Chicago Daily Tribune Newspaper, November 2, 1881, Page 2

P4 THE CHICAGO TRIBUNE: WEDNESDAY, NOVEMBER 1881—TWELVE o ~"y PAGES. $2,600,000. Vory Little Additional Light on the Newark Rob- bory. The Sum Reported Stolen In- eroased Only a Hundred Thousands Possibility that Nugent Was Himself the Victim of Baldwin. Baldwin Was the Practionl Man- ager of the Morocco Mau- ufactory. Acting for Nugent, He Could Have Organized a Credit Mobilier. General Indisposition {0 Believe that the Directors Were Unsuspicious Up to Sunday. Statements of the Lawyer Hired by Baldwin and the One Hired by Nugent. Tho Usual Loud Crop of People Who Knew Lt 2 Monti Ago. Deteotives Shadowing the Directora with 8 View to Oriminal Pros- eoution. YESTERDAY.- 1,100 nicin DEPOSI TORS, Speetal Dispaten to The Chicago Tribune. New Your, Nov. 1.—Tho thres million defatention of Oscar f. Untdwin, Cashier of the Mechanies’ National Bunk of Newark, was the absorbing tople of conversation in that elty today, But the failures which were confidently predicted on Monday did nat take place. ‘This was due, no. doubt, to the fact that the depositors in the bank were, as aelass, very wealthy met or corporations, an were enabled to meet the temporary em- Darrassnient chused by the suspension, ‘The alepositors who had open accounts on the books of the bant on Saturday, the last day to institution was open, numbered between 1,100 anit 1,200, and of those many had de- posits amounting to many thousands of dol- Jars, JOSEP PESBEN, the brewer, snd one of the Directors, had $85,009 in the bauk, anil It Is satel What many other targe firms In Newark had balanees due then of larger sums. ‘These large de- positors greatly reduce the average of the snl depositors, and as they were able to stand the strain femporarily, hp serious busl- hess rash. tins followed, and it ts believed iow that the danger of any extensive fnitnre is passed. Ballwin, che defaulting Cashier, yemnuined fn lis house, during the day, and Was accessible to nebody but bis personal friends, He is saul to be very inueh broken up, att to have i LOST ALL HOPE of ever again appearing among men as a respectuble member at society. He still tHings to his story that’ alt the mney ab. straeted from the bank was. loaned to: O, Nugent & Co,, and the United States nuthor- Ities In Nowark aro bogliming ta Letieve Is statement. ‘Tha citizens, how NTE he most unanimous in the belief that he has told but hait the truth in his confession, and refuse to entertain the idea that the firm’ of Nugent & Co. could hive abs ML the vast sim fy $2,000,000 ‘und over In addition to th mdney whieh cante to them Iegitinntely in the way of busl- ness in the course of elght years, which 1s the ptrtod given by Baldwin us covering his irregular loans. : MOST PEOPLE RELIEVE that the bulk of this greatamount tins been Jost. In Wall street Inn fruitiess ‘endeavor to muke good the defaleations of the: Cashier, ‘fhe inotive which Jnftren®ed Baldwin In tunking the first unauthorized Jonn to Cliris: topher Nugent, from which le eluiins that al jis deficit has arison, was for tho first time made public today. Baldwin confessed to A. Q, Keasboy, United Stutes District-Attor-: ney, carly this morning, that Nugent offered. Jim a commission of 1 per cent on will loans which ho mado to him, and that, for eight years past, lie had been discounting the netes of the firm and drawing this commission withont the authority or knowledyo of the Directors of the bank, How many lois tio has made to Nugent & Co, during that time, or what amount of commission he has drawn, could not be ascertained yesterday, ‘but it Is evident, judeing from the deficiency iow apparentat the and of tho transactions, that ho must have secured A VERY LANGE AMOUNT from his manipulation of tho bank's trust moneys, What ho hus done with ft isn question yet to be answered, Ile steadily nalatalns that he hus not specutated, and that he lg not a dollar the richer by the de- faleation, and the fact that he made the reve- Jntton of-his crime himself, fnstead of run- ning away with still more of the bank's money, wileh was within his reach, is re- #arded by severnt of the Directors ax von- dirmatory of the statement that he never intended to rob the Institution, but always, Intended to make good the nmountwhieh he had stolen, AT THF MEETING OF THE NOARD on Sunday night he fs reported by one of Une Directors to have sald; ) have gone over thls thing in my mid, and Lb think it's, your duty, gentlowen, ta have me artested tonfaht and taken to Jail, Butt should like tu go home frst and see my wife, who knows nothing of my troubles. 1 tet! you wlainly that if 1 hud tnt the courage todo ft, t yoni haya blawn my brains out before Hing thls revelation, But Lb could not ro miyselfto that. f will ask ne aman to bevome security forme, 1 expect to end my days in prison, and there UE shall not antter cnotgh to atone for my ering, although UVE SUEFERED ‘THE ‘TORMENTS OF ‘TIE ithe last ten years.” On Sunday heteld + half-brother, fhomas Baldwin, the pay- ug taller of the bunk, how be had Nyed in Hope thut the discovery of the defuleation vont be postponed until hts father and Vrestdent Hnlsey were dend. Both these atutlemen are aver 8 years of age, und hoe dreaded the ‘effect of tha revelation upon then. Notwithstandiug his deeluration that he would ask no mun to become security for him, Dathwin gave ball as soon ashe could arrange tor it after his arrest, and is now Trev to come and gous ho pleases, subject to the guardianship of Miy bondsmen, During Tho afternogn a rumor was clrenlated on the sirects that CUNISTUPHER NUGENT, who was arrested on Monday night as an ace “qiplice of Baldwin, had committeed sul clde by blowlng out hls bralus, and tie re- port created tho wildest exeltement for a time. A visit to Mr. Nugent's house soon disproved the report, but Nugent hinsetf dechned fo be seen, on the nidvice of his counsel, His brother, James Nugent, was fonnd at the morocco factory in MMalsey street. He tented ipdignantly that the firm had overdrawh — its) aceount in the Merelinnts’ National Bank to the gina. of 32,000,000, and then, When he had couled down somewhat, affected to look atthe entire matter asa huge joke. It was fou nbsiird to suppose that the Nugents had spent such a great suin it eleht years, “1 bogin to think that Batkdwin is insane,” he sald, Inughing, “but. 1 can’t sea why he should have pitched = an our firm In preference to ather —(tepositors iu tho. bank, 1 tell yon what itis, Yon wilt langh at me, Lsnppose, but when the Bank Examiner gets through you wilt ine that the bank owes us. ‘There Is not aman In Newark who beltoves this rldic- ttlous story abont us. Weare running tothe full extent of the eapaelty of aur works, We have made ve assigninent, and, what's more, we are not galing to make any.” THE HON, FREDERICK I. TEESE, the friend and counsel of Christopher Nu- went, said: f shall stan no agreement, mortgage, or any other paper transferring ‘the property of iny cliengto the Mereliants? Natlonat Dank antiPl know more than 1 do now. We suppose we have overdriwn our account, bul fdo not belleve that we owe the bank more than $200,000, and our debt may fail below that amount. ‘That Is about what Nugent thought. his lability when he told Batilwin that he had property enough to mnke it good. It’s on that basis and with that bellef that he has been carry. Ing on tho business, always Intending to pay tp hig overdrafts, ‘The fact Is, Nient isa burly jolly Irishinan, who ought not to he engaged i such an extensive bustiess as he fs, - {le knows nothing abont books or bookkeeping, and he trusted everything to Baktwin. He sent his money, bills recely- able, aud drafts payable to him-at the bank and drewmoney as he needed It. Battwin was, to alt Intents and purposes, Wa taneted man, and they used to meet togothe¥ Jn n MOTORS ESTAURANT, on Market street, which came to be popular- If known as a branch of tho Mechanics’ Na- tional Bank. Nugent gave him checks and drafts signed i blank, aid Batdwin’ fled than up whenever he had need of the money, FT don’t belleve that Nugent had the least ; flea that theso were used to defraud the bank, We shall take no action until we have n re- port-of the condition of the bank. What we shail cdo then will depend upon the nature of that statement.” Daring the day United States District-At- torney Keasby was busy in taking mensures tetransfer the ropa which Nugent is sup- posed fo have twisted around the neck of Ualdwin to that of the moroeco-manntacturer, Me desertbed the steps which he had taken as follows: "Tn his voluntary statement made to ine fast night, My. Baldwin’ asserted that nearly all of tho $2,000,000 or inore whieh he had taken from the bank had been absorbed by irvegular loans madeto C, Nugent &.Co, The hasty examinntion whiche L was able to make —yesterd@. confirmed ine in the opinion that Mr.’ Matdwin had substan: tally tokt the truth iyi fjiis matter, and, on the strenzth of tulsdbelier, I caused the ar- rest of Mr ent last evenlug. 1 con- tinned iny Investigation last night and this Morning, and satisfied myself still further that Buldwin’s story was trac, T seenred froin him the books in which he had kept A PRIVATE ACCOUNT of the trausuettons of Nugent & Co, with the hank through hin. ‘These books showed the amount of netual money and real assets deposited by Nugent In the bank, and also the differences from month to month hetween the funds so deposited and the . nmounts — netually drawn from the bank by Nugent & Co. on their checks, ‘They also oxhibited more or tess distinetly tha manuer in which these deficlenctes wore from thno to time apparently made wool by means of dratts of Nugent & Co, upon parties in’ New York with whom they had no deposits, ancl which drafts Mr. Baldwin would take up in New York with funds of the bank, thus eon- stuntly swelling the amount of Nugent's overdrafts, 1 also obtained the drafts then- selves, and, by neursray examination of them and the-books, [ found that they amounted during thls year jatone to over hale winilifon dollars, Yeune to the conclusion ‘that this money tad been obtained by Nugent fraudulently in complicity with the Cashier, and with a full knowledge thot. It was the bank’s money, TODAY | NOTIFIED MR. NUGENT, through his counsel, that L claim, in behalr of the bank, the entire property, stock, and manufactured artleles now in his factory, as being the property Inte which the money of the bank was frauddtendly converted by hin, and T have demanded that he shall turn this property ull over to the Receiver, who shall be appointed, tn parttal restitution of the amount abstracted by hin and the Cashier, 1 called his attention to the fact that for years past Nugent and he have been supplying the entire eapttal upon whieh their large business is founded by virtually abstracting It from the depositags of the Mechanies’ National Bank In the man- nor now exposed,” “Mr, Keasb: yy, do you Saiove that all this money went Into the house of Nugent & Co, 2 : “Taking the stntement of Nugent’ and Haldwin alone, that of Baldwin is inherently the most Incredible, bnt nny man who exam. ines these payers whieh I have witt bellove it. THE RYSTRM WAS VERY SIMTLE: Kaldwin received from ‘Nugent all the eash tind ail the bills recelyablo obtained through his business, - He always was Inslsting that Nugent should glve hiln ag much as possible, and Nugent did tum everything in Lut he drew out amore than le deposited, ‘lo make the deticlency xooil on the books, Baldwin filled ont notes or drafts, which Nugent gave to lin signed th blank, making them generally for uneven sins, so that they would appenr ta be ors dlnary commercial paper, When they be- came ue he took them up with the money of the bank supposed to be on deposit In Now York.” “What Induced hin to mnke the firat Jonns to Nugent, and this place himself in his power" “Tw usual motlye—s dealre 10 minke 9 tile extra money. Ntigent patd him p com: uilssion oF 1 per. vent on -each foan, and that was a pretty good commis. sion, ff you conbider thea amount Involved, Here we have n delicteney of 32,000,000, which iy supposed to represent. Jouns unpatd, How anuel the loans: have amounted to altogether in the fast year it will requira nu good deal of tnvesti- guting te compute, but it is certuln Mhat, If Baldwin had saved hia commission ou the adynnees innde to Nugent, he would } now haven sung little fortune,” “ Why have no steps beentnken to attach the property of Nugent here as‘ has been alone In Now York 2” *'The laws of New Jersey do not allow tho attachment of the property of residents of the county untess an atiidavit fs mado that they aro about to abseond, We ean only at tach the property of non-residents.” TUE HON, GHORUK A. HALSEY, one of the Directors of the bank, speaking of Baldwin says: “Lhave neyor heard that he.speculuted In stovks, Some two weeks ago Lf asked him if he over spucits lyjed, and hoe toll ima thot ha never iNvested a dollar on the street. If hy had told mie that hodld speculate J should not have looked upon that as any ground for suspicion of his honesty, Baldwin {3a man thut everybody trasted. Le L had been offered 5,000 or 10,000 shares of the bank stock ont ont Sututday T would have taken Hat once, so eontident was Loft the soundaess of the bank and of the integrity of Baldwin, He was the most. trusted financial man ki Newark, and poor people used to take thelr little money to him’ to keep for them, pre- ferring to trust hin rather — than the savings bank, He wasn kind of trust ngeney In the bank, A foorvoman eame to me today in great trouble, and told me she hat glyen her bonds to Baldwin Tor keeping, Ltold hor that f guessed they wer {athe bank, and finally satisted her that they were probably safe. PROPLE OF THIS KIND t Have been running te the bank all day. Of course stich trusts as these do not belong to the money of the bank, and E have no doubt that they will bo found all right. © don't think Baldwin would rob the poor.” “How do you nevount for tho fall of Mr. Raldwin?’? QL bellove that he fs the viellm of his own gout nature He obliged Nugent, and, finally, tha oman got film in his power, and he biada't the courage to sinke off tha ‘yoke. 1 oasked him on Sunday why he did not eome-and tell his troubles to lis friends, when he found that Nugent had a rope nround hin. We would have mato up nm purse of halt a omiltion te save the sbantk, {non moment's — time. Bat when we discovered the condition of alfatrs, there was no bank left to save, Lt was practically wreeked, Baldwin did't have the courage to tell his friends of his trouble until ft was too lute, Had he trusted us in thne, all anight have heen madejright.” “Do you think that Baldwin can be held. to account criminally 2" “We think so, but, of course, we can’t tell yet, Lis noerime to borrow money, If you can get it without giving - security for is payment. ut £ believe that Ws on ferme to Induco a oman to loan you inoney that does not belong to Kim. Nugent know that ho was gettlng the bank's money, tnd he used hls power on Baldwin to force him to continue tis nd- Banees, He mey hava believed — that he could haye eventually replaced this large sum, =o but otf he od he must be a very visionary mau. ‘The bank will certainly do its utmost to bring the knowledge of Baldwin's crime to him, EX-ICDGK CALEN 8. TITSWORTIL, the connsel of Cashier Baldwin, says that his elient beeame Involved through his gooil nature, Meaccommadated Nugent wnitil he was amnble tocxtricate himself. fle said to Judge ‘Titsworth on Monday, “ltl had been a big thief, and absronded with all this Inouey, people would have respected me, As it is, 1 am a fool, and am ready to pay for -my folly” -At the meeting of the Directors on Sunday (tls reported that one of them asked Baldwin If the Examine Ing Committee of the Bonrd hn never asked him to explain why hia enrrled so large 2 batanes In New York. ‘The Examining Counnittee, Baldwin sald, at the examination about three weeks age, were earefal to count, all the bitls Ins $50 or a $100 package to sea that they amounted fo the sam marked, and they counted all the gold, Butthe $2,000,000 reported to be In New York was amere trifle, and they did not bother thelr heads about it. TALK IN NEW YORK. INCKEDULOLS, Spectat Diavateh to The Chteags Tribune, New York, Nov. L—In Wall street today the Newark dofalcation continued te exelte aiively Interest, Cashier Baldwin's denial of the clinrges of stock speculation was not fiecepted as satisfactory, and there wore many who inelined to tho opinion that hls confession © _ was not the whole trath, But among the former friends of the disgraced man there was an Inclination exhibited. to. trust tis -word.ut clreuinted’ number of Newark bankers through the street early In the day, and all wereed that there was every renson to Nelieve that Baldwin “hid mado aw" clean breast ” of the whole matter, aud that he had stated every dollar of his speculations had heon turned over to Nugent. Ilow Nugont dn hisavorecco factory could have disposed of the Immense sums stolen was Qot ex- plained, Mit, RUNYON, of the firm of Martin & Runyon, brokers, of Wall street, sald today that he was quite positive that Mr. Bildwin had never lost a penny In stock operations through his house, On tho contrary, Mr. DBald- win took more money -away from the firm instock’ transuctions than he ever brought to it, ‘The extunt of his operations he could not say. Thoy were, however, quite Umited, antatno time did he betleve thet Mr. Baldwin had’ more than a thou. sand shares, Mr. Baldwin's name figured on the books ns ond of tho concern’s cus- tomers, and nn examination of these would easily determina to whatextent Mr. Baldwin had dabbled In stocks through tis house, Me did not believe that the total sum woul exceed $15,000, “It 1S NONSENSE. lo bollave,” sald ong man, “that tho Castor was the only guilty party In the defateation, ‘There fs no bank in tho elvilized world where ona of tho omployés coult steal $500,000 without the. knowledge of tho Directors. ‘Chis steal has been a systematic one, and you enn rely upon it that the Die rectors of the bank or other persons are im- plicated to asgreat an extent ns the Cashier,” A NICE POINT was bronght up today, which shows how tho Cashier had won the confidences of his em- ployers, [t is reported, and on good au- thorlty, that Baldwin’s bondsmen have not renewed thelr bonds within fifteen years. ‘This being the ense, the sutetles are no Jonger responsible, and eannot be brought to neeount for his rallty, for, according to (he Jaws of Now Jersey, bonds are required to be renowed every seven years, Afterthat Unto elupses the sureties are void, and the bondsimen frecd from nj responsibility, - CAUSED BY STOCK SPECULATION. To the Western Assuctated Pres, New York, Nov, 1.—Tho Post. says; Tt is now understood that the Mechanics’ Na- flonal Bunk of Newark loses by its Cashier about $2,600,000, ‘The alleged use of the money by hin 1s even more amazing than the amount taken, and there Is renson for donbt- ing whether a true explaination of tha dispo- sition of the funds has yet been muda, AL the same tino nothing lus come to Nght hh Wall street which shows that the money was fost In Stuck Exchange speculations, ‘The fear that there would be a runon the savings- banks In New Jersey hws not yet been renlized,. Early yesterday morning a repre- sentitlve of the Bvening Past meta gentle- man who inquired If there was not a rumor of trouble ina Newark bank, Belng told that suche report was current, ho sald, shine ply: * Mechanics’? %Yes, ‘Then,’ sald he, ‘it is because it las been robbel by its Cushior, and the money has gone In stock speculution,’ “On turther inquiry the gentioman salddhat in wcertain building, not remote from tho Mechanies’ Bank, which bullding was under controt of the defaulting Cashier and some uf his frlends, a person hid for some timaocen- pled nn oflica whieh sulted him entirely, and which he was not disposed té vacnte, when, to his astonishment, be was requested to aur- rondgr it, but he was offered finer snd more attractive quartons In the same building ata lower rent, and, of course, willlogly accopt- ud, The transiction becoming known was thought ta bo queer, und naturally provoked dnquiry and observation, ‘Thun'lt was found thata ‘ticker’ and « telephone communleu- tlon with Wall street hud beon’ put luto the room, which was furthermore connested by @ speaking tube with the not remote banking- house, ‘‘Lherentter the Custer aud some of ‘teply giving “Information “whieh his friends were coustant visite room, and the person who tells th avers that he shortly ‘gave up? chontes’ Bank and looked pon a erast i ly asa matter of thine. This Is direetly froin & man who had unustal opportunity of knowing and observing. [tis nbsolutely con- tradleted by the statements of the Cashier, and with tho brokers with whom he fx re- ported to be most intimately comnucted. 1 now seems likely that there will be entirely new ond surprising devetopments within a few Unys, which will Involve others besides the Cashtor”? KNOWN A MONTIT AGO, ‘The Erpress sa} “A gentleman well fequalnted with tho condition of the leading woneyed Institutions of the city sald this afternoon that knowledge of the Newark bank’s condition was on Wall streets month no, Hosatd the paying teller of one of tho most prominent banks on lower Broadway told tum three weeks ngo a messenger frum a nelghboring bank rushed inte the efice ant blurted ou “Thore's a ble hole in the Me- clianles’ bank of Newark to he made up. Look aut; stand from under? ‘Phe teller was pay- ing out when he heard the intelligence, ful toll the messenger to be silent, as he was clrenlating a report damaging not alohe fo the Newark tnstitution, but also to the city tanks, ‘The mossenger nfterward con- Armed what We had salt) py remarking that arumor hid Just got among the clerks of his bank, and fie thought ita good piece of news, “This,” satd the gentleman, “Ll have from the payny-teller himsolf, and 1 have good reason fo believe him,’ ? STONES CIRCULATED, Nunerous ‘stories were in circulation In Walland Broa, streets during the forenoon about Baldwin's ventures In stocks, but, strangely’ enough, diligent Inquiries failed to place the firms with whom he is alleged to have dealings. Detectives were also engaged avith ws stinilar object in vidw at the tnstign- tlon, so it iy sald, of the Directors of the erlppled bank; but if they have been suc- cessful It ts known only to themselves, President Sherman, of the Mechanics’ Na- tlonal Bank of this city, said: “ We are secured by collateral for the over- drafts of $267,000 of tho Mechantes’ Bank of Newark, I don’t belleve Baidwin’s story that hoe suuk $2,500,000 In the Nugent firm, not abit of it Thé moro I loot into the af falr the.more Lam convinced that they gam- bied together.’* Mr. Cox, Casiiter of the Mercliants’ Nation- al Bank.of this city, who was sent to Newark yesterday to examine Into the affairs of the wrecked concern, colncided with Mr. Sher- man In this view, Ie declined to give a de- talled story of. the result of bis.discoverles, but seknowledgel that about all that had been sata about tho bank wns true. It 4 incomprehensible to him that suel a vast stun could have been taken from the Me- chanles’ Bank without on earlier discovery, So far as ho could learn, there was but Std, od cash in the bank yesteritay. What other particulars ho ascertained were given to the ofllcers of hls own bank. ry CONTROLER KNOX. HE ADMITS THAT ‘THE GOVERNMENT 15 POWERLESS AGAINT THIEVES, Sptctat Dispatch to Me Chicago Tribune. Wasitnaton, D, C., Nov, L—The fallure of the Newark Navonal Bank naturally gives tho Controller of tho Currency some con- cern, ‘The bank was thoroughly examined one year ago by ncowpetent exaniiner, and, upon reviewing his conduct,. it cannot now he discovered thnt he made any error, une leas it was an error not to have examined the accounts: of the correspondent of- tho bank tn Now York City. [t seem that the suspicions of the Bank Examiner wero then directed towards an account snid to bea eredit in the New York bauk; that he wrote ‘note to the Cashier of the bank, asking for astatement, it order that. ho might compre it with the bodks of the Newark bank, and recetved what’ he supposed te be rnote in was in harmony with the statements of the Cashicr of the Newark bani. IT NOW APPRANS that he recelvei ihis statement of the New- ark bank at the hands of the Cashier of the Newark bank ina sesled envelope, the Inte ter stating that he was requested to hand it te him, and It also appenrs that the default- ing Cashier of the Newark brink a yenr ago was present at the New York bank nt the ‘thie -this Inquiry wag received from the Bank Examiner; that Baldwin, tha Newark Cashier, then stole n letter-head, wrote 0 differant explanation from that witch the Now York Caslilor had prepared, forged tho Cushler’s name to it, and deliy- ered this fraudulent statement to tho Government Examiner, If the Examtnor hid gone in person to the Now York bank and anade his own Investigation, as 16 doubtless was hls duty to have done, he might then have discovered something which would have resulted in ‘ AN EXPOSURE OF BALDWIN'S PRACTICES twelve months earlier. Instead of this the Government Examiner relled upon a totter of tho New York Cashier which ho supposed tobo genuine, but which ‘proves’ to have been a forgery. Controller Knox said, how- ever, todny that it was Impossible for the Controller of the Currency to statton Bank Exautners as policemen in every bank tu the conntry, and that if tho stockholders did not require bank Directors to do thely duty and understand their bustness lt was dificult to see what tho Government could clo, > DHE TIIBE, HE PROCLAIMS IIMBELF A FOOL, INSTEAD OF A KNAYE, Newank, N.d., Nov. L—Judge Titsworth, counsel for Baldwin, stated to the District Attorney that Baldwin received t per cent commission from Nugent for negotiating his paper and-taking chargo of his banking busi- ness, ‘Tho counsel sald he believed his ellent would be enabled to prove the truth of all he had said tn his confession with regard to the transactions of C. Nugent & Co. with the bank, It has already been nseertatned that during August, Septembor, and October the firm had drawn frome tho bank nenrly $500,000, Me thought tte figures were about $470,000, With such drafts ns this, It would not tnke long to draw ont $2,000,000, Of course, there had beon some monvy patd Snto Ute bank by Nugont & Co., but tha pay- tients did not reach 50 per cent of the drafts, Jadge Titsworth also sald that there was A NO TRUTIE WHATEVER In the Atatement thateBaldwin had used any of the bank's money in Wall street specula- Yon, “In faet?? he says, “Baldwin himself ald, 1 making his confession, ‘If 1} had bean knave enough lo uso the fundsof the bank Instock speeutations, Instead of making an egeregions fool of myself, us L have done, | ight possibly have received some syinpa: thy. Mon may have somé Ittle adintration for akuave, but they lave nothing but von- tompt for a fool,’ Batdwin toll me yeater- day that he did not wake up his wind until Inte Suturday alghtto divulge the story of the defaleation to the Directors, Upto that timo he had hoped to tide matters aver, Sut- urday morning he visited tho Mechanics’ Bunk of NewYork, whore: tho securities were doponitod ns collateral for $400,000 over- alrawn, and trled to negotiate for thelr re- turn. He was told the secutitics would be sentoyer that evening. Late, howayer, in the afternoon, hw recolved a imessago that any nogutiations for the return of the sectirl- {ids nuiist be nade out and cojpluted ay the bank iu New Yorks Io thon kuew there was ia i 5 NO HOPe TO COVER UP HIS TRANSACTIONS from the scrutiny of the Bank Examiner, whose work commenced Montay, Io there- fore concluded to confess tg the Directors Sunday, which he accordingly cd. Ifo cal the whole story without reservation, and assérts that he as a huga bundly of Christo- pher Nugent's notes to wrove the truth of his a edt te hitth, He sta ho had hac the courage he wontd hif¥etaken hisown Ife rather thin face the shine of hiseriine.” Judeu Titsworth further sald: 1 had event diewlty In getting hin to neeopt ball Te thought his action had necessarily de- d Wine ef friends, and ha expressed willingness to go atonce to jal. E told hin ho stili had Crionds, and certainly be could be of no woud beliind the bars, for his sery- fees would be needed fn settling up the affairs of the bauk, Undor these efreum: stances, le consented to Iet me secure bail for hihi”. _ BALDWIN’S COMPLOT. Nw It scoms United States Dintriet-Atton ensby beenmo sat- istied, after a hasty exmuination of the books ‘Df tho Mechanics’ Sank and the papers re- Jatlng to Nugentg& Co, surrendered by Cashier Baldwin this voluntary atatument, wero substantiaily true, Henee he mato the demand on Judge Teese, Nugent's: counsel, that the property now In the hands of C, Nu- gent & Co, be niediately surrendered toa Receiver, In partial restitution © of- the amounts abstracted by Nugent in complietty with Baldwin. ‘The Distvict-Attorney ex. hibited to Teese somo papers on which tho elain is based, and inalsted that tho goods now in the factory were produced -by the ap- pliention of moneys drawn from the bank, ant were In fret the property of the bank. ‘Teesy asked to bo allowed to have an expert examine the matter, and pledged hhnself that the property should be teft widisturbed until the examination was completed and he could give answer, NUGENT'S REPLY. Counsel for C, Nugent. sald ho would ho able to show Baldwin's confession false. C, Nugent & Co. tnd: not drawn any such Amount ag $2,000,000 in excess of thetreredits, and he doubted even If the excess would bo one-tenth of that amount. ‘The firm wis waking up from its own books a stitement of the moneys pald In and drawn out of the bank for a number of years, past, and this, he thought, would offset the banks figures, CG Nugent & Co, had not mato an assign inent, nor do they intend todo so, ‘Thastory that the bank was to be a preferred creditor Was ntlso mn error. At present, it was the intention of Nugent & Co. to remain stilt and abide events, when it would bo found the people find been mls Tel ns to the way tho money had kone, When informed that thebank clatmed that U. Nugent & Co. had drawn nearly $500,- 000 In tha past three mouths, comsel snd the firm, ‘which employed 00 hands’ day and night, would have a largo pay-roll; and that alone was over $50,000 per month. ‘Then there was tmaterial te be purchased, and other expenses. But was it not likely that there would be SOME RECEIPTS TO COUNTERNALANCE TIS LARGE SDITULE? All the money received went Into the Mea chanics Bank, and this was whit the state nent now being made out by the firm is to show. ‘The fact of the wholo affair Is that Duldwh was financial manuger of the firm and had been for sboutelzht years. Neither Christopher'nor Jahes Nugent were tinn- clers nor clalned to be, and Baldwin had x power of attorney to fl up signed notes and checks. low easy it would bo for hin to fill upsuch notes and place them among the bank's papers instead of «depositing receipts of tha firm to thelr eredit! The pass-book would show notes ty deposits, and the firm know nothing xbout it, A friend of Cashier Baldwin’ said he was with him on the day Garfield was buried, and heard the former ask C. Nugeut for money, Nugent said he had a large quuntity of material mate up, and would soon be enabled to pay in about $200,000, ‘This, he thought, was evidence that Nugent ktiew his account had been overdrawn 40,0 large amount. Baldwin was very palo whon-he spoketo Nugent, as If he was suffering from great mixtaty, E, M. Douglass, Cashier of the Cermanin National Bank, sald In conversation with a reporter: “ft has been the talk of the city four or five years past that Nugent & Co, had been UPIRLD HY DALDWIN, Cashier of the Mechunies’ Bank,-y Baldwin was practlenily raised in the bank, Ife wag spoken of by everybody, President, Seera- tary, and Tellers, as ‘Oscar, and everything was referred to hlin, No, 1 do uot think this wil causo any Inconventence to other banks. 1 thin the only firm sertously in- convdnieneed Is Nugent & Co, It Is suld {iis morning that they have suspended, ant, itthis Is.truc, L doubt If thelr ereditors ‘get more than 25 cents on the dollar? When asked whether he belleved Casht& Baldwin's statemant that all the xmount withdrawn from the bank been loaned’ to Nugent & Co, was true, Douglass sald: 1 do not. Dildwit made suml-weekly visits to Wall. street, and [tls more than probable that fully eight or nino-tentns of tho sum which tw abstracted from the bank wagsunk In stock speculation.” ty GHORGE WILKINSON, s President of the Muntfaeturers” National ] Bank, and John HH, Kase, Presldent of the Second Natlonal Bank, cortovorated what Douglass sald. Mr. Kaso sald, In the course of further conversation: “I do not think Nugent «& Co, are go heavily involved us Butdwin would like to have people bellave, Nugent sald tls morning that he was notin- debted to the Mechunles' Bank for more than $200,000 or $220,000, and he did hot propose to turn over his entire assets to the Mu- chanics’ Bank: that, If he was compelled to make an assignment, he woul do go on equitabia terms with all his creditors, but tiat he hoped to be ‘able to resume business fu a week or two.” + a DISTHICT-ATTOUNEY KEABLY, Investigating the account of Nugert & Co, with the bank, up te noon discovered that tho firm had drAwn fromthe bunk, on checks, more than $1,500,000 sinto Jan. 13 and he ts endeavoring to find what amounts of de. basits have been made to mect these drafts, lly had found deposits amounting to $150,000 dn Septeinber and October, : Kenshy said to the reporter, and ho spoke very entnestly: “Nugent has had a ropo around tho Cashier's necky but now Ihave one around his, and J intend to draw tt ght.’ ft) ‘Lhe cottnsel for Nugont sald his ellent was fn the habit of leaving blank drafts at the bank, and that the Cnshfur filled thom up With amounts to guilt iineelf, and used them In Wall street speculations, NUGENTS DRAFTS For 18881, United States District-Attorney, Kenaby to- night makes the following statomenta of drafts and deposits by Nugent in the bank luring 1881; Sienasti 0 seh 7,000 + aX ‘Total amount of drafts for this yoar, $1,- 508,000; and deposits, 300 weedy GBNERAL EXOITEMBNT, TALK AT THK BTHERISCOUNERS, Newari, Nid. Nov. L—Tho excitement over the bunk fallure continues, aud rumors of other faliures and other arrests aro rite, but so farnscan bo nscetained are without founitation, altjiough names of corpurntions and Individuals are freoly mentioned, A careful gxamjuntion leads tg the belief that tho-heaviest lovers by the Mechanics’ Nu- tional Bank are the mon inost able to bear their loasey, and that any fallures that may come Will bé wnohw the smaller depos!tora, |} whose business ituy uot be able to continue Whily thelr uous, two-thirds of - which Hl ben total toys, ts fo a He celver—most. of whose nssetst wre. mort xagos aud other reat astate not redlly eon- yortibte, Tho heaviest depositors are the Clty of Nowark, the Mutual Benellt Life-In- sitrance Association, the brewery firms of Jialbachs, Kreugers, Monsters, afd Balan tynes, the Listers Phospliate Monutaeturing Company, the State Banking Company, the Chirk ‘Thread Works, and *others of nctass not Ikely greatly to feel thelr losses, Ont: private Individual is said to have deposited $60,000 n fow days ago, the loss of whiely ‘ WOULD RUIN TIM. - Presldont Schicknaus and Controller Cyét- Jor, of tho State Banking Company, without Stating what thelr foss was, satd that it could hot embarrass thom, and that the amount de-: posited In tho Inst twenty-four hours had heen larger thin for the corresponding perlod lust week, ‘There tind been no tndfentions® of a ren, and they feared none, 1.33, Schenck, the booxkeeper of Lister Lros,, ‘sid that tt was a misteka to suppose that they would be embarrassed or even considerable losers, Thoy had taken thelr accounts from tho = Mechanics’ Bank three ~monthy ago, and only kept a, moilerate balanee there, the bul of thelr money having been placed elsewhere, although the change tn accounts had been for purely buslacss rea sons, and not beeause they belleved the bank unsound, ‘They had patd thelr hands a month's salary Inst night without embar- rassinont, and did not think the amount of thelr deposit was grenter than the small amount of thetr paper hell by the hank, ‘The elty is temporarily bankrupt, so far as ready money 13 concerned—n statement which, repeated from mouth to month, causes asiiile, ‘Tho bani held the accounts of the Stuking Fund Comutssioners, of the Aqueduct Board, and of the Clty ‘Treasurer, ‘The two Intter hac obligations which acertedt yesterday and today, and to meet whieh they hud to have money at once, ‘They all ine stantly transferred thofr accounts to the Na- tonal’ State Bank, which advanced $50,000 yesterday and another $50,000 today. ‘The bank will advance all the elty may want. IN THE WRECK of the Mechanics’ Natlooal Bank of Newark what strikes busInass-inen , as. strange fs that tho Directors first and tho Bank- Examiner next should never have thought It worth while to verlfy the statement of Cashler Baldwin that the bank had over $2,000,000 on deposit at its New York agent's. Tho attempt to verify this would have exploded the deception nt onee, and it is sald that when there wag an'item of this Kind nbout flye times the umount of the capital, ft would have been thought a vert fication would Have been. made. There is yet no renson for’ belleving te rumor that sine of the Direeturs knew more about the matter than they now admit. WIMINEAS JONES, ‘ one of the bondsmen for Baldwin, was ina belter frame of mind thls afternoon, He sald he couta not tell now who were on the bond with himself, as It was su tong ago, ald he had had no previous eanse to think: over the milter. Ile supposed he would have to make good the amount of his bond (820,000), and he was gind I was not-more, as it might easily have been, such was his confidence in Baldwin's finegrity, ‘he ‘Prestdent of tho bank, George «A. Halsey, suid so much cont dence was placed fn Baldwin that his bond was noteyen thought of untit this trouble occurred, A Direetor bag returned from Washington, where he saw the Controller of the Cuireney, The Intter Is: salt to havo been greatly ainnzed nt tha failure, haying hada very high ovinton of Batdwine A WALSEY, of the firm of Iulsoy & Smith, morocco manufacturers, sald this morning: “The Mechantes’ Bank was founded by my uncle, the present President, who is now 86 years of ure, He ls been unable for severn! yoars to altend to the affairs of the institu tlon, and seven years ago howished to To. tlre, dbut.,the .carnest: isolleltations.. of 9th Caster prevalled, and ,he retained . hls. lon”? ‘The story of tho suspenston gave rise to RUMONS IN TENS EY CIEY. that some banks would be hnrt there by the failure, Inquiry brought positive denials of the story. ‘The transactions of the First Natlonal were larger than those of any other Jersey City bank, but tha balance oither way atany tine was, E. FC, Young, the resi dént, suys, very sinall, “Young, who knew Baldwin, says he was not na fast fiver, He had never known lim to do ay speculnting, and he Is inclined to belleve Baldwin's story that Nugent & Co. pulled him down, One necullarity of Baldwin's stitemont; however, nttracted his attention. Baldwin says that “almost” all lly In debtedness to the bank [3 eqvered by nd- vances to Nugent & Co, Tho qualifying’ word may mean much or Htte. Young says, foo, Baldwin was one of: the most neute finunelors In the Stuté, ‘There is a rumor in darsey City that the Contral Railroad Com. pany of Now Jorséy had a yery large amount on deposit In the bunk. NI GOVERNMENT-EXAMINEM, H. 8. Shelley, expects ta complete hls work tomorrow, but cannot toll exactly when ho will forward his report to the Controller of the Currency, ‘There seoms no doubt, from the aduissions of the Examiner, 28 woll ag the statemonts of Baldwin and others, that the depositors cannot realize more than 50 percent, while sharcholders loso all, and must pay 100 per cont beside. ‘The stock- holders nro generally nen of erent wealth though there are fustances where the losses will be sovere, and, In the cnsea of sume fe- iuale holders, almost ruinous, ATTACUMENT, 5 “On behalf of the Peopte's Bank and Corn Exchange Bank of New York City, the prop- erty of the Mechanics’ National Bunk of Newarl in the hands of the Mechanies’ Na- tlonal Bank of New York has been at- tached, TNE DIRECTORS SIADOWED, It is stated that detectives are “stindaw- ing” the Directors, and that powerful iniine ences ave at work fo provent thely arrest. IL 4s bolloved that they will he Indicted for neg- ligonce, If not something worse, A Prw 4 OF. THE GOOD MEN WHO HAVE GONB WONQ, LEAVING OUT MANY BRIGHT NAMES, BUCH AS ALLEN, MYEMUS, HUGG, Ce Special Mupdtch to The Chicago Tribune New Youn, Noy, L—1t ty unndeessary at this time to recall the catalog of rascalities in this country during tho past glx or seven years, With hardly an exteption every one of the men concerned’ in tho frauds and to have stood as weil In tho community ns Baldwin, Commencing with Carieton, Sec- retary of the Union ‘Trust, nearly all of the men engaged in robbing the publis enjoyed the reputation of being good citizens, Gi Carteton . feene saseeontrar ee 68 400,000 Charles 11. Phelps, Cuabler of th eo 4 ‘Vroagury Hopae tient, nt Albany » 300,000 J.C, Dunvan, Hunk Prosident, San Fran- om Biephuit Warsi Uiablor af Gouin. OY ola ; 99,000 jal National Hunk, Providence, ity maurer of Cl David Gage, Ul 'Theadore . Trensiror of Obie The WaterCommissionor, of Pittaburg, Henry Nichott, she Execu- tive Committeo of the Rar Associa Hart Of NOW Yorks... ..0e sees oe Abraham Juckson, Inwyor and dent, Boston, Masa... Jobu K, Morton, Phil 500,000, 00 Preate “ Hd. Winslow, Boston, Muss. Bib! Booneon’ Golem 00,000 . 1), Sponcor, Chivaso. + a Jobn Ce itraoy, Hank Prosidont, Warte 1. - ford, Conny, fa of accounts: New Vark, Over. «100,000 feel LOCAL veisssesreseconssens sre ceey etsy 400,000 ‘Tho fact that these nen wore ull educated, pighiy respectable cillzens, ta well. caleu- ry nted to sin 6 confidence all njen. Ja- trusted with’ tha tuanagement of fnaiicial Inatitutions, * ———— a “ARCHBISHOP PURCELL; * CINCINNATT, Uy, Nov, LA rumor hav vison that Archbishop ‘Purgell Was at he pylutof death at tho. Ussullue Convent Jn robberles fre found-]- Ir County nd, elite r Catholte Teleavaph, says At is naire the that the Archbishop ty in reat better ett dition than he was at few months age ar nad is fpearly ss, nel pa tiv “tl whith! ainkes It probable that lis det ‘distant, Ws not tat | MICHIGAN. SHERIPrs, Organization of un Society fo; Henetit tu Netectine and Capel Inwhrenkers, Hug vrctal Dispatch to Tha Chteago Trip ) Onasn Raping, Mich, Nov. LA eng Pt of te Shoritts aud thelr Deputlos in A State was Hold here today, and 4 Sinte Ster. is’ Association was formed, whieh Was ‘Joined by sixty members, ‘The Interest i “the convention was great and the Procedting harmontous, ‘The followlng otters, t¢ sete ong year, were chosen? President, Charteg Lilwell, Shertif of Lenawee!County; Vice. ; Presttents, fatag Grant, Sherhit of Lake + Cotintys Clark IL Smith, Sherif of Sinwas. kee County; John Vanpel, Sherlif of Ottarra, County; Seeretary, Walter S, Gee, Deputy of Kunt County; ‘Treasurer, sot Perry, Under. Sherk of Kent County; Executive Coming. tee, Isane f* Lamorénux, Sherif of Kent County: John Perry and Watters, Gee, of this elty, "Phe issociation Is to. hold regular semb-annual ‘meetings, Ip entered, atpon the praetleal discussion of Measty for mnutial assisianes in eatehing ctliinae and its devices will doubtless prove of mine litility. Among othor things is au arrange nent for whag is called a Postal List," gon. taining sy names of all the Sheritis and Dep atfes*uticlent Constables and policemen, Iiveryinen, and others, who, from the nature of their business, are usetut to detectise with thelr post-oflices, a copy uf whieh (std be placed Thi, eaelt meanbers hands to facth. {ute corresyolutence or tolegrapling in trae ing or, pursuing a thief. A uniform batigg was nilapted. Other matters bertalitng to ollelal duties, fees, ul courtesieg to twere amicably considered, The new hh ‘ospects, suclety starts. v LIEUT. FLIPPER, Aecsumptlon of Win ‘Lrinl by Courts Martintat Kort Davin, ‘Tox, Speeta Dispateh to The Chicago Tridun,, Four Davis, Tex, Nov. L—The genera court-martial for tho trial of Second-Liey. fenant 11,0. Ellpper (colored), Tenth Cay. alry, met today pursuant to preylous ad Journment, and the court was duly Organs Wed. Cant. Merritt Burkett, Sixteenth Jp. fantry, appenred as counsel for the accused, Stnee last adjournment In Soptomber Lieut, Cot. James Vanvoost, Sixteenth Infant was detailed as an additional member of the court, and upon taking tits sent Was objected to by the accused, claiming that it was in proper and an dujustice ‘to hin, to add new members to the court at. thls tine, ‘Tho dudge-Advoeate, in xeply, clalined that the? detalling of . new Members of wv vourt-nartial was thoroughly estab Alshed by preeedent and practice, . and thy asthe aceused hid not been formally ap ralgned, and ns‘ he still had the right of challenging, his rights wera tint jeopardized, ‘The ourt proceeded to. sustain the chat lenge on tho ground that aecused wag not sntisiied to submit the ease to the coitt as now constituted with the addition of the challenged member, but not on tho ground of-adding a new member was improper or sez ‘THe court thon adjourned until the ad Inst. zs ee i HANNIBAL HAMLIN, Complimontary Diiner Given Hla by Hoxton Kriongs, Bpectal Dispatch to The Chicago Tribune. Bostos, Mass,, Nov. 1.—Iannlbal Hamil, United States Minister to Spaln, was giver acofnplimentiary dinner tonlght by anum ber of local Government oficiats and per sonal frlends here. ‘here were lots of speeches, but-the most frterestinue was by the venerable politiclan hhnself, who spoke tf some detall of the clrewmstanees of hls lear ing, the enston-house, saying that he coud Wot entertain the views held by Fresiden Jolson, nor stand upon the. same. ground polttionttyy, Ant therefore he resigned the (oe ectorstlp, Tho personal reminiscences were Skpressed very gracefully and feelingly, tr persed nc Mls, speeeli » were , alse: per sonal anecdotes, some of then relating to Washington fife, Speaking of his lastap polntinent, le sittd with modesty that, though fw had been neeredited to so nnclenta mon rely as Spatn, he hoped to necompltsh some good ends, He sald thit he should endeavor to romata commercial relations between Spaln and her provinces, ehally Cubs, which are now under many restrictions, fle spoke enrnestly upon tls elute, aud showed an evident tiindlarity with the needs of commercial intercourse between this coun try and Spaln and her dependencies, CONTAGIOUS DISEASE, , Alarm at South Elgin, Special Duevarcn to The Chicago Tribune, Sour Enats, U1, Nov. 1,—The smalt-por seare his reached South Elgin, ‘The grounds fur alarin origluite, from the fact that sev eral young pedple of this placd Were quite recently exposed to the disease while atten ing school nt Ligin, As yot no vases have broken out here, wid every precaution Is be, Ing taken to. prevent tho entertainment of the disease, Vuceinatlon is the order of the day. * Epldemic Diorrhea, — Speciat Dispatch to The Chical Bepronp, Ind, Oet.; 31. threa. weeks ain epidemic dtarrhea has ben prevailing in this part of the State, caused, no doubt, by the unusial warm weather at this senson. Wille there have been no fatal cases reported, tho @isuase Hag a most weit ening eifect ypon those su unfortunate a9 & be attneked with it. A day or so since ont physlelin had over fifty cases under his cars MATRIMONIAL. Woadings at Decatur and Marom, Dh Spectat Dispatch to Tre Chicago Trikuna Decatur, UL, Nov. 1.—This evening Der uty Marshal Kearney and Miss Mary Hally were «married nt the. Catholle chureh bY Fathor Muaokin, ond at Maros wil Sterdly, editor of the Maron News, and Miss Houle tut, daughter of dames Iuft, were jolned together in marriage this utternoon ——— VALUABLE GOLD DISCOVERY... Denven, Colu,, Nov. 1—One of the ne gold-bearing mineral dlscoverles was rr Ty wade in Sunnnlt District, this State, y Judge Thonias M. Bowon, of Del Norte, Cola William IL Stevens, a celebrated mining 6 pert, having visited, and examine = ming, pronounces it the moat ai ablo~ aud, valuable“ gold lie ay worked th thé” United States. A fry now running over 20,000 in gold pera ‘the product.of the mie troma ifteonst 4 mill averages about $100,000 pe moni ‘a gold and tailings from tha ill fi Bowen Nat Feoantly offerud. $: cash. by Steen capitalists for a half interest lo thoproper which He refused, ‘The aiscovery ha: on ated considerable oxcitument in minlog cles, pane BOSTON'S WORLD'S FAIR. Bosro, Noy, 1.—Tho Executive Commitee on the Worlkl’s Fair met yesterday, agreed upon the form ofa ciroutar to Hes dressed to three leading representatives | each class of business and trade and In ‘ett profession, Encournging asguirances © iven by members of the comuittec, NK the fleve the project Is heartll indorsed Nady pully. . Subsoei pion books will aster Nov, d+ B ———a ae KNIGHTS OF PYTHIAS. Spesiat Dispatch to The Chicago TrOUNG Mesgix, Ind, Nov. 1.—Welcone tty, No, 87% Knights of Pythlas, of eee day tendered a. bauquet to Hye eet Blution, Ktehmond, and Neweastle te 5 Atso'clock o welcoming address was Dae ored by Jolin It. MacMahon, with a ree by Osear Bayl of Frankfort an dtd a wat fll that A iu wi or Hon faney drili wus given after tiie speakiae OCEAN STEAMSHIP NEWS. New Yo Nov, 1Arrived— The Ey {an Mowaren, from London; tho T. i from Rotterdaw; the Vandulia, from ay Nov, 1—Arrived—The Perel frou New Xork, ts '