Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-11-01

attempts to carry on the business would be
useless. The directors then offered
s60O, 900 to put the bank in condition for bus
iness, but the cashier responded that s2O0,0o
would not do il. The directors then decided
to suspend business at once, The banks last
statement, Issued in October, showed liabili-
ties as follows:
SnrnIns 100000
Rational bank notes. .......... 445, OOU
Dividands unnaid" " 1862
Danosits 2,217,215
Certified cbecks - 634F
Cashiers checks 1856
Due other national banks. .......... l34,5f2
Due state banks. 70,912
The following is the board of directors
JOS A. Halsey, Oscar L. Baldwin, s. IL. Con-
dit, G. A. Halsey, J, c. Grover, j. +. Bond,
w. NJ. Clark, q. c. Howell, j. Webster. j.
A. Halsey is president and Oscar L. Baldwin
cashier The last named was manager OF the
bank and is considered Irresponsible for its fail
ure. The news came like thunder clap on this
community. There was not suspicion that
the mistake was not the strongest in New
York The directors have been considered
the most trustworthy in the city, and the rep
utation OF Baldwin as inancler prooaoly
stood first in the state. The bank is closed to
all corners, and all official phases have been
made known beyond the arrest OF Baldwin, on
The charge of embeZzlement, and sending for
the government examiner.
The New York correspondent OF the bank
was the Mechanics National Bank of New
York The latter institution loses nothing.
Baldwin called at the bank Saturday 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
t1a IF no rOttpnpsa n
his bank
The firm of Nugent & Co., has suspended.
The concern was involved with the broken
bank. Other failures are expected. 1t is said
all that is left of the resources of their bank is
its building, worth about $4,000.
THE CASHIERS ARREST.
NEWARK, Oct. 31.-Cashier Baldwin was ar
rested by the United States marshal on an affi-
davit of director, who charged him with con-
Tossing to the board yesterday that he had
fraudulently misused over 81 ,000, 900 of funds.
The directors are in session with closed
doors and the widest rumors are atoat which
it is impossible to verify. No suspicion is yet
felt toward any other than the cashier, who
had the unlimited confidence of the presi-
dent and directors. The cashier fearing
visit from the national bank examiner
called all of the directors together
yesterday and confessed the terrible condition
ofaffairs. The city and county had about
40,000 each on deposit, the water board,
$4,000, and manufacturing companies small
amounts preparatory to November dividends.
WHERE THE MONEY WENT.
1t is not yet known where the money has
gone, but it is alleged the cashier has been en-
gagged in Wall street. If, as seems probable,
Baldwin goes to state prison, there will be
three bank cashiers in confinement, Theo.
Dzr1 Il IITol.l
of Hackensack. 1t appears that Baldwin has
got away with everything but the safe, which
was very heavy one.
SOME OF THE LOSERS.
The bank held all the deposits of the old
Mutual Life company amounting to, it is said
between 5000 900 and 1,4O0,0 ,00O AS this sum
was available, not penny, it is believed will
be saved from the general wreck.
Cashier Baldwin, Mechanics bank, while
confined TO his residence, was waited upon by
district United States attorney and Commits
sioner Keasby, and admitted to bail in $1,000
to appear at court November T. His bonds
men are VIM. A. Freeman, of Bloomfield,
his brothers, VIM. II. and Theo. F. Baldwin,
and Matthews Dood, East Orange.
BALDWIN TALKS.
Baldwin stated voluntarily that about the
year 1878 he began to make loans to C.
Nugent & Co., morocco manufacturers, with
out security or sanction of the directors.
Having begun he was in the power of Nugent
" Co., and continued Accommodations, some
times loaning them $4,000 in one month, un-
til the total was increased to a ruipous
amount. Nugent assured him he had large
property and capital, in business which would
make all loans good. Nugent was
we'll aware that 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
until it amounted to over 50 ,OOO,O The
manner In which this business was transacted
was this: Nugent would give drafts
upon friends in New York, which would be
credited him as cash, and Baldwin wonld us
the money to take up the drafts when due.
The books were so falsified as to show the
accounts to be correct. Finally, however, the
losses were placed in accounts of the Mechan-
ics' bank of New York, agent of
the Newark bank, SO that while it
appeared the Newark bank had claims
for S2,000,000 against New York, in truth the
Newark bank owed the New York bank $780,
600. The difference is almost wholly due to
irregular transactions with Nugent, and he
said he had squandered very little and lost
nothing in that way.
District Attorney Keasby says Nugent can
be held liable for his part in this transaction
under section 2,209, L. S. revised statutes. A
Tumor that Nugent had made an assignment
to-day was premature. His accounts are in
yolved with the banks and await further de-
yelopment.
THE OLD, OLD STORY.
NEWARK, n. j. Oct. 31-Current rumor is
of course endless and varied and the main fact
is the old and powerful story of stock gam
bling, robbery and ruin, and cashier Baldwin
is at his own house in bed and the affidavits
upon which Baldwin was arrested allege the
confession of crime and that his distractions
were covered up by falsities; that the amount
taken exceeds S2,09O.000 and that the
bank is involved and ruined and what
this implies may be imagined from
the fact that the Mechanics Bank has
hitherto stood IN the very front rank
among Newark banks having been most pros
porous during the half century since its char
ter and has been paying dividends of IA per
cent, per cent. semi-annually. In fact, the
Mechanics was considered the strongest and
safest bank in Newark-almost too
prudent and conservative. Its board of
directors includes some of the wealthiest and
foremost citizens. How the loss will be dis
tributed cannot now be known. 1t is report
ed there will be some very painful and ruin
Gus commercial latter claps" in the wav of
failures of houses which the Mechanics bank
had been carrying. Supposed witnesses are
freely named, but it would of course
be unjust to gve publicity to these names at
Al.