, 1881-11-01
THE CRASH.

NENAHkt ~, J.s UEIs 1l.-4u6 10iI0HlHH
appeared on tile doors of the Mecl,aulcs' M
tional Bank this illorning: "Closed IN coli
sequence OF statements affecting the bunk
1lade BY the CasIiigr to the Board ar Direct
ors yesterday, which nre now undergoing III.
vcstlgutt0n." Tho bank was regarded rs the
strongest In Newark. Stock stuod tS0. Tho
announcement that tic hark had suspended
flew like wi!tlllre, and the excitement among
shortages Is reported to be from 500, 600
to S250,0oo. The President Is Joseph a.
1lalsey; Cashier, Oscar l.. Baldwin. The
State Uank Examiner came to
the city Friday, examined tho State
Bunk, aud announced his Intention to ex.
anime the Mechanics tot1ay. Wien BALD
win learned OF this lle Is said to hnve called a
meeting Of the Board Of Directors yesterday
and announced to them that the bauk could
not stand MI examination. The Directors
ofered to make Up $4,000, bnt were it,
formed TINT ~, ,0o0. 200 would not cover the
deficiency.
The amount OF one firms obligations Is
stated at S701,000. The City Of Newark will
he loser, tho AQueduct Board having been
a 1epositor to tho extent of Sl26,000, aud tho
City Treasurer to the amount of S1:j,0W. 1t
Is not dcin1tly known what disposition has
been made Of the lost funds.
baldwin. tho Cashier, was arrested BY
Deputy United Stntes 3larshnl Hur,tet. lie
WIS In bed, where llo sill lies, completely
Frustrated. lie Is said to have confessed ut
meeting Of tho Directors yesterday TINT he
Ind been robbing tho bank from time to
time during the past ttlree years, and 1t Is
stated that during that time he Ind been
specufatlng IN Wall street. Distrlct-Attor-
ney keasley says tho books here show the
alechanlcs' National Bank OF New York
owes tic broken bank S30o, 900, whereas he
says the real amount, as the Government and
bunk authorities believe, is only about $780,
600, the difference having been used by
Baldwin to cover rph!s deficiency. Baldwin,
fn his confession, eXonerates all the Others
but himself from blalnc. The arrest was
made Oh the affidavit of Keasley nnd Director
Bond.
MR. BENJAMIN y. SHERMAN,
President ot the Mechanics National Bank
Of this city, through which the broken
bark of Newark did It's New York business,
discussing the failure with reporter, made
the following statement: ave owe them
nothing. They owe Ns over $500, 1000. We
havu paper which we cashcd for thom In the
nature Ut bills receivable to fill tho amount
ot their indebtedness. The Newark ballk
did dlsconntLng business, and the paper we
caal'ed for them IL paper they cashed for
their cl,stomers. Most, II not all, Of 1t Is not
due yet. aud examination shows that 1t is
probably all good-tl,at Is, we can. we bts-
lleye, COLLECT alI wo loaned on 1t froE, the
makers Of tho paper.'
"llow IL It possible for the cashier Of
bank, In place Us small rs Newark, TO en-
bezzle rs inucli as 81, 600 ooo, and not be found
for three years?"
thing OF tile kind. The capital at the bnnk
Is $500, 600; Its surplus sone S47J QUO; Its de-
posEts about S., 000, 900. lilo would have hail
10 steal nit tho capital, I'LL the surplus, and
over 81 ,000, 600 from the deposits. It could
mot be done, and 1t was not tonu."
THE BANKS LAST STATEMENT.
issued II. October, showed liabilities as fol.
lows:
Capital stock ....,.,............,.$ 10000
NHtltnai- Junk notes. . sssSH1
i!NilE!ltts Apal0,-.s NEUTRALITY-SUSPICIOUS., Ma3!!
Gefti,iad S'oaiu9 Gi9
'io "ster Nntioi,al- bauks .....''..'. ,3iS
1"" A'@tc "tHiAH'..t .ttssssst...s.s+s.+..st iutVlS
THE t,FFlCEles.
Tic following Ia tla Hoard OF Directors:
Jasrpll 4. lin!sey, Oscar l.. Baldwin, Stepl.-
Ell II. Cmnl!cs, George a. lInIsey, Lewis q.
Groyar, Jnl,nH i, BoMd. William Clark,
llenry e. lloweit, J0seph Ilrtsler. Ioaep'l
4. lisispy ~ President. aru Oscar l.. Bald
VIII Casllier. Tlo last-nanled o!1csr was
'na''agur of tho bank. md Is considered sa-
sponsll,lo Tor the trouble. .rae Mows Guns
li&o iAnnarrctap u, tho community. Thera
WAS nat u sslsplclum TINT tho Institution was
mt te strongest in Newark. Thu Directors
ayc ('ecn considered the mast trustworthy
b,Hly Ut jlo. In t!le city, anu the reputation ut
lsaltlwln ~ illnnctcr probably ss0otl first
III tbs State. 'To hank IL closed to nj. comcss,
anu ho Itllclal ftlcts laye been muas known
baynht! tho asIrst ut Baldwin Oh charges of
eMhezxtaI,uilt, and sending far tho Goyern-
nleht csalnsnoFs. lAo Now York corrc-
spondeut Vt tho bunk was tie
Mechanlcs' Natlona! Bunk, Of Nuw
York. The lattur Institution loses
nothing. Baldwin called at this bank
Saturday and wished to withdraw somo Ut
tho collaterals le had pledged there. but sllls
was not permitted, anu Ills Inability to got
hold Of tham may have forced the discovery
OF ths 1ottenness OF Ills bank. The is.n OF
Nugent T. Co. has suspended. Tic concern
WAs Involved with the broken bank. Other