Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-11-01
made by the same committee for the bene-
fit of the insurance companies, is said to
be much stronger in its structures than this

fit of the insurance companies, is said to
be much stronger in its structures than this
one.
NEWARK'S CRASH.
Another Crooked Cashier-A DefaIcation
Amounting to Two Million DOL
lars-Tho Old story.
Cashier Baldwin, of the Mechanics Bank
of Newark, N. j., the failure of which ow
ing to the crooked operations of that Off
cial, as briefly reported in the telegraphic
advices yesterday, was confined to bis res
idence, but was waited upon by United
States District Attorney and United States
Commissioner Kcasby, and was admitted
to bail in s25, 900 to appear in court on
November Z. Mr.. Baldwin then stated
that about the year 1878 he began to make
facturers, of New York, without security
began, he was in the power of Nugent &
Co. and continued the accommodations,
sometimes lOaning them $500 in one
month, till tho total was increased to a
ruinOus amount. Nugent assured him
that he had large property and capital in
business which would make all loans good.
was using the banks money, and promised
to surrender tho property in case of any
trouble. Under these circumstances the
loan increased until it reached over
s., ,O0O, 900.
The manner in which the business was
transacted was as follows Nugent would
Fgive drafts on friends in New York, which
would be credited to him as cash, and
Baldwin would use the banks money to
take up the drafts when due. Tho books
were SO falsified as to show the account to
be correct. Finally, however, the losses
were placed in the account OF the Mechan-
ic' bank in New York, the agent OF the
Newark bank, SO that while it appeared
that the Newark bank had claims for two
million dollars against the New York bank,
in truth the Newark bank owes tho New
York bank two hundred thousand dollars.
This difference is almost wholly duo to the
irregular transactions with Nugent. In
conversation with District Attorney Keas.
by he said that he had speculatcd very
little, and had not lost anything in that
way. The rumor that Nugent had mado
an assignment was premature. The ac-
counts arc involved with those of the
bank, and await further development.
Christopher Nugent, of tho morocco
manufacturing firm of G. Nugent & Co.,
was arrested last evening at his residence
by a deputy United States marshal, on a
charge Of aiding and abetting Cashier
Baldwin in embezzling funds of the Me-
chanics' national bank. He gave Oail in
the sum of $25, 900 to answer the charge.
Tho arrest was based on the statement of
Cashier Baldwin in regard to loans to
Nugent. The complaint was made by
United States Commissioner Kcasby.
The stockholders of the bank are liable
Tor the full amouut of the holdings-that
is to say, each stockholder for 500 must
pay 500, besides losing the value of his
stock. Tho government bank examiner
arrived at the bank yesterday morning and
with tho aid of his clerks began examina-
tion. Various rumors have been set afloat
concerning other banks, but have been
disprOved without exception. SIS far as is
known, no other institution is effected to
any extent. The effect on tho business
community is not yet shown, but will un-
dOubtedly be developed tomorrow. The
Mechanics bank was chartered in 1881,
and was organized as u national bank in
1865. The actual loss it is believed will
reach So, 100000.
Mr.. Nugent states that the Amount dis
counted by the bank for his firm is only
about 100000, a comparatively small
portion of the dcfalcation. It is estimated
that the deposi.ors will not get over fifty
cents on the dollar.
The stock in the Mechanics was held in
large amounts by the president and his
family, and each of the directors held con-
siderable sums as we'll. The Mutual Ben.
eft life insurance company was a large
dcpOSitOr, but not to SO great an amount
lately as before. Messrs. Ballantine &
Sons, Joseph Hensler and GOttfried Krue
ger, brewers, are among the largest depOs-
itOrs, rs were also F. T. Frelinghuyscn and
T. T. Kinney.
Mr.. Nugent offered to confess Judgment
for $500, 600 on his Indebtedness.
Oscar l.. Baldwin, the defaulting cashier,
is tho son of Caleb Baldwin, and entered
the Mechanics bank as boy, occupying
minor position. Hc rose gradually until
about 1852, when he became assistant to
Cashier Matthias Day. At about the be-
ginning of the war he succeeded Mr.. Day
as cashier, and has occupied that position
ever since. 1Ie was prominent in public
and social life, and was director in the
Mutual Benefit life insurance company.
This company once offered him u promi.
ncnt position, but he refused it. His
salary rs cashier was $1,000 per annum.
Personally he was popular, and his rela.
tions and friends include some of the most
prominent people in Newark.
For several years Mr.. Baldwin has been
engaged in speculation in Wall street, and
it is believed that the misfOrtunes of the
bank are largely due to this fact.