New-York tribune., 1880-06-13
NEWARKS BROKEN BANK.

INYEsIIGAIION BY 1HE ExANINER-rHE ABSENT
cAsHIER-UNcERTAINTY AS TO THs CAUSE OF
THE FAILURE
The suspension of the First National Bank
of Newark. on Friday. continues to be an exciting
topic in that city. AS very httle light has been
thrown upon the affair there is great dea! OF con,
lecture as to the probable cause Of the fainre.
has been appointed by the Controller of the Cur,
rency to make an examination OF the condition ana
management of the bank, arrived from Washing;
ton aud began his inVesi CATION tic was aSsisteu
during the day by w. A. Thomas, the paying teller
and acting cashier, and by several OF tho clerks
formerly employed In the bank. Tue presiaeni.
Jabez Cook, was also present during part OF the
Directors James J. Dckerson, John McGreGor and
William H. Murphy conferred with President COOK
pursued. Mr.. Murphy was in favor Of TAX
ing some immediate action with reference
to the absent cashier The others however,
best to await further Developments. As the direc-
Ors could take action only ON their own responsi-
take no immediate steps, Hedden is expected to ar
rive at Liverpool to-day at 10 q. NJ
Various statements are made regarding Heddens
character. One of the directors asserted that ne
did not believe that Hedden had lived extrava-
ganty. serious charge had been made against
him several years ago. but an investigating COM
mttee had reported that there was no canse
of action on the part OF the bank. Inc casn,
iers friends assert that lie was not addicted
gambling, reported, ana naU enBaReN
very little in stock speculatons. They ad-
mt, however, that he dealt extensively IN
real estate. and 1t is also stated that lie eougnt
notes on his own account. The people who saw
that Hedden was extravagant declare that he was
great fancier of fine dogs aud horses. Mr. He0den
gave bonds in the sum of $4,000 for the faithful
performance of his duties; the. bond ~ JOINT one
and has five names upon it.
There is a lack Of agreement between the opinions
that have for some time been entertained OF iae
condition OF the bank by the directors and outside
persons. A cashier of one OF the leading banks or
Newark said yesterday that the Flrst National
Bank had always been conducted irreg r Y. The
cashiers and teers had been permitted to carry on
outside enterprises on their own account, which
was not usual in bank affairs. For several
months the impression had been abroad that
the bank was weak. frequently the different
banks were called upon to furnish honey in ex-
change for draft on the Third National Bank OF
this city. Several times when tue clerks were
asked what they were going to do with the
money they replied that it was to be
sent TO -York-evidently measure TO
preserve the credit of the bank. 1t IS supposed also
that former receiving teller IN tne bank was
an embezzer. he carried on an INK fac-
tory at the same time. keeping accounts
ban k terminated suddenly. When suit was brought
against bIm afterward by one OF the banks with
which he had kept an account his property was
found to be IN the hands OF the directors OF the
First National Bank.
The paying teller and acting cashier, William A.
Thomas, has studonsy kept out Of the way
he was at the bank, but would not see
any one. A TRIBUNE reporter inter
cepted him on his way EOme
last evening, but. in answer to a. ."Stions concern
ing the condition of the bank. he replied that he
would make no statement, He had purposely
avoided questions on the subject because
now out of their hands. One of the di-
rectors said yesterday that he could not see
how the teller could have been ignorant OF the
situation for some time previous to the suspension
Mr. Thomas is one of the partners in tho firm of
Blgelow IL Thomas. manufacturers of chemicals
Last evening Mr.. Magruder said the examination
had not proceeded far enough TO make any dis
coyorics. the examination wonId probably last
several DAYS.