River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1881-11-10
BROKEN BONDS.
A Terrible Financial Crash In New
ark. Nd


NEWARK, n. T., Oct. 31.-The follow
ing appeared on the doors of the Me-
chanics' national bank, this morning:
CLOSED in consequence of statements
affecting the bank made by the cash
Ter, to the board of directors, which are
now undergoing investigation" The
bank was considered the strongest in
Newark.
New YORK, Oct. 31.--The Posts New
ark, n. j., special says the Newark d.
rectors of the Mechanics national
bank, in Newark, this morning an
nounced its suspension. A meeting of
day afternoon, and Cashier @. G. Bald
win stated that the bank was not in a
condition to pay; that the liabilities
were so great that an attempt to
carry on business would be useless.
The directions then offered, to subscribe
5000 and to put the bank in condi-
ton for business. But the cashier re-
sponded that two million would not do
it. The directors then decided to sus-
pend business at once. The bank 3
last statement, issued in October.
showed liabilities, as follows: Capital
stock, 100000; surplus, 100000;
national bank notes, $445, O09; divi-
dends unpaid, $500; deposits, S2,417,
215; certified checks, $63 .407; cashier
check, 81 1866; due other national banks,
| $134,S42 due state banks, $70,912.
The following is the board of directors:
Jas. A. Halsey, Oscar L. Baldwin,
Stephen III. Condict, George A. Halsey,
Louis C. Grover, James f. Long, Herm.
| Clark, Henry G. Howell, Joseph L.
Hester. Jos. A. Halsey is presi
dent and Oscar L. Baldwin, cash
Ter. The last named officer was
considered responsible for the trouble.
The news came like thunder-clap on
the community. There was not sus-
picion that the institution was not the
strongest in Newark. The directors
| have been considered the most trust
worthy body of men in the city, and
the reputation of Baldwin as
a fnancier, probably stood
first in the state. The bank
is closed to all commerce, and no Off
| cial facts have been made known be-
yond report of the arrest of Baldwin
on q charge of embezzlement and send
ing for the government examin-
er. The Newark correspondent
of the bank was of the Mechanics
bank of New York. That institution
lost nothing. Baldwin called at this
| bank Saturday and wish ed to withdraw
some securities he had pledged, but
this was not permitted and his in
| ability to get hold of them nave forced
the discovery of the rottenness of his
bank. The firm of Nugent & Co. has
suspended. The concern was involved
with the broker bank. Other failures
are expected.
The defaulting cashier has long been
both esteemed and liked in Newark,
and his fellows in Office in the other
Newark bank seem to be as much
grieved as surprised. This is saying
much, since the surprise is simply
| boundless, as one prominent citizen re-
marked: "He would as soon hear
that one of the churches were turn
ed over and standing on the tip
of its spire." While Baldwin was making
a statement to Ithe directors, Sunday,
oonfessing his own guilt, the bells on
Trinity Episcopal church, of which he
was member and to which he had
subscribed liberal, were calling faithful
to worship. Little, indeed, did Bald
wins old church friends think, as they
sat in church last night, that one of
their leading lights was at that moment
confessing himself thief. 1t seems that
Baldwin was at one time trustee of a
prominent Newark savings institution,
which deposited in the Mechanics bank.
Through some misunderstanding he re-
signed and the savings bank withdrew
ther account from the Mechanics, thus
guarding against the present failure.
At the Newark Mutual Benefit Insur-
ance Co., in New York, of which Bald
win is trustee, excitement is intense.
The president OF the company left
for Newark Immediately on the receipt
of the news. The company is under
stood to be involved quite heavily.
One of the officers of the insurance
company said they had never before
experienced such a shock. Baldwin
was a man of unimpeached character.
He is married and is the father of
four children. In social circles he was
regarded as one of the leaders, and his
reputation as financier was unexcep-
tional. Baldwin positively refuses to
see anybody with the exception of his
personal friends. To persons calling at
| his house his son answered that his
father being sick he could not see any,
body, especially no reporters. Bald
| wins wife and his children, two boys
Is and 6 years old, and two girls II and
s years old, stayed at his bedside
all day. Baldwin said to friend,
II am guilty and willing to go
to the penitentiary." At 5 o'clock
United States Commissioner Keasby
and the district attorney called at his
house, together with short hand re-
porter and ex-Judge Ellsworth, Bald
wins attorney. Baldwin positively de-
MED that he had used any of the funds
of the band for private speculation,
and said: "Since the organization of
the bank, the firm of G. Nugent & Co.
have been among their principal GUS
toners. Since 1873, that firm have
made irregular loans, and without the
knowledge of the board of directors.
Nugent compelled me by threatening
| to tell the directors all about it.
| these crooked transactions to give him
more money from time to time. Some
times Nugent paid back to the bank
| $4,000 per month, but lie drew more
always than he paid. / hoped all those
| years Nugent & Co. would refund these
sums, knowing the firm to be very
wealthy. Nugent & Co. were well aware
of the fact. | used the fund book for
loans made them up to date. Nugent
& Co. received more than So, 00O, 900 out
of the funds of the bank. The modus
| operdndi was that Nugent g.
Co. gave checks for New York
firms to pay some money to the bank
| from time to time. and the funds of
the bank were used to pay drafts of
the firm. The entries in the book are
falsifed, so the directors thought the
business Of the bank was all right"
Christopher Nugent, wealthy Mo
rocco manufacturer, of the firm of G.
Nugent & Co., was arrested this even
ing at his house by the deputy U. S.
marshal, on the charge of aiding and
abeting Cashier Baldwin in embezzling
funds from the Mechanics bank.
, He gave bail for SOS, 900, to answer the
charge. The arrest was based on the
voluntary statement of the cashier in
regard to the loans to Nugent. Nu-
gents bondsmen were Geo. B. Jenkin-
son and James Smith, Jr. The COM
plant against Nugent was made by
United States Commissioner A. G.