New-York tribune., 1880-06-12
SOME CAUSES OF THE TROUBLE.

ACTION OF THE THIRD NATIONAL BANK OF THIS CITY
THE NEWARK Banks LAST SWORN STATEMENT
ILLNESS AND ABSENCE OF THE CAsnlER-WIIAr
THE OFFICERS SAY.
The City of Newark was startled yesterday morn
ing by the reported failure of the First National
Bank, at Broad and Market-sts.; and about 8
o'clock the following notice WAS posted on one of
the doors:
"This bank will not be open for business to-day.
Jahcz Cook President"
The bank was organized Juno 90, 1868, and for
several years did fine business, made money, and
paid large dividends to the ckholdcrs 1t Occu-
p7d humble quarters at the northeast corner of
Broad and Market-sts. until 1870, when its present
handsome building WAS erected, at cost OF
$l52, 900 The reported surplus at that tmc was
100000. In April, 1870, the capital stock was
reduced from SJOOO0O to 100000. OF the re-
duction 100 900 was returned to the stockholders,
Jnd it was understood that of the other 100000
Onc-haf WAS to be applied to the payment OF debts,
and the balance to reducing the real estate account
(which was based upon the high valuations Of pre-
vous times This was not done, and suspicion arose
In the minds OF financial men as to the management.
Wednesday was settling day with the other banks,
and drafts were given them on the Third National
Bank of Ncw-York On Thursday the drafts
. amounting to about $4,000, were returned dis
honorrd
Immediately q meeting Of the First National
Bank s directors was called, which attended by
JabcA Cook. president, James j. Dickerson, John
McGrcgor, and Charles y. Lockwood. The other
directors are Vim. II. Murphy, James NJ. Bruen
Walter Grcacen, and George B. JcnknsOn These
men were out of town. The directors informed
william a. Thomas. who during tho past month
has been acting cashier in consequence Of the Ill
ness Of Cashier James \. llcdlrn that they wanted
the plain facts about tho assets and Liabilities ot
the bank. Tho exhibit astoundcd them. Their
capital Of $3OCEOOO, which thoy believed to be in
tact. was found to be impaired to the amount Of
about S225OOO. Later in the evening rcPrrsen-
tatiycs Of the Mechanics National Bank, Newark
Banking Company, state and Essex County
banks. held q consultation with tho officers of the
First National Ilrlp was offered to the First
National II il could give satisfactory security but
Mr. coos frIully stated that all the available
assets had been pledged, the directors had nothing
20 oArr and the bank too far gone 10 bc saved.
II wa, then resolved to close tho doors and to trlc-
graph at once to tho Controller of tho Currency at
Washington.
On June itl tho diIcctors gave James \. lIcddcn,
th.ir cashier lcayo of absence on account Of his
health and the next day ho ~ said TO have sailed
for Europe. Six weeks ago he taken ill at his
home in Blooniicld aud one morning he twas found
III bed unconscious, ana black anu DIuclu INC Idec
He Law in that condition for somo hours. After
that lac attended to his bank duties, but had two
or three more attacks of pain in the hcad accom-
panied hy uucOusclOusnrss. and once he gaSped az
ii he were dying 4 month ngo he retired, and
,ucr then the paying teller, William \. IIhomas,
hl,a'lrndcd to his duties. Mr.. lIrddcn,s absence
N this time is greatly regretted by his friends who
hrluyc that hr could explain away painful runOrs
thai have been associated with his name since the
G lir, These friends deny that hc lived LcXtraya-
Cautly, and resent any imputatlon5 against ms
fltu Mt tgr fDr lOut-tE Y and integrity.
LAST STATEMENT or THE BANKS CONDITION.
The following IL the last report of the condition Of
the bank at the close of business April 90, 1850:
RFSpIrRCPg.