New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-09
LOCAL MISCELLANY.
THE NEWARK BANK AND IT'S CASHIER
ARE THE DIRECTORS PERSONALLY RESPONSIBLE
CONSIDERATION FOR BALDwIN-ihs sioON

THE NEWARK BANK AND ITS CASHIER.
ARE THE DIRECTORS PERSONALLY RESPONSIBLE =
CONSIDERATION FOR BALDwIN-IIIs STOCK
sPEcULAuoSs.
Yesterday being n legal holiday, the Mechanics
Bank of Newark was closed and the lnyesugat.ioh
of the accounts suspended BALDWIN .ne tb ua1 hanl
suspended. except when he attended inc e0a III
ton before the Commissioner on MONDAY: Vu Cnao
occasion he was permitted to occupy beu he
and extraordinary precautions were taken, Wneh no
was brought before the Commissioner 10 sisn '.o
bail bond, to exclude reporters and outsdeIs' :. III
order to spare his feelings. A lawyer remarkeu; L
cannot understand why much elaborate consjuelIh
ton is shown this phenomenal cIimlna.ii ~
Newark, this consideration for BALDWIN anu ie t h
that such a comparatively small amount vi u'i
should have at first been taken have caused goVu
deal of comment. -, -,
Since the excitement which followed the bank
failure has subsidized people have begun to consider
the responsibility of the directors civilly. The fact
is recalled that among all the financial institutions
of the city that have suspended or been ruined py
reckless or dishonest management not a single III
rector has yet been compelled to make good any
part of the losses incurred further than the forfeit
ures on whatever stock he might hold. In one case
that of the New-Jersey Mutual Life. the directors
had divided up among themselves guaranteed
capital of 100000 and this they were al
in open court, in proportion they had received III
In the case of the directors OF the FIRST Nalloll
Bank who were indicted for signing the statements
of the bank knowing them to be false. il Is probable
that acquittas will be had when the caso comes TO
trial. under the decision Of Judge Nixon, OF me
United States Court i'll the trial of voorhees,, tiat
guilty knowledge of the false character OF 2 state-
ment must be proven and not inferred. In ihe CaSc
of the directors of the Mechanics Bank, although
criminal proceedings are impracticable ana nave
not been thought OF, the opportunity Is sOuSiit ~
base a civil action for recovery against them les
terday Newark lawyer said that T50,OOO OF tle
stock ready to 90 TO the Chancey Court against
the directors He remarked that he had charge OF
trust fund and had invested 1t IN the STOCK anu no
might be held liable for the investment; that inc
directors Of the bank were also trustees ana m:pIe
as such for their talthtulness and vigilance lheIo
has also been a good deal of talk about trans
fers of stock. While some directors l0ec heavily
in stock, others reported to have come on with
light losses. The stock, paying II per CENT dIyl-
dcnds, was desirable investment. and Whel the
credit of the bank stood high IL could not readily Oe
bought even at an eXtrayagant premium, AnuEieTT
kirkpatrick, of counsel Tor Nugent Il Co., appIcu
to Frelinghuysen for permission 10 examine
the list Of stock transfers. The receiver declined
Mr.. kirkpatrick then asked TO the stock
holder himself, he had n right to zee
the book. This request was also refused. me
names of the stockholders and amounts OF stock VIII
be published by the receiver IN accordance WIN
the law but this will not show any transfers that
may have been recently made.
On Monday brief advertisement appeared IN
Newark paper calling upon owners OF Mechanics
Bank stock To communicate conidentillly WIN tne
writer AS such stock can have no value except in
the contingency Of the reorganization of the bank,
which. il has been stated. the directors cOntem-
plate il is assured that either the object IS to get
hold of the stock on favorable terms Tor TINS puI
pose or to procure concerted action among owners
of stock outside the bank management for some
contemplated purpose.
Receiver Frciughuysen has appointed Isaac
Lewis expert account ant OF Paterson, To assist
him. Mr.. Lewis made the examination of the FIRST
National Bank under Receiver Hobart.
Cashier Baldwin has informed the counsel for
NuVent that his only operations in the stock market
which were successful, were through Martin N
Runyon. George s. Scott * Co., Knapp n Peabody.
RUM OH d BOole, and Lemasserd Martin x Co.
Baldwin remarked that he kept back the names Of
no brokers' The statement has little credencc IN
Newark where Baldwin was frequently seen In close
conference with operators and where telegraph mes
sages passed constantly between the Mechanics
Bank and the Office Of a broker in the same block.