St. Landry democrat., 1881-11-12
A $1,000, 900 FAILURE.

leading financial institution OF Newark for
.he past fifty years, and in all that time no
whisper to its discredit had been heard. 1t
was the heaviest bank in the State of New
Jersey, and its transactions were of mag
litude and Importance known to no other
suburban bank. The story of the ruin, so FAR
as 1t can be given at present, was obtained
rom one of the Directors, 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 Di-
.ectors, and asked him to call at the bank
building at eleven O'Clock. Mr.. Condict
called at the hour fixed, and Bald
was ruined. 1t seems that the Bank
Examiner, E. z. Shelley, who has been
n town for the past ten days, examining
National Banks, had notified Baldwin
Thursday that the bank would be examined
Monday, and this preciptated the dis
closure. AT seven o'clock last evening
meeting of the Directors was held at the
residence OF Joseph A. Halsey, in Park
Place, at which there was full attendance.
Baldwin had said to him, adding that the
shortage of the institution would probably
amount to $4,000, 900 or S2,500,000. 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 100000, had
gone into the hands of single firm, MeSsrs.
I. Nugent Co., morocco manufacturers,
Of Newark, and that he had never benefited
by the defalcarion to the amount of a 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 mad 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 a little time was
given him. Whenever note became due
Nugent would pay portion of it 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: on and | are both in the hole. II
this thing is exposed it will ruin you as well
as Inc. on have been lending me money
without collateral and without the consent
of yoLr Board of Directors. Say nothing
about it, and | will be able before long to
pull through Powerless to resist, the I'M
fortunate Cashier continued to advance
money to Nugent & Co. until the amount
became appalingly large. How Mr.. Bald
win kepta knowledge of these transactions
from the Directors | cannot tell you; but |
presume that he used our balance at the
Mechanics Bank of New York for that pur-
pose. We have had an average daily bal
ance OF from 81, 50o. coo to s2,O0o,000 at that
institution 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 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
a business man OF rare shrewtlness and abil
ity. My theory is that when Baldwin found
himself involved to the amount of s200,n0
or 800, 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 judgmen.
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 Nu-
gents business: but this / can not believe.
l should have said that the notes given by
Nugent to Baldwin for the money OF the
hank 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
a clean record. For myself. had such ,p-
limited confidence in Baldwin that I never
thought of looking very closely into his ac-
counts.
''After hearing Baldwin's statement,''
the Director continued, 1--WE called in Fred
erck T. Frelinghuysen as counsel, and ap-
pointed Messrs. George A. Halsey and Hem
ton and consult with the Comptroller of the
Currency as to the situation of the bank.
We also appointed Stephen H. Condict and
James +. Bond as committee to consult
John G. Emory, our counsel. as to the adj
of arresting Baldwin. The, COM
lnittee reused Mr.. Emory from his bed and
after a short consultation were advised to
cause Baldwin's arrest. Early this MORN
ing thew called upon A. Q. keasby, United
States District Attorney, and James F. Bond
made an affidavit embodying substantially
the facts above narrated"
BalWin was arrested in bed at seven this
He showed no surprise, and was
evidently expecting arrest. He said he
would not give bail, and he was content to
pass his life i'll prison. 81 shall never be
seen on Broad street again." he exclaimed
"When Baldwin was before u.s." said
lire tor to reporter, che appeared to be
anxious to make clean breast of the mat
er. He said he fully realized the grave ma
.ure of the offense, and admitted that he
ought to be dealt with in the severest man.
Ter the law would allow. There is no ex-
:use for my misdeeds, he said, and now
see what | ought to have seen years ago.
stand before you tonight a perjurer, for
yer, a falsifier and a criminal. think. gem
lemen,' he 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 Inc to jail, and only ask
he one privilege of going home to inform
ny wife and family of my misdeeds. They
Know nothing about this affair. Inever ex-
)ect to go to the bank again. but instead |
expect to go to Jail and from there to State
prison, and there l will have to end my