Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-11-01
D3MRSTIC.
The Newark Bank Failure.

The Newark Bank Failure.
New YoRK, October 31st.-The Posts
Newark special says the Cashier of the Me-
chanics' National Bank yesterday told the
Directors that the bank was unable to pay its
debt. They offered to subscribe half mill
ion dollars, but he said two millions would
not do il, and they decided to suspend. The
last statement showed that the deposits was
S2,4l7, 900. James a. Halsey is President,
and Oscar l.. Baldwin, Cashier and Manager.
Baldwin is considered responsible for the
trouble The news was like thunder clap,
as the institution was deemed the strongest
in Newark, and the officers most trustworthy,
while Baldwin stood high as tinancier. He
has been arrested as an embeZzler, and tt e
Government Examiner sent for. The New
York connection loses nothing, having re
fused to allow Baldwin to withdraw his COL
lateral. Nugent & Co., who were Involved
with The bank have suspended. Other fail
ures are expected. It is stated that the only
resources of the bank are the buildings |;
worth $50. 900.
CHICAGO, October 31st.-The warrant CT
arrest charges Baldwin with confessi3g to
the Board that he had fcaudulently used
s., 900, 600 OF the banks funds. The Directors
are sitting with closed doors. The widest
rumors are ahoat. Nobody but the Cashier
is suspected. He has had the unlimited con-
fdence of the Board. His confession was
made because he feared a visit from the Bank
Examiner. The city and county lose about
$40, 600 each of deposits. The Water Board
lose 1000, and the manufacturing compa-
MES smaller amounts. It is not yet known
where the money is gone, but it is alleged
that the Wall street spsculations of the
Cashier absorbed it. It appears that Bald
win got away with everything but the safe,
which was a very heavy one. The bank held
all the deposits of the old Mutual Lille Insur-
ance Company. amounting TO, it is said, from
5000 600 to 81, 400, 900. 1t is believed that
not q penny of this amount is saved.
SECOND DISPATcH.l
NEWARK, October 31st.-Cashier Baldwin,
of the Mechanics Bank, while confined to
his residence, was waited upon by United
States District Attorney and Commissioner
Keesby, and admitted to bail in S25, 600. to
appear at Court. His bondsmen are VIM.
A freeman, of Bloomfield, his brother, VIM.
Baldwin, and Matthias Doid of East Orange.
Baldwin then stated voluntarily that about
1873 he began to make loans to g. Nugent K
Co., morocco manufacturers. without Sc
curity or the sanction of the Director, hav
ing begun he was in the power of Nugent
and continued the accommodations, some
times loaning them $50, 900 in one month,
till the total increased to a ruinous amount.
Nugent assured him that he had large prop
erty and cash assets in the business, which
would make all the loans good. Nugent
was well aware that he baldwin, was
using the banks money, and always
promised to surrender his property in case Of
any trouble. Under these circumstances the
loan increased till it reached S2000,0 600. The
manner in which this business was transacted
was thus: Nugent would give drafts on
friends in Newark, which would be credited
to him as cash. and Baldwin would use the
banks money to take up the drafts whea
due. The books were so falsifed as to show
the accounts to be correct Finally, however,
the loans were placed in the account of the
Mechanics Bank of New York against the
Newark bank, 30 that while it appeared that
the Newark bank had claims for 81, coo, 900
against the New Yori, bank, in truth the
Newark bank owed the New York bank
$500, 900. This difference is almost wholly
due to the irregular transactions with NJ
gent He said he had speculated very little,
and lost nothing in that way. The District
Attorney says Nugent can be held to answer
for his part of the transaction under Section
5209 of the United States Revised Statutes.
THIRD DIsPATCH.I
NEWARK, October 31st.-Oscar L. Baldwin,
the defaulting Cashier. is son of Caleb
Baldwin, and entered the Mechanics Bank
rs u pDys uCSup1luS i)Osl1lOttss lie
rose gradually uutil about 1852, when MS
became Assistant Cashier. At about the
beginning of the war he succeeded as Cashier,
and has occupied that position ever since.
He was prominent in public and social life,
and was a Director in the Mutual Benefit
Life Insurance Company. The last semi
annual dividend of the bank was for per
cent.
The stockholders of the bank are liable for
{ Al. I. nk,% = q,
say, each stakeholder for 500 must pay 500,
besides losing the value of his stock.
The Government Bank Examiners arrived
at the bank this morning, and with the aid OF
the clerks began an examination.
Various rumors have been set atioat con-
corning other banks, but have been disproved
without exception. So far as known, no
other institution is affected to any extent.
The effect upon the business community Is
not yet shown, but will undoubtedly be de-
veloped tomorrow.
national bank in 1865 The actual loss, it is
believed, will reach 81 400, coo.
Nugent states that the amount discounted
by the bank for his firm is only about
$3.50, 900, a comparatively small portion of
the defalcation. The bank building is esti-
mated to be worth S50.0 Then there is
supposed to be cash on hand, and assets
under the head of bills receivable. 1t is esti-
mated that the depositors will not get over
Joseph Heaslsr, Gottfried, Kruger and
Brewer are among the largest depositors
Nugent offered this morning to confess ludg'
ment for 500, coo on his Indebtedness.
Yesterday morning was the earliest period
when any OF the Directors had any intima-
tion that the affairs of the bank were wrong
The first intimation was by Baldwin. In
addition to those before named, among the
largest stockholders are +. f. Frelinghuyser
and I. L. Ksnney.
FOURTH DISPATCH.l
NEWARK, October 3lst.-B aldwin was ar.
rested in bed at o'clock this morning. He
showed no surprise, and was evidently expect
ing the arrest He said he would not give
bail, and he was content to pass his life Ii
prison. st shall never be seen on Broad
street again, he exclaimed.
The business of the morocco firm of Z.
Nugent & Co. is said to amount to 500, 600 q
year. They employ 600 men, and the weekly
payroll amounts to 81 900.
"When Baldwin was before us" said q
Director to Tribune reporter, he appeared
anxious to make a clean breast of the matter.
He said he fully realized the grave nature of
the offense, and admitted that he ought to be
dealt with in the severest manner the law
would allow. There's no excuse for my
misdee6s,' he said, and | now see what
should have seen years ago. stand before
you tonight a perjurer, a forger, falsi6er
and criminal. think, gentleman he said,
in conclusion, that you ought to send for
officers and put me under arrest for misappro.
priating your money, and money belonging
to other persons l. is your duty to send me
to Jail, and only ask the privilege Of going
home to inform my wife and family of my
misdeeds They know nothing about thi;
affair. I never expect to go to the bank
again, but instead [ expect to go to jal. and
from there to the State Prison, and there
will have to end my DAYS. If had not been
too much of a coward, would no. have been
here to tell you this story tonight. | should
have shot myself. Since l have chosen to
live, / must suffer-
Shortly after the last statement OF the New.
ark Bank was published, popularity in it
attracted the attention of the officers of the
Mechanics National Bank of this city. II
YVES observed at once by the officers of other
banks at Newark, who wondered at the state
ment, but could not prove it false.
The Star Route Cases-Williams' Report.
New York. October 3lst.-The following
appears in Williams report now published
for the first time: Route 46, 129, originally
running from Delano to Los Angeles. For
nine months the Department paid the con-
tractors On 1921 miles at the rate OF So. AT 81
Der annum, when railroad was in opera