Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-11-03
THE NEWARK CASHIER
Who Stole Two Millions.

Who Stole Two Millions.
The following is the confession of o. l..
Baldwin, who. as cashier of the Mechanics
National Bank of Newark, n j., embez-
zled two millions of dollars of the funds be-
longing to that institution
81 have been cashier of the Mechanics
National Bank of Newark, N. j., for about
eighteen years, since its organization as
national bank. / called upon the directors
yesterday to make a statement of the con-
dition of the bank and my own connection
with it. I stated that there was large de-
ticiency in the funds of the bank, amount
ing to So, 900, 900. They had not had any
lntimation of the deficiency before that
time. No other person in the bank. to
my knowledge, had any information
or knowledge concerning it. The
deficiency began, I think, in 1873
in loans made for G. Nugent & Co., morocco
manufacturers in Newark. They kept an
account in the bank. These loans were
made irregularly by me for Nugent & Co.
that is, they were made without taking
proper security, and having once been made
in that way, Nugent & Co. felt me to be in
their power and increased their demands.
From that time onward, from month to
month, the loans made in this irregular
manner by me to Nugent & Co. have con-
stantly increased. They would amount to
$5O, 900 month sometimes sometimes to
more. Their business was very large and
was widely extended. They spent large
amount for buildings and machinery, and
were constantly in need of money.
''Mr. Nugent has always assured me that
hn hoI 7frh 10 l., IL
that every dollar he borrowed from me
would be paid. I felt that 1 could not
recede from my position with him without
ruin and exposure, and SO constantly COM
planned. l told him from time to time,
that this was the banks money and that
it must be returned, and he promised always
that whenever insisted he would turn over
everything to the bank in order to make the
loans good; but the loans nevertheless kept
constantly increasing until they reached,
first million, then million and half
and finally have reached over two
millions. Nugent drew out of the bank
sometimes over $500, 900 in a month. In
fact his drafts during the present month of
October amounts to over 100000. The
usual manner in which the money has been
taken has been for Mr. NugeRt to deposit
would then either take them up myself or
furnished him the money to take them up
with in New York. 1t was perfectly under
stood by Mr.. Nusent that he was obtaining
money of the bank for his own purposes,
and without giving any security, and by ir-
regular methods on my part. He was per-
fectly well aware that this was forced loan;
that he had his hand on my throat
Son September 26-that being, think,
the day of Garfelds funeral had a long
interview with Mr.. Nugent, and told him
that the Indebtedness then amounted to over
two millions of dollars, and that proposed
to stop: that | could not carry this thing
any longer He then said that he had prop
erty enough to pay every dollar he owed
and more too that he had finished stock in
the factory worth four or five thousand dol
| lars, and as much more which he could
| finish within month that was in process Of
being finished, and that he could give me
five hundred thousand dollars within thre,
weeks. After some talk in which I ques
| toned his ability to do as much as that b.
pledged himself to give me $500, 900; tina
| he would reduce his Indebtedness at leds
5000, 900, and that he could reduce the in
debtedness from that time on very rapidly
as he had very little to pay and very larg'
stock Then said: IAN right; will tr,
it for three weeks longer" Mr.. Nugen
then told me what amount he had to pa,
during the next month. During the pas
month he has not given me over one hun
dred thousand dollars, and the payment
which had to be made for him were at leas
| twice the amount which he stated a montl
ago. These loans were overdrafts, ant
known to be such by Mr.. NJ
gent The account was made goot
by these manipulations from tim
to time. The books were arranged to cove
the overdrafts on the ledger in his account
He would make drafts on friends in New
York and give them to me, which drafts
would take care of by checks on the Mechan
ice National Bank of New York, and which
were not entered on our books. Our book
show two millions of dollars to our credit il
the Mechanics Bank, of New York, whereai
we owe them.
81 can say that almost the entire losse
and DEFICIENCIES now existing in our banl
are to be asoribed to the loans made t
Christopher Nugent, as l have detailed.
have now and never had any interest in tn
business of Christopher Eugent. I neve
derived any profit from the loans made Il
| him."