The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-03-09


The great bank defaication in New
4, y ,J., is another Illustration of the
nriy unbus ness-like ways of business
zen An Old and pros porous banking
;! ti5tipn hag been ruined by the aban-
tunment OF their duties bv the Directors
If the bank. The theory of the man.
cement OF a sound bank is that the
Euectors know something of the affairs
tBd accounts of the institution with
y iose management they are intrusted.
.$ow and again. like thunierAolt from
dear sky, comes the explosion of
INK. Then it appears that the Direc-
tors had no real knowledge of what was
beng done with the flluds OF the con-
cerl and with the moueg of the deDos-
rors The apparent knowledge was
der we'd from one the under officers
nr eElo owes OF the bank. The Direc-
tprs implicitly trusted one man-per-
haps two men-wlth the management,
which il theory, was wholly in their
own hanis. In spcli cases. no allow
i an e is made for dee ton or dishon-
estv. none for errors. In this way the
ufs Head Bank was bro ght to grief
some years since. And in this way,
bus'n men 20 on ne lectinr their du-
! lies. secure IN the belief that SER con-
! cern. at least, is far above all human
/ wickedness md accidents, only to be
asfoUnded when their N stake Is dis
covered
The ruin of the Mechanics National
! Panl OF Newark is possibly, little
/ more compleie IN its way, and the ''im-
: p cit confidence" CT the Directors in
/ the Cashier q little more obvi-
onsly botomless than usual !;
otherwise, the case is not UNIQUE.
The Cashier was the cause OF the ruin.
a other Cash ers. endowed with full
| powers and unchecked by any ID rectors,
, have been. from time immemorial. Per-
ihaps tn apparent strength of the bank,
The b gness OF the the't, and the spot
less chara ter of the thief constitute un-
usual features Of this latest hefalcation.
! Fut It ne d not he ex nected that any of
| these things VIII rouse an body to new
| vi lance. or will rem nd any ody that
the duties they are shir ing as Trustees
or Directors ought not to be any longer
delegated to lother person. These
things are constantly happening. The
| nevSpapers take up the obvious lesson
and read wholesome le ture to the
men who ta%e so much pride in what
the all their "business me hOds." "
| hoi iIlsItOC1S IhONO oh do Az
does not appear whether anybody has
pro ted bv the exposure of the humhug
of the Aforesaid business methods"
The Newark defa llter's method was
simple. He was the Cashier o. a strong
and opu ar bank. There was paid
mp capital of $4,000, surplus of
$40 600, undivided profits of more
than S65, 900. and heavy depositors in
plenty. The concern kept deposit
account in this city, the balance to its
cred being sometimes as much as S2,-
F0A.009. baldwin, the Cash er, was al
lowed to draw on that balance when
e~er he chose. Nobody connected with
this admirably managed Newark bank,
but Baldwin. knew the condition of the
balance to the banks credit in the
New York institution. If anvbodv ever
had anv curiosity about the matter,
he asked Baldwin. and this excellent
AMI highly respectable Cashier gave
smch answer as suited his plans. And
all the while, the Cashier was checking
ont of the New YORK bank the balance
OF the Newark bank and using it FOR his
own PURPOSES. While he was reporting
to the amiable Directors of the Newark
concern that millio and a half OF
monev was on deposit to their credit,
he was tampering with that account.
Finally, when he had muddled away
the handsome sum of 80 900, 900 or so,
and there was deficiency of -S40O. OO(
where there should hive been a sur
plus of 81, 800, 900, the explosion came.
The Directors of the hank-good easy
sonls-had known Baldwin ever since
he was bov. Thew re neat, with Ger.
tain nlaintiveness. that they had i'm.
plicit confidence in him: as if he was
very much to b'ame for their implicit!
confidence. and as if thew are wholly
eXonerated from responsibility because
they have been deceived. So Baldwin
went on with his game, using the de-
positOrs' monev for pur- oses which he
has set forth. There does not seem:
to be much to add to this sad and
disgraceful story. The sum and sub
stance of the matter is that certain re-
putable citizens built up bank, at
tractcd the deposits of many people
poor and rich. and then left the man.
age nent of the handsome accumula
tons, to all intents and purposes. in the
hands of one man. Succumbing Il
temptation, this man has betrayed his
trust and hts misappropriatedt the mon
ey. And vet. the Directors of the bank
are shrewd business men.-N. y. Times