Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-11-02


amount taken. There is reason for doubling
whether the true explanation of the disposition
of the funds has vet been made. AT the same
time nothing has yet come to light in Wall
street, which shows that the money was lost
in stock exchange speculation. The fear that
there would be a run on the Savings banks in
New Jersey has not been realized.
AMAN WHO KNOWS.
Early yesterday morning representative OF
the Evening Post met gentleman who in
Quired if there was not rumor Of trouble
in Newark bank. Being told such a report
was current, he said, simply: Mechanics?
Yes. Then, said he, it is because it has been
robbed by its cashier and the money has gone
in stock speculation. On further inquiry the
gentleman said that in a certain building not
remote from the Mechanics bank, which
building was under control OF the
defaulting cashier and some of his
friends, person had for some time occu
pied an office which suited him entirely and
which he was not disposed to vacate, when,
to his astonishment, he was requested to sur
render it, but was offered finer and more at
tractive quarters in the same building at
lower rent, and of course willingly accepted
the transaction. The occurrence was thought
to be queer and naturally provoked inquiry and
observation Then it was found that ticker
and telephone communicating with Wall
street had been put into the room, which was
Furthermore connected by a speaking tube
with the national banking house. thereafter
the cashier and some OF his.friends were con-
stant visitors ut the room, and the person who
tells the story AYERS that he shortly gave up
the Mechanics bank and looked upon the
crash merely as a matter of time.
This is directly from a man who had un-
usual opportunity OF knowing and observing
1t is absol utely contradicted by statements OF
the cashier and of brokers with whom he
is reported to be most intimately connected
1t now seems likely that there will be entirely
new and surprising developments after few
days, which will involve Others beside the
cashier.
DIsCLAINIING LOSSES.
NEWARK, n j., Nov. Warren Acker-
man, a former director OF the Mechanics
National bank, who demonstrated against the
one man power, has began law suit against
President Halsey for loss caused by negligence.
Nugent denies that he received the large
amounts stated by Cashier Baldwin. They say
they cannot ascertain how his account stood
at the bank, because Baldwin had them go
mixed up, and he was in latter's power.
None of the banks are seriously involved
with the Mechanics.
The president of the Mutual Benefit Life In
the banks failure does not embarrass them, their
deposits having been steadily reduced since
May.
Collections raceived from agencies have
been deposited in the State bank.
NEWARK, N. j., Nov. 1.-District Attorney
Keasby has demanded the surrender of prop
erty in Nugents factory, on the ground that it
was acquired by money obtained from the
bank under promise of turning it over in case
of necessity.
KNOWN FOR SOME TIME.
New YORK, Nov. 1.-The Peoples bank has
claim against the Mechanics bank of New
ark for S29, ,OOO, and the Connecticut Exch ange
bank one of $4,000.
The Express says gentleman well ac-
quainted with the condition of the leading
money Institutions in the city said this after
noon, that, knowledge of the New
ark banks condition was on
Wall street months ago. The paying teller of
one of the most prominent bankers on lower
Broadway told him three weeks ago a messen-
ger from neighborlng bank rushed into the
the Mechanics bank in Newark
to be made up; look out
BOYS; stand from under" The teller was
paying out when he heard the intelligence and
told the messenger to be silent, as he was cir
culating report damaging, not only alone to
the Newark bank, but to city banks. The
messenger afterward confirmed what he had
said by remarking that the rumOr had got
among the clerks in his bank and he thought
it good piece of news.
GOSSIP AND SPECULATION.
In the wreck of the Mechanics National
bank at Newark, what strikes the business
men as strange is, that the directors first, and
bank examiners, next, should have never
Shought it worth while to verify the statement
of Cashier Baldwin. The bank had over
80 ,00O, ,0C0 in deposits in New York. The at
tempt to verify this would have exploded
the deception at once, and, is said, when
there was an item of this kind
about five times the amount of the capital, it
would have been thought verifcation would
have been made. There is yet no reason for
believing the rumor that some directors know
more about the matter than they care to ad-
nit 1t seems United States District Attorney
Keasby became satisfied after an examination
of the books of the Mechanics bank and pa
pers relating to Nugent & Co. surrendered
by Cashier Baldwin that the assertions of
Baldwin in his voluntary statement were sub
stantially true. And he made the demand on
Judge Jesse, Nugent's counsel, that the pro-
perty now in the hands of Nugent & Co. be
Immediately surrendered 10 the receiver in
partial restitution of the amounts abstract
ed by Nugent in completely with Baldwin.
1le ullOTuty cAulDlltQ 10 Jessie
some papers on which the claim is based, and
insisted the goods now in the factory were pro-
duced by the application of money drawn
from the bank, and were in full the property
of the bank. Jessie asked to be allowed to
have an expert examine the matter and
pledged himself, the property should be left
uudisturbed until the examination was com
pleted and he could give an answer
Baldwin stated to the district attorney he
received l per cent. commission from Nu-
gent for negotiating his paper and taking
charge of his banking business. Counsel for
Baldwin said he believed his client would be
enabled to prove the truth of all
that had been said in his
confession with regard to transactions
with c. Nugent Il Co. with the bank. 1t has
already been aseertaiued that during August,
September and October the firm had drawn
from the bank nearly $780, 900. He thought
the figures were about S4S7 ,000 With such
drafts as this it would not take
long to draw out S2,0OO,OOO. Of
course there had been some money
paid into the bauk by Nugent & Co., but the
payments did not reach so per cent of the
drafts. Counsel for c. Nugent said he would
be able to show Baldwin's confession false. c.
Nugent Il Co. had not drawn such IN amount
as s., 900 900 in excess of their credit, and he
doubted even if the excess would be 10 per
cent. of that amount. The firm was making
up statement from the books