The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1881-11-16
j Casnier.'S Big Dedication.

Tho most stupendous defalcation that has
taken place in a long timo is that of O. L:
Baldwin, cashier OF the Mechanics National
bank If Newark, N. ]. Baldwin's embezzle-
ments cover q period of eight years, ald
amour: to more than 81, 0O0, 200. Tho first
inlimation received by the banks directors OF
its condition was at q meeting ut which Bald
win confessed that the institution was hope
lcssly involved through his populations. The
next morning the bank suspended. In his
confession Baldwin said that every dollar OF
the immense deficit had been absorbed by
G. NuEent & Co., well known manufacturer OF
leather in Newark; that twelve years ago he
had loaned money without authority to c. Nu-
gent & Co., and that since then every thing
had gone to that firm; that Nugeut & Co. did
not repay the first loan, but borrowed ancw,
and thut tho loans kept increasing, the borrow.
ers each tImo promising positively to refund;
that sometimes when the notes came due, Nu-
gent christopher Nugent, head OF the tirm)
paid G, part and then borrowed more, saying
every time that tho bank should lose notllingi
that when Nugcns got the rope around his
(Balduiu's) neck 1t was squeezed tighter every
time, Nugent saying that to reveal the matter
would only ruin them both; that he held an
immense amount of NuScnt's notes, without
collateral for my of them. Balwin was ar
rested and placed under bail in the sum Of
s2j,0 one. The store OF Nugen. & Go. was seized
by tn, sheriff at the instance of the bank, and
Chris :opllcr NlGent was arrested, but released
on SIS, 900 bail. Cashier Baldwin was one
Of tho best known and most respected
men in Newark, aud, to all Intents
and purposes was the bank, as the president is
eisltJ years old and has long been feeble and
i'll; consequently the entire direction of the
banks affairs was in Baldwin's hands. To the
State commissions Baldwin said that as
long ago as 1873 he began to make irregular
loans to tho firm of C. Nusent & Co., leather
manu tactarcrs, and that he made these loans
without security md without tho sanction Of
the directors. Having once begun he felt him
self in. tho power or Nugent, who compelled
him TO make further and further loans. This
continued from month to month and year to
veal, often to tho amount of $50, 900 d month.
The amount oSNuScnt's Indebtedness TO- him,
and lis to the bank, gradually assumed such
proportions thas he could not reccde without
ruin and exposure, and therefore he allowed
Nugent to further increase the loans, his con-
stant hope being that Nugent would replace
them. In fact, Nugcnt constantly assured him
that he had q largo amount of property, and
could make good what he owed. baldwin
addel that Nugert was perfectly well aware
that the money used was tho banks money,
irreg llarly drawn, and always promised, when
SNS& ~ WOO ASloiANN1 W =" ' eA Ao PASP'
erty 70 secure the bank.
Thu loan finally grew to be over two millions.
Tho ray the system was carried on, Baldwin
said, was by Nugcnt's giving drafts on different
frienls in New York, which were credited to
him 10 meet his drafts on the bank, and from
time to timo he (Baldwin) would meet these
drafts with the money OF tho hank. Tho books
were 80 falsiticd as to show that Nugent's &C.
counts were all right bit the losses occa-
stoned by these loans were placed i'll account
with the Mechanics b 'l:k, of New York, 80 that
while it appeared by the books of the Newark
bank that it had Un deposit about two millions
III NV York, tho Newark bank really owes the
New York bank over s2O0, 600, and that account
is wholly made up of loans to c. Nugent l. Co.
Mr.. Baldwin was asked whether he had not
spccnlatcd and thus lost large sums Of money.
lie replied that lie had spcculated, brt only to
q trilling extent, and Ind made money i'll the
spcculations in which he had engaged.
The Mechanics National bank was the largest
in Newark, and was regarded rs tho strongest
financial institution in the State. 1t was the
depository Of the funds OF city and county gov
crnm cnts, of trust funds, and the funds OF
other financial institutions and OF manufacture |
ing companies, some of which had declared
dividends payable this month. The imme-
dlate necessity for Baldwin's sudden announce
ment of his defalcation lay in the fact that the
district bank examiner was in tho city, and had
already examined several banks. He had all
nnurcrd his intention to examine tho Me
chan .cs' National = week previous, but was held
off ly the cashier. When Baldwin saw that
he could no longer put off the examination OF
the banks books, ho disclosed the real COLI.
,)ifin ~ q fIoira :