Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1881-11-01
HEAVY BAnk FAILURE.
Baldwin, the Cashier, Under Arrest LOT
Embezzlement.

n. j.. mas lalieu- anu aH@s 'AS N
defaulter for 81 100000
NEWARK. n. j.. Oct 81. The following
has appeared on the doors Of the Mechanic
National Bank, at Newark, New jersey,
Monday morning:
"Closed in consequence of statements al
fecting the bank. made by the cashier to the
directors, Sunday, which are now under
going Investigation
The bank was regarded as the strongest
in Newark, the stock standing $50.
NEW YORK, Oct 81. The suspension OF
the Mechanics National Bank in Newark,
caused a commotion in banking circles TO-DAY
1t was the largest bank in New Jersey. and
one of the most influential. Its capital was
s.. 900 900. and surplus Si66.OO0. The bank
had excellent credit. and some of the mana
gers are identified with the management OF
other important corporations, like the Union
Mutual Life Insurance Company of Newark,
and the principal savings institutions there
Cashier Baldwin was an active executive
officer of the bank. 1t is said that on Sun
dav he called the directors together, and con-
fessed to them all tina. was left OF the re-
sources Of the bank, was the building, which
was worth about $50, 900. The New York
correspondent of the bank was at the Me-
chanic's National Bank, in New York.
This latter is one of the smartest and most
nothing, being secured by good collaterals
for all advances made. 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 resulted IN the
discovery of the rottenness OF his own
Bank.
The firm of Nugent Co.. Newark, has
suspended, being involved with the broken
bank. Other failures are expected.
Liabilities were S24l7 900 in individual
deposits subject to cashiers check. visit
from the National Bank Examiner called the
directors together yesterday, and confessed
the sad condition. The city and county had
about $4,000 on deposit. The water board
had $50, 900.
NEWARK, Oct. 81. A New York dispatch
says the meeting of the directors of the Me-
chanics' National Bank was held Sunday
afternoon Cashier Baldwin stated that the
Bank was not in condition to pay. and that
the liabilities was great that further
attempt to carry on business would be use
less The directors then offered to subscribe
$500. 900 to put the Bank in condition for
business, but the cashier responded that 81
0O0, 900 would not do it. The directors then
decided to suspend at once.
Cashier Baldwin was the manager. The
news came ike tnunder cap on the COM
munity. There was not suspicion that the
institution was not the strongest in Newark
The directors have been considered the most
trustworthy body of men in the city, and the
reputation of Baldwin as fnancier proba-
bly, stood first in the State. No official facts
have been made known beyond the arrest of
Baldwin on charge of embeZZlement.
The National Mechanics Bank closed
Monday morning and cashier Baldwin was
arrested by the U. ). Marshal, on the affi-
davit OF a director who charged him with
confessing to the Board, Sunday, that he had
fraudulently misused over S2,OO0,OOO of its
funds, and the Bank is hereby ruined.
The directors are.in session with closed
doors and the widest rumors are
afloat, which it is impossible to verify. No
suspicion is yet felt toward any other than
the cashier, who had the unlimited confidence
of the president and the directors, who are
among our most prominent capitalists.
The chief management was left to him.
President James A. Halsey a retired' cap
italist has been confined at home a lonI
time through infirmities of age and unable to
visit the bank.
Cashier Baldwin was was waited upon this
afternoon at his residence by the United States
District Attorney and Commissioner Keasbv
and was admitted to bail in $500 to sppear
at court November I. Baldwin stated VOL
UNFAIRLY that about the wear 1873 he began to
make loans to c., Nugent & Co., morocco
manufacturers. without security and without
the sanction of the directors. Having be-
gan he was in the power of Nugnet & Co..
and continued so, loaning them S5O, 900 in a
month. until,the total as increased to ruin
Gus amount.
Nngent assured him that had large prom.
erty and capital in his business which would
make all loans good. Muganett was aware
that Baldwin was using the banks money
and always promised to surrender his prop
erty in case of any trouble. Under these cir
cumstaIces the loan was increased until it
reached over two millions of dollars. The
books were falsifed, to indicate that the ac-
CONT was correct. Finally heavier losses
were placed in the account of the Bank in
New York by the agent of the Newark hank
so that while it appeared that the Newark
bank had a claim for 81. 600. 600 ayainst the
New York bank; in truth, the Newark hank
owes the New York bank 81 900, 900.
This difference is almost wholly due to the
irregular transactions with Nugent, who can
be held liable for his part of the transaction
1t is rumored that Mugnett made an assgn-
mont TODAY