The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1881-11-03
THE NEWS.
What Baldwin Dad With the None,

THE NEW S.
What Baldwin Did With the Money.
NEWARK, Nov. 2.-Cashier BalwiD, of
the Mechanics bank, while Centined TO
his residence, was waited upon by United
States attorney and Commissioner Higs-
by, and was admitted TO bail in the sum
of $25 goo to appear at court on Novem-
vember 18th. HIS bondsmen are William
A Freeman, of Bloomfield; his brothers,
William H. and Thomas +. Baldwin,
and Matthews NJ. Dodd. ,of East Orange.
Baldwin then stated voluntarily that
about the year 1873 he began 10 make
loans to G. +. Nugent 81 Co, morocco
manufacturers, without security or the
sanction of the directors. Having begun
he was in the power of Nugent d Co,
and continued to accommodate the firm,
sometimes loaning them $50, 900 in one
month, till the total increased TO q ruin
Gus amount. Nugent assured him that
he had large amount of 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 surren-
der his property in case OF any trouble.
Under these circumstances the loan in
uUIlI IL WI FS1OVO,OOOs
The manner in which this
business was transacted was
as follows: Nugent would give draft
on funds IN n. York, which would be
credited him as cashier, and Baldwin
would use the banks money to take up
drafts when due. Finally, however, the
losses were placed in the account of the
Mechanics Bank of New York, so that
while it appeared that the Newark
bank had claims for 100000 against
the New York hank, in truth the New
ark bank owes New York bank twenty
thousand dollars. This difference is
almost wholly due TO irregular transac-
lions with Nugent. He said he had
speculated very little and lost nothing
in that way. District attorney Keasby
says Nugent can be held liable for his
pas: transactions under section 200 of
the United States Revised Statutes. The
rumor that Nugent had made an assign
ment to-day was premature. Their &C
counts are involved with the banks and
await further developments.
1t appears that Baldwin was at one
time trustee of a prominent Newark
savings institution, which deposited in
the Mechanics bank. Through some
understanding, he resigned, and the saw
ings bank withdrew their account from
the Mechanics, thus guarding against the
present failure. At the Newark Mutual
Benefit Life Insurance company in New
York, of which Baldwin is trustee, the
excitement is intense. The president of
the company left for Newark immedi-
ately upon receipt of the news. The
company is involved, it is understood,
quite heavily. One of the officers of the
insurance company said that they had
never before experienced such q shock,
as Mr.. Baldwin was a man OF unim-
peachable character; he was married
man and was the father of children; in
social circles he was regarded as lead
er; and his reputation as a financier was
exceptional.
Baldwin positively refuses to see any
body with the exception of his personal
friends. To persons calling at the house
his son answered that being sick his
fother could not see anybody, especially
reporters.
Baldwin's wife and children, two boys
fifteen and sixteen years old, and two
girls aged eleven and three years, stayed
at the bedside all day.
Baldwin said to friend, al am guilty
and am willing TO go to the peniten-
tiary."
Oscar L. Baldwin, the defaulting cash
Ter is q son of Caleb Baldwin and enter
ed the merchandise business as boy,
occupying minor positions. He raised
gradually until about 1852 when he be
came assistant cashier for Matthias Day.
At about the beginning of the war he
succeeded Day as cashier and has Occu-
pied that position ever since. He was
prominent in public and social life, and
was director in the Mutual Benefit In
surance company. This company once
offered him a prominent position but he
refused it. His salary as cashier was
popular and his relatives and friends in
cluded some of the most prominent peO-
pie in New York. For several years
Baldwin has been engaged in specula-
ton in Wall street, and it is believed
that the misfortunes of the bank are due
to this fact; that there have been other
causes for the failure is known in addi-
ton to the speculation, but the bulk of
the money has undoubtedly been sunk
in the New York stock market. a
number of the dividends payable at the
bank are said to have been declared by
the various companies, and that the
money was deposited TO meet them.
They are, of course, non-payable. The
last semi annual dividend of the bank
was for seven per cent.
The stockholders of the bank are Ii
able tor the amount A stakeholder for
800 must pay 81 600, besides losing the
value of his stock. The government
bank examiner arrived at the bank this
morning, and without clerks began an
examination. Various rumors have
been set afloat concerning other banks,
but have been disproved without excep-
ton So far as is known no institution
is affected TO any very great extent. The
effect upon the business community is
not yet shown, but will undoubtedly be
DEVELOPED tomorrow. The Mechanics
bank was chartered in 1881, and was or
ganized as a National bank in 1865.
The actual loss, it is believed,
viii reach $4,000. Nugent
states that the amount advanced
for his firm was only $3.50, 600, compar-
atively small portion of the defalcation.
The bank building is estimated TO be
worth $4,000, then there is supposed to
be cash on hand and assets under the
head of bills receivable. This may pos
sibly change these figures in amount. 1t
is estimated that the depositors will not
get over fifty cents on the dollar. Bal
latin & Sons, Joseph Hinsler and Colt
fried Kruger, brewers, are among the
largest depOsitors. Nugent offered this
morning to confess judgment for $780,
600 for his indebtness.
Yesterday morning was the earliest
period of any intimatIon that the affairs
of the bank were wrong. In addition to
the officers before named, among the
largest stockholders are +. q. Richard
son and T. T., Keney.
The business of the morocco firm of G.
Nugent s. Co. is said to amount 70 over
10000 q year. They employ 600 men
and the weekly pay roll amounts to 81
900 when Baldwin was before u.s.
said director to q Tribune reporter, she
appeared to be anxious to make q
clean breast of matters. He fully real
lied the grave nature of his offence and
admitted that he ought TO be dealt with
in the severess manner the law would
allow. There was no excuse for my mis-
deeds, he said, and / know now what /
ought to have seen years ago. stand
before you q peYjurer and q forger, a
falsifier and . criminal. think, gentle
men, he said, in conclusion, that you
ought TO send for the officers and put me
under arrest for miseppropriating your
money and money belonging to other
persons. 1t is your duty to send me TO
Jail. only ask of you the privilege of
going 70 my home TO inform my wife
and family. They know nothing about the
affair. / never expect to 60 to the bank |
again, but instead expect to go to jail |
and from there TO states prison where |
SHALL have to end my days. If hadn't |
been too much Of q coward would not |
have been here to tell you this story. /
should have shot myself, but since
have chosen TO live must suffer.
Another Cabinet Rumor.
NEW YORK, Nov Ia Washington |
aracial ssx a President AFtfTIr has offered