Southern standard. (McMinnville, Tenn.) 1879-current, 1881-11-12

lions Of Its Oashier-lIis Losses h,
unsecured Loans and Speculation,
MOI Far from S2,5O0,O00 The CuI.
prit Arrested-Arrest of an Alleged
ADeuor Of the Embezziement.
W New YORK, October 81.
The Mechanics National Bank Of Newark,
NJ D., closed to-day. The announcement
excited universal surprise and astonishment
The Mechanics Bank has been the
leading financial Institution Of Newark fol-
tne past hfty years. and in all that time no
WplspH 1|lis diteII,IIt had been heard.s> II
was tiie lieayiest bank in the. State 81 New
Jersey, and its Transactions were Of mag
nitude and Importance known to no other
suburban bank. The story OF the ruin. so far
as IL can be given at present., was obtained
from one OF the Directors, gentleman
whose whole fortunes swallowed by the
catastrophe: SUNDAY morning." he said,
Oscar l.. Baldwin,the Cashier Of the bank.
sent Tor Stephen II. COndict, one of the Dr.
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
I, was ruined. 1t seems that the Bank
Examiner, e. p. Shelley, who has been
III town Tor 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, in Park
Place, at which there was fun attendance.
Mr. Condict told the other Directors what
BALDWIN had said to him, adding that the
shortage of the institution would probably
amount 10 $4,000, 900 or $2,5OO,OOO. When
the astonishment 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 50, SOC, 900. had
gone into the hands Of single firm, Messrs.
" Nusent Co., morocco manufacturers,
OF Newark, and that he had never benefited
by the defalcat!on to the amount of a dollar
lie had loaned money to Nugent g. 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, &C.
cordlng TO his story, said that he owned val
uaDle property and would be able to take I'D
all his notes, provided little time was
given him. Whenever a 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 ND by say.
ing: You and / are both in the hole. II
d;'-1Ir'rv 5ctu frnuIng Inc money
without collateral and without the consent
OF your Board Of Directors. Say nothing
about 1t, and l will be able before long In
pull through Poweress to resist. the I'M.
fortunate Cashier continued to advance
money to Nugent & Co. until the amount
became appalingly large. How Mr.. Bald
win kept knowledge Of these transactions
from the Directors l cannot tell YOU; but
presume that he used our balance at the
Mcchanlcs' Bank OF New York for that pur.
pose we have had an average daily bal
ance Of from 81, 800, 900 TO -, OOO. 900 at that
institution for several years, and 1t was
very easy for our Cashier to make Use
Oh II without our knowledge, since he
could keep his books in such a way az 70
seemingly preserve that balance intact. Be
sides, all OF us had the most perfect conf
dence In his integrity, and knew that he was
business man Of rare shrewdness and abil.
lily. My theory is that when Baldwin found
himself involved TO the amount of 500. GOO
or S3JO, OOO by his note transactions with
Nugent, he went into Wall street with moro
OF Inc banks money, in the hope of recoup-
lng 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 Nh
gents business; but this can not believe
l should have said that the notes given nv
Nugent to Baldwin for the money Of the
bank We're 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
clean record. For myself, had such un.
limited confidence in Baldwin that / never
thought Of looking very closely into his &C.
After hearing Baldwn's statement,
The Director continued, 1--WE called In Fred
ericE L. Frelinghuysen IS counsel. and an.
pointed MesSrs. George A. Halsey and Hen
~ Howell as committee to visit Washing
on and consult with the Comptroller Of the
currency as to the situation of the banlr
We also appointed Stephen II. Condict and
James +. Bond as committee to consult
'ohn 4. Emory, our counsel, as to the ad-
disability Of arrcsting Baldwin. The com
nittee reused Mr.. Emory from his bed, and
utter short consultation were advised IN
ause Baldwln's arrest. Early this morn ..
ng they called upon A. @. Keasby, United !,
states District Attorney, and James f. Bond ,
made an affidavit embodyng substantially :
he facts above narrated" :
Balwin was arrested in he'd at seven this y.
morning. He showed no surprise, and was
Violently expecting arrest. He said he
would not give bail, and he was content 10 .
Ass MS llfe IN prison. 81 shall never be {
cen on on Broad street again, he exclaimed. p
when Baldwin was before us, said
Ire tor to reporter, "he appeared to be- >.
nNious to make clean breast Of the mat i
pr. lie said he fully realized the grave ma. +,
IRE of the Offcnse, and admitted that he 7
ught to be dealt with in the severest man
er the law would allow. There is no ey !
use Tor my miSdeeds,' he said, 'and now y y
re what l ought TO have seen years ago. y
ana before you Tonight perjurer, a for. q
er, falsitier and criminal. / think, gen. y
enen, he said, in conclusion, 'that Won l
lght to send for officers and put me under e
rrest for misappropriating your money and I
ioney belonging to other persons. It is .
our duty to send me to Jail, and only ash n
le one privilege of going home to inform F
y wife and family of my misdeeds. They u
now nothing about this affair. Inever ex- ~
ect to go to the bank again, but instead 7 u
tpect to 60 TO Jail and from there to State o.
rlson, and there l will have TO end NV II