National Republican., 1881-11-01
A BIG COLLAPSE.
TWO MILLION DOLLARS GONE.
A National Bank Closes lis Doors Through the De-
falcation OF lis Cashier and Executive ON
cer--He Says lie is Ready to Go
to the Penltentiary.

to the fenitenuhry'
NEWARK, N. j., Oct 31.-The Mechanics
National Bank closed suddenly this morning, and
caused considerable excitement The bank has
been regarded as the strongest In Newark. The
stock stood at $50. All the rumors current agree
on the point that there has been heavy defalca-
tion and this is generally charged to the cashier,
o. L. Baldwin, who was the active executive oih-
Ger OF that bank. 1t is said that yesterday he
called the directors together and confessed to
them that all that was left of the resources of the
bank was Its building which is worth about
$4,000. The president, Joseph A. Halsey,
retired capitalist, has been long confined to his
house. through the infrmities Of age, and unable
10 visit the bank. Besides the capital stock of
100000 and surplus fund Of 100000 there were
The national bank notes outstanding amount TO
Sii510 secured by 100000 In United States bonds
reserved agents 81 l2gOO0 Among the liabilities
s2,4l7,O00 were individual deposits, subject to
check, and sl3i50Q due 70 other national banks
aud about 81 600 due to State banks and bankers
The city and county had about $4,000 each OH de-
posit, tile water board 100000, and manufacturing
SoVamber sdi dividends hO Mess d NuSeSt Co. Co.,
large morocco manufacturers, who were sustained
by the bank have made an assignment
The State Banking Company, whose funds were
nightly deposited with the Mechanics' National,
was somewhat embarrassed by the e failure M m Of the
lhlter, but as It's deposit was only SfVVU llS OCers
have no fears for It's safety.
SLIGHT RUN ON THE COMPANY
was promptly met day The stock in the
Mechanics was held in large amounts by the
president And his family and each & Of the rnc 81,
Mutual Benefit Life Insurance Company was
q large depositor but not to so great an amount
lately as before. The Police Mutual Aid Associh-
ton had $500 deposited, which the treasurer
was TO have drawn this morning. meeting OF
the finance committee Of the Aqueduct Board was
fQ n n
amount the board had on deposit in the Mechan-
ics Bank and take action for the future Mayor
Fielder presided. Secretary Meeker stated tnat
the board had in round numbers 1000 belonging
to the sinking fund on deposit there, that had
been but recently paid In from temporary loans,
and was awaiting Investment: that the balance of
the general account was SOC 900 in round numbers,
and the special tax account about 5000, making
in all Sl27,000
PAYMENT OF THE INTEREST FALLING DUE
November has been provided for, and the board
expect to meet all claims far interest and payments
due at the National State Bank. Oscar l.. Baldwin,
the defaulting cashier, is the son OF Caleb Bald
win and entered the Mechanics Bank rs boy,
occupying minor position. He rose gradually
until about 1852, when he became assistant to
Cashier Matthias Day At about the beginning of
the war he succeeded Mr.. Day as cashier
and has occupied that position ever since.
& Sn; sad %Ss drecoPP e public S aHa ne SqSn H
tual Benefit Life Insurance Company. This
company once offered him prominent position,
but he refused It, His salary as cashier was 5000
per annum. Personally he was popular, and his
relatives and friends include SOME of the most
prominent people In Newark.
CHRISTOPHER NUGENT,
of the morocco co-manufacturing firm of c. Nugent
& Co., was arrested this evening at his residence
by deputy United States marshal on a charge Of
aiding and 'abetting Cashier Baldwin in embez-
sing funds Of the Mechanics National Bank lie
gave bail IN the sum Of $4,000 to answer the
charge. The arrest was based on the statement
Of Cashier Baldwin In regard to loans to Nugent
The complaint was made by United States Com
missioner keasbey.
CASHIER BALDWIN, OF THE BANK, Is CONFINED
to his house, but was waited upon by the United
missioner Kensboy, and was admitted to bail in
$1,000 to appear a. court on November z His
S 6ondSmen me n are Miiam W,,a A. EeemSSr OF bloom
Baldwin, and Matthias NJ. Bond, of East Orange.
Mr.. Baldwin then stated that about the year 1873
he began to make loans to q. Nugent & Co., mo-
rocco manufacturers, without security or the sane
tion of the directors. Having begun. he yves in
$4,000 In one month. till the total
was increased to a ruinous amount. Nugent
capital IN business, which would make all loans
good Nugcnt was well aware that he (Baldwn)
was using, the banks money and always promised
TO surrender his property in case of any trouble.
In these circumstances the loan increased until
it. reSshsd @ more than s2ooOOOo The manner in
New York, which would be credited to
him, as cash, and Baldwin used the
due. The books were so falsiiied as to show the
account to be correct. Finally however the losses
New Yors SO S While It
s2,ooo99O against the New York bank,
New York $1,000 This difference is almost wholly
due to the irregular transactions with Nugeut. In
conversation with District Attorney KeGsbey he
said that he had speculated very little, and had
not lost anything in that way. Mr.. Keasbey says
that Nugent can be held liable for his part of the
vised Statutes. The rumor that Nugent had made
an assignment to-day was premature The ac-
counts are involved with this bank and await
FOR SEVERAL YEARs MR.. BALDWIN
has been engaged in speculation in Wall street
and 1t is believed that the misfortunes of the bank
dends, payable at the bank, are said y have been
deposited q meet them, they are Of course nom
Tor the full amount of the holdings that is to say
each stockholder for 800 must pay $780, besides
losing the value Of ,a, his stock The The Goyernmenra
ing. and, with the aid. of the clerks
began his examination. Various rumors
have been set afloat concerning other
banks, but have been disproved without excep-
ton. SO far us is known, no other institution Is
effected to any extent. The effect upon the busi-
ness community is not yet shown. but will un-
doubtedly be developed Tomorrow. The Me-
chanics Bank was chartered In 1881 and was or.
oss Il is Believed viii reach % s. 10000 Mr. Nuseni Se
states that the amount discounted by the bank .o
his firm is only about 100000, comparatively
small portion of the defalcaton. II is estimated
that the depostors will not get 80 cents the
dollar. Messrs. Ballentine 4 Sons, Joseph Hins-
Ter, and GOtired Kruger, brewers, are among the
largest depostors, Mr.. Nugent offered this morn
ing to confess judgment for 700 on his indebt-
edness. In addition to the officers before named
among the largest stockholders
ARE y. L. PRELINGHuYsEN
and J. j. Kenney. Cashier Baldwin was in bed al
day at his residence In the custody of United
States Deputy Marshal II. 4. Burnett. He positively
refused TO see anybody with the exception of hir
personal friends To the persons calling at hi
house his son said that his father being sick coulC
see nobody and especially noreporters. Mr. Bald
wins wife and children, two boys, aged tiiteeI
years and six years respectively and two girls ono
eleven years and the other three years. stayed a
his bedside all day. Mr.. Baldwin said to friend
lam guilty and am willing to go to the penien
tiary."
what Comptroller Knox says.
Two of the directors of the Mechanics
National Bank Of Newark, N. j., were in this cit,
ON Saturday, and had a conference with Comp
troller Knox, in regard to the defalcation of tn
cashier Oscar l.. Baldwin, which was dlscovere,
ON Friday. Baldwin had held the position o