New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-01
THE MECHANICS, NATIONAL RUINED.

,r,r INVOLVEMENT IN NEwARK-GREAT EXCITE
ntyNT CAUSED BY IT-How THE DISCLOSURE WAS
BROUGHT ABOUT-THE CASHIERS sTohf-
AMOUNT OF Loss-THE LOSERS.
The announcement of the failure or the
gsebanics' National Bank of Newark. New
Jersey, which was made III that city
Yesterday morning, was like thunder
clan in the community. The news spread like Wild
fire and in brief time Broad ST., in the vicinity OF
tbe hank. was crowded with excited people, while
all l1nds of rumors were current At five minutes
before 10 o'clock, when the affairs of the bank
seemed TO be going on as usual, and there was no
suspicion Of the impending calamity the doors were
closed and the following notice was posted up ana
instantly attracted attentions
Closed ON account of statements affecting the bank
made by the Cashier TO the Board OF DHecors, "hiVn
are now undergoing investigation
The directors were sought, for information, by
excited stockholders and deDositors, but those that
could be found appeared utterly bewildered ana
unable to comprehend the facts of the situation.
Nearly all of them were heavily involved by the
possession of amounts of stock and by lndlVlduai
deposits. 1t was learned, however, that the knowl-
edge of the banks condition had been confined to
the cashier Oscar L. Baldwin, and possibly one OF
two Others until Sunday afternoon, when meet
ing of the directors held at the house OF Joseph
A. Halsey, q director. Then Mr.. Baldwin disclosed
the fact that the bank was very heavily involved
through his own operations, and would have to sus
pend payment unless means were adopted to tide
over the emergency The directors then ordered the
banks suspension.
The immediate necessity for Baldwins sudden
action Law IN the fact that the district bank exam
iner was in the city, and had already examined
several banks He had announced bis intention to
examine the Mechanics National a week previous,
but was held off by the cashier. Yesterday was the
day finally decided upon FOR the examination ana
fear of the result led TO the disclosures. 1t was sug-
gested in the directors meeting by William Clark
of the Clark's Thread Company OF Newark. that
half million be raised to carry the bank over the
trouble. and he himself offered a very large sum.
The cashier however, asserted that the sum was
entirely inadequate and declared the total amount
for which the bank was involved to be over
GO. .OOOO 900 He explained that the amount Of
50 600 600 which had been carried on the books of
the bank and made to appear in his statements as
owing TO the bank by the Mechanics National Bank
of New-YOrk was a myth; that in fact the Mecnan-
les National Bank of Newark was indebted to the
New-York bank about 100000 The bulk of the
money had been sunk in speculation.
THE DIRECTORS.
Joseph A. Halsey, patent leather manufacturer
head of the firm of Joseph A. Halsey Son, is pre5-
dent of the bank. He is nearly eighty years old,
and has not had the active management for some
time. The Board of Directors is composed of well
known and substantial business men Joseph a.
Halsey, Stephen II. Condct, harness dealer; George
A. Halsey son of Joseph A. Halsey Lewis c. Grover,
president of the Mutual Benefit Life Insurance Com
pany of Newark Oscar l.. Baldwin, the cashier ;
James +. Bond real estate William Clark, Of
Clar's Thread Company; Edward II. Wright,
Joseph S. Halsey Joseph HenseT, the latter large
brewer in Newark, and IL. c. Howell. The paying
teller is Theodore Baldwin, brother of the cashier
THE LAST OFFICIAL STATEMENT.
On October 6 the official report Of the bank was
published as follows:
Report Of the condition Of the Mechanics National
Bank Newark the State OF fNewJersey at the close
Of business on the 1st day Of October, 1881:
RESOURCES.