New-York tribune., 1880-06-12
family said he had not been at homo since break
FAST, and it was not known when he would reeurn'

had just arrived from Atlantic City. The first be
| knew Of the suspension OF the bank lie said. ne
learned by reading the newspapers. 1t was great
surprise to him. as he supposed everything was go
| ing on smoothly, and that the bank was earning
some money No bad debts as far as he knew, had
been contracted except O loan of 81 200, made
previous to the reduction OF tho cnptal lhe !asG
statement indicated a good condition. and he had
always accepted the statements OF the ncers as cor
rect 1t customary for the board OF directors 70
| appoint an examining committee, usnaly qeioLe or
the election of officers in January, to verify the
statements Of the cashier. There was such o
committee appointed last January, and the condI-
| factory. This report was accepted with the
greatest confidence by the directors. 1t had
to illness. he ad lie had not been so familiar with
| the business as formerly but he had not Decn
| aware of any importing trouble. 49,
All Of the directors he continued, placed the ut
most confidence in the cashier. He did not think
the report was true that Hedden had been living
dated back to within few years of its organiza-
t!On;- he owned o house in Bloomfield,
pair of horses. He received q sal
ary Of $4,000. When asked If he suspected
Murphy replied that no was not able to say az any
rate, it was PLAN that he was familiar with tho
facts. aud had withheld them. There was no ques-
ton as to his Illness bN M H05d4S sass
for Europe week ago-w0s q wealthy man
and above suspicion. He, did not think
| tncrC was any POSSIBILITY VI
Jenkinson and the cashier. The teller, Mr.
| Thomas had been in the bank for ten or twelve
years. Although g Young man, he had tne restecG
and confidence of the, directors: his salary was
about ~. 800 year. He, too, must have known
all of the facts Of tho case. Why no
bad not mado them known was, mystery
He was acting In Mr.. Hedden's stead, because his
| knowledge of the books naturally qualified MN 10
fiji that place. As for President Cook, his honesty
and integrity were held to DO beyond question. AZ
though his position president would naturally put
| him in possession of a correct knowledge or the
| banks affairs, 1T was very likely tha6 ne was de-
| ccived.
VIEWS OF OTHER DIRECTORS.
James J, DickersOn, one of the directors. who Is
said to have a deposit of $4,000 in tho bank, was
| found at his house. at No. 608 Highest, by TRIB-
UNE reporter, last evening.
lean tell you nothing" said he. II am away
| from the city, as | do business in New-YOrk, and
| am obliged to depend on what others tell me- lean
say that tho news came like thunder clap to me.
We have telegraphed to Washington for receiy-
! err and he will doubtless be hero soOn."
"Can you tell me If there Is any truth In the re-
| port that Cashier Hedden has been engaged for
some time past in altering the hooks of tho bank,
! and swearing to false reportsT
al cannot tell you anything about it we cannot
vet tell the amount OF the losses"
| Charles n Lockwood another director. lives at
| 30 O0j BrOad-'t. His daughter answered the
| he'll and aald Father knows nothing about the
matter. lie Is too sick to see anybody, He is sick
|
{" "Was this tron6e the cause of his illness ?"
"Oh, no ne has been Ill for two weeks. first
! knew OF the trouble at breakfast this morning-It
4 third director. John McGregor. a wealthy cloth
ing dealer, lives at No. 1910 Broad-st., but was
not nj homie. Inquiry al his store resulted in find
ing that he had gone out for his evening drive His
son present. and SAID " ,
| "YOu won't get anything ont OF him, nor any Oh
the directors, moro than you can get from any man
ON tho street. They don't know anything about It,
They only know that they are out several THOUSAND
| dollars, and don't know where lt has gone to.'
Did you hear your fathcT, utter any suspicious
| as to Mr.. Iiedden's conduct u
| ono. He was very popular man, and no one
will accuse him. They have very costly building,
aud that's where the trouble began. Ihey had to
draw on their capital to pay for it,"
" Have you any idea from your father what the
II think it will be :ota loss, but the depositors
| will not IL 81 anything.
"Wril there bo an assessment of stockholders,
then ~ -,,,,..,. .,. .o.
| the losses and will be wiped out"
| Another director. who was seen yesterday, said
| that the banks condition was utterly unknown to
| him. and ho was satisfied that neither tlio
| nresidcnt or any member OF the Board or Dl-
r,c,or5 could have had tho least SUSPICION OF ITS
| condition. "Why,D said he. " X tho cashier could
by false statement under affidavit OF amounts due
| from other banks deceive the Government exam
| mcra who are experts in banking matters, now
| much more easily could he deludo the president
| AMI directors most of whom are business men and
unable to give their time and attention to the bank
t IL was Sg asccrancd last night that the Bank Ex-
| on,iucr would arrive in Newark this morning TO
fake charge of the affairs Of the bank. 1t was cur
rrutlv reported shat instructions had been sent by
cable to arrest Mr. Holden on his arrival in Queens,
to,yn on the steamer Britannia. 1t was al5o stated
bv some that the cashier had not gone abroad, but
Was seen driving In Bloomfield on Sunday last
| WHY THE BANKS PAPER WAS DIsHONoRED.
Tho Third National Bank was the New-York cor
respondent of the First National Bank Of Newark
| President Booth said yesterday that the Newark
| bank did not owe his bank anything. week ago
fine officers of the Newark bank personally requested
thr Oriyiego of OYCrdrawlng Its account, but were
unable To furnish the necessary collateral security
Tho cashier OF tho Third National Bank was sent 10
Newark to Investigate the condition OF the ln5ttu'
tion aud discovered the deficiency IN Its account
| On thursday checks drawn by tho Newark bank
were returned by the Third National Bank for lack
of funds and this action preelpItated the suSpel-
| Mr. Booth said that rho loss to the Newark
| Bank was about $150,00), and that this amount
would be increased by loss ON ITS rea estate. IL
| woa his opinion that the cashier OF the Newark
| bank was not responsible for tho loss and
that his recent departure for LuroGe was
Gs loss IN his opnd had been causcd
| by u former teller Of tho bank, who had suIrrn-
dcrcd to tho bank all tho property lie then
! ho thousht Tho balance had been carried
| along on tho banks books, and the heavy loss had
! proved in tho end too heavy burden to be borne.
Mr. Booth asserted positively that the lhlld Ma
| tionaI bank would suffer no loss by the failure.
| Iho Central National Bank was formally
! New-York correspondent Of the New
tLa that the U,H Newark bank owed It about 5000
| on collections. Even OH this small amount t was
| probable that there w0pd be no loss for the
| reason that the bank held somo security for It's
| claim. The president of the bank denied, however,
| that its claim was secured but he expressed the
opinion that no loss would DO suffered a5 the StocK
holders of the Newark bank were responsible LOT