AN AMERICAN BANK FAILURE. EXTRAORDINARY DISCLOSURES.

Evening Post, Volume XXII, Issue 151, 29 December 1881, Page 3

AN AMERICAN BANK FAILURE. EXTRAORDINARY DISCLOSURES.

The Daily News New York correspondent, telegraphing on lstNovember, eaya:—" Ihe city was startled yesterday by the news of an extraordinary Bank defalcation in Newark, a large manuiaoturicg town of New Jersey. Oscar L. Baldwin, cashier of the Mechanics' National Bank, confessed he had stolen 2,000,000d01, equivalent to five-sixths of the whole amount of the deposits.&For eight years he had carried on an elaborate system of false entries, false reports and false coirespondence without detection. As late as 6th October he made a report which pur. ported to show that the Bank had 1,400,000 dollars on deposit in a New York Bank. The cashier was one of the most respected men in Newark, and- was vestryman of the oldest Episcopal Church in the city, a prominent director of the second largest insurance oompany in the country, and had the reputation of being the ablest financier in the State. The directors of the bank, all eminent oitizens deeply engaged in their own business affairs, had implicit confidence in Baldwin, who wag to all intents and purposes the bank, which was considered one of the eonndest in the country, the Btook standing at 180 at the time of the failure. The President is 86 years old. He had perfect confidence in Baldwin, and only Visited the bank every week or two. Baldwin says he has not used the money in Bpecalation, but lent it all to Nugent and Co., morocco manufacturers, of Newaak. They kept an account at the bank, and Baldwin made them heavy loanifwithout adequate security, laving once begun he could not.. stop for fear of exposure. Nugent and Co.< promised repeatedly to pay the money back, but failed to do k EO. Baldwin declared he had no interest ia their business, and derived no profit from their loj|ns. He received a salary 'from the bank of 7500d01, ived modestly, and without extravagance. Nugent's Btore in this city was attached yesterday by the bank for lOO.OOOdoI. The stock is valued at 25,000d01. The factory at Newark is the largest establishment of the kind in the country. The heaviest depositors of the bank were large firms, charitable institutions, insurance companies, and the city government and various boards of publio works. The shareholders are liable for the par value of the stock, which was 500,000d01. It is believed now that the depositors will get not over 40cent. on the dollar. It was arranged in the bank that the President should retire next January, and that Baldwin should be elected in his place. The exposure was caused by an official visit of the district bank examiner." Telegraphing on 2nd November, the same correspondent sajß:—" The investigation into Newark Bank defalcations shows that Baldwin had an arrangement with Nugent and Company to receive 1 per cent, on all loans to them. The examiner estimates the sum stolen at 2,246,000d015. The district attorney has demanded the surrender of all Nugent's stock and property as soon as a receiver of the Bank is appointed. The books show that Nugent overdrew his account this year alone 515,000d01. The President of the Bank has been sued by a depoaitog for 25,000d01s damages, charging neglect of duty. Some of the Direotora_do not bslieve that Nugent had received all tne money. The publio sentiment strongly condemns the negligence of the Directors and the President." Conjugally.—Monsieur: "Dol make the laws in my own house, or do I not P Answer me?" Madame s " Possibly ; but nothing shall hinder me from presenting amendments."