New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-01
THE CASHIERS CONFESSION.


THE CASHIERS CONFESSION.
AN INFORMAL HEARING BEFORE THE UNITED
STATES COMlnssIoNER-BAlL AT $25,O0O-
WHAT THE THIEF ADMITTED.
Cashier Baldwin was not taken to Jail because he
complained of being sick and said lie unable to
leave his bed. The United States Marshal stayed
at the house all day to guard the prisoner. Mrs.
Baldwin and her four children attended
faithfully to the dishonored head of
the family although they were in
great grief Many persons called at the house in
Centralaye. to sympathze with the family
but no one was allowed to see the prisoner who
lay in bed all day. In the afternoon an examina-
ton was held in the prisoners bedroom by United
States Commissioner Keasby. There no one
present besides him except the District-AttoTney
and ex-Judge Ellsworth, the prisoners counsel
Later the bondsmen were called in. The following
is the statement of Baldwin.
81 have been cashier of the Mechanics National
Bank Of Newark, n. j., for about eighteen years,
since its organization as a national bank. called
upon the directors yesterday TO make
statement of the condition of the bank
and my own connection with it. L stated
that there was q large deficiency in the
funds of the bank amounting to S2,OOO,OOO. They
had not had any intimaton of the deficiency be-
knowledge had any information or knowledge con-
cerning it. The deficiency began, think, IN 1873
in loans made for c. Nugent & Co., morocco manu-
facturers in Newark. They kept an acco unit in the
bank. These loans were made irregularly by me
for Nugent & Co.; that is they were made without
taking proper security, and having once
been made in that way, Nugent Il Co.
felt me to he in their power and
increased their demands. From that time onward,
from month to month"; the loans made in this rregu-
lar manner by me TO Nugent & Co. have constantly
increased They would amount to $4,000 month
sometimes; sometimes TO more. Their business was
very large and was widely extended. They spent
large amount for buildings aud machinery, and were
constantly in need of money.
"Mr. Nugent has always assured me that he had
enough money to pay his debts, and that every
dollar he borrowed from me would be paid. |
felt that 1 could not recede from my position
with him without ruin and exposure, and so
constantly complied. | told him from time
TO time that this was the banks money and that it
must be returned, and he promised always that
whenever | insisted he would turn over
everything to the bank in order to
make the loans good; but the loans
nevertheless kept constantly increasing until they
reached first a million, then million and half,
and finally have reached over two
millions Nugeut drew out OF the bank
sometimes over 100000 in month. In fact
his drafts during the present month OF October
amount to over 100000. The usual manner IN
which the money has been taken has been for Mr.
Nugent to deposit drafts on different persons IN
Now-York. l would then either take them up
myself or furnish him the money 10
take them ND with in New-Yorll. 1t perfectly
understood by Mr.. Nugent that he was obtaining
l. l. q, md WI h
out giving any security, and by irregular methods
on my part. he was perfectly well aware that this
was a forced loan; that he had his hand on my
throat.
"On September 2G-that being | think,
the day of Garfeid's fneral-I had
long interview with Mr. Nugeut, and told
him that the Indebtedness then amounted to over
two millions of dollars and that proposed to stop;
that could not carry this thing any longer. lie then
said that he had property ecough to
nav every dollar he owed and more too;
that he had finished stock in the factory
worth four or five thousand dollars and as much
moro which he could finish within month that was
in nrocess of being finished and that he could give
me five hundred thousand dollars within three
weeks. After some talk in which l questioned
his ability TO do rs much rs that he
pledged himself to give me $3OC'OO0;
that he would reduce his indebtedness
t least 5000 OOO and that he could reduce the III
debtedness from that time on very rapidly, rs lac
had very little to pay and very large stock.
Then | said: "An right; l Will try
il for three weeks longer" Mr.. Nugent then told
mo what amount he had to pay during the
next month During the past month he has not
giycn me over one hundred thousand dollars,
and the payments which had TO be made for hlm
were at least twice the amount which he stated
month ago. These loans were overdraftS, ana
known to be such by Mr. Nugent. The account was
made good by these manipulations from tiine
70 time The books were arranged to cover the
overdrafts on the ledger in his account. He.would
mako drafts on friends in New-Yorl and give
them TO me. which drafts would take care OF by
checks ON tho Mechanics National Bank OF
New-York, and which were not entered on
our books Our books show two millions of dollars
To our credit in the Mechanics Bank of New-fork,
whereas owe them. . ,re
can say that almost the entire losses anu Hon %
cieucies now existing in our bank are 10 DE ascriOeu
TO the loans made to Christopher Nugent as nav
detailed have not now and never had any inter-
est in the business OF Chrstopher ~ him
District Attorney Keasby said later to n TRIBUNE
ronorter that c. Nugcnt was liable 10 arrest uiueI
section 3 200 of the Revised Statutes ne also Us
! 81 rted that Baldwin's transactions were similar TO
those of Cashier Williams OF ElzaDeih' VINO leht
small Of the banks money TO qSpTseSr @ opa ~
%iS yo more money in the hope that through profits
! The amount would be returned.
WHAT ONE OF THE DIRECTORS SAYS.
| AN OLD MAN IN TEARs-HOw THE DIRECTORS
! LEARNED OF THE CRIfE-BALDwINs COMES
| sIoY-ACrIoN OF THE DIRECTORS.
II was difficult yesterday to any of the direc-
TORS of the bank as some Of them had come to New
| York and others were dying about Newark, bnsy
in regard to the affairs of the ruined bank, One of