The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1881-11-10
A Sc, 100. 600 FAILURE.

4 81, 400, 900 FAILURE.
the Mechanics, National Bank u
Newark. N. j., Ruined By the Opera.
lions OF lts Cashier-Eais Losses bt
UDsecured Loams ana SpeeuIatlous
Not Far from e2,SOO.OO chi.
PrIt Arrested-Arrest OF an ALLEGED
Abettof Of the Embexxlement
NEW YORK, October a.
The Mechanics National Bank Of Newark,
n. j., closed to-day. The announcement
excited universal surprise aud establishment.
The Mechanics Bank has been the
leading financial institution Of Newark for
the past fifty years, and in all that time no
whisper to its discredit had been heard. It
was the heaviest bank In the State Of New
Jersey, and its transactions were of mag.
hitude and importance known to no other
suburban bank. The story Of the ruin; SO far
~ 1t can be given at present, was obtained
from one Of the Directors, q gentleman
whose whole fortune Is swallowed by the
catastrophe: Sunday morning." he said,
=" Oscar l.. Baldwin, the Cashier Of the bank,
sent for Stephen H. Condict, one Of the Dr.
rectors, and asked him to call at the bank
building at eleven o'clock. Mr.. Condict
called 1t the hour fixed, and Bald.
win informed him that the bank
Was ruined. 1t seems that the Bank
Examiner, e. p. Shelley, who has been
IL town for the past ten days, examining
National Banks, had notified Baldwin
Thursday that the bank would be examined
Monday, and this precipitated the dis
closure: At seven o'clock last evening i
meeting Of the Directors was held at the
residence Of Joseph A. HaIsey, in Park
Place, at which there was full attendance.
MIR. Condict told the other Directors what
Baldwin had said to him, adding that the
shortage of the institution would probably
amount to $4,000, 900 or $2,5OO,OOO. When
tho establishment rising from this startling
announcement had subsidized. MIR. Baldwin
was called before the Board and made a
statement Of financial operations for the
past twelve years, such as perhaps has no
parallel In the history Of banking. He said
that the whole amount, say -, SOC, 900, had
gone into the hands of single firm, Messrs.
c. Nugent & Co., morocco manufacturers,
OF Newark, and that he had never benefited
by the defalcat;on to the amount of dollar.
He had loaned money to Nugent & Co. some
twelve years ago, without authority from
the Board of Directors and without the
customary collateral, and had ever since
been trying to cover his tracks. Nngent, &C.
cording to his story, said that he owned val.
liable property and would be able to take up
all his notes, provided . little time was
given him. Whenever . note became due
Nugent would pay portion of 1t and then
give another note and borrow an additional
sum of money. At length Baldwin protest
ed, but Nugent quickly shut him up by say
ing: You and 1 are both in the hole. II
this thing is exposed 1t will ruin you as well
as me. You have been lending me money
without collateral and without the consent
Of your Board of Directors. Say nothing
about 1t, and I will be able before long to
pull through Powerless to resist, the un.
fortunate Cashier continued to advance
money to Nugent & Co. until the amount
became appallingly large. How Mr. Bald
win kept knowledge of these transactions
from the Directors cannot tell you; but
presume that he used our balance ct the
Mechanics Bank of New York for that pur.
pose. We have had an average daily bal.
ance Of from 81 500. 900 to -, COZ, 900 at that
luSCltuVIVu IVA SCvCI0i yC0tCS 0lU ~ "0S
very easy for our Cashier to make use
of 1t without our knowledge, since he
could keep his books in such way as to
seemingly preserve that balance intact. Be-
sides, all of us had the most perfect conf
dence in his integrity, and knew that he was
business man Of rare shrewdness and abil-
ity. My theory is that when Baldwin found
himself involved to the amount OF 100000
or $40, 900 by his note transactions with
Nugent. he went into Wall street with more
of the banks money, in the hope of recoup-
ing himself. Bad luck or bad judgment
dragged him deeper and deeper into the
lmire, and the result was his disclosure Of
last evening. He told me that every dollar
Of the missing money had gone into Nu-
gents business; but this can net believe.
should have said that the notes given by
Nugent to Baldwin for the money Of the
bank were never seen or heard Of by the
Directors. In fact, they knew nothing Of
the transaction. How the Bank Examiner
was hoodwinked can not say; but at every
annual examination our bank came out with
. clean record. For myself, had such un.
limited confidence in Baldwin that never
thought Of looking very closely into his ac-
counts.
s'After hearing Baldwin's statement,''
the Director continued, 1--WE called in Fred
erick T. Frelingmysen As counsel, and ap.
pointed Messrs. George A. Halsey and Hen
~ Howell as committee to visit Washing.
ton and consult with the Comptroller Of the
Currency as to the situation Of the bank.
We also appointed Stephen II. Condfct and
1ornoo r Ron6 aa n cnn u1ftfQ0 tn cnne nlt
John C. Emory, our counsel, as to the ad.
visibility Of arresting Baldwin. The COM
mittee reused Mr.. Emory from his bed, and
after short consultation were advised to
cause Baidwin's arrest. Early this morn.
ing thew called upon A. @. Keasby. United
made an affidavit embodying substantially
the facts above narrated"
Balwin was arrested in he'd at seven this
morning. He showed no surprise, and was
evidently expecting arrest. He said he
would not give bail, and he was content to
pass his life IN prison. II shall never be
seen on Broad street again." he exclaimed.
"When Baldwin was before III, said q
dire tor to reporter, she appeared to be
anxious to make clean breast Of the mat
ter. He said he fully realized the grave ma
ture of the 0ffense, and admi ted that he
ought to be dealt with In the seyerest man
ner the law would allow. There Is no ex-
cuse for my misdeeds, he said, 'and I now
see what ought to have seen years ago.
stand before you tonight perjurer, for
ger, falsifier and criminal. / think. gen
tlernen,' be said, in conclusion, that you
ought to send for officers and put me under
arrest for misappropriating your money and
money belonging to other persons. It 70
your duty to send me to Jail, and only ash
the one privilege Of going home to inform
my wife and family Of my mtsdeeds. They
know nothing about this affair. Inever ex.
pect to 20 to the bank again. but instead
expect to 70 to Jail and from there to Stats
prison, and there will hav, to end my
DAYS. III rad not been too much ofa coward
I would not have been here to tell yon this
story tonight. should have shot myself
Since I have chosen to live, must suit
fer. - u
NEWARK, N. J., October a.
Christopher Nugent, . wealthy morocco.
manufacturer of the firm Of C. Nugent 4
Co., was arrested this evening At his hous'
by . Deputy United States Marshal, ON I
charge Of aiding and abetting Cashier Bald
win In embezzling funds from the Ne
chanics' National Bank. He gave bail II
81, 900 to answer the charge. The arres
was based on the voluntary statement OF tn
Cashier in regard to the loans TO Nugent
Admlteratod SOaDS.