The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1881-11-02

NEWARK, Nov. 1.-The failure OF lHe
Mechanics National Bank of Newark was
the one topic of conversation on the streets
No failures resulting from it were report
ed up to noon, and it was said by parties
to be likely to know, that none were ex-
pected.
OTHER CLAIMS.
The Peoples Bank has claim against
the Newark Mechanics Bank for $4,000,
and the Commercial Exchange one of $13,-
O0O
WALL STREET KNEW IT.
Gentlemen well posted in finances say
Wall street knew of the condition OF the
Newark bank month ago.
NOT AS BAD AS REPORTED.
Warren Ackerman, director of the bank,
began suit against President Halsey for
debt caused by negligence.
Nugent's counsel deny that they had as
large amounts as stated by Baldwin. The
latter had accounts at the bank mixed up
SO that Nugent could not ascertain his
status, and was in Baldwfh's power.
The president of the Mutual Benefit Life
Insurance company telegraphs that the
failure does,not embarrass them, their de-
posts having been steadily reduced since
May.
yERIFICATIoN OF THE CASHIERS STATE
MENT.
In the wreck of the Mechanics National
Bank of Newark, what strikes business
men as strange, is the directors first and
the bank examiner next, should never have
thought it worth while to verify the state
ment of Cashier Baldwin The bank had
s., 600. 600 deposits with New York agents
An attempt to verify this would have eX-
ploded the deception at once and, as Is
said. when there was an item of this kind,
about FIVE times the amount of capital, 1t
would have been thought veriication
would have been made. There is yet no
reason for believing the rumOr that some
of the directors knew more about the mat
| ter than they admit. 1t seems United
States District Attorney Keasley became
satisfied after hasty examination of the
books of the bank and papers relating to
| Nugent s Co., surrendered by cashier
Baldwin, that the assertions of Baldwin IN
his voluntary statements were substantially
| true; hence he
MADE A DEMAND
on Judge Luse, Nugents counsel, that the
property now in the hands of Nugent
Co. be Immediately surrendered to the re-
ceiver as partial restitution of the
amounts abstracted by Nugent in compile
ity with Baldwin.
Baldwin stated to the district attorney
he received
! ONE PER CENT COMMISSION
from Nugent for negotiating his paper and
} taking charge of his banking business
Counsel for Baldwin said he believed his
client would be able to prove the truth OF
all he had said in his confession in regarC
to the transaction of G. Nugent s. Co
with the bank. 1t has already been ascer
tanned that during August, September ant
: October the firm had drawn from the banl
nearly 100000
Counsel for G.. Nugent said that h,
would soon be able to show that Baldwin,
CONFESSION WAS FALSE,
that C. Nugent s. Co. had not drawn an,
such amount as S2,000,000 in excess o
credits. and he doubted even if the exees
would be one-tenth that amount. Th
firm was making up from It's own books
statement of the moneys paid III and draw
out of the banks for number of year
past, and this he thought would offset th
banks figures. Nugent s. Co. mad no
} made an assignment nor do they intend t.
do 80 The fact Is, the counsel claims
} that Baldwin was financial manager OF tbs
firm. and had been for about eight years
Neither Christopher nor James Nugen
were financiers or claimed to be, and Bald
| win had power of attorney to fill up, AM
, sign checks and notes. How easy 1t woui'
be for him to fill up such notes and plac
them among the banks papers instead 0
depositing them. They would show note
were deposits, and the firm knew nothini
, about it.
oP1NIoas.
A friend of Baldwin said ne was witt
{ him on the day Garfield was buried, an
} heard the former ask G. Nugent for mon
| ey. Nugent said he had large quautit.