New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-04
BALDWIN AND HIS BANK.

,,,S posr-, PREVIOUS EMBEZZLEMENI bhoC"ii
oItGur-BnDwIN's POLITICAL lNfLOhNcH'
Some new facts in regard to the cashier OF
tbe susnended Newark bank were le'uheu
yesterday. 1t is asserted that Nugeht was Vlc
victim of Baldwin, who was the hnancial
MANAGER of the morocco firm, the factory Oh
which he frequently visited. Receiver FreIng-
buvsen has taken charge of the bank. An en-
bezzlement of $4,000 occurred IN the BANK d
few years ago.
NEW DEvELO OPMENPS ABOUT THE CASHIER
AFrERrHoUGHTs OF MEN WHO HAVE HAD TRANS
ACTIONS WITH HIM-THE REAL RELAIloNS vi
BALDWIN AND NUGENT-RECElNEh fii-
HUYsEN AT WORK AT THE BANK
non, hrsiness men of Newark who have always
.vnressed the most unbounded confidence IN the III
tegrity and financial ability of Cashier baldwin, VI
tbe suspended Mechanics Bank now recall instances
of his transactions which should at least nave oeon
regarded with suspicion. They assert that 'hcy
meyer questioned any action of his business career
becouse he ALWAYS possessed the respect and coni-
dence of the men who were associated Win nun as
directors in several financial institutions III the cS
of Newark Although Christopher NugehV uoeS ilo'
enjoy a savOry reputation with these men, many
OF them are inclined to creGlt some P"i''
Of his story on the simple ground that the
be found in Newark who week ago would nave
der,ded anv attempt to aspersc the character OF MI
Baldwin and who now assert that the cashier
crooked dealings with the banks money were done
SO openly that every director OF the bank ongh 10
have known of them. They declare that he mas
openly negotiated Nugent & Co.'s paper in Newark
that he was frequently i'll the morocco factory
in Halsey-st and that the larger portion OF DuSi-
ness men in Newark knew that he was associated
with Nugent in the development of the latters BUS
mess When asked why the knowledge oil thoSe
facts did not cause an investigation, these men
reply that Mr. Baldwin the last man in Newark
who would be suspected of wrong-dong' lIat
Nugent would do wrong they would have been WILL
ing at any time to admit but Mr., Baldwin never
Itis now known that William S. Squier stock
holder in the Mechanics Bank, wrote to the Con-
trcller of the Currency two years ago for special
examination of the bank. Mr. Squier IS a dealer III
chemicals at No. 60 River-st, Newark and he was III
terested to a certain extent iii the closing OF the Dus
mess of DovelPs Sons who in the same line OF
trade The latter firm owed the bank some money
and Mr.. Squer declares that through questionable
means Mr. Baldwin obtained control OF the business
which was continued under another mans name
The cashier advanced the banks money whenever
the business required it. Mr. Squiers business
brought him in close contact with the leather trade
generally and through it he learned that
tbe cashier of the bank inter
ested also in the trade and was advancing
money to the firm of Nugent g. Co. He was not on
friendly terms with Mr.. Baldwin, and although he
had always shared the confidence reposed in Mr.
Balwns integrity, lie thought that his accounts
should be scrutinized closely. When he wrote TO
Controller Knox he asked that the correspondence
be kept secret. He received reply that special
examiner would be sent to the bank. The examiner
~, M
Baldwin, who in unusually suave manner insisted
on the closest inspection of the accounts. lie
charged some enemy with having instituted false
reports as to the soundness of the bank and ap-
reared to feel hurt that the Department at Wash
inpton should take heed of all kinds of cor
respondencc Struck by the fTankness OF
the ca shier, the examiner became more couiiden-
tial and exhibited the letters that had be n
sent to the Department. Mr.. Baldwin immediately
said that he had had some business dealings with
Mr.. Squier and that the latters failure to ac-
compish some design had led him 10 send the letter
to Washington simply for the purpose of annoying
the bank. The examiner then made hastS inyes-
t1gatiou of the accounts and rendered favorable
report. Mr.. Squier now tells this story with the
addition that ii his suggestions had been carried out
the bank would have been III more fOurlshing con-
dition to-day.
BALDwIN's CONNECTION WITH THE MOROCCO TRADE.
The story of the manner in which Mr.. Baldwin
assisted the firm of DOyelrs Sons is said by MI
gents friends to be somewhat similar to the way in
which he became interested in the morocco trade.
Eugent it is said had by his industry and energy,
worked himself up from a common workman TO be
q member of of the most successful firms in the
morocco trade. Ambitions to extend the business
until it should become the largest in the country,
Eugent bought and sold on a very large scale and
used great deal of money. He was anxious to ad-
yertise the firm which believed in quicd sales
aud small profits. He gave credit freely and was
v,al, 10 fha ffrT. nf han fha
period of financial depression came over the country
kugent found himself in great distress. His cred
itors had failed in all parts of the country and he
had much commercial paper outstanding which he
was unable to meet Much of his paper bad been
discounted by the Mechanics Bank, and ruin
and the entire destruction of his business
stared him in the face. About the time that he had
made uphis mind TO close his business he sought Mr.
Baldwin as an advisor, and told him that it was i'm
possible for him t. pay his debts lie also said that
the bank had his paper to the amount of from
100000 to $150,000 and he was afraid that every
dollar o. OF It would have to be lost; -, .,.
co dealer, and told HIM that he did not want the
bank to lose much money. He asked him if there
was no prospect of his paying the bank if he had
money enough to continue his business. Mr.
Eugent represented that there was plenty of money
in the businass, but that it required a. considerable
amount to run IT, and that as he had many
bad debts on hand he could not raise the money.
Tiic cashier then proposed to give Nugent g. Co. all
TIE money they required representing that he simply
wanted 10 save tho money which the firm owed the
bank. But Mr.. Baldwin, with the wisdom that
supposed 10 characterize ali MS nnanclll tTauS8c
ti,ns represented that the bank would have to ex-
er;ise close watch on all the money loaned and
that he wanted TO be appointed financial manager
OF the concern.
10 this proposition Mr. Nugent readily consented,
and in 1878 Mr.. Baldwin assumed the duties OF
financial manager of the firm. Each day when the
mail arrived notes and drafts OF all kinds
turned over to Mr.. Baldwin after a record
OF them was taken by the boo<kecper of
ti.e firm. MIR. Baldwin frequently called
upon Nugent d Co. for their paper, in order to can
eel certain loans. Then the firm was urged to issue
paper for the purpose of raising loaus and as each
demand was made it was readily complied with by
Christopher Nugent who represented the firm In al
tllc transactions. When the firms paper (all of