Dodge City times. [volume] (Dodge City, Kan.) 1876-1892, 1881-11-24
Another Surprise.

men. An old and prosperous banking
institution has been ruined by the aban-
donment of their duties by the Directors
Of the bank. The theory of the man
agemcnt of sound bank is that the
Directors know something of the affairs
and accounts of the institution with
whose management they are intrusted.
Now and again. like thunderbolt from
a clear sky, comes the explosion of 4
bank Then IL appears that the Direc-
tors had no real knowledge of what was
being done with the funds of the con-
Germ and with the money of the depos-
itors. Their apparent knowledge was
derived from one of the under officers
or employees OF the bank. The Direc-
tors implicitly trusted one man-per-
haps two men-with the management.
which, in theory. was wholly in their
own hands. In such cases. no allow
ance is made for deception or dishon-
csty. none for errors. In this way the
Bulls Head Bank was brought to grief
some wears since. And in this wav,
business men go on neglecting their du-
ties. secure in the belief that her con-
cern, ut least. is far above all human
wickedness and accidents. only 10 be
astounied when their mistake is dis
covered.
The ruin of the Mechanics National
Bank of Newark is. possibly. little
more complete in its way. and the "im-
plicit confidence" CT the Directors in
the Cashier little more obvi-
ously bottomless than usual; other
wise, the ease is not unique. The
Cashier was the cause of the ruin.
As other Cashiers. endowed with full
powers and unchecked by any Directors.
have been. from time immemorial. Per-
haps the apparent strength Of the bank.
the bigness of the theft, and the spot
less character of the thief constitute I'M
usual features OF this latest defalcation
But il need not be expected that any of
these things viii rouse anybody to new
vigilance, or will remind anybody tina,
the duties they are shirSing as Trustees
or Directors ought not TO be any longer
delegated to another person. These
things are constantly happening. The
newspapers take up the obvious lesson
and read wholesome lecture To the
men who take so much pride in what
they call their business Methods
Then matters move on as before. 1t
does not appear whether anybody has
prohted by the exposure of the humbug
of the aforesaid . business methods"
The Newark defaulter's method was
simple. He was the Cashier of a strong
and popular bank There was paid
up capital of 100000. a surplus of
S4o0. 600. undivided profits of more
than sos. geo. and heavy depositors in
plenty. The concern kept deposit
account in this city. the balance to its
credit being sometimes as much as 81
100000. Baldwin. the Cashier. WAS al
lowed TO draw on that balance when
ever he chose Nobody connected with
this admirably managed Newark bank.
but Baldwin. knew the condition of the
balance 10 the banks credit in the
New York institution. II anybody ever
had any curiosity about the matter.
he asked Baldwin. and this excellent
and highly respectable Cashier gave
such answer as suited his plans. And
all the while. the Cashier was checking
out of the New York bank the balance
of the Newark bank and using it for his
own purposes While he was reporting
TO the amiablc Directors of the Newark
concern that = million and half of
money was on deposit to their credit.
he was tampering with that account.
Finally, when he had muddled away
the handsome sum of -. 900. 900 or so.
and there was deficiency of Si00. 900
where there should have been q sur
plus of $1,000. 600, the explosion came
The Directors of the bank-good easy
sou!s--had known Baldwin ever since
no was boy. They repeat, with GER
tain plaintiveness. that they had i'm
plicit confidence in him; as If he was
very much to blame for their implicit
confidence. and as if they are wholly
exonerated from responsibility because
they have been deceived. So Baldwin
went ON with his game. using the do |