Article Text
# NEWS FROM THE SUBURBS. # A CHANCE FOR DEPOSITORS TO GET MONEY. A decision of importance to a great number of people in Jersey City was rendered in the Court of Errors at Trenton on Saturday. The case was that of Washington B. Williams, receiver of the defunct Mechanics and Laborers' Bank, against the directors of the bank to determine whether they are individually responsible for the debts of the institution. The plaintiff held that they ought to be held liable because they made improper investments in second mortgages, loaned money on personal securities and failed to prevent President Hal-fard's defalcation. The defendants filed a demurrer holding that the claims were outlawed because more than six years had elapsed from the time of the bank's failure until the suit was brought. Some of the defendants disclaimed responsibility, because they had retired from the directory more than six years before the failure. When the suit was tried before the Chancellor three or four years ago, decision was given for the defendants, but that decision is now reversed by a unanimous vote of the Court of Errors. The Court holds that a court of equity, such as the Chancellor's Court, cannot apply the statute of limitations, and that the fact of their being different suits and claims against different sets of directors is not fatal, because justice can be done in a final decree and each man held for the amount of his personal liability. The receiver will now proceed to make proof of all the cases of bad investment and negligence, and a long litigation will ensue, but the depositors may eventually get their money if they live long enough.