The New York herald., 1878-02-08
DISASTROUS TIMES.
The Defalcation in the Bank of
North America.
MYSTERIES SURROUNDING IT.
Large Business Failures and Pro-
ceedings in Bankruptcy. =

The defalca,ion in the Bank Of North America con-
tinued to be the subject Of much talk yesterday In
financial circles. The card of tho President had not
explained how the frauds concealed. ana curl
osity was reused to the methods employed by Mr..
Turney Again the story OF accomplices WIS revived
and the name Of Mr. Lefhngwell, tue other teller,
was mentioned VINO ought TO have had
knowledge OF Mr. Turneys ill.doine for tho reason,
II was said, that during ME- Turney's absence Mr.
Lef1ngwe had acted Ia his place There also
good deal oi curiosity to ascertain through whom Mr.
rurrey operated, and whether he had DeeD helped
through MS difficulties by persons having a guilty
knowledge oil his acts IL was thought that some
interesting Information this point could be OBJ.
aimed from those Of whom the bank recovered por.
aon OF the stolen, but of those per-
sons the bank officers would not dlvulge.
THE ovvIoxRs ARE
The officer who represented President Dowd de.
clnod 10 either deny Aconlrm those He
ctco paragraph from a newspaper which he held In
his hand, and said thore nothing to add 10
chat iact." The paragraph stated in substance that
while engaged in deirauding the bank Turney felt
obliged to take into his confidence and to neces.
sary .'accomplce" whom he found in the person OF
the receiving teller. Charles R. Lefangwoll. sngu-
lar feature In this matter ls that "Wednesday after.
noon, alter The fraud discovered. President Dowd
protested that LcHhngwel no way whatever in.
VOWED In the affair.
THE POLICE COURT.
The phalanx OF ragged prisoners who stood within
The bar of the Iomps Police Court awaiting their GUS
tomary commitments TO BlacKweIl's Island stepped
respectfully aside whom Augustus N. Turney the de-
fanltng paying teller, entered the enclosure AL
though they recognized fact that in law thoy were
his equal they showed by their doerential gaze the
admiration that the lower grade OF crirn malls always
feel for the higher The prisoner was accompanied
nj fha
Central ONCE. In tho background was Mr.. Dowd,
psss'don. Of the bank who at the nod Of tho Clerk
palnL Tho following Is the affidavit which he
sgned:-
ys nj ia ssS On %os W s @
ber 1871 augustus Tuney NOV presently, being clerk
William Dowdis Presidons anu mot being an apprentice
s TO d his Smn sse rUod s%
the smoua. ana Of the value Of $4,000 Of the Bank q
spscy Is rneh a@S received " ad ns " bis
The legal iormality completed Mr. Dowd stepped
lsde and soon afterward the party entered the
lnation room, where Judge Bixby awaiting them.
Tho prisoner was represented by Counselor Orlando.
d. Stewart, who waived the preliminary exanina.
lion, and asked the magistrate to nx bail in as low
sum possible. Judge Bixby replied that he would
prefer leaving the matter Of liking bail TO the District
Attorney, owing TO the magnitude of the sum en-
but bail aud ordered the papers forwarded Dis
Lict Attorney. Turney maintained composure
Throw r0sgh the proceeding ana listened assn-
he was placed IN cuspdy Of the dseesve sna ssSen
second tier. Shortly being domicned word was
brought him that his counsel wanted TO see him, aud
be conducted 10 the consultation room, where he
remained for over IN hour
When asked BY his keepers II he wished to see the
nc no good he said, and he laid down on Ills COT in
the cheerlosS coll.
FAILURE OF JOEL HAYDEN 4 CO.
Tho f,ilo NJ
acturers OF brass work. at No. 81 Bcokman street and
al Asydenviie. Mass, was announced yesterday and
caused thc greatest astonishment In the trade. The
firm old and well established and with sucS
largo means at its command that the failure could not
be accounted for. The mystery increased by q
circular, which sent TO the creditors the aitor.
noon, announcing the suspension and that firm was
taking an inventory OF their stock and other assets
which would be submitted to them as soon as com.
pleted, ana that they would place their affairs
In The hands OF tho creators. Tho firm had been
ransacting large business here, but very
lew debts and II ID stated that their
DISC Liabilities IN this city Will not exceed
$l4, 000 AT the Office Of tho Arm Information
as 10 the cause Of the failure was refused, but APP
pears tnat II ID family matter manly aod is also
said to be due TO the depreciation In estate.
Deputy Sheriff AarVns yesterday took possession OF
issued against Jcs Hayden % Collins az Gsrs ana
Kingsley, by Thomas raibott Solomon Lincoln, Jr.,
and Henry L. Dalton, administrators OF tho estate OF
Joel Hayden, deceased, Tor the OF 500, 4S9 and
interest. The firm not being In u position TO meet
this largo and sudden demand were Compelled to
permit the Sheriff execute his warrant, and ac-
,ordngiy announced their suspension. 1t Is ascer-
tanned that their total Liabilities will be
hood o $500 000 nearly all oi which, with the exception
OF the $l4 700 previously mentioned is duo Hayden.
vile, where their facIories located. The exact
amount OF their assets will be known several
days. until the inventory completed, but In Decem.
Der last they claimed that the total incud
5000, ,CO0 The business was eslabl,snod over thirty
years ago at Haydenville the family owning nearly
care 90 sna !, 80, no rsmsmns,"n ,o,mery hayden
factories were washed away ana destroyed by tIe
aood In 1874. 1t was thought that they would lose
great deai Of money, but much machinery was saved
year at s7S ooo the finest in the State.
The buildings are OF brick, three stories and a
mansard roof, the finishing house being 36O
feet long, the foundry 1O2 feet length. the pattern
house 40 ieet anc the Office so feot in length They
employed $50 workmcn. On October IL. 1877. The
firm OF Hayden, Gerc 20. was dissolved, Mr. Gere
retiring mainly on account Of illness, and The bust
Icy. Mr. Gere u is said, took no money out when he
retIred and tho new firm took only the ufactured
tion leaving tho real estate and machinery OF the old
firm still 10 their name until Liquidation is completed
capital Of the now Grm ana at Hayaenvle ne e. was
estimated to be worth $400. 900. Ine new firm had
excellent credit and they we're rated ~ IRON $z50000
to $3oO. 900.
NJ. ME1Z0ER SONS TROUBLES.
The failure OF ths hrm of NJ. Merger Son, dealers
In leaf tobacco at No. l7Sh Water street, has caused
much comment In the trade and expressions OF tho
creditors are the reverse Of complimentary. The
actions Of the hrm In Converting all into
cash before making an assignment arc denounced in
strong terms. IL stated oy creditors that the firm
have recently purchased goods OF them on time and
then converted thom into cash discount OF twenty
i've per cent the purchase price, Thor desire to
obtain cash was 30 great that within hour before
their assignment was died they drew balance OF
So 20 from the seventh Ward Bank Inc assignee Mr.