The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1881-11-01
FALSE FINANCIERING
OF A NEW JERSEY BANK CASHIER.
The ASchSaleS National BSnk Of Newark Aulstsd
Of !AIIIOnS- -ETsrythlHg GOnS bat the SAFE,
which Was Heavy s-Dirsstoa the
DupSI Of Dishonest Ma.

Newark. The stock stood at lSO
New YoRE, October 3l.-The Post's New.
ark, n. j., special says; The directors Of
the Mechanics National Bank, the Largest
bank in Newark, this morning announced
its suspension. A meeting Of the directon
was held yesterday afternoon and Cashier
o. L. Baldwin stated that the bank was not
in a condition to pay, and that the liabili.
ties were 50 great that further attempts to
carry on the business would be useless.
The directors then offered to subscribe five
hundred thousand dollars to put the bank
in condition for business, but the cashier
responded that two million dollars would
not do It. The directors then decided to
suspend business at once, The banks laiit
statement, issued in October, showed lia-
bilities as follows:
Capital 500 0C0
IPIs iU1OOl
National hank +iSO0O
Dividends a96g
DepOslu'', ?tlu, ,3lh
SeIuheu ", w
Gaahler Ad
Due otneT NaV9hal bAnks'.'".''''...'.''.' Si,6i!
Due state IU,9ll
The following Is the board Of directors
Joseph A. Halsey, Oscar l.. Baldwin,
Stephen II. Condict, George A. Haley,
Lewis G: Grover, James +. Bond, VIM.
Clarke, Henry G, Howell, JOS. IIeisler.
Jos. A. Halsey is President, and Oscar l..
Baldwin Cashier. The last named officer
was manager Of the bank and is considered
responsible for the trouble. The news
came like thunder clap on the comma.
nifty. There was not u suspicion that the
institution was not the strongest in New
jersey. The directors have been considered
the most trustworthy body OF men in the
city, and the reputation Of Baldwin as d
tinancier probably stood first in the State.
The bank Is closed to all Comers and no
official facts have been made known be.
yond the arrest OF Baldwin on the charge
OF embezzlement, and sending fora Gov.
ernment examiner. The New York cor.
respondent OF the bank was the MeChan.
les National Bank OF New York. The lat
ter institution loses nothing. Baldwin
called at this 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
have forced the disclosure Of the rottenness
Of his bank. The firm Of Nugent 4 Co. has
suspended. The concern was involved
with the broken bank. Other failures are
expected. 1t is said that all that is left OF
the resources OF the bank Is It's building,
worth about fifty thousand dollars.
Cashier Baldwin was arrested by the
United States Marshal, on an affidavit OF
the Directors, who charged him with con-
Tossing TO the Board, yesterday, that he
had frnuduently misused over S2,0OO,OOO
OF It's funds. The Directors are in session
with closed doors, and the widest rumors
are afoat which is impossible to verify.
than the cashier, ,whohad the unlimited con.
fdence Of the President and Board Of Di.
rectos. The cashier, fearing visit from
the National Bank examiners, called the
directors together yesterday, and confessed
the terrible condition OF affairs. The city
and county had about $4,000 each on de.
pOsit, the Water Board $4,000, and manu-
featuring companies smaller amounts, pre-
paratory to November dividends.
1t Is not known where the money has
gone, but II is alleged that the cashier has
been engaged in Wall street speculation.
II, as seems probable Baldwin goes to the
State prison, there will be three bank
cashiers in confinement. There are Bald.
win and Hidden, OF Newark, and Berry,
Of Eackensack. 1t appears that Baldwin
has got away with everything but the safe,
which was very heavy one. The bank
held all the deposits Of the old Mutual
Life Insurance Company, amounting 10, 1t
Is said, between $4,000 and 81 100000.
As this sum was available, not penny, II
is believed, will be saved from the general
wreck.
Cashier Baldwin, ,oi the Mechanics Bank
while confined to his residence was waited
upon by the United States District Attor.
ney Commissioner Kearby, and admitted
ball in the sum OF $4,000 to appear at
Court, November 7th. His bOndsmen are
William A. Freeman, OF Bloomfield, his
brothers Wm. H., and Theodore F. Bald.
win and Matthias NJ. Dodd, Of East Orange.
Baldwin then stated voluntarily that about
the year 1879 he began to make loans to G.
Nugent 4 Co., Morocco manufacturers,
without security or sanction Of the direC.
tors. Having begun he was in the power
OF Nugent K Co., and continued his accom-.
modations, sometimes loaning them SjO,.
900 in one month till the total increased TO
r1inous amount. Nugent assured him
LIluJ ue huu HtIke plOpSLty Auu GhPnh III
the business, which would make all the
loans good. Nugent was well aware that
Baldwin was using the banks money and
always promised to surrender his property
in case Of any trouble. Under these
circumstances the loan was increased
till Il reached over two million dol.
lars. The manner in which this
business was transacted was this Nugent
would give drafts on friends in New York,
which would be credited him Us cash, and
Baldwin would use the banks money to
talse up the drafts when due. The books
were 80 ialsiied as to show the accounts 10
be correct. Finally, however, the losses
were placed In the account Of the MeChah.
ics' Bank Of New York, an agent Of the
Newark bank, so that while Il appeared
that the Newark bank had claims for
81, 100000 against the New York bank, In
truth the Newark bank owes the New York
bank 100000.
This difference is almost wholly due TO
the irregular transactions with Nugent
Baldwin said he had speculated very little
and lost nothing In that way. District
Attorney Kearby says that Nugsnt can be
he'll liable for bis part Of the transaction
under section 500 Of the United States
Revised Statutes,
The Fumor that Angent made an assign.
ment to-day was premature. His aoaounts
are involved with the banks, and await
further Developments.
Current rumor Is Of course endless and
varied. The main fact is the old and pain.
| tII story Of stock gambling, robbery and
ruin. Cashier Baldwin Is at his own house
in bed. The afiidayils upon which Bald.
win was arrested allege his confession Of
the crime, and that his distractions were
coyefed 10 by false entries; that the