Morning journal and courier., 1881-11-01
News by Telegraph
 FROM ALL QUARTERS. A Bank Ruined By the Imprudence of It's Cashier. OVER TWO MILLIONS MISSING. A Systematic D0ctoring of inc
 Accounts. Many Other Failures Imminent. The Cashier. and His Abet-
 tor Arrested.
Many Other Failures Imminent.
NEW JERSEY.

t1Ous LORnH-A Bank Cashier De-
 faults for Over Two Million Dollars Failure of the Bank in Consequence
 Many Other Firms Probably Involved. NEWARK, Oct. 31.-The failure of the
 Mechanics National bank announced to-day
 is the greatest disaster of the kind that ever
 happened in this city. The bank was SUD-
 posedly one of the strongest in the State and
 had the unlimited confidence of business
 men. It's stock sold few days ago at 1855,
 and invariably paid 14 per cent. dividends of
 late years. The president and directors were
 among the foremost business men, and it was
 the depository of the funds of business firms
 and the city and county funds The bank
 building is located on Broad street near the
 market, and next door to the bank of which
 Hedden, now in State prison for embezzle-
 ment, was cashier. The bank for years has
 been managed by the defaulting cashier, Os-
 car l.. Baldwin, as the president, Joseph A.
 Halsey, long since retired from active busi-
 ness. Mir. Halsey is nearly eighty years old
 and feeble. The paying teller is brother of the cashier. Undoubtedly several of the best business firms and manufacturers in this city are involved and perhaps some i1 New
 York. The officers of the bank and those engaged in the investiga- tion are very reticent, but the facts a hours, The dedication is far more than $2, GOO, GOO and may reach $3, ,O0O, 1000, while the contin- gent failures and losses can as yet only be surmised. The board of directors included George A. Halsey, member of the Republi- can National committee and prominent politician Lewis c. Grover, president of the Mutual Benefit Life Insurance company
 William Clark, the head of Clark's Thread works; Joseph Husler, wealthy brewer Colonel Wright, millionaire, son of the late United States Senator Wright Stephen H. Condict, 8 millionaire, and many others Baldwin, the defaulting cashier, is son of Caleb Baldwin and entered the bank as boy He was made assistant cashier in 1852 and about nine years later was promoted to the place he has since occupied. He was prom inent member of society and an active church l member, and while the bells of the church l of which he was member were calling the | people to worship yesterday Baldwin with l pallid face and streaming eyes was before the l board of directors in special meeting a few hundred yards away confessing that he had embedded over two million dollars. His rela- l tives and friends include some of the most l prominent people in Newark. His salary as l cashier was $7, 1000. From the special meet ing Baldwin went to his home completely | prostrated, retiring to bed, where he was ar rested few hours later upon the following | affidavits before United States Commissioner | Keasby.
 Anthony o. Keasby, of full age, being duly sworn, States for the district of New Jersey that on this day he has been informed by James F. Bond, of | o1 the nd nans National bank of of the committee appointed by the | Baldwin, cashier of said bank has from time to time during several years past abtracted and wilfuly applied the funds and credits Of said bank, and by such msapplication has caused loss to said bank of S2 OO with intent to injure and defraud the bank and the creditors and stockholders thereof Wherefore, this dep nent charges that said Baldwin officer of said bank is guilty of violation of Sec 52O9 of the Revised Statutes of the United and prays that he may be apprehended dealt with according to law.
 James F; Bond, of full age, being duly sworn, on the board of directors of said bank held at the that said meeting was held in consequence of revela t1ons uade in the morning of that day by Oscar L. Baldwin, cashier of said bank to Stephen H. Condict of the directors; that at such meeting said win revealed and admitted to the board that he had from time to time, without the knowledge author ity of the board of directors, wifuy sapplied the that -a::d bank had thereby become ruined and in- solvent and this de- onent therefore, acting in behalf time to time, within three years past abstraced wlfully misapplied he fun of said bank and made statements of said bank with intent defraud and injure said association and other and rations at present to this deponent unknown.
 Since his arrest Baldwin is under charge of | the United States marshal confined to his l bed. Baldwin is reported to have been for | the past two years heavy Wall street specu- | lator; also to have loaned money in large | amounts to business firms. Several | banks and firms are temporarily em- | barrassed by lack of funds deposited in | the Mechanics to meet current de- | mands. Several corporations had declared | dividends payable at this bank and money | had been deposited to meet them. They are l now of course non-payable. Baldwin's con- fession was precipitated by the arrival of the | government bank examiner. whose investiga- ! ton Baldwin knew would disclose the true | state of affairs. The examiner began his | work this morning. The Mechanics bank l was chartered in 1881 and organized as Ma l tional bank in 1865. A great deal of blame | is attached to the directors for their lack of | caution and disregard of responsibility. The | sworn statement made October 1 showed an | ample surplus and was as follows: