The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1881-11-01

y
and ruin. Cashier Baldwin is st his
house in bed. The affidavit upon which
Baldwin was arrested alleges confession
of the crime and that his distractions
were covered up by false entries of $4,000
600 and that the bank is insolvent and
ruined. What this. implies may be imag-
ined from the fact that the Machines Bank
has hithero stood in the very front rank
among Newark banks, having been the
most prosperous during half a century
since its charter was granted, and has been
paying dividends of fourteen per cent
seven per cent semi annually, In fact the
Mechanics was considered the strongest
and safest bank in Newark and almost too
prudent and conservative. Its board of
directors Included some of the foremost
and wealthiest citizens. How the loss will
be distributed cannot now be known 1t
is reported that there will be some very
painful ruinoas afterclaps in the way Of
failures of houses which the bank has been
carrying, The defaulting cashier has long
been both esteemed and liked in Newark,
and his fellowsin the office and in other
Newark banks seem to be as much grieved
as surprised. This is saying much. One
prominent citizen remarked that he
would as soon have thought of one of the
churches turning over and standing on the
tips of it's spire. While Baldwin was
making his statement to the directors, con
Tossing his guilt the bells in Trinity, the
church which he is a member, and to
which he had subscribed literally, were
calling the faithful to worship. Little in
deed did Baldwin's friends think as they
sat in church last night that one of their
leading lights was at that moment con-
Tossing himself a thief. Baldwin was a
leader in social circles and his
reputation as q fnancier was IN
impeachable. He positively refused to
see any one but personal friends. To per
sons calling at his house his son said his
father had been sick and could see no one
at all, especially reporters. His wife and
children, two boys, Is and 6 years; two
girls, II and years, stayed at his bedside
all day. Baldwin said to friend Il am
guilty and am willing to go to the peniten-
tiary."
At five o'clock, District Attorney Keas-
ley called at the house with stenographer
and ex Judge Ellsworth, Baldwin's attor-
ney. Baldwin positively denies that he
used the banks funds for private specula-
tions, Christopher Nugent, wealthy
morocco manufacturer, of the firm of G.
Nugent & Co., was arrested this morning
at his house on the charge of aiding and
abetting Cashier Baldwin in embezzling
funds from the Mechanics National bank.
He gave bail in $25, 900. The arrest was
first based on a voluntary statement in re
gard to loans TO Nugent's bondsmen, Geo. 4
3. Jenkinson and James Smith, Jr.
Oscar L. Baldwin. the defaulting cashier,
is son of Caleb Baldwin. He entered
the Mechanics Bank as a boy, occupying
a minor position. Rising he became as
sistant TO Cashier Matthias Day About
1852 he become cashier, holding the po-
sition ever since. The last semi-annual
dividend of the bank was for seven per
cent The stockholders are liable for the
full amount of their holdings That is,
each stockholder for $1o0 must pay 800
besides losing the value of his stock. The
government examiner arrived at the bank
this morning, and with the aid of the
clerks began the examination. Various
rumors have been set afoat concerning
other banks, but have been disproved with
out exception. So far as known, no other
concern is affected to any extent. The ef-
feet upon the business community is not
yet shown, but win undoubtedly be devel-
oped to morrow. The bank was chartered
in 1881, and was organized as q national
bann- in 1865. The actual loss, it is be-
lieved, will reach 81, 400, 900. Nugent
states that the amount discounted by the
bank for his firm is shout 100000 q COM
paratively small portion OF the defalca-
ton The bank building is estimated to
be worth $4,000. There is supposed to
be no cash on hand. The assets are under
the head of bills receivable This may
possibly change these figures in amount of
the depositor's loss. 1t is estimated that
depositors will not get over fifty cents on
the dollar. Ballantine & Sons, Joseph
Hensley and Gottenreid Kuger, brewers,
are among the largest depositors Nugent
offered this morning to confess judgment
for 81, 900. 900 on his indebtedness.