New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-03

cid or The PaTl Uonse last night that he was not
certain when he would get through with ms Isl
CATION. He was continually inter- 1nteIiuPeu Pc maturing
every day and had to be attended 10, anu 80 80,
spondents in other cities writing 20
about matters connected with their relations ; Mn,
| the bank The Mechanics Bank was the nedl,lin II
| through which the New-York banks diu thar SlUI
business, and its transaction with pans; 30 a1
cities are considerable Mr. Price, the assistant tx
aminer INSTRUMENTATION to the CONTINUE
in regard to the bank and Mr.. Shelley hlmsem lt II
added The figures already given for pLDIeaIDn al
was upon this partial report that the Controler la
appointed a receiver Mr.. Shelley could give no coli
peted figures of his investigation. lie nad t0i Vit
only one Justification of the books thus 1sr h
amount of the assets consisting of the paper neiu ny
the bank worthless he could not at present ny
| but quantity had already been shown TO DC ei''io
| doubtful or altogether valueless. . ,5
Mr. Shelley was asked if his investigation hau a
justified the conclusion that there was collus,?h ia
| the bank He said there was nothing TO lndiea,o !
actual cOlusiOn. The bOOkkeeDer, benjamin oItesi
was of bad habits and was frequently ncapaclta!eu
| for business. He at his home sunSrins ~,
from the effects of liquor 1t was evdent saia a Sr,
| Shelley. that Stitcs suspected that something was
wrong without, perhaps, having actual knowleue9yi
| and that this induced his habits When ne, woul.
make incorrect entries Baldwin would say: ON, thtMt u
doesn't matter I'll fxit" Baldwin simply founu 10
convenient to have man of this kind iii such p9-
silon. There was, Mr.. Shelly thought, no Grlllila.
| ity that could he proven against the DoOkkeePei.
! But said Mr.. Shelley. there something at
least unusual III the action of Mr. cox me G'lsiliJ
| of the Mechanics Bank OfNew-lork: Whenl lhauo o
|
year ago, Mr.. Baldwin, who was on intimate ,I a
with the bank officers III Newlork went over theTe
and said that | was making an unnecessai R ,if
| strict examination; that l was ASKING amil an
J sorts of irrelevant questions ana acilhs dss
| if | suspected something. He sald ulai
| wOuld shortly be over 10 examine their bank, ana
| requested when did so 10 be teegraphed 10 ana
| he wOnld come over. Sure enough when the pahk III
| New-YOrk received my letter OF inquiry, telegram
was sent TO Baldwin aud he came over. Ihe New
York officers of course knew nothing oi ms ,3DJecb
but the case certainly bore the aspect OF eolusi0h
and Bald win was enabled, by usng the blank o. Tue
New-lork bank, 20 prevent discovery that was IN
Ii is said on the street Mr. Shelley that the bank
| will be enable to pay the depOsltOrs IN null
| This rs not apparent by my figures ansWetcu
| Mr.. Shelley. " | think that just approximation
would bc fifty per cent. make my estimate upon
the banks assets the balance from the securities III
| Washington with interest and premium on lnc'lii
| the amount recoverable from the Nugent hrin ana
| the foricitures of stockholders AZ ! nave Sllu' y
good deal depends upon the aScertained Value oii
The paper held by the bank. have heard II siateI
| that the bank would resume again. | think that
! very unlikely"
WHAT NUGENr's COUNSEL SAYS.
| Judge Teesc Nugcnts counsel, said Yesterday
" Mr. Keasbey IN conversation with me said that my
clients property equitably belonged to the bank
because the money that purchased it belonged to
the bank There was particular or special de-
mand made upon ire at ALL | stated TO Mr.. Kcasbey
| that | knew nothing about the matter and would
| not until the books were examined by our own ex-
! perts. when would be in position to advise Mr.
| Nngent in the premises / do not think SAID
| | would adyis. Mr. Nugcnt TO surrender his prop
erty If the facts should prove 10 be as claimed ny
| BALDWIN, meant To say thar my client woHId uo
| the best in hs power If this could be proved:
| Mr. Teese said that there a mort gage of about
| $40 600 on the factory property There was no
| rhatte mortgage. The machinery was worth about
| 5000 OOD. and was the best patented. Mt. M
| gent said Mr. Tcesc took matters philos'pll-
cally. aud had no fear of the result criminaiiJ.
| He expected at least to SHOW mat ne wa
an honest man. lie thought there was no Justice ii
aspersing hm simply on the word OF seli-conlessed
| liar, thief and forgcr.
| MIR Tresc was asked il he knew anything about
Mr. baldwin receiving ono per cent for his advances
| 10 Nuront & Go. He said that il would be found
that Baldwin If not others proited Dy operating III
| Nupcuts paper 81 propose sad Mr., reese
| "to 90 to the bottom facts. J shall have
an examination made by the same experts
of the books and voucher Oh ,i 1," iIi nrnl
as well as those of the bank. The examination WIZ
| bepin at once Mr. Kcasbey has said that he had no
| objection to my experts examining the Danks &c
| l,nnYyn that Baldwin was continually buying and
| sel1ng stocks on his own account nave = ueoIy
that he speculatcd with others, in Nugents paper
| baldwin was wall acquainted with Nugent,s re-
sources when hc began assisting inc llrnl lie knew
| from the beginning that Nugcnt could n0t carry
| ON sucb a business without large capital. lie sald
| that Nugent was not business man, was Simply an
| ambitions mechanic, who aspIed TO nave large
business. and he saw IN nun iai goo,s ii 10 De
| pluCkei by himself and friends. j DcIrNr Duh"il
nersistenty and intentionally led the Nugents on 10
rvt teuding their business aud eulargng their capital
| bccanss the bills receivable OF the iirm
would 90 through his hands and ms
| friends for discount. OF course bankruptcy
was inevitable some time, but IN the meantime ne
and his friends would make money. SO the business
increased enormously and got beyond me i'ach anu
! ability of Nugcnt to manage II. Hence lEerc were
/ iniudicious sales and purchases. men caho
losses and these with large sums put lnto lnachih-
cry and buildings, brought things 10 nlbisiIous
| issue far greater than Baldwin had anticipated III
The idea,b said Mr. Teese, of Mr.. Nugent
| crowdipg Mr. Baldwin in the manner stated by hun
| i. absurd Baldwin was TO furnish capital l0r the
| business and Nugent was 10 pay per cent for II
"a brokerage Besides this there was interest at say
amounts drawn. Mr.. Keasbey does not undertake to
| show that there was nothing IN the bank 10 stahd
| for them. The deficiency shown was certalnIy rep
| resented by something. Mr. Nugcnt never had a
| bank book and hasn't one now. lhe DOokAeePer
| didn't know the balance IN bank. The business
| was com pletely in Mr.. Baldwin's hands"
| John II. Emery counsel for the bank, statcd yes
| cnnafi had been attached Mr. Emery had written
TO Chicago and other places where branches OF ihe
| firm were established TO ascertain what could Dc
| done under the laws of the States in which such
| property was. He was unable even 10 approximate
the total value of the property OF the rn ana sald
/ that no estimate had been made. % q,
| President IIalsey was at his home, No. 80 Park-
place Yesterday, but could not be seen by report,
| era His extreme age has made hIs ialnl'y ana
| friends soliCitous for him. director, VINO was
| present at the meeting of the bank directors on
Sunday night stated that Mr., ialsey bore up under
| the blow with wonderful nerve and forttude ahu
sat erect in his chair the meeting without snow
| ing any sign of mental or physical weakness
4