New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-01
on Sunday and confessed to them that the bank
could no longer continue its business.

THE COLLATERAL SECURITY.
The notes held as collateral security by the New
York bank appear TO be mainly legitimate business
paper. The most of them are for small amounts,
given apparently in the natural course OF business
All OF these double-name notes Of persons be-
heved to be able to pay them few of the notes
| may be accommodation paper, but all OF
them bear the Endorsements of responsible men. 1t
is believed by officers of tho bank that the
security is ample to protect it from loss, The face
value of the paper is $li4,00O, and the amount Of
the loan is something over 100000. Some of the
| paper is that of C. Nugent & Co.
AN EXTRAORDINARY AFFAIR.
bank officer, whose relations with the Newark
bank were such as to compel him to make some in
vcstigaton of its affairs, said last evening:
It is all true and more than true. bank that
Saturday stood preemnent, and cashier who was
above reprOach, are to-day both ruined. Such
swamping of the funds Of bank could not
happen except under extraordinary con-
ditions. Mr.. Baldwin must have had some
aid within the bank. and that was given
by his brother, who was paying teller. Together
they were all the bank. The president is eighty
six years Old and only visited the Office every week
or two He had the utmost confidence in his cashier
whose fall has completely broken him down. Presi-
dent IIalsey esteemed Mr.. Baldwin so highly that
he made him one of his executors. lie had only one
son, and he told me to-day that he thought as much
of Baldwin as he did of that son. William Clark
Of George A. Clark IL Brother, who i ;
one of the directors Of the bank, told
me that he had been perfectly stupeGed
! by the cashiers acknowledgment. Mr.. Clark
signed the October statement Of the bank, but of
course without making any personal examination
| of its items lie said that he did not doubt Mr..
Baldwins assertions about the amount in the hands
| of the New-Yorl bank.
Il have been myself an intimate friend
| of Mr.. Baldwin's for many years, but
| never saw anything in him his course of living
that caused me to doubt his honesty. He lived
plainly and never apparently beyond his means l
am amazed and grievcd, If the punishment could
fall on Mr.. Baldwin alone should be satisfied; but
the weight of the crime falls with almost equal force
on his wife and children"
In casting about for an explanation of the manner
| in which so large an amount of money could have
been lost many persons expressed their belief yes
terday that Mr.. Baldwin must have speculated
largely in Wall Street. Inquiry made yesterday
failed to discover any good foundation for this
opinion. Euos Runyon, OF the Stock Exchange firm
| of Martin 4 Runyon. which has branch office III
Newark, said yesterday
81 1--we in Newark, aud have been intimate with
Mr. Baldwin l stopped at his house this morning
and he told me that the bank would not open to-
day. He told me briefly the reasons, and If he had
stabbed me with knife he would not have hurt me
so much, do not lose a dollar by the failure OF
the bank. bat do lose a fricnd.'
Did Mr.. Baldwin speculate in stocksp
$50 far as my firm is concerned only very
slightly. and all hs ventures IN that way have been
| profitable lie has never lost cent through u.
am surc too that ne has neither spccuated nor lost
! IN. 10 toll
ing. and am certain that he told the truth Wiat-
| ever the reports may b., know that Wall Street
| spaculation was rot the cause Of this ruin'
| Another friend Of Mr. Baldwins gave an equally
emphatic denial 10 the rumors Of this kind.
mo he remarked gloomily, " that money never
| va, lost here ! believe Nr. Baldwins statement
| that the money has all gone to pay the
! liabilities Of tho leather firm which he
was sustaining. | am positive, too, that tho adj
vanccs 20 Nugcnt s. Co. began at least eight years
| ago. think Baldwin become involved innoccntly
enough at first the affair, Of this firm, and that
since then he has been Obliged to furnish money in
order to protect himself. The firm has been in good
crcd for the last few years and has been reportedt to
! be making money especially SINCE the failure OF
large rival house in Philadelphia several years ago
! / have had occasion 20 know something about the
| lrm and presume that Mr.. Baldwin lived IN eX-
pactation that it would eventually cancel the dent
The notes Of the Erm were all made payable at the
bank, and Mr. Baldwin paid them as they fell Que,
whether the firm had money 10 its credit or not.'
TALKS WITH DEPosuoEs.
| L. Spencer Gobc, the state agent Of the Mutual
! Benefit Life Insurance Company for Southern New
York and Northern New-Jcrsey has an Office at No.
1877 Broadway in this city. The intelligence of the
failure caused much commotion in the Off e. and
Mr.. Go5e started promptly for Newark being as
| he said, passenger q train crowded with people
| hurping to the place to learn the facts When Mr..
Gobc returned to this city in the afternoon,
! rRmUNE reporter called on him. lie said
| - don't think you or anybody Will learn the
real condition Of affairs before week ten days,
when the commissioners Will have finished their in
vcstigltOn. / went there AMI heard dozens OF
stories from people who profcssrd 10 know, and they
all differed 80 widely that Gn1lly | concluded that
nobody knew anything moro about It than did.
As understand It. ihc failure is for two millions OF
dollars Ii is asserted that the bank has the same
amount ON deposit In correspondent banks, and n
surplus of $500 900, besides its capital stock OF
! 100000. Now, if the deposits which they claim
are really in the banks, Of course the depoSitors
will get all their money, only they'll have to wait
for it. Idou't believe the failure be as bad as
rumored. Lam u dcpositor personally; our otlco
here reports directly 10 the home office, and we had
no account with the bank. The Mutual Benoht
Company probably had a small amount on deposit
IN the bank Ut deposits IN five or six banksD Out IL
so the amount was very small and will not aiect
the company in the least 1 saw both the brothers
| OF Baldwin but did not speak to them"
! A. W. Dimock a. Co., brokers' Of Exchange-court.
did business with the bank in Newark, and had II
considerable amount of money on deposit there. a.
| w. Dnocli said yesterday afternoon that he hau
first heard of the failure on his private telephone
wire in tho morning. All the information winch ne
had succeeded in getting had come pretty directly
from the bank and he saw reason to question ltS