Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1881-11-17
A So, 400. 900 FAILURE.

Not Far from s2,5OO,00O The Gull
Prit Arrested-Arrest of an Alleged
Abettor Of the Embexziement.
NEW YORK, October 81.
The Mechanics National Bank OF Newark,
n. j., closed to-day. The announcement
excited universal surprise and 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. 1t
was the heaviest bank I'm the State of New
Jersey, and its transactions were of a mag
nitude and importance known to no other
suburban bank. The story of the ruin, so far
as 1t can be given at present, was obtained
from one OF the Directors, a gentleman
whose whole fortune is swallowed by the
catastrophe: "Sunday morning." he said,
oscar l.. Baldwin, the Cashier OF the bank,
sent for Stephen II. Condict, one of the Di-
rectors, and asked him to call at the bank
building at eleven O'Clock. Mr.. Condict
called at 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
In 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 a
meeting Of the Directors was held at the
residence OF Joseph A. Halsey, i'm Park
Place, at which there was a 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, 200 or $500, 900. When
the establishment rising from this startling
announcement had subsidized. Mr.. 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 -, 500, 900, had
gone into the hands Of single firm, Messrs.
c. Nugent g. 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. Nugent, ac-
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 a note became due
Nugent would pay q 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 / are both in the hole. II
this thing is exposed it 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 it, and / 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 l cannot tell you; but
presume that he used our balance ut the
Mechanics Bank OF New York for that pur-
pose. We have had an average daily bat
ance of from ST, 500, 900 to 1900 900 ut that
for several years, and it was
very easy for our Cashier to make use
of it without our knowledge, since he
could keep his books in such a 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 ne was
q business man of rare shrewdness and abil-
ity. My theory Is that when Baldwin found
himself involved to the amount of S200,00C
or 1900, 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
mire, and the result was his disclosure OF
last evening. He told me that every dollar
of the missing money had gone into MI
gents business; but this / can not 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
annual examination our bank came out with
a clean record. For myself, had such un-
limited confidence in Baldwin that / never
thought of looking very closely into his ac-
counts.
'.After hearing Baldwin's statement
the Director continued, 1--WE called in Fred
erick T. Frelinghuysen rs counsel, and APP
pointed Messrs. George A. Halsey and Hen
ry Howell as a committee to visit Washing
ton and consult with the Comptroller Of the
Currency rs to the situation of the bank.
We also appointed Stephen II. Condict and
James +. Bond as a committee to consult
John C. Emory, our counsel, rs to the ad-
of arresting Baldwin. The COM
mittee reused Mr.. Emory from his bed, and
after short consultation were advised 10
cause Baldwin's arrest. Early this morn
ing they called upon A. Q. Keasby, United
States District Attorney, and James +. Bond
made an affidavit embodying substantially
the facts above narrated"
Balwn was arrested In bed at seven this
morning. He showed no surprise, and was
evidently expecting arrest. He said he
would not give bail, and he was content 10
pass his life in prison. 81 shall never be
seen on Broad street again." he exclaimed.
"When Baldwin was before us" said a
dire tor to a reporter, abe appeared to be
anxious to make clean breast Of the mat
ter. He said he fully realized the grave ma
ture OF the offense, and admi ted that he
ought to be dealt with in the severest man
ner the law would allow. There Is no ex-
cuse for my misdeeds. he said, 'and / now
see what ought to have seen years ago.
stand before you tonight perjurer, for
ger, falsifier and a criminal. i think. gen
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. 1t is
your duty to send me to Jail, and only ask
the one privilege of going home to inform
nv wife and family Of my misdeeds. They
know nothing about this affair. Inever eX-
pect to go to the bank again, but instead /
avpact IN On tn fail and from there In STATE