Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-11-02
GENERAL NEWS.
rAsT NIGHTS DISPATCHES TO THE RECORD
UNION.
DOMESTIC.


me Newark Bank Disaster.
Nvw YoaK. November 1ss.-The Peoples
ps,I- mas claim against the Newark Me-
.sa,,;cs' Bank for 500, 600 and the Corn Tx.
cbsnge ana Of So 600 A gentlemen well
Tosted ia finances says Wall street knew Of
tbe condition of the Newark Bank q month
ago.
WASHINGTON, November 1st.-Controller
NJ ths Currency Knox says that he will ap.
mint receivers for the Mechanics National
Bank Of Newark tomorrow. In the mean,
time the bank viii remain in charge Of Ez.
arniner Shelley, OF New York, and Of NJ. L,
Price, Of New Jersey.
Nrg York, November 1st.-No failures
are expected ca account of the Mechanics
National Bank failure in Newark.
NEW York, November 1st.-In the wreck
of the Mechanics National Bank of Newark
what strikes business men as strange is that
the Directors first and the Bank Examiner
next should never have thought it worth
while to verify the statement of Cashier Bald
win that the bank had over 81, 000, 900 en- de.
post at the New York agency. An attempt
to verify this would have exploded the decep
tion at once, and it is singular that wher
there was an item Of this kind, about five
times the amount of capital, no verifcatior
WIS made. There is as yet no reason for be-
lSNluH t1ds sOlAlS VI LIS GAeCGUTt
knew more about the matter than they now
admit. Baldwin stated to the District At
torney that he received one per cent. com.
mission from Nugent for negotiating his pa
per and taking charge of his banking business
Counsel for Baldwin says he believed his
client would be enabled to prove the truth OF
all he had said in his confession with regard
to the transactions of Nugent & Co. with
the bank. It is already ascertained that
during August, September and October the
firm had drawn from the bank nearly
$500, 600. He thought the figures stood
about SAT-, GOO. With such drafts as this it
would not take loag to draw out s., OOO, 600.
OF course there had been some money paid
into the bank by Nugent Il Co., but the pay
ments did not reach fifty per cent. OF the
drafts.
Counsel for. Nuzent said he would BIO able
to show that Bald wins confession was false.
Nugen5 & Go. had not drawn any such
amouat as S200, 600 in excess Of credits, and
he doubted even ii the excess would be one-
tenth Of that amount. The firm was making
up from its own book statement OF moneys
paid in and drawn out OF the bank for num-
Der of years past, end this, he thought, would
offset the banks figures. q. Nugent & Co.
have not made an assignment, nor do they
intend to do SO.
The story that the bank was to be pre-
ferred creditor was also an error. Atp:esent
it was the intention OF Nugent & Go. 70 re-
main still and abide events, when it would be
found that the people hsye been mised as to
the way the money mad gone. When in
formed that the bank claimed that q. Nugent
& Co. had drawn nearly $500, 600 the past
thres months, counsel said the firm, which
employed mill hands day and night, would
have large payroll, and that alone was over
$500. 900 month. Then there was material
20 be purchased and other expenses. But 1t
was net likely that there would bs cash re-
ceipss to counterbalance this large expend-
iture. All the money received went
ioto the Mechanics Bank. The fact of tire
whole affair is that Baldwin was financial
manager of the firip, and had been for about
eight years. Neither Christopher nor any
other Nugent was h1ancier, or claimed to
be, and Baldwin had power OF attorney to
fill up signed notes and checks. How easy it
would be for him to fill up such notes and
place them among the banks papers in de-
posting the receipts of the firm to their
credit. The pass-book would show Che notes
as deposits, and the firm knew nothing
about It.
4 friend of Cashier Baldwin said he was
with him the day Garfield was buried, and
heard the former ask G. Nugent for money.
Nugent said he had Z large quantity of mate
rial made up, and would soon be enabled TO
pay in about $500, 900. This he thought was
evidence that Nugent knew that mis- account
had been overdrawn . large amount. Baldwin
was verg pale when ne spoke Is NugenJ, as if
suffering from great anxiety.
Phineas Jones, one of the bondsmen for
Baldwin, was in better frame of mind this
afternoon. He sid he could not tell now
who were on the bond with himself, as it was
so long ago, and he had mad no previous
cause TO think over the matter. He
supposed he would have to make good the
amount of his bond $50 000l, and he wa:
glad it was not more, as il might easily have
been, such was his confidence in Baldwin:
integrity.
Baldwin was practically raised in the bank
He was spoken OF by everyoodya-Presideat
Secretary and Tellers-as Oscar" and
everything was referred to MIN. Said one
Director Baldwin made semi-wsekly visits
to Wall street, and it Is more than probable
that eight or nine.tenths of the sum which
he distracted from the bank were sunk in
stock speculations."
Mineral Lands on Military Reservations.
WASHINGTON, November 1st.-In April
last an order was issued by President Garfield
setting apart from public lands the military
reservation of Fort Maginnis, Montana Ter
ritory. Certain mixers alleged that mineral
was discovered and camp established by
them on land included in the reservation sew.
eral mentks prior to the location of the post
by the military authorities, snd appealed to
the Secretary Of the IaterioT for information
whether they could hold the mines and sur.
face ground connected Herewith, though they
BE- on the reservation, ard whether minera
land c1nld be located and patented on q mil
itary reservation after the establishment o.
the reservation.
The Attorney General was requested for al
opinion on the following questions First
Whether or not mineral lands reserved from
sale, under Section 23lS Of the Revised Sta
utss OF the United States, can be reserved fo
military purposes by order Of the President
Second-Where mineral lands are included
within the limits Of a military reservation
are such lands open to exploration and pur
chas5 under Section 2319 of the Revised
Statutes? Third--Where an incboate it'll
to mineral lands has been acquired, and sucl
lands have subsequently been included within
military reservation, can title to saiC
mjaeral lands be perfected By private
gusr?
Attorney. General MacVeagh, in his opia
ion, says: "Frem an carly period in tht
history of the Government it has been tlt
practice Of the President TO order from time
to time, "a the exigencies OF thu public service
required, parcels Of land belonging to tht
United States to bs reserved from sale anC
SCI apart for public use. The authority O
the President in this respect is recognized il
numerous acts of Congress, as bread enouxi
to include mineral lands belonging to tn,
public domain, at least while they remain
unfrsctured by private right acquired under
the laws relsting thereto. This necessarily
involves a negative answer to the second
question, since after public lands have once
been lawfully reserved by the President fol
pnb'ic uses, they become severed from Oh,
pa5lic domsiD. and are therefore net subject
to occupation and purchase under the gen
eral law"
Iu answer TO the third question, he says
Congress has recognized the possessory
rights of these miners, as contained among
themselves, by rules that have become lswl
in mining districts, as mining lands, as recog
nized by Congress-. are property of great
value. Very large amounts are invested il
mines, the ownership of which rests solely
upon tie possessory right referred to, and il
seems whore suca right has attached TO min.
eral land in favor of lode mining claims
tbs land, during the continuance of the
claim, that Is to say, so long as it maintains
an accordance with the laws, becomes by the
force of the mining laws (appropriate to
the specific purpose) namely, the develop
ment and working of the mine located, and
unle;s Congress otherwise provides, it can.
not while that right exists, Notwithstanding
the title thereto remains in the Government,
be set apart by the Executive for public uses
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