The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-11-18
tph,,a..elphia Press.l

TprxroS. November l5.-On the 1ltb day
~ limo last the announcement cane. WIN
Tho startling surprise presumed 10 toiow
a,sn of thunder from an unclouded SKY,
.ha, the First National Bark OF Newark nae
sn.nendcd payment and closed IT'S DOORS
10 banking institution in that great manu-
,sc,nring ci,y--the recognized metropolis
90 rho state--had before dishonored itself,
wbiIe n had been The proud boast Of her
c;,izens that scarcely a petty defaication
hitherto blemished her fair credit In imam
cial circles.
Tny col ArsEp NATIONAL BANK
MAS the nrst OF the four new institutions
oroanized and added 10 the number OF the
old ipS,i,utions I'm existence when the ma
tionsI banking law was enacted. us organ
iz,tion was The oui9rowth OF the unhealthy
SPECULATION which followed the inflated cur
rescy issued by the Goyernmertln It's hour
~ extremity. A number OF honest, unso-
nhisticated tradcspeople, without the least
kooyiedee OF finance, banded together and
securcd its charter, eleciing themselves as
drectorS and managers. The capital stock
subscribed was $685. 900. Times were flush,
depo,i,ors Sere plenty and borrowers
coually so. Large dividends were declared
and a handsome surplus soon carried.
The iwo-siorled old brick on the best
and most prominent corner OF Newark,
AZ Broad aud Market streets, fast rented
for their business. was soon purchased, and
tben torn down 10 give place TO handsome
fonr.sforied iron structure, outriyalling in
pretcntous outward appearance The homes
Of lis older, more substantial, and Weather
compttiiors. IL stands to-day, with its
barred doors aud windows, "whited Sc
pnlcbTe," in The hands Of receiver, and
offered for sale at one bali its estimated
cost or value five years ago, for the reason
that it wSs constructed solely for the accom-
mediation OF a bank, and is not adaptable 10
other purposes without an expenditure
equal TO one half its original cost. The
pre>ident, cashier, directors, and other OFF,
Gers had sunptuous snd Neutrality-suspicious.
nIShcd apartments on the first floor, but the
balance Of the building could not be rented
at q sum sufficient 10 pay the interest on tue
cost OF LAYING tue foundation walls.
THE FINANCIAL CRASH
Of 1873 followed The erection OF the new
structure. and the trouble commenced. The
directors. as a first step, resolved TO de-
crease their capital stock from $685. 900 to
$500. 600. The stockholders received back
500. 600 Of The decrease in cash. while the
other half was charged up TO profit or loss,
or sunk with the surplus in the building.
A defacatiOn bad occurred in the mean
time, which was known 10 Only few OF the
directors, who, acting under legal advice,
and, ~ they aliege, for the best interests OF
The bank, IN the hope OF recovering a p0r-
ton OF tue stolen money, kept the matter Sc
eret from their felIow-directOrs and the
stockholders. They succeeded IN recovering
a considerable portion, and Mr.. Doyell, the
recalcilrant official, was allowed to resign.
Mr.. Jlmes A. Hedden, con gcted to-day on
the first OF seventeen indictments found
against him in the United States District
Court in this city. succeeded as casbier, with
Mr.. JaheZ Cook, wealthy old gentleman, as
president, and the same board Of directors.
Mr. Cook had implicit confidence in bis
cashier, owned $4,000 worth of stock, and
paid up like a man dollar for dollar on it
when called upon by the Government re-
ceiver to make good his share Of the def
cheney. and 10 day is minus some $50, 900 for
his childlike simplicity, which was so great,
according 10 his testimony, that he never
knew anything more about the affairs Of the
institution over which he presided than TO
draw bis salary monthly and regularly as
president and sign any paper which the
cashier laid before him.
THE LAST QUARTERLY REPORT
made By the bank officials was at the close
OF business on the 23d OF last April, when
the following statement OF lis condition was
made: