The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1881-11-01
TELEGRAPHIC
A BrOken Bank.

New York, 3I.-Posts Newark: TIL
cashier of the Mechanics Natiena
Bank, yesterday, told the directors that
the bank was unable 10 psv lis dabts
: They offered TO subscribe $500. 900. bu
ne said S2,0e0,0 900 would not do if, snf
i they decided to suspend. The last state.
ment shows the deposits were S2,4I7, 900
JAS. A. Halsey is president, and Oscar l.,
BALDWIN cashier and manager. Baldwin
Is considered respon sible for the trouble.
The news was thunderclap. The insti.
tuition was considered the strongest in
Newark, and the officers most trust
worthy, while Baldwin stood high az q
hnancier. He has been arrested as an
EN- Dezzler. and government examiner
sent from here. The New York connec-
tioa Loses nothing, having refused TO al
low Baldwin to withdraw his collateral.
Nugent q Co., who were involved with
the bank, have suspended. Other fail
ures are expected. It is stated that the
onl y recources of the bank are q 5O.OOO
building, and $500. 900 gold from Europe
to-day
The warran: OF arrest charges Baldwin
with confessing to the board that he had
f:audulently used $2,OOo,0OO of the
BANKS funds. Tbs directors are sitting
with closed doors. The widest rumors
are A1oat Nobo " but the cashier is
suspected He had the unlimited conf
deLce Of the board His confession was
mace because hs fsSred q visit by the
osnk examiner. The city and county
lose about $40, 600 each Of deposits; the
water board $50, 600, and manufacturing
companies, smaller amounts. It is not
YET knoWn where the money has gone to,
OUT II Is alleged that the Wall street
Specuiatlons Of the cashier absorbed it.
1t appears that Baldwin got away with
everything but the safe, which was very
nNsVy one. The bank held all the. de- |
posts of TIE Old Mutual Life Company,
amounting to, it is said, from $500, 600 TO /
d, 400, coo. 1t is believed not penny of |
the amount is saved.
Cashier Baldwin, of the Mechanics |
Bank, while confined to his residence,
was waited upon by the United States |
district attorney and Commissioner
Keasby, and admitted to bail in $25, 900,
to appear at court. His bondsmen are /
w "a. a. Freemen, of Bloomville, VIM. /
Baldwin and Matthias Dodd, of East |
Grange. Baldwin then stated freely |
that about 'T3 he began to make loans to |
y. Nugent q Co., morocco manufae- !
turers, without security, on the sanction |
OF the directors. Having begun he was
In the power of Nugent s. Co., and con-
anued the accommodations, sometimes |
losring them $50, in enc month, till |
the total increased to q ruinous amount. |
Nugent assured him that he had large |
property and cash assets in the business,
which would make all the loans good. 4
NuGent was well aware that he baldwin, |
was using the banks money, and always |
promised to surrender his property in /
case OF trouble. Under these circumstances
he loan Increased till it reached 50. Geo.
200. The manner in which thus Dusi-
ness was transacted was this: Nugent
will give drafts on friends in New York,
which would be credited him as cash, land
Baldwin would use the banks money to
AXE up the drafts when due. The books
we're SO falsifed as to show the accounts
o be correct. Finally, however, the
osses were placed in the account of the
iechanic's Bank. New York, against
ne Newark bank, so that while it ap-
cared that the Newark bank had claims
Or -, 100000 against the New York
TX, in truth the Newark bank owes
he New York bank $500, 600. This Diff
srence is almost wholly due to irregula
with Nugent He said he
ad speculsted very little and lost
othing in that way. The district attor-
ey says Nugens can be held liable for
is part Of the transaction under the d.
ection Of section 5209 United States Re-
ised Statutes. Tie rumor that Nugent
1ade an assignment to-day is premature.
lis accounts are involved with the banks
nd await further developments.