14058. Mechanics' and Laborers' Savings Bank (Jersey City, NJ)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: November 2, 1878
Location: Jersey City, New Jersey (40.728, -74.078)

Metadata

Model: gpt-5-mini
Short Digest: 55486068

Response Measures

None

Description

The bank temporarily suspended payment in early November 1878 by enforcing the 60/90-day rule amid heavy withdrawals, but examinations showed asset deficiencies and insolvency; a receiver was appointed in early December 1878 and the institution was wound up. Criminal indictments and trials of officers followed in 1879. There's no clear, discrete run (false rumor) described — rather suspension due to adverse bank-specific insolvency and withdrawals.

Events (3)

1. November 2, 1878 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Directors enforced the 60-day (later referenced 90-day) rule after large recent withdrawals; assets uncertain and later shown deficient, indicating insolvency/mismanagement.
Newspaper Excerpt: the managers of the Mechanics' and Laborers' Savings Bank, of Jersey City, have decided to euspend payment temporarily... it was deemed best to enforce the sixty-days rule
Source: newspapers

2. December 1, 1878 Receivership

Newspaper Excerpt: it would be impossible to reopen the bank upon the plan proposed by the directors. He also assured the Coroner that no receiver would be appointed, as under the State law the Chancellor can take charge of it, ... The Chimeellor will allow the present directors to close the institution under his direction.
Source: newspapers

3. November 25, 1879 Other

Newspaper Excerpt: The trial of ex-President John Halliard, Secretary James Donelan ... of the suspended Mechanics' and Laborers' Savings Bank ... opened yesterday before Judges Garretson, Fry and Brinckerhoff in the Hudson County Courts at Jersey City. District-Attorney McGill was assisted by ex-Judge William T. Hoffman, who had been retained by the depositors to aid in the prosecution.
Source: newspapers

Newspaper Articles (12)

1. November 4, 1878 New-York Tribune New York, NY

Article from New-York Tribune, November 4, 1878

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A JERSEY CITY BANK SUSPENDS. THE SUSPENSION CLAIMED TO BE ONLY TEMPORARY The managers of the Mechanics' and Laborers' Savings Bank, of Jersey City, have decided to euspend payment temporarily. At a meeting of the managers Friday night at the bank, at Grove and Secondsts., the affairs of the institution were discussed, and it was deemed best to enforce the sixty-days rule until its affairs can be thoroughly examined. The bank was organized in 1869, and its deposits for several years were very large. The amount now due depositors is about $190,000. The assets are estimated at $200,000. The president, John Halliard, could not be found yesterday, although his house was visited several times. Repeated calls were made at the residence of the secretary, James W. Donelon, but he too could not be seen. Matthew Monks, President of the Jersey City Board of Police Commissionars, and Dr. O'Caliahau, two of the managers of the bank, stated that the institution was perfectly sound, but a large amount having recently been withdrawn from deposit, it was thought best to enforce the sixty-day rule, in order to prevent a run. They both believed the bank could pay its debts, dollar for dollar. The assets are principally bonds and mortgages, and their exact value cannot be ascertained at present. Henry Carroll, the treasurer, said the bank would receive special deposits, payable on demand, but the old depositors would not be paid until after giving two months' notice. Among the assets are mortgages of John Van Vorst and John Halliard for large amounts. Formal notice will be given to-day to the depositors of the suspension.

2. November 5, 1878 Evening Star Washington, DC

Article from Evening Star, November 5, 1878

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ANOTHER SUSPENDED SAVINGS BANK.-The Mechanics' and Laborers' Savings Bank, at Grove and 2d streets, Jersey City, has temporarily suspended payment. The directors of the institution held a regular meeting Friday night, at which it was resolved to suspend payment after Saturday evening. This determination remained a secret SO far as the general public was concerned. No formal notice of the suspension was given, and the bank continued to pay out money until the closing hour Saturday afternoon. The liabilities are in the neighborhood of $190,000.

3. November 11, 1878 New-York Tribune New York, NY

Article from New-York Tribune, November 11, 1878

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ASSETS OF TWO JERSEY CITY COMPANIES. The action of the Mechanics' and Laborers' Savings Bank in Jersey City, in enforcing the ninety days law has been approved by Chancellor Runyon. A movement is on foot to reorganize the institution. It is estimated that it will take from $30,000 to $40,000 to do this. It is rumored in Jersey City that John Haillard, the president of the bank. is indebted to it to the amount of $85,000. Mr. Halliard denied the ramor yesterday, and said the officers would give a statement to the public as soon as it could be prepared. Mr. Halliard is also president of the State Fire Insu rance Company. of Jersey City, and fears were felt that that company was also insolvent. The secretary. James D. Reid, said yesterday that the company was perfectly sound. It had a capital of $104,000. upon which a dividend of 10 per cent was paid annually, and its surplus was more than $60,000. Mr. Halliard has loaned $17,000 of the company's funds to the bank. but there seems to be no doubt that the Insurance Company is solvent. Anderew Clerk, a director, and one of the wealthy men of the city, says that he has examined the books and found the concern in a good condition. Its assets are valued at $165,000. Mr. Halliard claims that the loans made to the bank are fully secured. A meeting of the directors of the insurance company will be held tomorrow, when a full statement will be made.

4. December 1, 1878 The Sun New York, NY

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Jersey City's Suspended Bank. On Friday evening James J. Furey. R creditor of the suspended Mechanics' and Laborers' Savings Bank, in Jersey City, made A complaint before Justice Mechan, accusing the directors of the bank of conspiring to defraud him out of his property. Justice Mechan told a reporter for THE SUN last night that the warrants for the arrest of the directors were out, and that he would wait until Monday and then make the arrests. Nearly 300 de. positors of the bank met in Glasero Hall last night and appointed & committee of five to advise with counsel and report on the best plan of action for the depositors.

5. December 4, 1878 New-York Tribune New York, NY

Article from New-York Tribune, December 4, 1878

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CHANCELLOR RUNYON'S DECISION. THE DIRECTORS OF THE MECHANICS' AND LABORERS' BANK TO ACT UNDER HIS ORDERS. Coroner James Gannon, of Jersey*City, one of the beaviest depositors of the Mechanics' and Laborers' Savings Bank, which recently suspended payment, accompanied by other depositors, yesterday went to Newark to consult Chancellor Runyon in regard to the affairs of the bank. The Chancellor said it would be impossible to reopen the bank upon the plan proposed by the directors. He also assured the Coroner that 110 receiver would be appointed, as under the State law the Chanceilor can take charge of it, with three years in which to wind It up. The Chimeellor will allow the present directors to close the institution under his direction. Hugh McKay, a director, for whose arrest a warrant has been issued, denied yesterday that he was a member of the board at the time alleged.

6. December 4, 1878 The Lambertville Record Lambertville, NJ

Article from The Lambertville Record, December 4, 1878

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A codfish drying company is being organized in Manasquan, The Rev. J. D. Inskip suggests holding a Winter camp meeting at Ocean Grove. Preserve your Baby's health by promptly administering Dr. Bull's Baby syrup for the diseases of early childhood. Price 25 cents a bottle. The net earnings of the Delaware and Bound Brook Railroad for the first nine months of the year 1878 show an increase ovJO 1877 JO The decay in the iron trade has revived interest in the charcoal forges, and there are now twenty fires at work in the vicinity of Dover, all making scrap blooms. Robert Heller, the widely known 'magician,' died at the Continental Hotel in Philadelphia on Thursday morning. He had been performing in the Broad Street Theatre, and his disease was congestion of the lungs. It matters but little what a man honestly engages in, if he only does it well. He can make money at anything if he only tries hard enough. Don't wait don't complain; don't fret; don't waste time; don't cry over losses *edesn q8nos JO At the annual town meeting last Spring the people of Shamong township, Burlington county, passed a resolution offering a reward of $1 for the scalp of every hawk that was shot and fifty cents for every fox that could be killed during the year. So far 200 hawks have been killed, but only three foxes. Mr. Springer says that in order to elect the next President the Demecrats must nominate a man who can carry Ohio, Indiana and Illinois ; and the Chicago Times remarks " As the Democrat isn't living who can do that, the thought of electing a Democratic P resident may as well be abandoned." The Law and Order Society of New Brunswick has procured the fining of forty-two saloon keepers for illegal sale of liquors. It is understood that the committees employed two detectives to go around the saloons, and by purchasing and drinking liquor themselves the detectives were enabled to get evidence to convict the offenders. A curious accident resulted in the loss of a valuable cow, belonging to A. C. Tice, of Chestnut Ridge, Bergen county, one night last week. Getting her head under a piece of timber that extends across the manger, the animal, in struggling to extricate herself, broke her neck, and was found dead in the stable the following morning. The depositors of the suspended Mechanics' and Laborers' Savings Bank of Jersey City have received a report from the committee appointed to examine the assets of the bank who say that the assets were $101,000 less than the liabilities. Secretary Donelon, of the bank, said that John Halliard, the President, had used money illegally and had taken $20,000 in United States bonds. Under direction of the New Jersey State Temperance Alliance, township alliances are being formed in each township in Morris county. Much interest is felt in the move1 ment, nearly 200 names being enrolled as members at the first meeting. The State and county alliances have for their ultimate object the introduction and enforcement of the Maine Liquor law. The dignified columns of the Court News were recently humiliated by a typographical error that showed that even royalty itself is not exempt from vexations of this kind. The paper was made to say: " The Queen drove two cows yesterday to visit the king and Queen of Denmark at Osborne House. For I "two cows" read " through Cowes" and the e statement will become less remarkable. e The United States authorities in Louisiana 4 have begun suits against a number of election officers for frauds committed at the late elec-op insure on auga SIGNATURE 'AOD 'uon sires the punishment of all violators of the laws, but meanwhile the Democratic officials SO chosen have assumed their places and bid defiance to all attempts to onst them. It is believed that gross outrages in a number of parishes will be proved. The New Jersey Independent Order of Odd Fellows suffered a loss of 686 members in 1877, but the increase this year so far more than offsets last year's diminution in membership, and the Order is flourishing apace with the improvement of business. On the first of January last there were 14,054 members in the State. The order paid $68,079 last year for benefits to 1,642 sick and disabled members and 157 widows of deceased brethren. It is said that the Order in this country has received $60,000,000 since its organization, and has paid out $29,000,000 in benefits.

7. January 18, 1879 The Cincinnati Daily Star Cincinnati, OH

Article from The Cincinnati Daily Star, January 18, 1879

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NEW YORK. Indicted Bank Directors. National Associated Press to the Star. NEW YORK, Jan. 18.-Ex-Assemblyman Patrick Sheehan and James W. Donelan, two of the directors of the suspended Mechanics' and Laborers' Savings Bank, at Jersey City, who were under indictment for conspiracy to defraud the depositors of the bank, appeared in Court yesterday and gave bail in $2,500 each to appear for trial. Louisiana Consols. It is said that nearly $150,000 of Louisiana Consols have been sold recently in this market. on account of parties in the South whose margins were exhausted. Death of Mrs. Nathan. Mrs. Emily Nathan, widow of the late Benjamin-Nathan died Thursday night at her residence on Fifth avenue. Another Disastrous Fire. Shortly before 8 clock last night, flames were seen issuing from the third floor of the five-story building No. 62 Worth street, occupied by Van Volkenburg & Co., dealers in woolens and general merchants. It soon communicated with Nos. 58, 60, 62, 66 and 68 Worth street, and Nos. 64, 66, 68 and 70 Thomas street, which, with the contents, were entirely consumed. Loss is estimated at $150,000 on buildings and $1,000,000 on stock. The following are occupants of the burned buildings: Nos. 54 and 56 Worth street, James F. White: 58 and 60 Worth street, Chapman & Martin, Forstman Co., B. Smith & Co, 62 and 64 Worth street, Van Volkenberg & Leavitt, Walkenshaw & Voight, Neura & Healeson; 66 and 68 Worth street, John Lane & Co., Horace Maxwell, Schuebal & Bros., H. W. T. Mali & Co.; 66 and 68 Thomas street, Wm. Simpson, Sons & Co., Nonotuck Silk Company, Florence Silk Company; 70 and 72 Thomas street, Van Volkenberg & Leavitt, Walkenshaw & Voight; 74 and 76 Thomas street, Upham, Tucke & Co. The Glorious Milish. The Militia Convention settled on a general militia act, to be presented to Congress, and adjourned to meet at St. Louis September 30th. Its Value in Gold. The gold value of the legal-tender silver dollar, 412 / grains, is 85.12 cents. Protesting Against Bismarck's Despotism. A document is extensively circulated and signed by many well known citizens calling upon the citizens of New York to enter their remonstrance against the oppressive and infamous policy now enforced upon the people of Germany. A meeting will be held next Wednesday evening to protest against Bismarck's despotic measures. A Naughty Girl. NEW YORK, Jan. 18.-Georgie Cortelyon, aged sixteen, of Brooklyn, who ran away from home with a young man and :hree weeks ago was found in a house of ill fame and taken home, ran away again. She now goes to the House of Mercy for a year. She dresses richly and gets $50,000 when of age. Prisoners Shot in San Domingo. Private letters received say that Senors Perez and Mornati, the two men recently taken from the Spanish steamer Manucla, at San Domingo, were shot on the day of their arrest. A Spanish man-of-war was sent from Havana to compel their release. Sorrows of Sailors. The bark Luigino Lamonica, which arrived yesterday, had three men badly frostbitten. The steamship Caledonia brought into port Captain Winchester and six men who had abandoned the schooner Alert, which was boarded by seas in a gale on the Bd inst., and the mainsail and jib carried away. The bark Princess Beatrice had Capt. Chase and seven men taken from the wreck of the schooner Jos. Allen, of Boston, on the 5th inst., and the bark Oliver Emery had Capt. Thomas and five men, two of whom were frost bitten, rescued from the schooner Maggie Vanchisen, abandoned when she was waterlogged and unmanageable on the 10th. Y. M. C. A. Matters. The Executive Committee of the Y. M. C.A. of the United States and British Provinces has just agreed to call the next biennial Convention 'O meet at Baltimore, May 21st. The one hundred and twenty-five General Secretaries of more than eight hundred Associations hold meetings at the same place, May 19th to 21st. The Executive Committee state the occasion will be one of marked interest, as reports will be presented of the progress madein the South and West during the last two years, and of the work done among 800,000 railroad men, 60,000 college students, and 500,000 German youths.

8. November 25, 1879 New-York Tribune New York, NY

Article from New-York Tribune, November 25, 1879

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THE COURTS. BANK OFFICERS PLACED ON TRIAL. The trial of ex-President John Halliard, Secretary James Donelan. President Thomas C. O'Calleghan and Directors Jeremiah Sweeney, Patrick Sheehan and Adam J. Dittmar of the suspended Mechantes' and Laborers' Savings Bank of Jersey City, on an indictment charging them with conspiracy to defraud the depositors of the bank, opened yesterday before Judges Garretson, Fry and Brinckerhoff in the Hudson County Courts at Jersey City. District-Attorney McGIII was assisted by ex-Judge William T. Hoffman, who had been retained by the depositors to aid in the prosecution. The defendants were represented by Gilbert Collins, Leon Abbett and ex-Judge Blair. The counsel for the defence made a motion to quash the indictment on the ground that the indictment was incorrect. and the points were argued at length. Judge Garretson reserved his decision.

9. December 4, 1879 New-York Tribune New York, NY

Article from New-York Tribune, December 4, 1879

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# BANK OFFICERS ON TRIAL. The trial of ex-President John Halliard, Secretary James M. Donelan, President Thomas C. O'Callaghan, and Directors Jeremiah Sweeney, Patrick Sheeran and Adam J. Dittmar, of the suspended Mechanics' and Laborers' Savings Bank of Jersey City, was resumed yesterday in the Hudson County Court in that city. District-Attorney McGill read the indictment, and said he would produce evidence to show that the defendants knew that the bank was unable to pay its indebtedness for years before it closed its doors. The off-

10. December 6, 1879 New-York Tribune New York, NY

Article from New-York Tribune, December 6, 1879

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ASSETS WITHOUT EXISTENCE IN FACTS The trial of the indicted officers of the suspended Mechanics' and Laborers' Savings Bank on an indictment charging them with conspiracy to defraud the depositors was continued in Jersey City yesterday. Several statements prepared by Secretary Donelan, one of the defendants, were placed in evidence. One statement showing the condition of the bank December 1. 1878, just after it was placed in the bands of Receiver Williams, gave the liabilities as $251,887. and the assets as $223,410, thus making the deficiency only $28,477. This statement contained a footnote by Mr. Donelan, stating that some of the assets were entirely worthless. and some others partly so, thus making the actual deficiency much larger than the sum mentioned. The general balance sheet of the bank dated November 30. 1878, gave the liabilities at $248,278. The resources were then stated at $223,019, but from this was to be taken $10,000, entered on the books of the bank as invested in United States bonds. Mr. Donelan claimed, however, that these bonds had no existence in fact." A statement of the assets and liabilities, prepared by Donelan, October 31, 1877, gave the assets as amounting to $211,430, and the habilities as $304,325. thus showing a surplus of $7,105. The one prepared by Donelan six months later gave the liabilities as $280,884. and the surplus as $6,478. After the bank closed, the same person made out a list of the worthless and doubtful assets of the institution, which amounted to $115,516, and this was also placed in evidence W.W. Van Camp. the State Bank Examiner, testified to making the examination of the bank which caused its suspension be found that it was badly embarrassed. The paper giving the details of the settlement made with Mr. Halltard January 31, 1878. in the effort to save the bank from suspension. was produced. It contained all the worthless mortgages on walch Mr. Halliard bad loaned money. notes and other iteus, making $67,096 in all. In settlement he gave a mortgage for $20,000. the assignment of three life insurance policies for $5,000 each and a note payable on demand for the balance, $32.096. When Mr. Van Camp examined the bank the face value of the assets was $266,179, and that of the liabilities only $266,840. Jacob Danning, an expert in the employ of Receiver Williams, testified that when the bank suspended there was due the special depositors, $4,959, and saving department depositors, $311,731. During the time that the bank was 10 existence, 1FOID April. 1869, to December, 1878, the deposits of al kinds amounted to $7,537,675.

11. December 16, 1879 New-York Tribune New York, NY

Article from New-York Tribune, December 16, 1879

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LOCAL MISCELLANY. # TRYING TO SAVE A BANK FROM RUIN. TESTIMONY IN FAVOR OF THE DIRECTORS OF THE BROKEN MECHANICS' AND LABORERS' SAVINGS BANK. The trial of the indicted officers and directors of the Mechanics' and Laborers Savings Bank on a charge of conspiracy to defraud the depositors was continued yesterday at Jersey City Heights, in the Hudson County General Sessions, Gilbert Collins resumed his opening speech on the part of the defendants, and in his remarks c'aimed that the defendants did all in their power to save the bank from suspension, and that they acted In the best interests of the depositors. Receiver Williams was the first witness called by the defence. He testified that most of the mortgages held by the bank at the time he assumed control of Its affairs were worth more than their face value. He produced the $20,000 mortgage given by Halliard when the bank effected a settlement, and he agreed to nay the amount of the deficiency in the funds, $67.000, Mr. Williams also testified that the property covered by the bonds and mortgages held by the bank is now worth more than when the bank became bankrupt. George R. Ewan, a clerk in the office of Henry S. Little, the Clerk of the Court of Chancery, produced the documents filed with Mr. Little by Aftorney-General Stockton at the time Receiver Williams was appointed, and they were offered in evidence as the records of the bank's insolvency. Joseph Warren, a prominent real estate dealer of Jersey City, testified that be examined the property which Mr. Halliard mortgaged to the bank for $20,000, and valued it at $125,000. Ex-Judge Garrick, formerly counsel for the bank, testified that when it was found that Halliard was a defaulter to the extent of $65,000 he advised the Executive Committee to effect a settlement with him. The witness was requested to ascertain what had become of the $20,000 United States bond owned by the bank. He questioned Halliard, and the latter told him that it had been used to obtain a loan on the Seacaneus property owned by the bishop, and as soon as the bishop sold the property the bond would be made good to the bank. The witness was consuited by the Exeentive Committee in reference to the affairs of the bank, and he advised the members to keep the bank open if that course was the best one for the interests of the depositors. At the request of the committee, Mr. Garrick went to see John Winner, who formerly owned the West Side property then owned by Mr. Halliard, and told him that the latter said that the mortgage held by Mr. Winner on the property bad been reduced to $30,000. Mr. Winner would only say that "if Mr. Halliard says that, it must be true." The witness asked Bishop Corrigan to purchase the property for $100,000, and told him that Dr. O'Callaghan, Mr. Sheeran and others had offered to advance the money so he would not have to pay anything for ten years. The bishop refused to do this, and sand he had become involved to the extent of $100,000 in the purchase of the Seacancus property which was bought for the church by Mr. Halliard, but which proved to be unsuitable. Mr. Garrick testified on his cross-examination in reference to the settlement made with Mr. Halliard, which has been published. William Hogencamp, president of the Second National Bank, was placed on the stand to testify that he advised the directors of the savings bank to keep the bank afloat if it would be able to pay off its depositors, but the counsel for the State objected and the Court refused to admit the testimony. Henry Carroll testified that he was elected treas-nrer of the bank in 1877, and that he was present when the settlement was made with Mr. Halliard. Dr. O'Callaghan threatened to expose Mr. Halliard to Chancellor Runyon, and Mr. Halliard said be would see the Chancellor, and have all trouble staved off for three years. The bank tried to sell the West Side property to the Catholic Cemetery Association, but Bishop Corrigan refused to buy it. The witness pleaded with the bishop to purchase the property to keep scandal from the Catholic Chureb, and to save Mr. Halliard, who had been "the pope, cardinal, bishop and priests of the diocese"; but the bishop refused. The witness stated that the defendants, with the exception of Mr. Halliard, had done all they could to save the bank from ruin.

12. December 20, 1879 New-York Tribune New York, NY

Article from New-York Tribune, December 20, 1879

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SAVINGS BANK TRIAL IN JERSEY CITY. District-Attorney McGill, of Hudson County, made his closing argument yesterday in the trial of the indicted officers and directors of the suspended Mechanics' and Laborers' Savings Bank at Jersey City. In his address Mr. McGill claimed that it had been fully proved that the defendants had known of Mr. Halliard's mismanagement, and that they had conspired to defraud the depositors by concealing the insolvency of the institution.