The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-11-03
a CASHIERS CRASH.
Collapse of a New Jersey Nation
al Bank.


in consequence of the statements affect
ing the bank made by the Cashier to the
Board of Directors yesterday, which are
now undergoing investigation" The
bank was regarded as the strongest in
Newark. The stock stood at $50.
A meeting of the directors was held
yesterday afternoon and Cashier o. l..
Baldwin stated that the bank was not in
a condition to pay, and that the liabili-
ties were so great further attempts to
carry on business would be useless. The
directors then offered to subscribe $500
900 to put the bank i'll condition for
business, but the cashier responded that
100000 would not do it. The directors
decided to suspend business at once. The
banks last statement, issued in October,
showed liabilities as follows: Capital
stock, $5O0,0O0; surplus, 100000; ma
tiOnal bank notes, $445, 700; dividends
unpaid, $3,962; deposits, $2,417, ,215; GER
titled checks $64, ,407; cashiers checks,
1886; due ether National Banks, $134,-
542; due State Banks, $70,912. The fol-
lowing is the Board of Directors: Jos.
eph A. Halsey, Oscar L. Baldwin, Lewis
G. Groves, James +. Bond, Stephen III.
COndict, George A. Halsey, William K.
Clarke, Henry q. HOwells, Joseph Heis-
ler; JOsept A. Halsey is President and
Oscar l.. Baldwin, Cashier. The last
named officer was manager of the bank,
and is considered responsible for the
trouble.
The news came like thunderclap on
the community. There was not sus-
piciOA that the institution was not the
strongest in Newark, The directors
have been considered the most trust
worthy body of men in the city, and the
reputation of Baldwin as financier
probably stood first in the State. The
bank is closed to all cOmers, and no Off
cial fact has been make known beyond
the arrest of Baldwin on a charge of
embeZzlement and sending for the Gov
ernment examiner. The New York cor
respondent of the bank was the Me-
chanic's National Bank of New York.
The latter institution loses nothing.
Mr.. Baldwin called at this bank on Sat
urday and wished to withdraw some of
the cOllaterals he had pledged there, but
this was not permitted, and his inability
to get hold of them may have forced the
disclosure of the rOttenness of his bank.
The firm of Nugent q Co. has sus-
pended. The concern was involved in
the broken bank. Other failures are
expected. 1t is said all that is left of
the resources of the bank is its build
ing, worth about $4,000.
Cashier Baldwin was arrested by the
United States Marshal on an affidavit of
a director who charged him with con-
Tossing to the Board yesterday he had
fraudulently misused over two millions
of its funds. The directors are IN seS-
sion with closed doors, and the widest
TumOTs are aflOat, which it is impOssi-
BILE to verify. No suspicion is yet felt
toward any other than the cashier, who
had the unlimited confidence OF the
President and Board of Directors.
The Cashier, fearing a visit from the
National Bank Examiner, called the dl-
rectOrs together yesterday and confess
ed to a terrible condition of affairs.
The city and county had about $4,000
each on deposit, the Water Board $780,
900, and manufacturing companies
smaller amounts preparatory to the No
vembeT dividends.
1t is not yet known where the money
has gone, but it is alleged the cashier
has been engaged in Wall street specu-
latiOns. If, as seems probable, Baldwin
goes to the State prison, there will be
three bank cashiers in confinement
theTe-Baldwin and Hedden, of Newark,
and Berry, of Hackensack. 1t appears
that Baldwin has got away with every
thing but the safe, which was very
heavy one. The bank held all the de-
pOsits of the Old Mutual Life Company,
amounting to, it is said, between $780,
600 and $1,400,000. AS this sum was
available, not penny, 1T Is believed,
will be saved from the general wreck.
THE CASHIERS STATEMENT.
Cashier Baldwin, while confined to
his residence, was waited upon by the
q. S. District Attorney and Commissioner
Keashy, and admitted to bail in $780,
900 to appear at Court Nov. 7th. His
bOndsmen are William A. Freeman of
Bloomfield, his brothers VIM. II. and
Theodore f. Baldwin and Matthias Nj.
DOdd of East Orange. Baldwin then
stated voluntarily that about the year
1873 he began to make loans to G.
Nugent & Co., morocco manufacturers,
without security OF the sanction of the
directors. Having begun, he was in the
power of Nugent u Co., and continued
the accommodations, sometimes lOanlng
them $4,000 in one month, till the total
increased to a ruinOus amount. Nu-
gent assured him he had large property
and capital in business which would
make all loans good. Nugent was well
aware he (Baldwin) was using the banks
money, and always promised to sur
render his property in case of any
trouble. Under these circumstances the
loan increased till it reached over $780,
900. The manner in which this busi-
ness was transacted was this: Nugent
would give drafts Ou friends in New
York, which would be credited him as
cash, and Baldwin would use the banks
moi1ey to take up the drafts when due.
The books were so falsified as to show
the accounts correct, Finally, how
ever, the losses were placed in the ac-
count of the Mechanics Bank, so chat
while it appeared the Newark Bank had
claims for 100000 against the New
York bank; in truth the Newark bank
owes the New York bank 100000.
This difference is almost wholly due to
the irregular transactions with Nugent.
He said he had speculated very little
and lost nothing in that way. District
Attorney Keashy says Nugent can be
held liable for his part of the transac
tiOn, under Section 5209 of the U. S. Re-
vised Statutes. The rumOr that Nugent
had made an assignment yesterday was
premature. The accounts are involved
with other banks and await further de-
ValODmpntS