New-York tribune., 1882-03-04
s n. CONDICT ARRESTED.
uo,,n, ,c,rv WITH BALDWIN CHARGED.


,,1.horics; National Bank of Newark to raise
fund 70 he applied IN connection with the assets OF
@be hank in settlement of the losses ana ciihS Vi
the shareholders and creditors proved taluIe yes
+ardav bv the withdrawal of stephen IL Cohulc''
ono of the directors from participation IN the ohei'
Mr.. Cond,cts proportion of the 1unu, wnlcn na
he had agreed to pay was S-oo'oVo'
II was dated December 2, 1881, and II was 10 DO
hind,ng sixty days if all the creditors and stock
holders should agree TO accept IT, The terms OF tne
propositIon were that all assessments should DC
naid ppon the stock hut not the value of the STOCK
itsen. flat all dcpositors of less than 5000 should
h Maid in fnll that all depoStOrS, except corpora
lions should receive rs per cent OF their deposits
The fuud subscribed was S750OOO, of which amount
Josenb 4 Halsev and stephen II. Condict subscribed
each S2j0,OOO.
Ever since the failure of the Mechanics Natlonal
Rank there have been statements made OF the cui-
inability Of stephen H. Condict. 1t was sald 'ha'
he had been active in the management that he
bod discounted the paper Of c. Nu-
Gent 4 Co. to large amounts and that
he mnst have known something of Baldwin's opera
1ions Immediately after the bank failed Mr.. Con-
dict acknowledged to a reporter of THE TRIBUNE
that he had known of the embeZ2lement OF HoUVuV
by Henry Marchbank. a corresponding clerk OF lhe
bank The fact that Mr.. COndict who mas repu-
tation for extreme cOsencss in money matters
sbould subscribe so large an amount TO pay the
dcbts of the bank and one which was
ont of all proportions TO the suOscrlp-
tions of the other directors, was accepted
among Newark business men as a significant proof
that ne had not been ignorant of the causes of the
hanks ruln For some weeks the directors have
been endeavorng to reconcile all the interested per-
sons 10 this agreement but 1t was noticed that MI
Condict was weakening. IL was resolved that lie
should either pay the amount he had subscribed or
be subjected to criminal prosecution. Early III the
present week meeting was held at the bank, Wheh
Mr. COndict presented letter. IN wmch
he withdrew his offer to pay $25O,OOO,
0r the ground that the limitation of time
had expired and he not bound to pay; second
that the navment would render him penniless. lie
offered however to pay 1926, 900 or $150,00O, part
in real estate as his proper onirbuton On thurs
day another meeting of the directors was held, ana
an effort was made to induce Mr. Condlct to adhere
to his original offer but without success. III was
then resolved TO draw up letter to the public ex-
planning the abandonment of the proposltlon' At
meeting Yesterday at the office of Counsellor Tay-
lor, the letter or card was read and adopted.
Some bitter criticisms were made upon Mr. Condlct,
but argument solicitation and anger failed to move
him Courtlandt Parker present as his counsel.
Director Edward Wright said 1t was wcll-known
fact that Condict owned considerably more prop
erty than he represented.
On the night previous to the last
meeting United States Marshal Barnet
was set to watch Condict's house in
Park-place. Newark. and preparations were made
TO have him arrested on the charge of aiding and
abetting Cashier Baldwin in wilfully miSapplying
the funds Of the bank and in making false entries.
Anunbcr of af1idavits was prepared and sworn 10
before United States Commissioner Patterson yester
day. and warrant was issued for Condicts arrest.
Through thc interpositOn of his counsel, however,
and because his bondsman was in Orange and could
not be reached in time, COndict was permitted 10
remain al his house over night, TO appear this
morning at the Commissioners office and give hall
In $4,000. The announcement of the directors and
the action taken 10y them was not learned until late
in the day, aud Ii caused profound sensation. Mr.
COpdict is man well advanced IN life, and Is re-
yuted a millionaire. His business Is the manui4c-
fure of saddlcry hardware and harnesses. Ills
statement that the payment of n quarter OF million
of dollars would now make lin poor Is not believed,
and il is suspected that he has employed his time in
The afidavits upon which the charge against him
is based are made by David +. Nichols Frederick
H. Shlunan. Benjamin Sites, clerks in the bank
Emma +. Sites, wife of BenJa IN StltrS, and Isaac
A Lewis. expert accountant. Nichols dcpOSes that
in the summer of 1875 he found certain aiscrepInI-
cies in the accounts of Henry MaTcibank lie
called Mr.. Badwin's attention 10 the, matter
at that time Mi Baldwin soon o 9fteT%aH[d raHt
In the winter of 1s79isO his suspicious We're
again aroused in an inspection of the accounts of
stites. by an entry fqr large amount credited to
was charged lust previous to an examination of the
bank. There were other entries of similar charac-
ter The deponent in May, 1850. spoke of his dis
coveries TO Stephen H. COndct, who said he would
look into them. In the summer of 1880, the de-
ponent and Frederick A Shlpman compared notes,
which showed mutual discoveries, Mr. Smpman
also informed Mr. COndict of the discoveries. Mr.
COndict came TO depOnents house TO examine some
irregularities i'll the accounts Of Theodore +. Bawln,
brother of the cashier. 1t was arranged that
the depo9ent should make memGMIandac co0 of
dict. these irregularities all related
10 the account with the Mechanics Bank of New
York. 1t was distinctly told to Mr.. Condict that
the discrepancy in this account, as 1t then stood,
was about one million dollars. Mr. Condict sad
the matter should be kept quiet and he would get
at the bottom of It, ibis occurred in October and
November. 1850. Early III 1851 the deponent met
MT. Condct in the bank and asked HIM II he
had looked into the matter OF The MechanlcS Bank
ofNew-Yoik lie said, Oh no. | would not dare
10 do that" The depOnent replied " Well,
the matter has been going on as before, and am
getting tired of it, because | don't like to work III
bank where suspect every other man OF being
thief Mr. Condict appeared excited and had Mr.
Baldwin telephOued for to come down, but lie was
not at home After the failure of the bank Ar.
Coudict asked the depOnent not to say that he
(COudict knew anything about the matter before
Baldwin made his confession, and TO give the same
instructions 10 Che other clerks. MI. COndict also
said TO hn, 81 don't know but that If II was
knOwn, il would send Inc 10 the State Prison, and
don't know but 1t ought TO-" 1t was suggested to
M COndict at the time he was informed Of the
irregularities that he ought to communicate the
matter 10 the Board of Directors and he remarked
that it would not do
Frederick H. Shpman's affidavit sets forth that
be informed Mr.. COndlct of MaIcbank's cmbeZZle-
ment and Of the irregularities in other accounts
Mr. Condict finally said ii would be better TO say
nothing about tie matter, and that 1t should
be dropped. When the bank failed MIR. Condict
said to The depOnent, referring TO ms previous
knowledge or the embezzlement, ." ! would not say
anything about IT," In one interview with
Mr.. COndict, the deponent called his at
tention to an account of SGO0OO with Fisk a. |
Hatch which was credited TO the Mechanics Bank |
of New-York, at the time OF he examination. Mr.