The Portland daily press., 1881-11-01
GIGANTIC ROBBERY.
A New Jersey Bank Cashier
Steals 100000.
PART OF THE MONEY LOST
IN STOCK SPECULATIONS
And a Part Secretly Loaned to
Manufacturing Firm.
ALI. THE IMPLICATED PARTIES UN-
DER ARREST.

NEWARK, N. J. Oct. 31.-The National
Mechanics Bank closed this morning, and Cash-
Ter BALDWIN was arrested by the U. .. MAI
shall on the affidavit of a director VINO charg-
ed him with confessingto the Dosrd OF alfeoaoi S
Yesterday, that no had fraudulently mlsuseo
over two millions of its funds and the BANK is
thereby ruined The directors are in session
with closed doors, and the widest rumors are
afioat which it is impossible to verify. NO sus-
picion is felt towards any other than tne casn-
Ter who had the unlimited confidence OF the
president and directors who are among our
most prominent capitalist. The chief manage
ment was left to him. President Jos. A. hai-
sew, a retired CAPT -alists has been connned at
home long time through inIorfnlties u age
and unable to visit the bank. Among tae lla-
hilities 50 All 900 were individual deposits sub
iect 10 check The cashier fearing visit from
the national examiner called the directors To-
gether yesterday and confessed the sad condl,
ton. The city and county had about $oO,Ooo
each on deposit, the water board one hundred
and thirty six thousand, and manufacturlng
companies smaller amounts, preparatory to NO
yember dividends. G. Nugent q Co., large
morocco makers, who were sustained by the
bank have made an assignment.
NEW YORK, Oct. 31.-The suspension OF the
Newark bauk has caused commotion 10 banking
circles today 1t was the largest bank IN New
jersey, and one of the most influential. lts
capital was $500, 900 with surplus of $466, 900
The bank has excellent credit, aud some OF its
managers are identified with the Management
of other importent corporations. like the Mu-
tual Benefit Life Insurance Company OF New
ark, also the principal savings bank there.
Cashier Baldwin was the active executive OH
Ger of the bank. .
It is said that yesterday he called the direc-
tors together and confessed to them that all
that was left of the bank was its building,
which is worth about 500 600.
The New York correspondent of the bank
was Mechanics Hall Bank of New York. This
latter is one of the soundest and most conserv-
alive institutions in New York, and IL loses
all advances made. Baldwin called at this
bank Saturday and wished to withdraw the
colaterals he had pledged there, but this was
not permitted, and his inability to get mold Oh
them may have forced the discovery ofthe rot
tenness of his own bank.
The firm of Nugent q Co., OF Newark, mas
suspended, being involved with the broFen
bank Other failures are expected.
A Newark despatch says that meeting OF
the directors of the Mechanics National bank
was held yesterday afternoon when the CASH
Ter o. L. Baldwin, stated to them that the bank
was not in condition to pay, and that the LA
bilities were SO great that further attempts to
carry on business would be useless. Inc d.
rectors then offered to subscribe 0,00O to put
the bank in condition for business, but the
cashier responded that $2,00o,ooO would not 90
it.
The directors have decided to suspend at
once. The following are the directors:
Joseph Halser, Stephen Ell. Conley, Garritt
G. Grover, William Clark, Henry l Howell,
Oscar l.. Baldwin, George A. Haisey, james
f. Bond, Joseph Hensler.
President and Cashier-Oscar Il. Baldwin
The last named officer was manager
The news came like thunder clap on the
commupity There was not suspicion that
the institution was not the strongest IN New
ark, The directors have been considered the
most trustworthy body of men in The city, and
the reputation of Baldwin as financier prob
ably stood first in the state.
No official facts have been made known be-
yond the arrest of Baldwin on charge OF en-
bezzlement and sending for the government ex-
aminers.
LATER.
NEWARK. N. j., Oct. 31.-Cashier Baldwin
of the Mechanics bank was waited upon this
afternoon at his house by the United States
District Attorney and Commissioner keasDy,
and was admitted to bail in $4,000 to appear
at court November 7th. Baldwin stated volun-
tarily that about the year 1873 he began to
make loans to G. Nugent & Co., morocco man
ufacturers, without security and without the
sanction of the directors. Having begun he
was in the power of Nugent & Co., and con-
tinued accommodations, sometimes loanlng
$4,000 in one month, until the total was in
creased to ruinous amount Nugent assured
him he had large property and capital In his
business which would make all losses good.
Nugent W as aware that he baldwin, was us
ing the banks money and always promised the
any trouble. Under these cirstances,
the loans increasing till they reached
over two millions of dollars. This difference
is almost wholly due to irregular transactions
with Nugent. He said he had specalated very
little and lost nothing in that way. Nugent
can be held liable for his part OF the transac-
TONS The rumors that Nugent made as as
signment today was premature. The accounts
are invalid with the banks and wait further
Developments
Nugent would give drafts on friends in New
York which would be credited to him as cash,
and Baldwin would use the banks money to
take up the drafts when due. The books were
falsified to indicate the accounts were correct.
Finally, however, the losses were placed IN the
account of the Mechanics bank in New York,
agent of the Newark bank, so that while it ap-
reared that the Newark bank had claim for
two million dollars against the New York bank
in truth the Newark bank owes the New York
bank.
Baldwin has been connected with the bank
from boy and has been cashier since about
the beginning of the war His salary was
$1,000. For several years he has been engaged
in speculation in Wall street and it is believed
the misfortunes of the bank are due to this
fact That there have been other causes for
the failure is known in addition to speculation
but the bulk of the money has undoubtedly
been sunk in the New York stock market. A
number of the dividends payable at the bank
are said to have been declared by various COM
panies and money was deposited to meet them.
They are of course non-payable.
The last semi-annual dividend of the bank
was for per cent. The stockholders of the
bank are liable for the full amount of holding,
that is to say, each stockholder for 500 must
pay $100, besides losing the value of his stock.
The governments bank examiner arrived az
the bank this morning So far as known no
other institution is affected to any extent.
The effect upon the business community is not
yet shown, but will undoubtedly be developed
tomorrow The actual loss is believed to
reach $2,400,000. Nugent states that the
amount discounted by the bank for his firm is
only about $3.50, 600. 1t is estimated that de-
positors will not get over so cents on ST.. Yes
terday morning was the earliest period when
any of the officers mad any intimation that the