The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-11-03
Total amount OF drafts for this year, 81

Total amount OF drafts for this year, ST.
100000, aud deposits about 81 100000.
The Government examiner, II. ). Shel.
ley, expects to complete his work to-day,
but cannot tell exactly when he will for
ward his report to the Comptroller Of the
Currency, There seems no doubt, from
admissions OF tho examiner, as well as the
statements OF Baldwin and others, that the
depostOs cannot realize more than 50 per
cent, while the shareholders will lose all
and must pay 100 per cent. besides. The
stockholders are generally men Of great
wealth, though there arc instances where
the losses will be severe, and in cases OF
some female holders almost ruinous
A director Of the bank being asked how
Baldwin could falsify his books for so long
without discovery, answered: I'm tho first
place, we had the most implicit confidence
in Mr.. Baldwin. He had grown up with
the bank, and was honored and trusted by
all the officers, us well us the community at
large here. Hed did not live extravaguntly,
and there was absolutely nothing to create
suspicion against him in our minds. In
the second place, he did not take the funds
kept on deposit in the bank here. lie ope-
rated entirely on our balances in New
York. For many years the Mechanics
National Bank OF New York has been our
bank OF deposit in that city, and We had on
an average from 81 900, 900 to 8, 2,0OO, 900 on
deposit there, upon which we could draw at
any time. That money has all been ab.
sorbed by the defnlCation OF Baldwin. lie
used our balance in New York for his own
purposes, and made false balances on our
books to deceive lis for twelve years. It Is
not probable that he could have taken this
enormous sum from the vaults Of the bank
here without being detected, but being
trusted 30 implicitly as he was he was able
to manipulate our fundsin New York with.
out attracting suspicion"
"But did the bank not receive regular re-
ports from New York OF the balance to its
credit there2'
"Ycs, but all reports Of this kind came
to the cashier, and he falsified them In his
reports to us, which We accepted MS correct
without verifying them in New York. The
bank examiners have taken his word in
regard to our New York balances tho samo
as we have, | suppose. The bank has beeu
examined about once ayear, and the defal.
cation was never discovered. The great
trouble has been in all the examinations
even those by the committee appointed
by the bank, that we have not taken the
trouble to write to New York and see flour
account there was NIL correct. We believed
that everything was all right, and that we
had the most honest man in the world for
cashier. He has been the business man
OF the bank for years, and unit now not n
shadow Of suspicion has rested upon his
name"
Mr. Fl. s. Shelley, the bank Examiner,
when asked why he did not discover the
frauds OF the Mechanics Bank before said
al was very much pcrplexed to know how
IL was that had not detected the fraud,
! and was only relieved Of my anxiety by
Baldwin Conlessfng that he lad cheated
mo, When examined the bank last year
found all the accounts right and straight
wanted to verify the account with the
Mechanics National Bank, Of New York, 80
| | sent letter to Mr.. Cox, the cashier, ask-
inr him for the figures. II now appears
from Mr.. Baldwin'sconiession that he went
In the New York bank and saw Mr.. Cox,
In the course OF the conversation Mr.. Cox
aid that he had received n letter from
ina in relation TO the accounts between
The Two banks, and then Mr.. Baldwin said
that as he was going to return to, the. bank
Immediately he would carry, the letter,
which Mr.. Cox held III his hand. II seemed
10 be simple request and Mr.. Cox gladly
consented When Mr.. Cox's back was
turned Mr.. Baldwin slipped his hand into
one Of the drawers Of Mr.. Cox's desk and
distracted letter.head and an envelope
belonging to the bank. lie then tore open
Mr.. CoS's letter and forged another, giving
figures which Tailed with his accounts at
lie bank. lie also forged Mr.. Cox's name
In tl,e letter. When lie returned TO the
hank he handed me the letter, saying that
M, Cox lind given II to him. OF course !
thought II was n genuine letter, and never
inr n moment supposed that Mr. baldwin
was iof1er, In that way was received v
NV YoRK, November 2--The wiecking
ot the Mechanics National Bank at New
ark. n. j., seems already an almost forgot.
len affair. President Sherman, OF the Me-
chanics National Bank, New York, agency
Of lie broken bank, says the loss to his
bank Is small.
4 Washington correspondent says the
hank deialcation has caused the President
TO cali the attention Of the acting Secretary
Of the Treasury to the system OF bank eX-
aminations. lie says the Newark dsialca'
lion shows that the bank examiners are In
efficient or their inspection Of the books
Of Inc National banks are merely nominal,
Ss theft inspection is so inirequent as to be
oi no practical account in detecting trand
The property Of Q. Nugent 4 Co., oi this
civ. has been attached on behalf Of Pick
aAG Anderson, and Frederick Pr99st 4