihg fleet:—Two
pleasure four oared barges, two light
racing four oared barges, one light racing
four oared gig, two light racing pair
oared nigs, two pleasure double gigs and
Prof. Wallace held a white cap reception
at Odd Fellows' Hull last night.
Councilman Kelly mourns the loss of
his six-year-old daughter Jennie. The
child died on Thursday night and will be
buried tills afternoon.
St. John's Evangelical Church netted
$3,500 from their late fair.
The ball of the St. Joseph's Lyceum in
|Jannary will be a grand event.
Johç Darcy, of No. 81 Third street, was
arrested last night, charged with non
support of his wife.
Willie Anderson, a tiiree-year-olil tot,
was picked up by the police yesterday
afternoon and returned to his purents at
No. SO Jackson street.
Thomas Murphy, of Thirteenth street
and Jersey uvanue, Jersey City, was
caught stealing coal from the Erie Rail
road cars yesterday afternoon by Detect
ive Guiuau. He is held.
Albert Mohning, a saloon keeper al
Madison and Fourth streets, is held on a
charge of assault and battery, preferred
by Cornelius Collins.
"The Hoboken Kicker Club will forget
their kicks tonight. They will hold «
ball at Oilil Fellows' Hall. A grand timt
Seventy members have thus far been
enrolled as part of the Committee of One
Hundred of the Hoboken Democratic
Club to wiiness the inauguration oi
THE NEW TITLE COMPANY.
Preparation for Its Incorporation and
There was another meeting yesterday
of the lawyers interested in the incorpora
tion of a Lawyers' Title Guarantee Com
pany in this city. About twenty-five
legal lights assembled in Counsclloi
Bacot's office iu the Fuller building tc
perfect plans and attend to parliamentar>
John W. Heck presided. Addresses
were made by several of those preseul
and then a certificate of incorporatior
was drawn up and this committee waf
appointed aud authorized to tile it al
Trenton next week:—Assemblymau-eleci
Erwin and Lawyers Griffin, Heck anc
Russ, of Hoboken.
Among the eighty-seven signers of tht
articles are ex-Corporation Attorneys
Lewis and Blair, ex-Judge Garrick, ex
Senator Brinkerhoft aud Judges Douglas
Dayton aud Smith.
It was decided that no trust business be
done, by the association, and that of a title
guarantee business be done exclusively,
The capital stock is 150,000, and this may
be doubled. Shares will be disposed of al
$100 each. Business will be commenced
DASHES ABOUT TOWN.
Another of the very pleasing service!
will be held at the First Baptist Churcl
tomorrow evening. It will consist of ί
service of song and short sermon by Kev
Mr. Steelman. The ordinance of bap
tism will also be administered.
The Bergen Pleasure Club is actively
arranging for its iifth entertainment and
hop, to be held at Bergen Hail on Decern
be r l'J.
George Taggeson. a ftfty year-old resi
dent of Weehawken, had his right le.i!
broken at the Central Railroad dock yes
terday by a plank falling upon it. Hé
was taken to the City Hospital.
The annual ball of the Union Pioneei
Association will be held at Keasler's Hall,
Mondav evening, December 16.
The Kriç Building and Loan Associa
tiou will hold a regular meeting for the
payment of dues, etc., on next Monday
evening, at Booraem Hall, No. 116 New
The Camera Club held a meeting at
their rooms on Oakland avenue last even
home woodwork in a closet on the
ground floor of the tenement, No. It»;
Monticello avenue, caught fire about half
past twelve this afternoon. The damage
All Guttenberg is Talking
About 11 is Alleged
Abuse of Pupils.
HIE STORY OF LITHE CHARLEY EVANS.
He Says the School Principal
Abused Him So Badly that
His Mother Had to
The Stodat Morning News of last
Sunday published exclusively the story
of the accusation made by Dolly Topf, at
twelve Jyear old school girl in Guttenberg,
against Principal Smith, that he had im
prisoned her la a dark cell for seven
Yesterday The Jersey City News re
ceived a letter from a well known citizen
in Guttenberg asking that a reporter be
sent to Guttenberg. It was stated that
another alleged outrage by the principal
, had come to light.
I This time the victim of Mr. Smith's
rath was twelve year old Charly Evans,
e accused the principal of having
punched him in the face and on the head
with his fists and hitting him on the
knuckles with a loaded weapon.
Wednesday morning, and when Charley
acquainted his mother of what h..d taken
place and showed her where he had beea
bruised she would not let him go back te
school, but went there herself.
THE MOTHER MADE A ROW.
"Last Wednesday at noon time," Mrs.
Evans said lo me yesterday, "Charley
came home crying. I asked him what
was the matter. He t-ook off his hat and
showed me two lumps on his head and
said that they had been inflicted by Mr.
Smith. The child told me that ever since
the imprisonment of Dolly Topf had been
published that the principal was cranky
and clubbed and abused the children on
the slightest provocation.
•'I told my child not to go back to
school in the afternoon and that I would
see Mr. Smith. I went to the school and
asked Mr. Smith why he had treated by
child so. He said, 'Oh, I did not strike
him hard, this is all I used,' producing a
lead pencil with a loaded brass knob on
the end. 'You can hit me on the head
with that if you like Mrs. Evans,' he
said. I then told him that he liad no
ritiht t· hit my child as the child was
delicate and was never whipped before In
his life. He told me he was running the
school and not I.
"Une word brought on another and
finally he gave me the direct lie. I tola
him that he was no gentleman and left
the school. I intended to complain about
the matter to the Board of education,
but was told that such a complaint would
be of no avail. I think, therefore, that X
will carry the case to the courts and see
if this man Smith cannot be punished.
My husband is a deacon in the same
church as Mr Smith and wants me to let
the matter drop and send the child back
to school, but 1 will not do it."
A TELL TALE WALL MASK.
Charley Evans says that Mr. Smith 13
constantly referring to the article in the
newspapers about Dolly Topi's imprison
ment, and it has made him crankier than
ever. He says that Mr. Suiith places the
boys in a row against the wall and beats
The plaster is worn off the wall from
the pltice that the scholars' knees strikes,"
Charley also says that when Smith is
very mad he throws chftlk and lead pencils
at the scholars, and that he has them so
frightened that they are afraid to
Frank Stover and Willie Rose, two
other pupils, are said to have been shame
fully treated by Principal Smith recently
and are not attending school.
August Shultz, a well known citizen,
was obliged to take his boy away from
school. He says that under Mr. Smith's
teachings and whippings the child was
fast becoming an idiot.
It is said that the Hoard of Education
are cognizant of all these cases but are
New Grand Army Post.
The new Grand Army of the Republic
Post referred to in these columns a short
time since as about to be started in Bay
onne will be mustered in on Tuesday
evening next in Arcanum Hall. The
new Post will be known as Mansfield No.
22, and will start with about forty mem
bers, many of whom are members of Bay
onne Council, No. 095, Royal Arcanum.
James N. Van Buskirk. No. 100, G.A.R.,
has elected these officers:—Commander,^
T. J. Bird; senior Vice commander, Jacob
H. Van Pelt; junior vice commander,
John Mlnderman; officer of the day,
Robert Nicola; officer of the guard, Deid
rich Graper; quartermaster, P. G. Vroom;
chaplain. John Eppinger; surgeon, Noah
Abused by His Father.
The little son of Iceman Clinton, who a
week ago was assaulted by his father ia
Judge Warren's court, appeared agaiu
this morning and complained that hia
father had turned him out of the house.
The police will investigate.
Tabernacle, corner York and Henderson
streets. Tile Rev. John L. Scudder, pastor, will
preach, morning—"The Coming of the King."
Evening—"The Duty and Difficulty of Keeping
Α. M. E. Zion Chuiich, Monmouth street, be
tween Seventh and Eighth streets, the Rev. J.
H. White, pastor. Service at 10:80 a. in.; iu the
evening at 7:30. The sacrament of the Lord's
Supper will be administered at the evening
Chbistadelpbian Ecclesia, Union Hall. cor.
ner of Grove and Fourth streets. Mr. Robert
AV. Cranshaw will lecture at 10:30 a. m. Subject
—"God's Decreed Purpose i" 'he Earth." Mr.
James U. Robertson will lecture at 7:30 p. m.
Scotch Presbyterian Church, Mercer street.
ucut » αϊ il. η.. oci wuca wuiuii ν·*» ui ιυ.-w α. ui.
by the pastor, the Rev. David Mitchell, and
7:30 p. m. by the Rev. S. HaUeran, of St Paul's
M. E. Church. Subject—"The Future State in
Scotch Church Mission, corner of Grand and
Woodward streets. The Rev. Thomas Houston,
blind evangelist, will preach tomorrow at 9 a. m.
and 4 p. m.
Free Reformed Church, Grand street, the
Rev. A. A. Zabriskie, pastor. Services at 10:40
a. m. and at 7:30 p. in. Morning subject—
St. Paul's M. E. Church, Third street, the
Rev. D. Halleron, pastor. Preaching by the
nasi or at 10:30 a. m., and bv the Rev. Thomas
Houston, the Blind Preacher, at 7:30 p. m.
Trinity M. E. Church. York street, near
Warren. Preaching at 10:30 a. m. and 7:30 p.
in. by th«* pastor, th»* Rey. John Crawford.
First Baptist Church, Grove street, near
Mercer. Preaching by the Rev. Η. B. Steelmau
at 10:30 a. m. and7:ô0 p. in. Baptism at even
Oh, Ye*! We Know About the Snow.
Washington, D. C. Dec. 14,1889.—For
Eastern New York, New Jersey and Eas
tern Pennsylvania, cloudy and threaten
ing weather, with rain or snow; warmer;
For Western New York and Western
Pennsylvania, rain or snow, followed by
clearing weather; warmer; westerly
The Weather at Hartnette.
December 18. Veg. * December 14. Veg.
■ι ρ m fa : κ λ M :u
.59 : U A. M.
.54 ' y A. M..
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