, 1881-11-01
WAS seen specnlntinR In tito street. md be-
lleyc, though cannot prove 1t, TINT tf,at Is

Tas seen spccnlnttnR an tito street. nh IT.
Hove, though cannot prove II, tint That Is
TllE 11E.>1. aEctaEr
nf this enormous slcfatcntinn. Baldwin Inns
fallen, rs lnNily n MIN before him Inns fA!t.,,,
first by obliging ltts friends will, ntler pco-
pies Nancy, md then by trying 10 cover
up his crtmc by speculation. was 80
astoun'letl Inst night tint could hnrt,Iy be-
lieve my own eyes md ears. Ind known
Baldwin fr0m his boyhoo.l M, mil Ind
the most Implicit confidence IN him. us dt,l
all tho Directors anu tho clt!za1,s 1T Ncwark,
MID ws,cn wis confronted with
tho confession Of his crla,c. was almost
stslpcflet. After licnring his confession. tho
board t1ecftlett to calt ills counsel md 20
straiglt to the Gnyernment Will, tho facts, 50
TINT tho Donrd of Directors might bo held
guIltless. We called In
EX-SENATOR F. T. rnELix1nUYsES
antt told him the condition at affairs, and he
naviscd ns to npp'y for II RECEIVER nt Oncc.
We then passed Il resolution to appoint Il
committee Of two 10 20 to WAsll-
ington. sec Controller Knox, and act
under Ills directions. Tho lion. Ncnrge
U. ltalsey MID Henry q. Howell
wcro appointed OH tllts committee, and they
Btarted for Washington Mt 10:'W Inst night.
They wcro to telegraph the result of their
Interview with The Controller, but we hnye
mt heard from them ye.. W. supposed that
MIR. Knox would nppofnt a Ispcelyar, nnl
we Instructed tho committee, If lie decided
OIL That course, 10 sr9Eest tho appointment
either Of cx-Shcrifr Il. n. Miller or Mr. j. Z.
Emory. Il committee waa then appointed,
consisting Of Stephen II. Contltct md james
+. Bond, to SEQ Counselor John G. Emory
and tAke hts advlcu in regard to tile advisable
ity Ut
AtREsTlSG BALDWIN.
They went to Mr.. E,nory's house at II .. ,n.,
and called lin out Of bed. Hu advised the
Immediate arrest OF Baldwin. At :
O'Clock this morning A[r. Pond saw
A. Q. keasby, the United States Dis.
trlct-Attorncy and told. him a]l the
fpcss. Atlltlavlts wero made by Mr.. Keasby,
md the United States Commissioner lssuetl
nwarrant for the arrest Of Baldwin. Tho
wnrrnnt was served att o'clock this morn-
Ing, willie Baldwin was in bed.
lie SHOWED no SURPRISE,
ntl was evidently expecting the arrest lie
said tint lie would not give bali, and that he
was content to pass hts life III prison. Il
stlnll never be seen on Broad street ngn1n,'
l:e exclaimed. He &as placed in charge Of
Henry N. Burnett, Deputy United States
Marshal, and allowed to.reman In his own
house."
"Wns my proposition malo at the meet
Ing lust night TO make goott tile deficiency 2"
VA proposition was made, but tic amount
was SO largo TINT It WIS impossible. 11ad It
beell my reasonable SUM. this money
would have been pledged Oh the
spot and pattt It, ut tin bank
today, and nobody but tie banks officers
would ever have known of tho defa!cat1on,
Mr.. George G. LIatsey, before Baldwin mnttn
Ills fa!se statement, said: If S500,000 viii
cover this deficiency I will supply the
money"
"1t million dollars will cover It," said
Mr.. Clark, 1--WE will raise tho money before
we fcnve this room.'
Gentlemel," said Baldwin, "ti1e bank Is
ruined.
TWO MILLION DOLLARS WILL NOT SAVE IT."
"Of course, this statement put mi cl,d to nil
Ideas Of making good tho deficit, and the ono
only plan was to close the bank and turn It
over to tho Examiner this morning, which
we did,"
"Isow WAS IT ross1nLE,n
asked the reporter, "for Baldwin to fa1s,fy
his books and reports far SO jo1e n time
without being discovered by tho ot,lcers?'
"I1l tho first place, wo Ind tile most In
pl!eit confidence In slr. Baldwin. Ila had
grown up with tho bank, and was l1onretl
md trusted BY NIL the officers, IT'S well M
the community Mt lnrge here. lle did
not live cxtravngantly, and there was
absolutely nothing to create n suspicion
against Him iii our minds. LII tue second
place, tie did not take the funds Kept on
deposit Of tho bank here. lie operated en-
tlrely OIL our balances In Now ork. For
,nnny years the Mechanics National Bank Of
New York has been our bank Of deposit
In that city, and we lind IN an average from
$780, 900 to $4,000, 600 on deposit there, upon
which we could draw at any time. Tint
money has NIL been absorbed BY the defaIca-
tlon OF Baldwin, and at our 1ncotlug last
night
lie READ Es A LETTER
from our Now York correspondents, in
which he was called upon to make good an
oferdraft Of 100000 which he had ma1e.
lie used our balancs III Now Yorl,
1or his own purposes, and lnade false bal
Aices III our books to deceive 1ls for
twelve years, 1t II not probable he could
lave taken this enormous sum from tho
ynu!.s Of the bunk without being detected.
hut being trusted SO Implicitly, Ito was ablo
10 manipulate our fmnds In New York with
out attracting suspicion"
Il'o gentleman went on 10 say tllEt the
bank received regular reports from New
York Of the balance to its credit here, but
they went to tho CnshiHr and
1IE FArslF1En THEM IN Ills nEponrs
to the Directors. Tho bnnk las been en-
atnts1er once n year aild tho defalcatton never
discovered. The Directors never touk tho
trouble to write to New York anil Hee ff the
nccounts were a!1 right. 1t Is impossible, lie
sayS, to oven estimate the amount which
Will bo saved to deposltors, alld OH this sub
iect he aided:
II understand that there is about $500, 900
In tile bank ynatts. The stockholders aro
responsible for the amount OF the stock
wllc! they hold, which is s5oO,ooo
more, making u million In alI
tlow much more will bo realized
1can't sny. It's very doubtful yet whether
Tie full amount Of tie defalcation Ia known,
ltMay bo considerably mors than So 0oo, 900.
THIS crash Is
LIKELY 70 HUN A GREAT MANY PEOPLE.
The llalsey family alone owned s1a5, 600 Ut