New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-02
THE RUINED NEWARK BANK.
Confined frnm First Page.


"of course he has He laughs at all this talk. Last
night when saw him he said to me in joke JIM,
what have you done with those two mllu0nsP
don't know anything about It, sad L. lhey
say that you cot it ALL He laughed
and putting his hand in his pocket pulled out
trade dollar and said Well all I've got is dollar;
You've got more than have then said j, for |
nave only nifty cents' We both laughed and ne said
that we had enough to buy some beer with any
way.n
why does not your brother make some state
Ineht TO contradict all the reports that MI BALDWIN
has Circulated about hint"
He can't make a report now because tho books
are not IN shape But tell you that when the ae
fS0t iSsts are an made up 1T Will De hon
It Wlll owe MS. | can't account for this man
Baidwlns statements. | simply know that they are
not true ldont see why he chose this firm to place
of tho depostors. Somebody said that Baldwin
was insane that may be an explanation of his talk.
We certainly have not used the money in this busi
ness. We built our factory in 1859, ard have not
added any machinery that would take any very
large sum OF money since. Our sales amount TO
$0O,OOO or 100000 n month. We are doing good
business and will continue it rs usual. You see our
machinery IS running, and think that there Will
not be much talk about us in few weeks. we get
better prices than the other dealers in the connn-
ity"
THE BANK ExAMINERs STATEMENT.
Bank Examiner Shelley said at tho Park House,
last night, that his investigation during the day
did not disclose any better condition of the bank
deficiency amounted to S2,24G,000. There was no
doubt that the amount would be materially in
creased. Many false entries and Irregularities OF
various kinds had come to light. Baldwin in
trusted by The City Of Newark with $1,000
OF securities TO sell, aud he disposed
Of the securities and credited the same
to Nugents account, Baldwin was understood to eX-
plain that this was an uninteutlonal error he
examiner also found that Baldwin had credited
the deficiency to other banks besides the Mechanics,
that is he brought in other banks as debtors 10 the
Mechanics for considerable amounts No other
bank, however, was seriously embarrassed by the
failure. In tn, bills receivable there would be an
undoubed shrnkage. \ lot of the paper
was not good, and some had been gwen
a. collateral for loans. 1t the examiners
mate of the deficit after the stockholders had paid
their assessments, and 10 probable that IL w0nld
mount to a million. There appeared TO be little
dependence upon what could be gotten from
Nugsnt. In reply 20 question regarding the posi-
blhty OF Baldwin having confederate INSIDE the
bank, the examiner SAID that benjamin
Sites CLERK who kept the accounts
with other banks was apparently missing. lie had
been absent frequently during several months ana
during his absences the cashier had attended 10 MS
work when the accounts current with other banks
came 10 be examined once n month. There was al
ways, IN the opinion OF the examiner cause Ior ss-
piCiOn when cashier does tins. Inc examiner eA-
pc, Ted To- make his report to the COntrOliora at wash
IDgtOn tomorrow.
C. A. HALsEY's STORY.
G.. A. Hlsey returned yesterday morning from
Washington whittier he went on Monday with
troller OF the Currency. The Controller expressed
great suTpr3" to diem on learning that an iDsutu-
ton rcgaIded 50 stable was IusOlyent lie sald that
he would appoint a receiver SOOu as the exact
condition o the affairs of the bank was made known.
h II uuG fst0Jd that the person To Dc appointed
viii De named by the directors. In reply 10 lnqul-
rics Mr. iiai-ey said:
' NJ faIth IN the stability Of the bank was so
great that had any one offered 90 sell me o,OOQ
shares OF stock ON Saturday at II 20 or u 80
would have willingly made the purchase.
Ilu YOU 80 any tlillc nave any CAUSE W
suspect that anything was wrong !"
No. never dreamed of n. Here about two
week, 400 beard that Baldwin was specializing
littie IN stocks and asked HIM II II was true. Ills
rply was that lie had no. single share
OF stock But II he had SAID that
he was engaged M some transactlOnsln Wall Street
} Woud not have thought anything OF It, don't
think there D. "a uiau III Newark who more com
uietyy DU-. >rd the confluence OF the people very
1fteu men aua women earned their money 10 nm.
with the request TINT he "Oild place II Tor theIn III
como u3u. Investment; and Others have taken
v,lu,Uls articles 10 ann for safe keeping.
woman this morning sal lh9J sIe h'u
put 800 IN Government bonds IN ms hands Tor
safety A. thcsc bonds did no; 90 INTO the funds ol
Z the bank sine vail -CJ thrm OF course. 10 Is very
J likely that NuVrnt borrowed "A small amount
at first and mat he secured further loans
because .ie cashier did not wish to
reveal the situation. IL Is jlst there
that he maze great mistake. II he had only made
his tTtub ku ,wn TO his friends, they would nave
gone to his rc-cpe; they could have easily made up
a deficit oi a n!u million OF dollars. bur he lee II
20 Oh 700 long
the directions. Myself, and my father aud
sister hold about 10000 shares, ana
this, with the stock held hy my UNI
al, ami other members OF the family, VIII amount
20 dboat 10000 shares. 80 Tar there have Deen 10
failures in consequence of the suspension, ana 60
not think II likely tgIt there VIII Oe any. 90 not
know What NugenIspropcrty is valued ~.
d" II has been asserted that II was known TWO
years ago that tho Augent firm was beng supported
! by the bank. ind YOU ever hear any such report
NO. knew that the urn was getting aceommo-
datOns IN the same way other business men. Dut
this money you see, they gOt IN y lFate way M
| Nugeut In, / think, crmlnaliy habie, because ne
| knew that he was obtaining money belonging ~ tue
MIR Hnl~,y said urther that he understood that
the prop rty o the morocco house had been secured
in the interest OF the bank. his lhtorulaloh' now
| ever, vas subsequently found 10 be incorrect.
Henry {. Howell. one oI the directors, Is hOt rs
much disposed to credit he statements OF cashier
Baldwin Is some of his associates. lie Sild 10 re-
porter:
absorbed by firm. Some OF the money may have
gone tina; way but II Is hard to believe that the
whole amount of the deficiency did. You ask me II
! think OF It lost IN speculation.
don't know; but that Is probable. LlstSuhuay nlght
| 1 asked the cashier what he had 10 show rs PROOF
| that the money was borrowed by Nngrht. ne ie,
| Piled that hc had "a pie OF papers so ilish,
holding his hands foot apart neither ne mas vi
not VIII be found out IN course Of the investigation;
| We asked NuRent 10 maze over All
| 10 do this. Then he consented 70 MAKE
Us preferred creditors IN the SUN OF S-OOOoO. On
! further consideration he sent for his lawyer, AMI
the result a reduction of tins amount one-halI
Next he seat Tor his bOOkkccpcr and asked hlm now
| hh account wi Ia the bank stood. The bo0kkeeper
assured INN thai he as not in debt 10 the bank for
50 much rs 100000 Ihfcupon lac refused TO
make any asst ument, saving that the bank could
send hIm statement of IN, account rst. % theIe
tIA Il b. assertion the one hand and denial on
| the other.
ASSERTIONS OF BALDWINs COUNSEL
Ex-Judgc Ellsworth, counsel Tor Baldwin, IN con-
vcr,uou Yesterday spoke freely of his clients case.
The hls. loan, lac said was made by the cashier to
Nugcni ont ut kindness OF heart. The men were not
particular friends and could not be said to have
been even associates. Once in Nugents power Bald